Hong Kong people need total assets valued at around $1 million just to reach the middle class, according to a recent study by HSBC.
Hong Kong continues to be a market leader across the wealth spectrum with the requirement for remaining in the middle class placed at HK$5.9 million ($750,000) in liquid assets, according to a recent study by HSBC, alongside ownership of a property.
With Hong Kong being the world’s most expensive housing market, this would effectively define dollar millionaires in the city as just middle class.
Cautious Outlook
Meanwhile, the outlook for middle-class Hongkongers has worsened with investments being less diversified after market volatility undermined risk appetite.
41 percent described their outlook towards investing as cautious or very cautious while 61 percent said they increased cash allocations due to income uncertainty during the pandemic. Separately, professional investors have «maintained a higher investment ratio and a diversified portfolio, comprising a relatively higher proportion in funds and bonds», the study added.
Property is King
Partly as a result of the more cautious outlook, 76 percent of respondents chose property as the asset of choice for wealth preservation. Nearly 40 percent expressed interest in local properties while 28 percent showed interest in overseas properties. Top locations include the UK (39 percent), mainland China (38 percent), Canada (18 percent), Australia (15 percent) and the US (13 percent).
The study «HSBC Premier 2022 New Middle Class» was conducted in May 2022 with 1,043 respondents aged 24 to 64 years with liquid assets of HK$1 million or above.
