Hong Kong is seen as a shopping haven for the mainland: but according to Nielsen’s Mainland Traveller Financial Monitor report, it’s more than that.
In a survey conducted in December 2012 with more than 2,000 mainland residents of tier one cities between the age of 18 to 54 and who visited and stayed in Hong Kong for at least one night in the past 12 months, half already owned a financial product in the city while more than 75% intended on taking a new product in the next 12 months.
Despite being aggressive investors almost all of these traveller-cum-investors with financial products in Hong Kong had investment plans before they set foot in the city: 86% said they pre-decided on the financial service provider while nearly half said they know what products they would take up.
“It is crucial for financial service providers to communicate and strengthen their presence in China given it is where the majority of mainland Chinese travellers build up their perception and make choices on where and what to invest in Hong Kong,” Kenneth Chan, Nielsen Hong Kong director of Consumer Research, said.
Oliver Rust, Neilson Hong Kong managing director, agreed.
“Mainland Chinese tourists are looking for trustworthy and renowned financial service providers to manage and grow their wealth.
“This is their main reason to invest in Hong Kong where financial service providers possess the capacity and expertise to take care of their growing financial needs.”
Those who already own financial products admitted that they allocate an average 39% of liquid assets in Hong Kong. Of the 2 million travellers, nearly half are millionaires with liquid assets of HK$1m or more, and the estimated potential investment value was close to HK$2 trillion in 2012.
“Looking ahead, we could see the estimated potential growth of an incremental HK$ 1 trillion in investment value,” Rust added.
“Hong Kong’s robust banking infrastructure, its trustworthy investment channels, and being a gateway to the world’s financial markets makes it appealing to affluent mainland Chinese travellers as they look to accelerate their wealth.”
The portfolio of investment included HK Dollar deposits (44%), general insurance (38%), life insurance (36%) – which is poised of significant growth in 2013; and overseas securities (35%), to name but a few.