Hong Kong wealth management account: professional investors, family offices

One of Asia's leading private banking centres

A Hong Kong wealth management account is a relationship with a bank or manager licensed by the HKMA or the SFC, covering private banking, discretionary management and securities custody. It is meant for Asian and international clients with documented wealth, notably families from mainland China and Southeast Asia, and it gives direct access to Hong Kong and Chinese markets alongside international, local and independent providers.

Hong Kong private banking manages a considerable share of Asian private wealth, particularly for families from mainland China and Southeast Asia. International private banks, local banks and independent managers operate side by side, with direct access to Hong Kong and Chinese markets.

Dual supervision: SFC and HKMA

The Securities and Futures Commission licenses asset managers and investment advisers, while banks carrying on these activities are registered with the SFC and supervised by the HKMA. Clients can check their adviser's status on the SFC public register.

Professional investor status

An individual with a portfolio of at least 8 million HKD may be treated as a professional investor, giving access to restricted products and lightening certain protections. The bank must verify that threshold and obtain the client's written consent.

Discretionary management and advisory mandates

Under discretionary management, the manager decides within the agreed risk profile; under an advisory mandate, the manager proposes and the client decides. In both cases SFC rules require a suitability assessment and disclosure of remuneration received.

Private banking entry thresholds

Hong Kong private banks set their own minimum asset levels, usually expressed in US dollars. At Bank of East Asia, the access threshold for wealth management services and the pricing are presented to the client according to the chosen segment.

Family offices and tax-exempt FIHVs

Since 2023, a family-owned investment holding vehicle managed by a single family office in Hong Kong may benefit from a 0% tax rate on qualifying income if it manages at least 240 million HKD and meets local substance conditions.

The New Capital Investment Entrant Scheme

This programme grants residence to investors placing at least 30 million HKD in permissible assets in Hong Kong, part of it in a dedicated portfolio. The bank holds these assets and documents the source of funds for the authorities.

800,000 HKD for deposits, 500,000 HKD for securities

Deposits are protected up to 800,000 HKD per bank, but securities fall under the Investor Compensation Fund, capped at 500,000 HKD per investor and limited to products traded in Hong Kong. Segregation of securities at the custodian remains the main protection.

Wealth Management Connect with the Greater Bay Area

The Cross-boundary Wealth Management Connect scheme lets residents of the Greater Bay Area invest in products distributed by Hong Kong banks, and vice versa, within quotas set by the authorities and through dedicated accounts.

Local taxation, CRS and client declarations

Hong Kong taxes neither capital gains nor dividends received by individuals, but this does not change obligations in the country of residence. A French resident declares accounts on Form 3916, and the bank reports balances and income under CRS.

Criteria for choosing your Hong Kong wealth management account

Choosing a partner for your Hong Kong wealth management account rests on four criteria: the licence and supervision of the institution, the minimum assets required, the fee structure and the quality of the securities custodian. In Hong Kong, check on the SFC public register that your contact is licensed, and ask whether the bank is supervised by the HKMA for the activity concerned.

A serious offer documents these points in a paper provided before signing, and the answer says a lot about the real transparency of your private bank in Hong Kong.

Fees and remuneration in wealth management in Hong Kong

The costs of wealth management in Hong Kong combine annual management fees, custody charges, brokerage, exchange margins and the fees of underlying products. Hong Kong private banks set their minimum assets freely; ask for the threshold that applies to your segment before handing over any documents.

These lines, rarely highlighted, weigh on the net return of your Hong Kong private banking over several years.

Risk profile, mandate and follow-up with your private bank in Hong Kong

An individual treated as a professional investor, with a portfolio of at least 8 million HKD, gains access to restricted products but has lighter protections; this status requires written consent that you should not sign lightly.

Client tax duties and checks before signing

Your Hong Kong wealth management account does not change the tax rules of your country of residence. Deposits are covered up to 800,000 HKD, while securities fall under a compensation fund limited to 500,000 HKD; segregation of securities at the custodian remains the main protection.

Preparing the meeting and checking who you deal with

Before the first meeting, list your financial assets: the 8 million HKD level that opens professional investor status is measured on the portfolio, and the bank must check it before classifying you. Ask whether the classification is offered automatically or only on request, and read the written consent form before signing it. An entrepreneur who has just sold a company should know their category from the first interview, because it decides which restricted products can be shown to them and how much protection is given up in exchange.

Have the type of mandate spelled out. Under discretionary management the manager decides alone within the agreed risk profile; under an advisory mandate every order remains your decision. In both cases the SFC rules require a suitability assessment, so ask to read the completed questionnaire and the conclusion drawn from it. Also request the list of remuneration the bank receives on the products it recommends, since disclosure is required, and compare it with the announced fee schedule to make sure that no line is missing.

Then check who signs the contract. Look up the adviser and the institution on the SFC public register, note the activities for which each is licensed, and confirm the bank’s status with the HKMA. The agreement may be made with the bank itself, with an affiliate or with an independent manager, and protection differs accordingly: the 500,000 HKD compensation fund covers only products traded in Hong Kong. Write down which entity actually holds your securities, because that name decides where a claim would be addressed.

Protecting assets and preparing family structures

Reason by asset category. Cash on deposit is protected up to 800,000 HKD per bank, whereas securities fall outside that guarantee and depend on the compensation fund, capped at 500,000 HKD per investor. A client holding deposits, funds and shares in the same institution should therefore ask where the securities are kept: in a segregated account in their own name or in an omnibus account at the custodian. Spreading large deposits across several banks is a simple precaution, while segregation at the custodian protects the bulk of the portfolio.

Families considering a structure must present a heavier file. For an FIHV, the bank asks for the organisation chart, the identity of the single family office, the governance and proof of the 240 million HKD under management, together with the elements of local substance. For the New Capital Investment Entrant Scheme, the 30 million HKD must go into permissible assets, part of it in a dedicated portfolio: have the list of eligible assets confirmed before any transfer, and keep the record of the source of funds that the bank passes to the authorities.

For a Hong Kong wealth management account held by a French resident, every statement should be reconciled with the annual tax return. Hong Kong taxes neither capital gains nor dividends for individuals, but the French administration receives balances and income through the CRS; each account therefore appears on form 3916, and the income goes into the return. If your family lives in the Greater Bay Area, ask whether your accounts fall within Wealth Management Connect, under which quotas and through which dedicated account, since eligibility depends on residence in that region.