Hong Kong's combined fund-management business hit $9.63 trillion last year, a record year-on-year rise of 56.5%, the Securities & Futures Commission says.

In its annual Fund Management Activities Survey published today, the commission said the record growth reaffirmed Hong Kong's draw as a hub in the region's fund-management industry.

Overseas investors contributed $6.547 trillion, or 68.4%, to assets under management, exclusive of real estate investment trusts. Asset management, historically the largest segment in the combined fund-management business, expanded 57.5% to $6.51 trillion.

Assets managed in Hong Kong logged a new high of $4.07 trillion or 62.5% of $6.51 trillion in the asset-management segment.

The commission said Hong Kong was favoured as a hub for managing investments in the Mainland and other Asian markets with 82.1% of the assets managed locally invested in the region.

Rapid accumulation of wealth in Asia boosted the fund advisory and private banking business, which expanded 102.9% and 36.7% respectively between 2006 and 2007.

Bolstering the industry were financial markets' strong performance, more diversified sources of fund inflow and a wider selection of products, the survey said.

Commission's comments

The commission's Deputy Chief Executive Officer Alexa Lam said the impressive growth reflects both industry participants' commitment to broaden their expertise and range of asset-management services.

The commission will devote more effort to develop Hong Kong as "the platform of choice" for Mainland asset managers to implement the QDII scheme.

"We welcome Mainland fund managers becoming a part of our asset-management industry, they will bring new opportunities and growth," Mrs Lam said.