Standard Chartered, one of Hong Kong’s three note-issuing banks, will roll out a digital investment platform this month aimed at attracting tech-savvy young investors, according to its Hong Kong chief.
The new platform will enable users to conduct investment research and trade a range of products, including stocks, funds, and alternative assets, Mary Huen Wai-yi, CEO for Hong Kong, Greater China, and North Asia, said.
“Traditionally, many wealthy customers like to talk to bankers or relationship managers about their investments. But the new generation of investors may prefer to trade on a digital platform by themselves,”
Huen said.
“This is why we believe a new digital platform would help us attract a new group of mass and premium clients who have the potential to become our private banking clients in future.”
The launch forms part of the bank’s broader US$1.5 billion investment in its global wealth management business over the next five years, with Hong Kong set to be a major focus, group CEO Bill Winters told the Post earlier this year, according to South China Morning Post.
In line with this strategy, the bank will open its sixth wealth management centre in Hong Kong this year.
It previously established two such centres in Taiwan and three on the mainland, which have proven effective in drawing affluent clients and building long-term relationships, Huen noted.
Wealth management continues to be a key growth driver for Standard Chartered globally.
The bank reported a 41% rise in net profit to US$3.07 billion for the first half of the year.
Hong Kong remains its largest and most profitable market, with underlying pre-tax profit surging 39% to a record US$1.45 billion, accounting for 30% of the group total.
This growth was underpinned by an 8% increase in affluent clients holding more than HK$200,000 (US$25,477) in deposits, alongside a 35% rise in net new money from this segment, according to Huen.
She acknowledged that the anticipated US interest rate cut in the second half of the year, coupled with low interbank rates in Hong Kong, where the one-month Hibor remains below 1%, could pressure interest income.
However, she added,
“Increased fee income in the second half would be able to offset the impact of the low interest rate.”
Market sentiment has improved, with the Hang Seng Index rising over 20% so far this year, following an 18% gain in 2024.
This rebound has encouraged greater investor activity.
“The improved sentiment also helps corporate clients feel more comfortable borrowing money to expand. I believe we can see single-digit growth in loans this year,”
Huen said.
The bank’s Hong Kong unit saw credit impairment charges rise 79% to US$168 million, including US$58 million linked to commercial real estate.
However, Huen downplayed concerns, noting that the bank’s exposure to commercial property stood at just US$2.1 billion, about 2% of its US$86.6 billion loan book in the city.
“I do not think we need to worry as our exposure to commercial real estate is low, while most lending is very healthy,”
she said.
Standard Chartered also intends to deepen its support for Hong Kong-based corporates looking to expand overseas and engage in cross-border trade.
Bankers will lead client visits to Southeast Asia and the Middle East in the coming months to scout for new opportunities.
“Amid the threat of [high US tariffs], we have seen many Hong Kong customers wanting to set up product plants in other Asian cities or to sell products in these markets,”
Huen said.
Featured image credit: Edited by Fintech News Hong Kong, based on image by Corporate Locations via Unsplash
