HSBC on track to meet China wealth hiring target despite economic headwinds

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HONG KONG, Nov 20 (Reuters) – HSBC (HSBA.L) is on track to meet a target of expanding its China wealth business headcount to 3,000 by 2025, despite the country’s current economic headwinds, as it bets on a steadily rising number of the extremely affluent, a senior executive said.

The Asia-focused bank has recruited around 1,500 wealth managers in the world’s second-largest economy since 2021, Trista Sun, HSBC China’s head of wealth and personal banking, told Reuters.

The expansion of the China wealth advisory team serves HSBC’s digital-focused “Pinnacle” strategy, part of a pivot towards Asia with $3.5 billion worth of investments committed to the region in 2021.

The growing headcount is in addition to wealth advisory staff in HSBC’s Chinese branches, Sun said. Most foreign banks still rely on in-branch wealth planners to serve clients in China.

HSBC is pressing ahead with the hiring plan as China’s wealth and insurance sector is expanding faster than the country’s economy is expected to, she added.

The bank estimates that China’s household wealth will increase by around 8.5% a year over a five-year period starting in 2022, outpacing Beijing’s around 5% annual target for 2023 economic growth which many fear will be a struggle to reach.

Under Pinnacle, HSBC runs an insurance brokerage unit which in September became the first qualified foreign-owned broker to distribute mutual funds locally.

The bank’s targeted wealth clientele – adults with a net worth of at least $250,000 – is expected to double to 350 million by 2030 in China, the bank estimates.

A weaker Chinese yuan has bolstered demand for offshore investment options, with Sun pointing to the quota-based Qualified Domestic Institutional Investors program (QDII) and Wealth Management Connect scheme covering China’s wealthy Greater Bay Area as investors seek “exposure to the international market”.

The London-headquartered bank has expanded its QDII offer with the acquisition of Citigroup’s (C.N) China consumer wealth management business in October this year, Sun said.

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Edmund Shing, PhD

Global Chief Investment Officer
BNP Paribas Wealth Management

Edmund has over 29 years of experience in financial markets in a wide variety of positions, ranging from proprietary trading to portfolio manager in a number of financial institutions in London and Paris.  He previously held the role of Global Head of Equity and Derivative Strategy at BNP Paribas in London from 2015 to 2020, and has been Chief Investment Officer at BNP Paribas Wealth Management since November 2020.

Edmund is responsible for piloting our investment strategy and will continues to rollout out recommendations and themes with actionable advice that brings our expertise to our clients and support to our client-facing teams.  In this time of change, his expertise in following and anticipating markets is a true value added for both our customers and those at Wealth Management who serve them.

Edmund has a PhD in Cognitive and Computing Science from the University of Birmingham in the United Kingdom, and has done advanced studies in Knowledge-Based Systems and in Experimental Psychology.  He is an EFFAS-certified financial analyst. He has also authored the book “The Idle Investor” published by Harriman House in 2015, proposing 3 simple investment strategies that take only a few minutes to execute per month.

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