HSBC Global Private Banking has just published a report entitled "Global Wealth Hubs: Drivers of Diversification 2025," which looks at five key wealth hubs: Hong Kong, Singapore, Switzerland, the UK, and the US. 

The world’s wealthiest investors are becoming more mobile as they plan for additional residences around the world and seek out global opportunities for their assets and businesses, according to a new report by HSBC Global Private Banking.

The report shows that wealthy business owners share a global mindset, viewing national and regional borders as opportunities rather than obstacles. Over the next 12 months, it says that global entrepreneurs will be increasingly mobile, with 55 per cent considering personally moving to a new location, 69 per cent moving wealth to a new location, and 73 per cent conducting business in a different market.

The report is based on a survey of high net worth and ultra-high net worth entrepreneurs looking at their attitudes towards their wealth and businesses in international markets.

It examines five key global wealth hubs, including the UK, which is home to the largest percentage of multi-resident entrepreneurs surveyed in Western markets. It shows that the UK remains international, with many UK entrepreneurs seeing themselves as global citizens. The UK is also the most popular location for the oldest and the wealthiest surveyed entrepreneurs considering taking up residency, the firm said in a statement.

The research also shows that some of the biggest corridors of potential inbound and outbound wealth across the 10 markets are to and from the UK and US. A total of 17 per cent of both UK and US entrepreneurs say they are considering moving some or all of their wealth to the other over the next 12 months.

“Entrepreneurs want to be surrounded by people and supported by structures that help make their businesses more successful,” Charles Boulton, head of HSBC Global Private Banking, UK, said. “The UK has all the complementary parts of the value chain, underpinned by a deep talent pool and a strong regulatory and legal framework. The cities, countryside and culture also make it a very attractive place to live.”  

Here are findings from the four other wealth hubs:

Hong Kong
Hong Kong ranks top for business owners with multi-residency. It also forms part of the biggest wealth corridor in the research, with 49 per cent of Hong Kong entrepreneurs having an additional residency in mainland China. It is predicted to become the world’s largest wealth management centre over the new few years –boosted by rising wealth across mainland China and reinforced by Hong Kong’s standing as a global talent hub within the financial services industry.

“Hong Kong is uniquely placed to attract entrepreneurs from mainland China and these flows help to drive the local economy. But its international connectivity means that we also see growing flows from other fast-growing parts of the world, especially the Middle East,” Henry Lam, regional head of wealth planning and advisory, Asia Pacific, HSBC Global Private Banking, said.

Singapore 
Singapore has thrived as an international wealth hub in recent decades, particularly with the region’s entrepreneurs. The Singapore-India wealth corridor is the third largest in the research. The number of single family offices has risen from 400 in 2020 to 1,650 as of September 2024, the report states. Singapore has also begun to climb up the value chain from HNW to UHNW entrepreneurs. It wants to concentrate its energies on investing in the local economy. And the jurisdiction also wants to take advantage of its popularity as a wealth management hub to enhance efforts to mitigate climate change. As a result, SFOs must now invest the lower of $7.4 million or 10 per cent of assets under management in specified local and climate-related investments.

Switzerland 
Switzerland ranks first among 23 countries cited for entrepreneurs seeking to move their personal wealth to a new location over the next 12 months for the 18 to 44 age group and an equal first for the over 45s. It also ranks equal first for both HNW and UHNW individuals. None of the other 10 markets surveyed achieved this feat. This demonstrates Switzerland’s broad appeal across all ages and all levels of wealth.

However, the country knows that it cannot rest on its laurels given increasing competition from global peers. Today, innovation is the watchword. Zurich, for instance, ranks as one of Europe’s leading fintech hubs â€“ roughly one fifth of Europe’s biotechs are headquartered in the country.

US 
The US remains a magnet for the world’s wealthy and business owners. It ranked equal first in the survey of 23 cited markets for HNW entrepreneurs considering it as a location to establish part or all of their business.

US entrepreneurs have less interest in being multi-resident than their counterparts in most other markets. Only 38 per cent are multi-resident, the equal second lowest of the report’s 10 markets. This is very likely due to the fact that US entrepreneurs live in a continent-sized country. Instead, the focus of self and wealth transfers is often across states. Residents of New York, might own a property in Miami, for example, and vice versa.

The research also highlights strong foreign interest in moving wealth to the US, especially from the UK, the UAE and India. Data from the National Association of Realtors (NAR) underscores this. Asians top the league tables for US property purchases, accounting for just over one-third of all foreign acquisitions in recent years.

“We see no sign of deglobalisation from an investment perspective. In fact, entrepreneurs’ desire to access opportunities outside their home markets is growing at a time when many respective governments are adopting a more domestic bias from an economic or trade perspective,” Willem Sels, chief investment officer of HSBC Global Private Banking and Wealth, said. “Diversification is all about opening up opportunities.” 

A total of 1,882 business owners or entrepreneurs took part in the survey, with participants from 10 markets across the globe: France, Hong Kong, India, Mainland China, Singapore, Switzerland, Taiwan, the UAE, the UK and the US. The fieldwork was conducted between 8 July and 3 August 2024, using online panels. Participation in the quantitative survey required respondents to be aged 18 or over, currently own or have previously owned a business, have claimed investable assets of $2 million or a total net worth of $20 million, and a main residency (more than six months of the year) in one of the markets listed.