Hong Kong to take larger share of offshore wealth

That’s because Asia’s super-rich are growing faster than anywhere in the world.

Private banks in Hong Kong will seize a larger share of global wealth held offshore, said the Boston Consulting group. Offshore wealth rose by 6.1% globally to US$8.5 trillion last year.

It will continue to grow as high net worth individuals seek to protect their wealth by placing it where there is political stability, a low tax burden and banking expertise.

Boston Consulting said that over the next five years, Asia’s rich will generate another US$1.4 trillion to add to that total, compared to US$0.5 trillion from Latin America and US$0.5 trillion from the Middle East and Africa.

Hong Kong’s share of global offshore wealth will grow to 6% from 5% compared to Singapore’s share 12% growth by 2017 from the current 10%.

Switzerland, however, will still be the home to a quarter of the world’s offshore assets by 2017, down from 26% currently. Offshore wealth is defined as assets held in a country where the owner has no legal residence or tax domicile.