EX-99.4 5 filename5.htm

Exhibit 99.4

|  | 2016 |  |  | 2017 |  |  | 2018 |  |  | 2019 |  |  | 2020 |  |  | 2021E |  |  | 2022E |  |  | 2023E |  |  | 2024E |  |  | 2025E |  |  | 2026E |  |  | CAGR 16-21E |  |  | CAGR 22-26 |
Total Turnover of Securities Market in Hong Kong (Billion HKD) |  |  | 16,396.4 |  |  |  | 21,709.2 |  |  |  | 26,422.8 |  |  |  | 21,440.0 |  |  |  | 32,110.1 |  |  |  | 35,184.2 |  |  |  | 41,840.9 |  |  |  | 48,628.7 |  |  |  | 55,983.9 |  |  |  | 63,821.6 |  |  |  | 72,756.7 |  |  |  | 16.5 | % |  |  | 14.8 | %
Note: The actual 2021 figure is not yet available. |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

|  |  | 2016 |  |  |  | 2017 |  |  |  | 2018 |  |  |  | 2019 |  |  |  | 2020 |  |  |  | 2021E |  |  |  | 2022E |  |  |  | 2023E |  |  |  | 2024E |  |  |  | 2025E |  |  |  | 2026E |  |  |  | CAGR 16-21E |  |  |  | CAGR 22-26 |
Net Securities Commission Income in Hong Kong (Billion HKD) |  |  | 18.7 |  |  |  | 23.1 |  |  |  | 24.2 |  |  |  | 19.9 |  |  |  | 28.4 |  |  |  | 31.7 |  |  |  | 33.5 |  |  |  | 34 |  |  |  | 36.4 |  |  |  | 38.7 |  |  |  | 41.2 |  |  |  | 11.1 | % |  |  | 5.3 | %
Note: The actual 2021 figure is not yet available. |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

|  |  | 2016 |  |  |  | 2017 |  |  |  | 2018 |  |  |  | 2019 |  |  |  | 2020 |  |  |  | 2021E |  |  |  | 2022E |  |  |  | 2023E |  |  |  | 2024E |  |  |  | 2025E |  |  |  | 2026E |  |  |  | CAGR 17-21E |  |  |  | CAGR 22-26 |
Market Size by Asset Under Management in Asset and Wealth Management Business in Hong Kong (Billion HKD) |  |  | NA |  |  |  | 24,270.0 |  |  |  | 23,955.0 |  |  |  | 28,769.0 |  |  |  | 34,931.0 |  |  |  | 41,742.5 |  |  |  | 49,757.1 |  |  |  | 59,210.9 |  |  |  | 70,401.8 |  |  |  | 83,426.1 |  |  |  | 98,609.7 |  |  |  | 14.5 | % |  |  | 18.6 | %
Note: (i) The data disclosed was based on “Asset and Wealth Management Activities Survey” published by Securities and Futures Commission (ii) Due to discrepancy in survey scope, the historical data prior to 2017 is not available. |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

|  |  | 2016 |  |  |  | 2017 |  |  |  | 2018 |  |  |  | 2019 |  |  |  | 2020 |  |  |  | 2021E |  |  |  | 2022E |  |  |  | 2023E |  |  |  | 2024E |  |  |  | 2025E |  |  |  | 2026E |  |  |  | CAGR 16-21E |  |  |  | CAGR 22-26 |
Market Size by Asset Under Management in Asset Management and Fund Advisory Business in Hong Kong (Billion HKD) |  |  | 14,236.6 |  |  |  | 17,511.0 |  |  |  | 16,447.0 |  |  |  | 20,040.0 |  |  |  | 24,038.0 |  |  |  | 28,629.3 |  |  |  | 33,925.7 |  |  |  | 40,100.2 |  |  |  | 47,358.3 |  |  |  | 55,977.5 |  |  |  | 65,941.5 |  |  |  | 15.0 | % |  |  | 18.1 | %

|  |  | 2016 |  |  |  | 2017 |  |  |  | 2018 |  |  |  | 2019 |  |  |  | 2020 |  |  |  | 2021E |  |  |  | 2022E |  |  |  | 2023E |  |  |  | 2024E |  |  |  | 2025E |  |  |  | 2026E |  |  |  | CAGR 17-21E |  |  |  | CAGR 22-26 |
Market Size by Asset Under Management in Private Banking and Private Wealth Management Business in Hong Kong (Billion HKD) |  |  | NA |  |  |  | 7,812.0 |  |  |  | 7,624.0 |  |  |  | 9,058.0 |  |  |  | 11,316.0 |  |  |  | 13,862.1 |  |  |  | 17,216.7 |  |  |  | 20,923.6 |  |  |  | 25,217.3 |  |  |  | 30,342.2 |  |  |  | 36,228.6 |  |  |  | 15.4 | % |  |  | 20.4 | %
Note: (i) The data disclosed was based on “Asset and Wealth Management Activities Survey” published by Securities and Futures Commission (ii) Due to discrepancy in survey scope, the historical data prior to 2017 is not available. |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

|  |  | 2016 |  |  |  | 2017 |  |  |  | 2018 |  |  |  | 2019 |  |  |  | 2020 |  |  |  | 2021E |  |  |  | 2022E |  |  |  | 2023E |  |  |  | 2024E |  |  |  | 2025E |  |  |  | 2026E |  |  |  | CAGR 18-21E |  |  |  | CAGR 22-26 |
Market Size by Asset Under Management in Assets Held Under Trust Business in Hong Kong (Billion HKD) |  |  | NA |  |  |  | NA |  |  |  | 4,333.00 |  |  |  | 3,844.00 |  |  |  | 4,480.00 |  |  |  | 4,952.20 |  |  |  | 5,413.40 |  |  |  | 5,907.20 |  |  |  | 6,430.20 |  |  |  | 6,993.10 |  |  |  | 7,591.70 |  |  |  | 4.6 | % |  |  | 8.8 | %
Note: (i) The data disclosed was based on “Asset and Wealth Management Activities Survey” published by Securities and Futures Commission (ii) Due to discrepancy in survey scope, the historical data prior to 2018 is not available. |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

Market Size by Revenue of the Establishments Engaged in the Financial and Wealth management Industry by Market Segment in Hong Kong (Billion HKD) |  | Market share by revenue in 2021 |  |  | Revenue in 2016 |  |  | Revenue in 2020 |  |  | Revenue in 2021 |  |  | Expected Revenue in 2022 |  |  | Expected Revenue in 2026 |  |  | CAGR 2016-2021 |  |  | CAGR 2022E-2026E |
Asset Management and fund advisory services |  |  | 37.4 | % |  |  | 58.2 |  |  |  | 96.1 |  |  |  | 114.0 |  |  |  | 132.1 |  |  |  | 226.9 |  |  |  | 14.4 | % |  |  | 14.5 | %
Securities dealing and brokerage services |  |  | 35.1 | % |  |  | 64.2 |  |  |  | 93.8 |  |  |  | 107.1 |  |  |  | 119.4 |  |  |  | 188.2 |  |  |  | 10.8 | % |  |  | 12.0 | %
Placing and underwriting services |  |  | 16.2 | % |  |  | 36.6 |  |  |  | 45.9 |  |  |  | 49.5 |  |  |  | 53.1 |  |  |  | 66.6 |  |  |  | 6.2 | % |  |  | 5.8 | %
investment and corporate advisory services |  |  | 3.0 | % |  |  | 5.3 |  |  |  | 8.0 |  |  |  | 9.1 |  |  |  | 10.4 |  |  |  | 15.7 |  |  |  | 11.4 | % |  |  | 10.8 | %
Others |  |  | 8.3 | % |  |  | 14.8 |  |  |  | 21.7 |  |  |  | 25.2 |  |  |  | 29.2 |  |  |  | 45.1 |  |  |  | 11.2 | % |  |  | 11.5 | %
Total Market |  |  | 100.0 | % |  |  | 179.1 |  |  |  | 265.5 |  |  |  | 304.9 |  |  |  | 344.2 |  |  |  | 542.5 |  |  |  | 11.2 | % |  |  | 12.0 | %

Market Size by AUM of Asset Management and Fund Advisory Sector (excluding REITs) in Hong Kong (Billion HKD) |  |  | Market share by AUM in 2021 |  |  |  | AUM in 2016 |  |  |  | AUM in 2020 |  |  |  | AUM in 2021 |  |  |  | Expected AUM in 2022 |  |  |  | Expected AUM in 2026 |  |  |  | CAGR 2016-2021 |  |  |  | CAGR 2022E-2026E |
LCs- Asset Management |  |  | 79.8 | % |  |  | 12553.0 |  |  |  | 18865.0 |  |  |  | 22675.9 |  |  |  | 29123.3 |  |  |  | 51971.7 |  |  |  | 12.6 | % |  |  | 15.6 | %
Insurance Companies (“ICs”) - Asset Management |  |  | 4.9 | % |  |  | 514.0 |  |  |  | 1171.0 |  |  |  | 1383.0 |  |  |  | 1631.9 |  |  |  | 3410.1 |  |  |  | 21.9 | % |  |  | 20.2 | %
Ris - Asset Management |  |  | 6.1 | % |  |  | 956.0 |  |  |  | 1543.0 |  |  |  | 1745.1 |  |  |  | 1998.1 |  |  |  | 3682.2 |  |  |  | 12.8 | % |  |  | 16.5 | %
LCs - Fund Advisory |  |  | 9.2 | % |  |  | 1198.0 |  |  |  | 2221.0 |  |  |  | 2625.2 |  |  |  | 3100.4 |  |  |  | 6243.8 |  |  |  | 17.0 | % |  |  | 19.1 | %
Total Market |  |  | 100.0 | % |  |  | 15221.0 |  |  |  | 23800.0 |  |  |  | 28429.2 |  |  |  | 35853.7 |  |  |  | 65307.8 |  |  |  | 13.3 | % |  |  | 16.2 | %

Competitive landscape of securities dealing service in Hong Kong

According to the Stock Exchange of Hong Kong Limited, there were 700 Exchange Participants in the Stock Exchange and 195 Exchange Participants in the Futures Exchange as at 31 December 2020. HKEX Participants are divided into 3 categories; ‘‘A’’, ‘‘B’’ and ‘‘C’’. Category A consists of the top 14 brokerage firms by transaction size, while Category B refers to the participants ranked from 15 to 65. The remaining participants in the market are grouped in Category C. The brokerage services market in Hong Kong is relatively consolidated and dominated by certain Category A firms, with Category A participants accounting for 58.15% of the total market turnover in 2020, while Category B participants accounted for a share of approximately 34.50% of the total market turnover in the same year.

The numbers of high net worth individuals in Hong Kong and Mainland China rapidly increased from 148 thousand and 1,129 thousand in 2016 to 206 thousand and 1,633 thousand in 2021, and are expected to reach 324 thousand and 2,820 thousand by 2026, respectively.

The numbers of ultra-high net worth individuals (individuals who have a net worth of over US$30 million) in Hong Kong and Mainland China also rapidly increased from 3.2 thousand and 37.5 thousand in 2016, respectively, to 6.1 thousand and 93.9 thousand in 2021, respectively, and are expected to reach 7.6 thousand and 133.5 thousand by 2026, respectively.

The value of SFC-authorised RMB investment products increased from approximately RMB 70 billion on 31 March 2016 to approximately RMB204 billion on 31 March 2021.

The total market capitalisation of RMB-denominated SFC-authorised Exchange Traded Funds invested onshore through RMB Qualified Foreign Institutional Investors, Stock connect, Bond Connect and China Interbank Bond Market increased from approximately US$4,726 million on 31 March 2016 to approximately US$8,325 million on 31 March 2021.

Professional investors accounted for approximately 72% of the asset management and fund advisory business in Hong Kong as at 31 December 2020.