Prudential has officially closed its Hong Kong wealth management business, Pulse Wealth, according to a statement released to Reuters.

This move is part of a broader initiative by the company to streamline its operations and focus more effectively on other wealth management offerings within the Hong Kong market.

The closure aligns with the company’s strategic shift, similar to its recent actions in Singapore, where it shut down another wealth management platform last September.

Simultaneously, Prudential is increasing its commitment to the Hong Kong wealth sector by establishing a dedicated team targeted at high-net-worth individuals to leverage local market opportunities more efficiently.

This development occurs against significant regional financial activity, as evidenced by Manulife’s latest earnings report.

Manulife disclosed a first-quarter net profit drop of 38 percent year-on-year to C$866 million (HK$4.93 billion). Despite this decrease, the company experienced a 16 percent rise in core earnings to C$1.8 billion 8 (HK$10.8 billion), which exceeded market expectations.

This growth was largely driven by the robust performance of its operations in Asia, mainly benefiting from the resurgence of mainland Chinese visitors to Hong Kong following the easing of pandemic restrictions.

In addition, Manulife Hong Kong and Macau saw a 52 percent increase in core earnings to HK$1.89 billion in the first quarter from the previous year.

The firm’s new business value, a key measure of future profitability, grew 15 percent to over HK$1 billion. Manulife continues to hold its position as the largest Mandatory Provident Fund provider in Hong Kong, with a market share of 28 percent based on assets under management at the end of the first quarter, marking an increase of 0.9 percentage points from the previous year.

Featured image credit: Edited from Freepik