Hong Kong’s total private wealth assets under management rose slightly last year to about HK$9 trillion (US$1.2 trillion), the first annual growth since 2020, according to a report released.

Inflows of about HK$341 billion last year were about three times higher than in 2022, according to the report by the city’s Private Wealth Management Association and KPMG. Still, the assets under management remain considerably below their 2020 level of HK$11.3 trillion.

The city’s political future was a top concern of the 35 industry association member firms surveyed for the report. For investors, the worry is the government’s focus on national security may increasingly spill over into commercial interests.

About 67 per cent of the firms’ current assets are estimated to come from Hong Kong and mainland China, the survey found.

Hong Kong has been seeking to bring money and rich families to the financial hub through tax concessions and talent programmes, after strong outflows during the pandemics. As mainland Chinese return to the city seeking higher-yielding offshore investments, assets under management could surpass US$2.3 trillion by 2030, Bloomberg Intelligence estimates.

Competition from rival hubs, the evolving regulatory landscape and limited access to mainland China assets were also cited as concerns.

When it comes to attracting more family offices, a key target of Hong Kong’s government, 21 per cent of the firms are targeting new corridors in South-east Asia and 15 per cent are focusing on the Middle East, the report showed.