This is a sponsored article from HSBC China Global Private Banking.

HSBC’s private banking in China has garnered nearly every industry prize available in its three-year history to date. Far from resting on its laurels, the bank is growing its footprint, adding to its market-leading alternatives platform and leveraging its global heft to consolidate its lead.

HSBC’s private banking business in China has embarked on a carefully planned but fast-paced voyage of expansion since its launch in 2022. It is a journey strewn with accolades, innovations and awards. Three years in, its global private banking operation is now the largest among foreign players in China and spans the six major cities of Beijing, Shanghai, Guangzhou, Shenzhen, Chengdu and Hangzhou.

Its relative youth notwithstanding, it has already been the first international bank to offer, among others, hedge funds through trust plans, family trust advisory services and, debuting in 2025, upgraded private banking lounges for its mainland Chinese clients in the bank’s flagship branches.

Recognition of its pioneering achievements has been equally dynamic and widespread. Asian Private Banker, for example, has now awarded it “Best International Private Bank in Mainland China” and “Best Private Bank in the Greater Bay Area” for three consecutive years. In addition, in March, APB recognised Jackie Mau, Head of Global Private Banking, HSBC China, as the “Best Private Banker of the Year 2025” in its China Wealth Awards.

How to stay ahead of the pack?

Ever aware of the need to provide internationally minded Chinese clients access to cutting-edge products and services to bolster its leadership position in possibly the world’s most competitive marketplace, HSBC China has focused on adding alternative strategies to its product shelf with world-renowned asset managers that it believes further differentiate it from its peers and rivals.

Chinese high net worth (HNW) clients are no strangers to alternative investments, and for some time have invested in local private market funds. Adverse market conditions in recent years have led many to recognise the importance of diversifying their investment portfolios beyond traditional Chinese assets, such as real estate and equities.

The investments into alternatives, which range from hedge funds to private credit, are seen not just as tools for diversification but for creating a financial legacy that aligns with personal values and goals. HSBC China believes that the integration of alternatives into wealth management strategies highlights a strategic move towards achieving long-term stability and sustainable growth, indicating that Chinese HNW individuals are responding to global market dynamics and seeking more resilient investment strategies.

Giving clients unparalleled access to the best global private market funds

HSBC has moved quickly to integrate these alternative assets into its wealth management platform to support its clients’ long-term financial goals. Its differentiation comes in providing access – that in some cases is unique – to the funds, products and services of leading global alternatives providers.

In 2024, HSBC China further enhanced its product shelf to distribute more than a dozen alternative strategy trust plans and asset management plans, creating a multi-faceted alternative investment strategy and related product lines to help clients withstand market fluctuations and achieve diversified investments. This means the bank is now diversified with trust funds invested in, amongst other asset classes, private equity, long-short strategies and multi-asset allocations.

“Our partnerships with leading global asset managers are key to delivering a comprehensive suite of alternative strategies tailored to our mainland Chinese clients,” Mau noted. “These partnerships are carefully selected to ensure alignment with the evolving investment landscape, and some are exclusive to us, which is a strong demonstration of our unparalleled capability in distribution and targeting the right high net worth clients. To that end, we are intensifying our collaborative efforts to expand into the onshore China wealth market.”

Facilitating entrepreneurs and wealth transition

It’s a similar story for HSBC in how it approaches the servicing of its key client segment of entrepreneurs in China. That means delivering the benefits of its 160-year international heritage, 12 booking centres worldwide, and globally located Mandarin-speaking specialist product providers across corporate, investment and private banking to Chinese entrepreneurs both onshore and overseas.

Entrepreneurs are indeed one of the key engines of growth in the China wealth market. HSBC China believes that many among their number have already demonstrated their international credentials in the areas of investment, next-gen education, and business expansion – and that these are set for rapid growth. As China’s entrepreneurs navigate these global aspirations, the bank’s global footprint and comprehensive product offerings mean it is uniquely positioned to support them.

To this end, HSBC’s global private banking business has already formed a highly synergistic relationship with its corporate banking teams, while also collaborating with the Group’s operations in securities, funds, insurance, and fintech in mainland China.

HSBC China has recently launched an enhanced wealth proposition in mainland China, tailored to meet the diverse needs of Chinese entrepreneurs by offering integrated solutions that cover business expansion, asset allocation, lifestyle, next-gen education, and succession planning. Leveraging the bank’s global connectivity and strengthened cross-business collaboration, a team comprising private bankers and corporate bankers stands ready to support entrepreneurs in accessing global investment opportunities and fulfilling their corporate and trade financing needs when they decide to expand internationally.

Half of Chinese entrepreneurs worry about inheritance dispute

HSBC China also notes that Chinese entrepreneurs are transitioning from wealth creation to wealth preservation, and Chinese private enterprises will face significant succession challenges in the next 20 years. HSBC’s recently published Global Entrepreneurial Wealth Report shows that Chinese entrepreneurs are indeed grappling with succession planning, with half of them worrying that a large inheritance will create family disputes and erode the work ethic and values of the next generation. The bank has also observed that almost 70% of the surveyed next-generation entrepreneurs feel pressure to prove themselves when taking over their family businesses.

HSBC China is able to leverage the Group’s extensive experience in family legacy services across multiple up-and-down economic cycles in Asia Pacific and global markets to support Chinese entrepreneurs in the orderly and stable transfer of their wealth. Its integrated services, which include partnerships in law, taxation, and education, cover family trust advisory, risk planning, international education, and philanthropy consulting.

“HSBC is uniquely positioned in China’s wealth succession market due to our deep understanding of local dynamics and our robust global expertise. Our approach to wealth succession not only addresses financial considerations but also includes life-cycle planning and cultural nuances, ensuring a holistic service. The challenges and opportunities we see in China are distinct from other markets, and we innovate continually to navigate these complexities, positioning us as a leader in the wealth succession field here,” said Mau.

He is equally positive about the next steps in HSBC Global Private Banking’s mainland adventure: “Our journey in China is just beginning, and I am excited about the endless potential that lies ahead. As we look to the future, I envision a China market where we play an even more significant role in shaping the wealth landscape, supporting high net worth individuals and families to thrive across generations.”

This is a sponsored article from HSBC China Global Private Banking.