Key facts
- Hong Kong ranks seventh globally in attracting and retaining the next generation of high-net-worth individuals.
- Singapore ranks sixth globally in attracting and retaining the next generation of high-net-worth individuals.
- The number of millionaires in Hong Kong decreased by 27% to 129,500 between 2012 and 2022.
- The number of millionaires in Singapore increased by 40% to 240,100 between 2012 and 2022.
- Hong Kong's ranking for wealthiest cities dropped from fourth in 2012 to seventh in 2023.
- New York City has the most millionaires globally, according to the Henley & Partners report.
Hong Kong has slipped to seventh place globally in attracting and retaining the next generation of high-net-worth individuals (HNWIs), falling behind its rival Singapore, which secured sixth place, according to a study by Savills. Both Asian financial hubs are intensifying efforts to solidify their positions as leading wealth management centers amidst a significant intergenerational transfer of wealth.
A report by Henley & Partners, in collaboration with New World Wealth, indicated that Hong Kong's millionaire population decreased by 27% to 129,500 between 2012 and 2022. In contrast, Singapore saw a 40% increase in its millionaire population, reaching 240,100 during the same period. This shift caused Hong Kong to drop from fourth place globally in 2012 to seventh in 2023, while Singapore climbed to fifth place.
Sources suggest that Beijing's increasing control over Hong Kong has contributed to an outflow of wealth and a rise in family offices relocating to other hubs. While Singapore has seen a significant increase in investment firms for the super-rich, Hong Kong is attempting to catch up with measures such as tax concessions. New York City leads the global ranking for the number of millionaires, followed by the Bay Area and Los Angeles, with London dropping to fourth and Tokyo to second place.
Juerg Steffen, CEO of Henley & Partners, noted that many leading cities offer programs to facilitate wealth migration and encourage foreign direct investment in exchange for residency or citizenship. He emphasized the growing importance of relocation options for international wealth and legacy planning. Veteran journalist Joseph Ngan suggested that Hong Kong's political and legal environment has become more similar to mainland China since the national security law took effect, prompting many wealthy individuals from mainland China to choose Singapore for overseas fund transfers due to its perceived political and economic stability. Simon Lee of the Chinese University of Hong Kong also pointed to a brain drain and capital flight from Hong Kong, with the wealthy seeking to keep their assets away from political issues and international tensions, a stability that Singapore offers.