Key Takeaways
- • The Financial Development Services Council (FSDC), Hong Kong's government think tank, says the city could double its assets under management by capturing only a small share of global 'patient' capital from insurers and pension funds.
- • Global pension funds held total assets of US$68 trillion at the end of last year, while global insurers had investment assets of US$42 trillion at the end of 2024, according to FSDC data.
- • The FSDC, in a report released Wednesday, is urging Hong Kong to adopt a deliberate plan to attract long-term institutional money.
Summary
Hong Kong could double the assets under management it hosts by attracting only a small portion of the long-term capital held by global insurance companies and pension funds, according to a member of the Financial Development Services Council (FSDC), the government-linked think tank that promotes the city as an international financial centre.
In a report published on Wednesday, the FSDC argued that Hong Kong should do more to attract so-called patient capital, meaning assets that insurers and pension funds invest over the long term. The council frames this as a strategic opportunity for the city's asset management sector, which would benefit from mandates and allocations from some of the world's largest institutional pools.
The scale of the opportunity is substantial. According to FSDC data, global pension funds had total assets of US$68 trillion at the end of last year, while global insurers had investment assets of US$42 trillion at the end of 2024. Even a modest share of these pools redirected to Hong Kong-managed strategies would represent a meaningful increase in the city's AUM.
The primary source does not detail specific policy measures, timelines, or responses from industry or government, so the report's concrete recommendations should be read in the context of the FSDC's broader advocacy role for Hong Kong's financial centre status.
In a report published on Wednesday, the FSDC argued that Hong Kong should do more to attract so-called patient capital, meaning assets that insurers and pension funds invest over the long term. The council frames this as a strategic opportunity for the city's asset management sector, which would benefit from mandates and allocations from some of the world's largest institutional pools.
The scale of the opportunity is substantial. According to FSDC data, global pension funds had total assets of US$68 trillion at the end of last year, while global insurers had investment assets of US$42 trillion at the end of 2024. Even a modest share of these pools redirected to Hong Kong-managed strategies would represent a meaningful increase in the city's AUM.
The primary source does not detail specific policy measures, timelines, or responses from industry or government, so the report's concrete recommendations should be read in the context of the FSDC's broader advocacy role for Hong Kong's financial centre status.
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