Asia is creating wealth faster than any other region, and Hong Kong is in position to manage the “lion’s share” of that wealth, according to the newly appointed CEO of JPMorgan’s Asia private banking unit.
“I’m very excited about the broader wealth creation agenda in Asia-Pacific,” Harshika Patel, who also serves as the US investment bank’s Hong Kong CEO, said in an interview with the Post.
“Hong Kong has the lion’s share of the wealth creation at this point in time in the region because of the significant role it continues to play in the economic and financial development of the Greater China region,” said Patel, who in her private bank role is succeeding Kam Shing Kwang, who will be JPMorgan’s North Asia chairwoman.
Asia’s two hubs for private banking, Hong Kong and Singapore, “both have a very positive future ahead of them”, Patel said. “Hong Kong is probably going to be one of the biggest wealth centres in the world, and Singapore is catching up very quickly.”
The support that Hong Kong’s government has laid out to foster Hong Kong as a family office hub has ensured families are comfortable to set up their family offices here, Patel said.
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Other measures the city has introduced for the affluent include tax breaks for family offices as well as plans to provide art storage facilities and easier rules for setting up charities. The government has set a target of attracting 200 new family offices to the city by 2025.
Hong Kong has “always been a thriving international financial centre”, but like other parts of the world, it has had to navigate several macroeconomic challenges like geopolitics, inflation and supply chain constraints, Patel said.
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Wealth Management Connect scheme to increase eligibility, product range, limits
This has affected the private wealth management sector in Hong Kong, which experienced a decline in assets under management and a drop in inflows last year as investment returns suffered, according to the KPMG 2023 wealth management report.
Even so, Patel said she is “confident that Hong Kong is going to go from strength to strength”.
“There’s lots of macro and geopolitical considerations that are playing through clients’ minds, but they’ve all got global ambitions,” said Patel. “All our clients are ambitious for their companies and for their personal fortunes.”
The bank will be celebrating its 100th anniversary in Hong Kong next year. Patel said the company has a series of events lined up to celebrate the 100th year, focused on three pillars: the bank’s clients, employees and the Hong Kong community.
“When you’ve had that much continuity in a region, my message to Hong Kong would be that JPMorgan plans to be here for the next 100 years,” she added.