Fund management business continues to grow in 2013
The annual Fund Management Activities Survey (FMAS) released by the Securities and Futures Commission (SFC) shows that the combined fund management business* in Hong Kong hit another record high of HKD16,007 billion as of the end of 2013, representing year-on-year growth of 27.2%.
The highlights of the survey include:
- Non-REIT (real estate investment trust) asset management business increased by 38.5% to HKD11,417 billion in 2013. Of this amount, HKD5,827 billion worth of assets (or 51.0%) was managed in Hong Kong and 74.6% of these assets managed in Hong Kong were invested in Asia.
- Other private banking business increased by 2.7% to HKD2,752 billion in 2013.
- Fund advisory business grew by 11.6% to HKD1,661 billion in 2013.
- The market capitalisation of SFC-authorised REITs increased by approximately 1.7% to HKD177 billion in 2013.
The FMAS has been conducted annually since 1999 to help the SFC assess the industry's state of affairs for policy setting and operations planning. This year, a total of 555 institutions responded to the survey on a voluntary basis. They included 488 licensed asset management and fund advisory corporations, 47 registered financial institutions and 20 insurance companies**.
*The term refers to the overall value of assets reported in the sub-sectors of asset management, fund advisory, private banking (broadly categorised as "non-REIT fund management business") as well as SFC-authorised real estate investment trusts (REITs).
**Respondents fall into these categories: 1) asset management and fund advisory companies licensed under section 116 or 117 of the Securities and Futures Ordinance (SFO); 2) registered institutions under section 119 of the SFO, which are authorised financial institutions as defined in section 2(1) of the Banking Ordinance (Chapter 155); and 3) insurance companies registered under the Insurance Companies Ordinance (Chapter 41) providing long-term business.