“Hong Kong Overtakes Switzerland as a ‘Safe Haven for Wealth,’ as Middle East Conflict, Chinese Capital and the AI Boom Redraw Global Money Flows”

Hong Kong overtakes Switzerland as No. 1 offshore wealth hub
Assets reach $2.95 trillion, with 60% from mainland China
Capital converges on low-tax policy and buoyant IPO market

Hong Kong has surpassed Switzerland for the first time to become the world’s largest offshore cross-border wealth management hub. As U.S.-China tensions and geopolitical uncertainty intensify, wealthy individuals worldwide have begun diversifying assets across multiple jurisdictions, with large volumes of Chinese capital flowing into Hong Kong in the process. Hong Kong is optimally positioned to absorb these capital flows. It is geographically connected to mainland China and equipped with international financial market infrastructure. Its ability to manage both renminbi-denominated and dollar-denominated assets is also regarded as a key advantage.

A New ‘Secret Vault’ for the Wealthy

According to the 2026 Global Wealth Report published on the 1st by U.S.-based global management consulting giant Boston Consulting Group (BCG), global financial assets in 2025 rose 10.7% from a year earlier to $333 trillion. Global net wealth, including real estate, reached $550 trillion. Strong equity markets and rising gold prices were identified as key drivers of asset growth.

What BCG focused on more closely was the shifting route of global wealth. As escalating geopolitical tensions in the Middle East, trade frictions and expanding financial sanctions converged, high-net-worth individuals (HNWIs) began distributing assets across multiple countries, with Asian financial hubs such as Hong Kong emerging as major beneficiaries. As of the end of last year, offshore assets managed in Hong Kong rose 10.7% year on year to $2.95 trillion. That marked the first time Hong Kong had surpassed Switzerland.

Offshore assets managed by Swiss financial institutions stood at $2.94 trillion at the end of 2025, up 7.6% from a year earlier, placing Switzerland second globally. Singapore ranked third with $2.1 trillion, up 10.3%, followed by the United States in fourth with $1.6 trillion, up 7.7%. BCG did not view the shift as a temporary phenomenon. The firm assessed that the reversal would be difficult to unwind as Asia continues to grow faster than Europe. Hong Kong is projected to expand by about 9% annually through 2030, while Switzerland is expected to grow by an average of 6% over the same period.

One-Third of Global IPO Proceeds Flow to Hong Kong

For ultra-high-net-worth individuals, Hong Kong is attractive because it provides an environment suited to wealth accumulation. According to financial data provider LSEG, funds raised through IPOs and follow-on listings in Hong Kong reached $13 billion in the first quarter of this year. That was the highest level since 2021 and exceeded proceeds raised on Nasdaq, the New York Stock Exchange and India’s recently ascendant Bombay Stock Exchange over the same period. Given that global IPO proceeds totaled $40 billion in the first quarter, more than one-third of global investment capital flowed into Hong Kong.

In particular, with 55% of first-quarter IPO proceeds concentrated in artificial intelligence (AI) and technology companies, Hong Kong is also rapidly positioning itself as a technology hub. This reflects its connectivity with mainland China, with Chinese capital accounting for about 60% of Hong Kong’s assets. This year, Chinese AI companies Zhipu and MiniMax raised a combined $1.3 billion through IPOs on the Hong Kong stock market, with their share prices rising more than 400% after listing.

Market participants say the China-led AI boom triggered last year by DeepSeek has continued into this year. Jason Lui, head of Asia-Pacific equity strategy at BNP Paribas, said, “Last year, demand centered on large technology stocks, but this year there is clear appetite for investing in ‘pure AI players’ such as AI labs and AI hardware companies.” In the first-quarter Hong Kong IPO market, semiconductor and AI-related companies were indeed at the center of activity.

Another notable feature is that Hong Kong is again strengthening its role as an overseas fundraising gateway for Chinese companies. As listing reviews on the Shanghai and Shenzhen exchanges have become more stringent, some companies have turned their attention to Hong Kong. Since 2024, major companies including battery maker CATL have pursued secondary listings in Hong Kong. Companies from a wider range of industries, including agricultural firm Muyuan Foods and convenience store chain Busy Ming, have also moved toward listings, broadening the sectoral base. According to the Financial Times, more than 400 companies are currently preparing to list on the Hong Kong stock exchange.

A Changing Competitive Landscape for Wealth Management Hubs

The Hong Kong government’s family office (FO) tax policy has also helped strengthen its ability to attract ultra-high-net-worth assets. Hong Kong imposes no capital gains tax, value-added tax (VAT), estate tax or inheritance tax, and levies no withholding tax on dividends or interest. Its corporate tax system has a two-tier structure, applying an 8.25% rate to the first $256,000 of corporate profits. Single-family offices (SFOs) that meet certain requirements can also receive tax exemptions, creating a highly favorable environment for wealthy individuals whose primary objectives are asset preservation and management.

This stands in contrast to the recent trend among major global cities toward higher taxation. The United Arab Emirates (UAE) introduced a corporate tax in 2023, raising the rate from 0% to 9%. Japan also raised corporate taxes from April by imposing an additional 4% levy on the amount remaining after deducting $31,250 from corporate tax due for each fiscal year, while New York State is reportedly considering a corporate tax increase. California is also pushing to put a one-time 5% “wealth tax” on residents with net assets exceeding $1 billion to a 2026 referendum.

The Hong Kong government is also steadily expanding the scope of eligible investments that SFOs can manage in order to attract FO demand more aggressively. It is strengthening tax incentives for SFOs, family-owned investment holding companies and investment funds. The core of the policy is expanded tax benefits for a wider range of assets, including precious metals such as gold, digital assets and private credit. Middle East instability and diversification demand among wealthy individuals have also worked in Hong Kong’s favor. Geopolitical tensions, sanctions risk and regional conflicts have changed how family offices allocate assets. Capital has moved away from concentration in a single hub and toward distribution across multiple jurisdictions, while Hong Kong has emerged as a key gateway to Asian growth industries and Chinese assets.

Dubai has rapidly emerged in recent years as a haven for wealthy individuals from the Middle East, South Asia and Europe, but Hong Kong has secured differentiated appeal through its ability to connect mainland Chinese capital and global institutional investors at the same time. Family offices place comprehensive weight on inheritance, governance, taxation and exit routes for private and listed investments, while Hong Kong’s legal, accounting and private banking infrastructure offers the institutional depth needed to meet those complex demands. These strengths are directly linked to the capital market. Family offices actively participate in investments in unlisted growth companies, pre-IPO opportunities and post-listing equity stakes. As Hong Kong’s IPO market revives, exit routes for family office investments widen, and that prospect of liquidity in turn stimulates further asset inflows. A reinforcing cycle has taken shape between wealth management and capital markets.

Chinese authorities’ financial connectivity policies have also supported the expansion of Hong Kong’s offshore assets. According to the Hong Kong Monetary Authority (HKMA), the Guangdong-Hong Kong-Macao Greater Bay Area Wealth Management Connect (WMC), launched in September 2021, has served as an official channel allowing residents of mainland China, Hong Kong and Macao to invest in wealth management products across each market. In 2024, additional improvements were introduced, including relaxed investor requirements, expanded participating institutions, a broader range of eligible products and higher individual investment quotas. The program is assessed as an institutional mechanism that has improved mainland Chinese individual investors’ access to Hong Kong financial products and widened the foundation for Hong Kong’s wealth management industry to absorb Chinese capital.