HONG KONG: Hong Kong Fund Management Continues to Grow

Thursday July 24 2008

The Securities and Futures Commission (SFC) has released its annual Fund Management Activities Survey (FMAS) which shows a record growth within Hong Kong’s fund management business.

The FMAS, which has been running annually since 1999 has revealed that Hong Kong’s combined fund management business hit $9,631 billion in 2007. This is a record increase of 56.5% year on year and 112.8% more than 2005. This growth reflects industry participants’ commitment in broadening their expertise and range of asset management services.

The FMAS also finds asset management expanded 57.5% last year and also that assets managed in Hong Kong have reached a new high of $4,072 billion. Further, it appears that Hong Kong is attracting attention from overseas as foreign investors have contributed $6,547 billion or 68.4% to assets under management.

The SFC has taken measures to facilitate market development and widen the product range and has advised that it will dedicate its efforts in assisting Hong Kong’s development as ‘the platform of choice’ for Mainland asset managers to implement the QDII scheme.

However, it is noted that Hong Kong faces some external challenges. The FMAS acknowledges that problems could arise from waves created by the subprime –related credit crisis, the global economic slowdown and the pressure that worldwide markets face.

For more information please click on the links below

The SFC’s Fund Management Activities Survey 2007 – http://www.sfc.hk/sfc/doc/EN/speeches/public/surveys/08/fmas_080724.pdf