The increasing scale of investment, and emerging investment opportunities, are leading to more so-called ultra high-net-worth individuals(UHNWIs) in Hong Kong, said a senior official of Hong Kong UBS.

Amy Lo, Hong Kong and Greater China head for UBS’s wealth unit, said that the emerging super wealthy in Hong Kong tend to acquire enterprises involved in technology, medicine, health care and food business abroad.

According to a latest report released by UBS, the number of super-wealthy in Hong Kong, whose net asset worth is over USD 30 million, is 3335, Sing Tao Daily reported. Nearly 10 per cent of them are engaged in the real estate business, higher than many other countries and regions.

Calculated by proportion of the population, the super-wealthy are more highly concentrated in Hong Kong than in any other country or region in the world. Figures from June 2014 in the report show that more than 460 per million local Hong Kong residents qualify for the title. Hong Kong has become the densest location for UHNWIs globally, followed by Luxemburg and Switzerland.

The growing number of female UHNWIs in Hong Kong has risen to 26 per cent, double the global average of 13 per cent. Those female UHNWIs hold nearly USD 90 billion in assets, but their average net asset worth is only half that of the men.

It is noteworthy that more than half of the female UHNWIs acquired their wealth by inheritance. Among the total UHNWIs in Hong Kong, 45 per cent relied on inheritance while more than 50 per cent started from scratch. A report on Ta Kung Pao said that more UHNWIs are relying on inheritance. According to the report by UBS, only 55 per cent of UHNWIs got their start through their own efforts, lower than Singapore at 60 per cent and much lower than the 91 per cent figure in mainland China.

Pu Yonghao, Managing Director with UBS, holds the view that the flexibility of capital flow in Hong Kong is attractive to the wealthy around the world, including those from mainland China. In addition, the Shanghai-Hong Kong Stock Connect and the offshoring of RMB business will provide more financial opportunities for Hong Kong. In the future there will be more UHNWIs in the financial sector than in traditional sectors.

Pu also mentioned that the growth rate of UHNWIs in Hong Kong will slow down as a result of Hong Kong's mature economy and the lack of emerging industries. "In order to maintain the status of Hong Kong, those who want to join the UHNWIs club should not rely on real estate but turn to fast-growing industries including design, finance and medical care," said Pu.

The article is edited and translated from《香港“富二代”为何越来越多》, source: People's Daily Overseas Edition, author: Wang Dake. 

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