Hong Kong banks are intensifying their efforts to attract wealthy mainland Chinese clients, offering a range of incentives such as tickets to high-profile football matches, exclusive concerts, and cash rebates. This competition among banks, including Standard Chartered, HSBC, Bank of China (Hong Kong), Citigroup, and the Bank of East Asia, comes as lenders aim to tap into the lucrative wealth management market and boost their deposits to drive lending during the May 1 to 5 golden week holiday.
An estimated 840,000 mainland Chinese visitors are expected to visit Hong Kong during the holiday, marking a 10% increase from last year. These visitors, who accounted for 77% of all arrivals in Hong Kong last year, are significant investors in local insurance products and are sought after by banks for their wealth management needs. With traditional lending facing challenges due to weak consumer confidence, many banks are pushing further into wealth management services to diversify their income sources.
For instance, Standard Chartered is offering two tickets to a football match between Liverpool and AC Milan in July for new and existing priority clients from the Greater Bay Area who have at least US$1 million in assets. HSBC is offering tickets to concerts by Taiwanese singer Jay Chou and pop band Mayday, while also providing up to HK$50,000 in incentives for new Premier account holders. Citigroup, in turn, is offering as much as HK$172,000 in cash rebates for new sign-ups to its Citigold Private Client accounts.
This focus on attracting high-net-worth individuals comes as Hong Kong’s wealth management industry grows rapidly. The city had HK$31 trillion in assets under management in 2023 and is forecasted to surpass Switzerland by 2027 as the leading global hub for cross-border wealth management. Banks are also extending their opening hours to accommodate the influx of visitors, with some branches in major tourist areas staying open on weekends. These promotional efforts are aimed at increasing brand awareness and driving foot traffic to branches, ultimately strengthening their foothold in the competitive wealth management market.
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