Hong Kong has overtaken Switzerland to become the world’s largest offshore wealth hub, according to Boston Consulting Group. The city’s cross-border wealth reached $2.9 trillion last year, up 10.7 percent from a year earlier, narrowly surpassing Switzerland, the offshore wealth of which grew 7.6 percent.The growth was driven largely by capital inflows from mainland China, which accounted for about 60 percent of Hong Kong’s offshore assets. BCG expects the gap between Hong Kong and Switzerland to widen to nearly $600 billion by 2029 as wealth creation accelerates across Asia.The Financial Times attributed Hong Kong’s rise to a rebound in the stock market that boosted offshore fundraising by mainland Chinese companies. China’s strength in advanced manufacturing sectors, including electric vehicles, also supported the city's emergence as a leading financial hub.Experts say wealthy individuals are increasingly moving assets abroad to diversify across jurisdictions and hedge against geopolitical risks. BCG said growing geopolitical fragmentation is reinforcing two major wealth-management networks: one centered on Hong Kong and Singapore, and the other on Switzerland, the US and the UK.
don@heraldcorp.com
