Wealth management

Everbright Sun Hung Kai launches new account to compete head-on with private banks

Asset Power Account will allow existing or new customers with assets worth a minimum of HK$8 million (just more than US$1 million) to invest across a range of services

PUBLISHED : Tuesday, 08 May, 2018, 5:17pm
UPDATED : Tuesday, 08 May, 2018, 11:11pm

Everbright Sun Hung Kai, one of Hong Kong’s largest and most-established brokers and financial firms, launched a new wealth management account on Tuesday specifically to compete with private banks for high net worth individuals.

Revealing details of its new Asset Power Account, the company’s deputy chief executive Kevin Tai Yiu-kuen said it will allow existing or new customers with assets worth a minimum of HK$8 million (just more than US$1 million) to invest across a range of services, including stock and fund investments, margin financing, bonds, and structured products, such as equity linked notes.

He claimed account holders will be offered better rates of interest than many similar products on the market.

Tai said Everbright Sun Hung Kai is looking to expand its wealth management services due to the increasing investment sophistication of many of its customers.

“The [number of] existing clients with HK$8 million worth of investments assets rose 20 per cent year on year during the first quarter.

The [number of] existing clients with HK$8 million worth of investments assets rose 20 per cent year on year during the first quarter
Kevin Tai Yiu-kuen, Everbright Sun Hung Kai’s deputy chief executive

“Total assets under management held by the company also rose 40 per cent year on year to HK140 billion (US$17.84 billion), at the end of the same quarter,” Tai said. 

The 50-year old firm, which operates one of the city’s oldest local brokerage, first entered the wealth management industry around the turn of the century, offering funds and other investment products.

Tai said in recent years, after rapid expansion, it has expanded its wealth management team considerably, hiring many more staff to handle the increasing needs of their high net worth customers.

“Traditionally, brokerage firms have allowed our traders or representatives to serve investors by buying into different stocks, funds or products.

“But today’s banking customers have become more used to the idea of having a single account to manage their finances and investments.

“This is why we believe it’s a good idea to launch the Asset Power Account to serve those customers’ needs,” he said.

Tai added the HK$8 million worth of assets [required] is a good threshold as it meets with Hong Kong legal requirements for professional investors to invest in more sophisticated products. 

“The threshold will appeal to a large pool of customers who have money to invest, but who have not yet reached the minimum requirement of some private banks, which often need HK$20 million or more,” he said.

“We understand that high net worth clients have a keen demand for in-depth wealth management services.

“Besides securities trading, they attach great importance to the diversity of products, flexibility of financing, and prestigious services. Asset Power is aligned to those needs.”

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