Charles Schwab Hong Kong

Hong Kong Rising Affluent Financial Well-being Index 2021

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Charles Schwab Hong Kong conducted its third annual Hong Kong Rising Affluent Financial Well-being Index, which explores shifting perceptions and investment behaviors of Hong Kong's Rising Affluent, aged 18 to 65 with a monthly income between HK$20,000 and HK$80,000.

As global economic growth returned in 2021, this year's survey reported the highest confidence sub-index score in three years, suggesting Hong Kong's Rising Affluent feel better prepared and more optimistic about their financial growth prospects. The findings suggest a greater tolerance for risk since last year as Hong Kong's Rising Affluent report an increase in their investments across a variety of products.

Overall financial well-being score represented by a diagram showing 4 sub-indices: structural equation, confidence, planning, engagement, management, and their annual increases and decreases Overall financial well-being score represented by a diagram showing 4 sub-indices: structural equation, confidence, planning, engagement, management, and their annual increases and decreases Overall financial well-being score represented by a diagram showing 4 sub-indices: structural equation, confidence, planning, engagement, management, and their annual increases and decreases

Confidence sub-index (57.16, +5.01) studies investors' satisfaction toward their personal financial status and their level of confidence toward their personal financial growth prospects.

Planning sub-index (26.45, -0.52) reveals whether investors have and regularly review their financial plan, setting timelines for financial goals, and have a sense of possibility on achieving financial goals.

Engagement sub-index (63.65, +4.21) determines investors' usage of financial services, trust toward professional financial advisors and digital financial advisory platforms.

Management sub-index (73.10, -1.23) demonstrates investors' sense of risk, attitude toward portfolio management, and sensitivity toward fees.


Returning investor confidence

Confidence sub-index rose to the highest level since 2019 with Hong Kong's Rising Affluent feeling more financially prepared.

  • Feels satisfied with personal financial status

    Confidence sub-index level satisfied with financial status with money signs represents investor confidence from 2020 to 2021
  • Feels financially prepared

    Confidence sub-index level feels financially prepared with money signs represents investor confidence from 2020 to 2021
  • Believes in better personal financial growth prospect

    Confidence sub-index level believes in financial growth with money signs represents investor confidence from 2020 to 2021.

Sources of Rising Affluent confidence

A stable household income continues to be the number one confidence source, while the Rising Affluent's confidence in wealth management skills also gives them assurance.

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Display of top 4 sources of confidence in the current financial situation represented by household income, wealth management, personal income, and work-life balance

Fading impact of COVID-19

The negative impact of COVID-19 on confidence levels concerning personal finances faded in 2021. Those who were confident in their personal finances or whose confidence remained unchanged increased from 58% to 70.7%.

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Effects in confidence in personal finances due to COVID-19 are represented by a linear graph and show annual increases and decreases

More aggressive risk appetite and increased investment

More Rising Affluent are shifting their risk appetite to "Progressive" and "Aggressive." Since COVID-19 began, 11% of Hong Kong's Rising Affluent increased their monthly investment.

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Risk tolerance graph measures risk attitudes characterized as: progressive +2.7%, aggressive +4.1%, conservative +0.3%, and steady -7.1%

Change in short-term vs. long-term investing

32.5% of Hong Kong's Rising Affluent increased the proportion of long-term investments, while 18% increased the proportion of short-term investments.

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Graph measuring the top 4 reasons Hong Kong’s Rising Affluent increased their amount of long-term investments. Convenient return rate was 53.4%, Does not need to be an active trader 41.8%, Decrease exposure to risk 39.5% and decrease in cost 28.9%

More trust in formal planning

In 2021, the Rising Affluent's trust in financial advisors increased, leading to the highest engagement sub-index score in three years. More Rising Affluent now have a formal written financial plan and increasingly seek help from financial advisors.

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A circle graph represents 41.9% of respondents have a formal written financial plan, up 8.8% compared to 2020

Deck 50 Card Clear

  • Helpful

    Circle graph represents a 4.7% increase in help from financial advisors compared to 2020 results

    An increase in help from financial advisors/institutions

  • Trustworthy

    Circle graph represents a 5% uptick in trust in financial advisors compared to 2020 results

    An uptick in trust in financial advisors and institutions


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