Hong Kong has all the chances to become the world’s leading fund distribution centre, but the lack of strong IFA (Independent Financial Adviser) industry and the concentration of sales channels in banking sector question if it could really happen.
The size of Hong Kong’s market is another reason why it can be quite challenging to become the global fund distribution centre. Some experts believe that Hong Kong needs to grow via the sale of funds to overseas investors. Launched in July 2015 MRF enables funds to be sold into China laying the foundation for the strengthening of financial and regulatory ties between the two.
Client on-boarding is also viewed as quite costly and discouraging to investors. The process often involves a direct identification process, which can be problematic for online platforms in particular. Therefore, the uptake of online platforms has been quicker in more developed markets.
Despite these challenges, Asian market is considered to be very attractive with its economic power, growing pension funds, and an increasing number of high net worth individuals.
Disclaimer: All content provided on this page are for informational purposes only. Just service Hong Kong makes no representations as to the accuracy or completeness of any information on this page or found by following any link on this page. Just Service Hong Kong will not be liable for any errors or omissions in this information nor for the availability of this information. Just Service Hong Kong will not be liable for any losses, injuries, or damages from the display or use of this information. This policy is subject to change at any time.
Just Service Hong Kong is a member of the Hong Kong Confederation of Insurance Brokers in Hong Kong, transacting Long Term (including linked long term) Insurance business. Nothing in the comments above should be taken as offering investment advice or making an offer of any kind with regard to financial products or services of any kind. It is therefore important to reinforce that all comments above are designed to be general in nature and should not be relied upon for considering investment decisions without talking to licensed advisers.