Hong Kong Trust Industry Well Positioned for Growth as Regulations Boost Credibility and Investor Confidence, KPMG and HKTA Report Shows
Recent regulatory changes enhance credibility for corporate trustees but add to complexity and costs
New eMPF Platform to reshape Hong Kong's pension system and bring wave of change for pension trustees
HONG KONG SAR - Media OutReach Newswire - 18 March 2025 - Access to Chinese Mainland clients, Asia's growing private wealth sector and improving industry credibility are underpinning a positive outlook for Hong Kong's trust industry, provided practitioners can overcome the headwinds of increasing compliance costs and access to talent, according to a survey from the Hong Kong Trustees' Association (HKTA) and KPMG.
The HKTA and KPMG conducted interviews with government officials and regulators, and almost 30 trust industry executives, alongside a digital survey of HKTA member institutions, in order to gauge the health of the sector, which performs a vital role in safeguarding assets held in pension schemes, as well as in corporate, charitable, private and public trusts.
Hong Kong's trust market grew by 10% from 2021 to 2023, with HK$5,188 billion (US$667 billion)[1] of assets held under trusts at the end of 2023, compared with HK$4,719 billion (US$606 billion) when the previous HKTA-KPMG report was issued in 2021.
When considering the most significant growth engines over the next few years, 24% of respondents identified Chinese Mainland and Greater Bay Area (GBA) connectivity initiatives, such as Wealth Management Connect. A further 18% selected the Capital Investment Entrant Scheme (CIES) under which the Hong Kong SAR government has been attracting capital and family offices, and 18% selected similar initiatives focused on family offices and philanthropy.
The report found that recent regulatory developments are increasing confidence and enhancing protection for investors. These include the introduction of RA13 for depositaries of SFC-authorized Collective Investment Schemes (CISs) and the Hong Kong Monetary Authority's Supervisory Policy Manual Module (TB-1). Sixty four percent (64%) of survey respondents said the regulatory regime is conducive to business, compared with 51% in 2021.
However, while new regulations are improving the business environment, they are also proving challenging to implement. Almost two-thirds of survey respondents (64%) reported that their compliance costs had increased by at least 5% to 15% over the past 12 months, partly because of increasing regulatory complexity.
Attracting talent was also seen as a significant industry headwind, with Legal & Compliance roles and Trust Administration the two most critical functions.
Hong Kong's trust and fiduciary industry plays a critical role in the city's success as a major international financial centre, employing a diverse range of professionals across banks, independent trust companies, insurers, private banks and legal, tax and accounting providers. The sector is critical in protecting the financial wellbeing of the vast majority of Hongkongers, including 87% of the working population who have assets held under the MPF[2] and ORSO[3] schemes.
Launching the report, HKTA Chairman Ms. Ka Shi Lau said: 'Trustees continue to play a crucial role in Hong Kong's financial system, and their importance is particularly evident in the MPF system, which is pivotal in safeguarding the retirement assets of Hong Kong people. With 2025 marking the 25th anniversary of MPF, it is fitting that the 4th Trust Industry Report is released in celebration of this milestone and provides an endorsement of the system's good health. Moreover, the recent transition to the new eMPF Platform is a significant step forward for fund visibility and member-centricity. However, it will also bring both challenges and opportunities for trustees.'
Arion Yiu, Partner, Asset Management, Hong Kong, for KPMG China adds: 'Pension funds remain the largest asset category held under trusts, underscoring the significance of the trustee role in safeguarding Hong Kong's retirement savings. The transition to eMPF, while presenting challenges, will also compel the trust industry to explore new avenues for differentiation and place a greater emphasis on governance to better serve MPF members.'
Vivian Chui, Head of Securities and Asset Management, Hong Kong, for KPMG China said: 'Recent regulatory developments have increased Hong Kong's attractiveness and credibility as both a funds and a trust centre. However, this positive momentum must be met with a proactive approach to talent acquisition. Showcasing the diverse and rewarding career paths available within the industry will be crucial to attracting the next generation of professionals.'
Ms. Ka Shi Lau further commented: 'While compliance, reporting and regulatory requirements are becoming increasingly stringent, these new standards are also bringing with them increased credibility. Hong Kong is rolling out the red carpet for global wealth. The trust industry needs to step up now, work together, and be proactive in serving these clients or risk missing out on the opportunity to solidify Hong Kong's position as a leading global trust centre.'
For a full copy of the report, please visit the HKTA Website or the KPMG Website.
[1] SFC Asset and Wealth Management Activities Survey 2023.
[2] Mandatory Provident Fund.
[3] Occupational Retirement Schemes Ordinance.
Hashtag: #KPMG
The issuer is solely responsible for the content of this announcement.
The Hong Kong Trustees' Association
The Hong Kong Trustees' Association Limited (HKTA) was established in 1991 by members of the trust and fiduciary services sectors to represent the trust industry in Hong Kong, particularly in the areas of legislation and education. It is a not-for-profit company limited by guarantee and incorporated in Hong Kong. The HKTA currently has more than 220 corporate and individual members, and represents thousands of people working in the trust, pensions, private banking, asset servicing, legal, accounting and other professional services fields.
Mission:
Represent the trust industry in promoting high standards of professionalism, corporate governance and regulatory compliance;
Contribute towards advancing the status of Hong Kong trust professionals and that of the industry internationally;
Represent the industry to the government, the media, local and international professional bodies and the public in promoting Hong Kong as an international trust and fiduciary services centre;
Promote quality standards for the industry by the issuance of Best Practice Guides applicable to corporate trusts, pension schemes, private trusts and charitable trusts;
Contribute towards enhancing the education and knowledge of practitioners in the trust industry through relevant trust accreditation and training programmes.
Contribute towards enhancing public education on trust fraud.
KPMG
KPMG in China has offices located in 31 cities with over 14, 000 partners and staff, in Beijing, Changchun, Changsha, Chengdu, Chongqing, Dalian, Dongguan, Foshan, Fuzhou, Guangzhou, Haikou, Hangzhou, Hefei, Jinan, Nanjing, Nantong, Ningbo, Qingdao, Shanghai, Shenyang, Shenzhen, Suzhou, Taiyuan, Tianjin, Wuhan, Wuxi, Xiamen, Xi'an, Zhengzhou, Hong Kong SAR and Macau SAR. It started operations in Hong Kong in 1945. In 1992, KPMG became the first international accounting network to be granted a joint venture licence in the Chinese Mainland. In 2012, KPMG became the first among the 'Big Four' in the Chinese Mainland to convert from a joint venture to a special general partnership.
KPMG is a global organisation of independent professional services firms providing Audit, Tax and Advisory services. KPMG is the brand under which the member firms of KPMG International Limited ('KPMG International') operate and provide professional services. 'KPMG' is used to refer to individual member firms within the KPMG organisation or to one or more member firms collectively.
KPMG firms operate in 142 countries and territories with more than 275, 000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. Each KPMG member firm is responsible for its own obligations and liabilities.
Celebrating 80 years in Hong Kong
In 2025, KPMG marks '80 Years of Trust' in Hong Kong. Established in 1945, we were the first international accounting firm to set up operations in the city. Over the past eight decades, we've woven ourselves into the fabric of Hong Kong, working closely with the government, regulators, and the business community to help establish Hong Kong as one of the world's leading business and financial centres. This close collaboration has enabled us to build lasting trust with our clients and the local community – a core value celebrated in our anniversary theme: '80 Years of Trust'.
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Quantum computing stocks jumped in early trading Wednesday after Nvidia (NVDA) CEO Jensen Huang made bullish comments about the technology at the chipmaker's GTC Paris developer conference. Quantum Computing (QUBT) rose more than 31% after market open, while Rigetti Computing (RGTI) jumped more than 18%. IonQ (IONQ) rose over 8%. The companies make quantum computing hardware and software. By comparison, the S&P 500 (^GSPC) was up about 0.2%. Huang told a crowd Wednesday that 'we are within reach' of using quantum computers for 'areas that can solve some interesting problems in the coming years.' 'Quantum computing is reaching an inflection point,' he said. Read more here. US stocks were muted at the open on Wednesday as investors digested a softer-than-expected consumer inflation reading and assessed a US-China plan to salvage their trade truce. The Dow Jones Industrial Average (^DJI) slipped less than 0.1%, while the S&P 500 (^GSPC) was roughly flat. The tech-heavy Nasdaq Composite (^IXIC) climbed about 0.2%. Platinum (PL=F) extended gains Wednesday, rising to its highest level in four years after trading sideways for about a decade. Platinum prices were up 4% Wednesday morning to trade at $1,261.40 an ounce. Prices of the metal, which is used in electric vehicles, jewelry, and industrial applications, have soared 40% year to date. Bloomberg reports that strained supply has caused prices to increase, particularly as President Trump's tariffs disrupted trade flows and output declined in South Africa, the world's largest platinum producer. From Bloomberg: Read more here. Inflation didn't pickup as much as Wall Street expected in May. The latest data from the Bureau of Labor Statistics showed that consumer prices increased 2.4% over the prior year in May, an increase from April's 2.4% and in line with economists' forecast for 2.4%. But all other closely watched metrics from the release came in below expectations. On a month-over-month basis, prices increased 0.1%, lower than the 0.2% estimated by economists and the 0.2% increase seen in April. On a "core" basis, which strips out the more volatile costs of food and gas, prices in April climbed 0.1% over the prior month, lower than April's 0.2% rise and below consensus projections for a 0.3% increase. Over the last year, core prices rose 2.8%, unchanged from the prior month and below Wall Street's expectations for a 2.9% increase. The largest tech stocks in the market are once again leading the market higher. And in recent weeks, investor excitement surrounding Big Tech has trickled down to newly issued public offerings, such as stablecoin issuer Circle (CRCL) and Nvidia-baked CoreWeave (CRWV). Yahoo Finance's Josh Schafer writes in today's Morning Brief: Read more here. Economic data: Consumer Price Index (May); Real average hourly earnings (May); MBA Mortgage Applications (week ending June 6) Earnings: Chewy (CHWY), Oracle (ORCL), Vera Bradley (VRA), Victoria's Secret (VSCO) Here are some of the biggest stories you may have missed overnight and early this morning: The biggest IPOs look a lot like the biggest stocks in the market CPI inflation seen as rising in wake of 'Liberation Day' tariffs Musk feud shows how Big Tech can't count on Trump's favor US-China talks deliver plan for restoring trade truce Musk says he regrets some Trump posts: 'They went too far' General Mills is said to weigh sale of China Häagen-Dazs stores China rare-earth magnet maker gets green light for US exports Nvidia CEO: Quantum computing is at an inflection point Here are some top stocks trending on Yahoo Finance in premarket trading: GameStop (GME) stock fell 4% before the bell on Wednesday after posting its first quarter earnings the day prior. The US video game retailer announced net sales of $732.4M, down from $881.8M in the same period of 2024. Tesla (TSLA) stock rose 1% in premarket trading, after CEO Elon Musk backtracked on his comments towards President Trump. Musk said: 'I regret some of my posts about President @realDonaldTrump last week,' he said on his social-media platform, X. 'They went too far.' Victoria Secret's (VSCO) shares rose by 1% ahead of its earnings release on Wednesday. The retailer, which recently reported a cyberattack, is expected by analysts to reoort revenue of around $1.35B. Yahoo Finance's Allie Canal reports: Read more here. Gold prices are edging higher even after the US and China talks delivered a plan to ease trade tensions, a sign the market is not yet convinced of a breakthrough. Futures rose 0.7% to around $3,366 an ounce in early trading on Wednesday. Bloomberg reported: Read more here.
