Bloomberg Industry Research: Hong Kong's banking sector may see wealth management fee income increase by over 20% this year

According to Bloomberg Industry Research, the Hong Kong banking sector, led by HSBC (00005.HK) and Bank of China Hong Kong (02388.HK), is expected to see wealth management fee income grow by more than 20% this year, primarily driven by fund sales, brokerage income, and bank insurance business.

The research report states that the significant increase in wealth management fees is mainly benefiting from the optimistic outlook on global AI technology development, as well as favorable conditions in the equity, fixed income, and precious metals markets. Additionally, as the market anticipates further interest rate cuts by the Federal Reserve this year, risk appetite remains robust.

The report also points out that the increase in new immigrants and tourists from China supports interest in high-yield bank insurance products, while the strong momentum of Hong Kong IPOs creates an ideal environment for wealth management business. It is expected that the growth in banking fees may exceed the previously anticipated low double-digit increase, while insurance premiums and service income will see at least a double-digit growth