Hong Kong falls behind Singapore in wealth management

Singapore's rich has a combined US$439 billion in 2011 compared to Hong Kong’s with US$408 billion.

The existence of multiple regulatory agencies and a perception it remains China's vassal led to Hong Kong's fall.

Singapore exploited those disadvantages to take over the top spot. In 2011, Singapore overtook Hong Kong both in the number of "High Net Worth Individuals" (HNWIs) and in the total wealth accumulated by this elite group. HNWIs are individuals with investable assets of US$1 million or more.

Singapore had 91,000 HNWIs with a combined US$439 billion in 2011 compared to Hong Kong’s 89,000 with US$408 billion. In 2010, Singapore had 99,000 people with US$453 billion in savings while Hong Kong had 101,000 with US$511 billion.

The latest edition of the the Asia Pacific Wealth Report show that Hong Kong is taking steps to regain it former stature, but Singapore’s allure as a safe haven for wealth continues to attract massive private investments from Greater China, including Hong Kong.

The report identified the reasons Singapore leads Hong Kong in wealth management. Among them: Singapore has a single regulatory body and a more predictable and transparent legal framework compared to Hong Kong's multiple regulatory bodies and its less developed financial market policies. Singapore is also an independent nation compared to Hong Kong, which is a territory of mainland China.

“At present, Singapore might have a slight edge over Hong Kong…but Hong Kong is taking steps to bridge that gap,” said RBC Wealth Management Head of Emerging Markets Barend Janssens.