While demand has fallen for many job sectors in Hong Kong in recent months, market watchers are continuing to predict growth in opportunities in the wealth management field.
To find out how this sector is bucking the trend by creating jobs in a time of economic uncertainty, we spoke to Kwang Kam-shing, a certified financial analyst and market manager at JP Morgan Private Bank in Hong Kong, where she is responsible for expanding its business presence and client base.
How do you see the wealth management sector faring in Asia, particularly in Hong Kong?
Demand for wealth management has increased significantly in Asia, as we see more new wealth being generated across the region. The ultra-high-net-worth in Hong Kong, which my company defines as those with more than US$25 million in liquid assets, in particular, have accumulated their wealth for a relatively longer period than most of Asia. The city is now experiencing a transition from first-generation wealth to second-generation. We therefore see greater demand and awareness for succession plans and wealth advisory.
What are the economic factors that have led to the boom in the wealth management sector in the region?
As Asian markets become more open and developed, we see greater creation of wealth in the region. The ultra-high-net-worth individuals have increasingly more complex demands for managing their wealth, so more are seeking professional help. For example, the composition of wealth today often consists of illiquid assets such as real estate and restricted stocks. JPMorgan Private Bank has seen an increase in demand for managing the liabilities side of clients' balance sheets by offering leverage solutions.