The Private Wealth Management Association (PWMA) and KPMG China jointly released the latest research from the "Hong Kong Private Wealth Management Annual Report 2026."

The study shows that in 2025, the assets under management (AUM) of the private banking and private wealth management industry rose 24% year-on-year, reaching a new high of HK$12.9 trillion, while net fund inflows increased 79% over the same period.

Seventy-seven percent of surveyed institutions reported through the report that client demand for opening new accounts and allocating assets in Hong Kong has increased, up from 59% last year, with no institution reporting a decline in demand.

Surveyed institutions noted that measures such as the "Cross-boundary Wealth Management Connect," deeper connectivity across the Guangdong-Hong Kong-Macao Greater Bay Area, and broader market access all help provide clients with more investment opportunities while maintaining robust regulation and investor protection.

About 79% of surveyed institutions said that development plans related to the Greater Bay Area are critical or moderately important to Hong Kong's offshore business over the next five years.

The industry also broadly supports expanding connectivity in investment scope, with 91% of surveyed institutions supporting broader access for eligible professional investors to stocks on the Shanghai Stock Exchange STAR Market and the Shenzhen Stock Exchange ChiNext Board.

The report noted that increasing regulated investment options helps further consolidate Hong Kong's position as a gateway connecting mainland China with international capital markets.

Over the past year, the proportion of surveyed institutions actively developing digital asset trading platforms, product ecosystems, or custody services rose from 16% to 25%.

Another 13% of surveyed institutions have already provided related services, while 28% plan to make related investments in the next two to three years, indicating that the industry is continuously strengthening its positioning in the digital asset space.

Product innovation has also shown significant growth, with 43% of surveyed institutions having added cryptocurrency exchange-traded funds (ETFs) or exchange-traded products (ETPs), and another 17% having launched or distributed tokenized products, showing that digital assets are gradually integrating into the mainstream investment market.

The application of artificial intelligence in the private wealth management industry is continuing to expand, with more and more institutions applying related technologies to actual business operations.

The report shows that 88% of surveyed institutions reported moderate or significant progress in adopting artificial intelligence, generative artificial intelligence, or agentic artificial intelligence technologies, a marked increase from 56% last year.