A recent survey shows that Hong Kong’s per capita wealth has grown by over 5% annually, reaching over 580,000 US dollars, ranking third globally. However, the distribution of actual wealth in Hong Kong leans towards the upper echelons of society. Analysts believe that the influx of funds from mainland China has boosted Hong Kong’s average wealth but has not made Hong Kong truly prosperous, as individuals with high net worth can leave at any time.
According to the latest Global Wealth Report 2024 released by the multinational bank UBS Group on July 10, the average wealth of Hong Kong adults increased by 5.5% in 2023, reaching 582,000 US dollars, ranking third globally after Switzerland and Luxembourg. The median wealth of Hong Kong residents also rose by 2.2% to 206,900 US dollars, ranking fourth globally.
While the per capita wealth in Hong Kong last year saw a higher increase compared to the median wealth growth, indicating an overall increase in wealth across different income brackets, the wealth growth of high-income individuals outpaced that of the lower-income groups.
The report defines wealth as assets minus debts, with assets including real estate, stocks, bonds, and other financial assets.
Wu Zhuoyin, a senior economist at a French international trade bank in the Asia-Pacific region, pointed out that during the boom period of the property market, rising property prices drove wealth growth. However, the current structure of the property market has changed, with the upward trend not as strong as before. The increase in wealth may now come from the growth in stocks and other financial assets.
The inflow of wealthy individuals from mainland China is also a factor contributing to Hong Kong’s wealth growth. Financial Secretary Chan Mo-po revealed in a blog post on January 14 that with the preliminary figures from December 2023 included, Hong Kong’s total deposits were expected to increase by over 5% for the whole year. Approximately 250 billion Hong Kong dollars (32 billion US dollars) flowed into the Hong Kong stock market through the “Southbound Trading” channel.
Editor Shishan of the media organization believes that despite Hong Kong’s economic downturn, facing declining stocks, reduced IPOs, and a weakening property market, wealth is still flowing towards the upper echelons of society. The most straightforward reason for this is the significant number of high net worth individuals from mainland China moving to Hong Kong.
In recent years, the Hong Kong government has vigorously promoted the Quality Migrant Admission Scheme to offset the recent significant population loss. According to the number of approved applications for the Quality Migrant Admission Scheme announced by the Secretary for Labour and Welfare, Sun Yuhua, at the end of 2023, individuals from mainland China accounted for 94.5% of the total approved cases.
Secretary for Constitutional and Mainland Affairs Patrick Chin stated in March that according to estimates, the Quality Migrant Admission Scheme contributes approximately 34 billion Hong Kong dollars (4.35 billion US dollars) to Hong Kong’s economy annually, equivalent to about 1.2% of the Gross Domestic Product.
Shishan believes that these so-called economic contributions are only “superficial.” “Hong Kong has not become wealthy because of this, as these high net worth individuals can leave at any time without leaving their money in Hong Kong.”
“In fact, many mainland Chinese immigrants who come to Hong Kong transfer their assets here but are also actively moving their assets overseas because they are well aware of what could happen in China in the future. After obtaining residency in Hong Kong, they can leave at any time in case of an emergency,” he said.