Hong Kong has overtaken Switzerland as the global leader in cross-border wealth management, but Swiss banks are taking the news in stride, viewing it as a reason to resist tighter regulations.
According to a Boston Consulting Group (BCG) study published last week, Hong Kong now holds $2.95 trillion in cross-border assets under management, compared to Switzerland's $2.946 trillion. The shift is attributed to inflows from mainland China, strong initial public offering activity, and equity market gains.
Hong Kong's Rise
Hong Kong's Financial Secretary Paul Chan noted that rapid advances in technology and artificial intelligence are expected to further boost the territory's asset and wealth management industry. Over 60% of external capital comes from mainland China, with the BCG report stating that Hong Kong is "cementing its role as China's gateway to global markets."
Gary Ng, senior economist at Natixis Corporate and Investment Banking, told AFP that uncertainties around US-China tensions are driving capital movement to Hong Kong. However, China's market regulator launched a sweeping investigation in May against cross-border trading brokers, part of a two-year crackdown on outbound investment. New rules aimed at curbing unauthorized outbound investment and technology transfers will take effect in July.
Ng noted that if Beijing wants to accelerate the internationalization of the yuan, it must accept freer cross-border capital movement.
Swiss Banks Unfazed
The Swiss Bankers Association acknowledged that Hong Kong has benefited from strong asset growth in China but emphasized that Swiss banks have a successful presence in key Asian markets. "Competitive framework conditions are crucial for Switzerland's future. Regulation must remain targeted and internationally coordinated," it said.
Switzerland's largest bank, UBS, is at odds with the government over plans to tighten banking regulations following the 2023 collapse of Credit Suisse. UBS was forced to take over its rival to prevent a financial crisis, and authorities now want stronger safeguards given the merged bank's size.
The Association of Swiss Private Banks stated that Hong Kong's overtaking "shows that international competitiveness must remain at the heart of the discussions" and that parliament should consider this during debates on regulatory proposals.
Asian Growth Key
Andreas Venditti, an analyst at Vontobel, said Hong Kong's rise was expected due to stronger growth rates in Asia. "Swiss banks, as among the largest wealth managers in Asia—with UBS the largest by far—clearly benefit from these higher growth rates," he told AFP. UBS's Asia-Pacific assets under management reached $781 billion at the end of March.
BCG reported that cross-border wealth grew by 10.7% in Hong Kong in 2025, versus 7.6% in Switzerland. Dean Frankle, a managing director at BCG, attributed the shift to "the rise of Asia." He noted that wealthy Asian clients prefer Hong Kong for its proximity, emphasizing the need for Swiss banks to be competitive in the Asian market: "If you're not serving both markets, you're only playing half the game."
