Private banks in Hong Kong still slow in utilising alternative opportunities

Résumé détaillé

Alternative investments are becoming an increasingly important part of wealth clients’ portfolios, particularly as Hong Kong strengthens its position as a global wealth hub. Yet…

Alternative investments are becoming an increasingly important part of wealth clients’ portfolios, particularly as Hong Kong strengthens its position as a global wealth hub. Yet private banks have been slow to fully capitalise on the opportunity.

Alternatives are the second most prominent investment theme among clients, according to the Hong Kong Private Wealth Management Report 2026, published by the Private Wealth Management Association and KPMG China.

However, none of the asset managers and fund houses surveyed believes that private banks are making full use of the opportunities in this space. The findings point to room for closer cooperation between product providers and private banks, particularly in developing suitable offerings, educating clients and integrating alternatives into portfolio strategies.

A similar disconnect is emerging in digital assets. Although the range of available products is expanding, nearly all surveyed firms said allocations still account for less than 5% of their Hong Kong assets under management. Greater client education, more robust portfolio advice, liquidity planning and governance frameworks will be needed to turn growing product availability into meaningful investment activity.

Tokenisation could eventually broaden the range of private and real assets accessible through wealth advisers. However, its wider application will depend on progress in secondary-market liquidity, interoperability between platforms and consistent valuation practices.

Meanwhile, the next generation of wealth holders is becoming an increasingly important client segment, with 91% of surveyed firms saying they have stepped up their focus on this group.

“These are a different kind of client. They are younger, often still running their companies, and some wealth is still tied up in a private business. They understand risk, know venture and private markets well, and care more about the next opportunity than about preserving the last one,” said Hong Kong Financial…

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