A New Reality

A desire to diversify and preserve wealth more sustainably is shaping how HSBC Global Private Banking guides clients through the generational transition

Asia’s high-net-worth (HNW) and ultra-high-networth (UHNW) populations have faced a torrid time over the past 12 months as far as managing assets goes. Extreme unpredictability across economies and markets has heightened volatility and added new investment risks. One of the few remaining certainties for wealthy clients, though, is the looming nature of intergenerational wealth transfer.

Among individuals and families worth US$5 million or more, this is expected to surpass US$18 trillion globally by 2030, according to a Wealth-X report released in 2021. Asia will account for US$2.5 trillion of the total.

This inevitability has been on families’ radars for some time. For example, a global client survey by HSBC Global Private Banking in 2022 found that 85 per cent of families globally are already preparing the next generation to take over their businesses. Greater China (90 per cent) and Asean (86 per cent) were above this average.

Against the backdrop of today’s macro and geopolitical headwinds, HNW and UHNW clients in Asia must balance their desire to move succession planning forward with managing the turbulence that their portfolios face. With this in mind, they are developing a new mentality.