The Hong Kong fund management industry saw a record high in 2012 in total value of assets, rising 39 per cent year-on-year to a combined value of HK$12.59 trillion, according to latest figures from the Securities and Futures Commission.

The annual "Fund Management Activities Survey" showed that Hong Kong continued to serve as an investment platform for attracting capital from non-Hong Kong investors. Investors from overseas contributed HK$8 billion (or 64.6 per cent) to the territory's total fund management business, excluding real estate investment trusts (REITs). This contribution has consistently remained above 60 per cent over the past five years. 

Licensed asset management and fund advisory corporations continued to contribute the largest proportion of the combined asset management business, with the aggregate asset and fund advisory businesses amounting to HK$9.2 billion as of the end of 2012, up 47.9 per cent from 2011.

Non-REIT asset management business also grew 43.1 per cent, of which HK$5.7 trillion (69.2 per cent) was managed in Hong Kong. Other private banking business increased by 18.4 per cent to HK$2.7 trillion, while fund advisory grew 67.4 per cent to HK$1.5 trillion. 

"The SFC will continue to work with the Mainland regulatory authorities, the Hong Kong Government and the industry to further enrich product offerings and promote Hong Kong as a platform of choice for international asset managers and investors to access the Mainland markets and be the natural and preferred platform for Mainland liquidity," said Alexa Lam, deputy chief executive and executive director of investment products, international and China. 

The SFC conducts the FMAS survey annually. The latest report is based on the responses of 417 licensed asset management and fund advisory houses, 46 registered financial institutions and 22 insurance companies.