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.
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
Feels financially prepared
Believes in better personal financial growth prospect
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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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%.
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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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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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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An increase in help from financial advisors/institutions
An uptick in trust in financial advisors and institutions
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Read the full report of Hong Kong's Rising Affluent Financial Well-being Index for 2021
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