Synopsis
This report is the result of Company’s extensive research covering the HNWI population and Wealth Management industry in Hong Kong. This report provides detailed figures on the current and expected HNWI asset allocations of Hong Kong’s HNWI to 2015.

Executive Summary
This report provides the latest asset allocations of Hong Kong’s HNWI. The report also includes projections of the volume, wealth and asset allocation of Hong Kong’s HNWI to 2015 and a comprehensive and robust background of the local economy, including, uniquely, detailed analysis of economic and political risks to HNWI wealth creation

Scope
The report features:
• Independent market sizing of Hong Kong’s HNWI
• Volume, wealth and allocation trends from 2007 to 2011 • Volume, wealth and allocation forecasts to 2015
• Current insights into the drivers of HNWI wealth

Reasons To Buy
• The Company HNWI Database is an unparalleled resource and the leading database of its kind. Compiled and curated by a team of expert research specialists, the HNWI Database comprises up to one hundred data-points on over 100,000 HNWI around the world. With the HNWI Database as the foundation for our research and analysis, we are able obtain an unsurpassed level of granularity, insight and authority on the HNWI universe in each of the countries and regions we cover.
• Comprehensive forecasts to 2015.

Key Highlights
• There are over 184,700 HNWIs in Hong Kong with an average wealth of US$4.6 million per person and a combined wealth of US$845 billion. After Singapore, Hong Kong has the second highest population density of HNWI in the world, with approximately 1 in 40 people from Hong Kong being HNWIs.
• Real estate is the largest asset class for HNWIs in Hong Kong, which accounts for 31% of total HNWI assets, followed by business interests, which accounts for 22% of assets.
• Real estate and alternatives were the best performing asset classes over the review period (2007-2011), driven by strong local property markets, an influx of investors from mainland China and the rise in commodity prices.
• Over the forecast period, Company expects a movement away from property assets and towards equities. Alternative allocations are also projected to increase substantially, as investors increase hedge fund, private equity and, in particular, holdings of collectables. Cash holdings will decline slightly while fixed income allocations will be boosted by the emergence of the dim sum market.

1 Introduction
1.1 What is this Report About?
2 Executive Summary
3 Wealth Sector Fundamentals
3.1 Political Background of the Wealth Sector
3.2 Economic Background to the Wealth Sector
3.3 Benchmarking Hong Kong Wealth in Context
4 Analysis of Hong Kong HNWI Investments
4.1 Analysis by Asset Class
4.1.1 Changing trends in liquid assets – equity, fixed-income and cash and deposits
4.1.2 Trends in alternative assets
4.1.3 Trends in “art, wine and wheels”
4.1.4 Trends of investments in real estate
4.1.5 Trends of investments in cash and deposits
4.1.6 Trends of investments in fixed income
4.1.7 Trends of investments in equity
4.1.8 Trends of investments in business interest
4.2 Analysis of foreign investments
4.2.1 Trend of investments in mainland China
4.2.2 Trend of investments in rest of the Asia-Pacific region
4.2.3 Trend of investments in North America and Europe
4.2.4 Trend of investments in Africa, Middle East and Latin America
5 Appendix
5.1 Pertinent Regulations
5.1.1 Regulations on banks
5.1.2 Regulations on foreign banks
5.1.3 Regulations on real estate
5.1.4 Regulations on foreign investment
5.1.5 Regulations on capital investment
5.1.6 Regulations on leverage buyouts and M&A
5.1.7 Regulations on hedge funds and derivatives
5.1.8 Regulations related to taxes
5.2 Key Economic Trends and Drivers
5.2.1 National wealth indicators
5.2.2 Financial market indicators
5.2.3 Banking indicators
5.2.4 Trade indicators
5.2.5 Other indicators
6 About Company

List of Tables
Table 1: HNWI Wealth Band and Group Definitions
Table 2: HNWIs – Liquid Asset Composition (%), 2007–2015
Table 3: HNWIs – Liquid Asset Composition (%), 2007–2015
Table 4: HNWIs – Alternative Asset Composition (%), 2007–2015
Table 5: HNWIs – Trends of Investments in Alternative Assets (%), 2007–2015
Table 6: HNWIs – Trends in “Art, Wine and Wheels”, 2006–2010
Table 7: HNWIs – Foreign Allocations by Asset Class (%), 2007–2015
Table 8: HNWIs – Trends of Foreign Investments, 2007–2015
Table 9: Real GDP Growth Rate (%), 2006–2015
Table 10: GDP Per Capita, 2006–2015
Table 11: Gross Savings as a Percentage of Real GDP, 2006–2015
Table 12: Domestic Market Capitalization and P/E Ratio, 2006–2010
Table 13: Housing Price Index, 2006–2010
Table 14: Commodity Indices, 2006–2015
Table 15: Foreign Direct Investment (US$ Billion), 2006–2015
Table 16: Investments of FIIs in Equity Products, 2006–2009
Table 17: Inflation Rate (%), 2006–2015
Table 18: Repo Rate (%), 2006–2015
Table 19: Balance of Payments (US$ Billion), 2006–2010
Table 20: Stock Market Performance, 2006–2010
Table 21: External and Fiscal Debt as Percentage of GDP, 2006–2015
Table 22: HNWIs Wealth vs GDP Ratio, 2006–2010
Table 23: Capital Formation as a Percentage of GDP, 2006–2015
Table 24: Disposable Income as a Percentage of GDP, 2006–2015

List of Figures
Figure 1: HNWI Wealth Band and Group Definitions
Figure 2: HNWI Wealth Sector Market Attractiveness, 2007–2015
Figure 3: HNWIs – Hong Kong vs Rest of the World and the Asia-Pacific Region
Figure 4: HNWIs – Asset Class Composition, 2007–2015
Figure 5: HNWIs – Changing Trends in Total Liquid Assets (%), 2007–2015
Figure 6: HNWIs – Liquid Assets Composition (US$ Billion), 2007–2015
Figure 7: HNWIs – Trends of Investments in Alternative Assets (US$ Billion), 2007–2015
Figure 8: HNWIs – Trends in “Art, Wine and Wheels”, 2006–2010
Figure 9: HNWIs – 2015 Foreign Asset Allocation vs Growth
Figure 10: HNWIs – Global Distribution of Foreign Investments, 2007–2015
Figure 11: Real GDP Growth (%), 2006–2015
Figure 12: GDP Per Capita, 2006–2015
Figure 13: Gross Savings as a Percentage of Real GDP, 2006–2015
Figure 14: Domestic Market Capitalization and P/E Ratio, 2006–2010
Figure 15: Housing Price Index, 2006–2010
Figure 16: Commodity Indices, 2006–2015
Figure 17: Foreign Direct Investment (US$ Billion), 2006–2015
Figure 18: Investments of FIIs in Equity Products, 2006–2009
Figure 19: Inflation Rate (%), 2006–2015
Figure 20: Repo Rate (%), 2006–2015
Figure 21: Balance of Payments (US$ Billion), 2006–2010
Figure 22: Stock Market Performance, 2006–2010
Figure 23: External and Fiscal Debt as Percentage of GDP, 2006–2015
Figure 24: HNWIs Wealth vs GDP Ratio, 2006–2010
Figure 25: Capital Formation as a Percentage of GDP, 2006–2015
Figure 26: Disposable Income as a Percentage of GDP, 2006–2015

Companies Mentioned

International banks:

ABN Amro
ABSA Asia Ltd
ANZ Private Bank
Bank of America (Asia) Ltd
Bank of Taiwan
Banque Pictet
Banque Privιe Edmond de Rothschild
Barclays Wealth
BNP Paribas
Citi Private Bank
Credit Suisse
DBS Bank
Deutsche Bank
EFG Bank
Fubon Bank
Goldman Sachs
J.P. Morgan Private Clients
Julius Baer
Morgan Stanley Asia Limited
RBS Coutts
Rothschild
Standard Chartered Private Bank
The Iyo Bank, Ltd
UBS AG
Wayfoong Finance Ltd
Local Banks
Bank of East Asia
Chi Yu Bank
Chong Hing Bank Limited
Dah Sing Bank Limited
Hang Seng Bank Ltd
MEVAS Bank Limited
Tai Sang Bank Ltd.
Tai Yau Bank Ltd.
Wing Hang Bank Ltd.
Wing Lung Bank

Chinese banks:

Agricultural Bank of China
Bank of China
Bank of Communications
China CITIC Bank
China Construction Bank
China Everbright Bank
China Merchants Bank
China Trust Commercial Bank Limited
Industrial and Commercial Bank of China
Nanyang Commercial Bank
Hong Kong Life Insurance
ICICI Venture Funds and Va Tech Wabag
JPMorgan Chase and First Capital Securities Co
Morgan Stanley and Huaxin Securities Co Ltd
Ajia Partners (Hong Kong) Ltd.
AMC Group – Asset Management China
HSBC Family Office Services Ltd.
Lombard Odier Darier Hentsch Ltd.
KCS Services Limited
The Pacific Bridge Companies
RMA Partners
VP Wealth Management Ltd.
Wealth Management Group
Financial Advisors
Brogan & Scaltrito
CIT Commercial Services (Asia) Ltd
Xinhua Finance Ltd
Uni-Asia Finance Corporation