12-10-2023 (HONG KONG) Hong Kong, a bustling metropolis and major financial hub, is home to an estimated 408,000 multimillionaires, according to a recent survey conducted by Citigroup. This number represents approximately seven per cent of the city’s population, with one in every 14 citizens boasting a net worth of HK$10 million or more. The survey, which interviewed 1,700 citizens aged 21 to 79, provides valuable insights into the financial habits and attitudes of these affluent individuals.
Asset Allocation and Family Financial Transparency
The survey revealed that nearly half of the interviewed multimillionaires hold their current assets in cash, followed by approximately 30 per cent who have their assets invested in stocks. Funds and securities account for 19 per cent and three per cent, respectively. The median net asset value of multimillionaires stands at HK$16 million, representing a decrease of HK$500,000 compared to the 2022 figure.
The survey also delved into family financial transparency, interviewing 200 multimillionaires and their children aged 13 to 18. It discovered that only 30 per cent of the multimillionaires were willing to disclose their personal assets to their children. However, nearly 90 per cent of multimillionaires expressed a willingness to share the family’s monthly expenses with their children.
Future Financial Support and Investment Plans
Regarding future financial support, around 70 per cent of multimillionaires stated they would support their children in purchasing a home, with an average support allowance of HK$2.4 million. Furthermore, over half of them were willing to sponsor their children with an average of HK$380,000 for organizing a wedding and HK$210,000 for travel. Surprisingly, 40 per cent of multimillionaires’ children expected financial support from their parents when raising their own next generation, while only 30 per cent of parents were willing to provide an average sponsorship of HK$1 million.
The survey also shed light on multimillionaires’ future financial plans for their children. Approximately 70 per cent of respondents expressed their intention to send their children abroad for education, with an expected investment of over HK$2 million across four years of university studies. Multimillionaire parents are proactively planning and saving for these expenditures, with an average of HK$380,000 allocated for wedding expenses and HK$2.4 million to assist their children in purchasing their first homes.
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