ZURICH/HONG KONG: Hong Kong has surpassed Switzerland to become the world's largest center for cross-border wealth management, driven by growing Chinese wealth and a strong rebound in initial public offerings, according to a report released by Boston Consulting Group on May 27.

The BCG 2026 Global Wealth Report showed Hong Kong managing US$2.95 trillion in offshore wealth, narrowly ahead of Switzerland's $2.94 trillion.

The report said the shift marked the first time Hong Kong had overtaken Switzerland and suggested the trend was unlikely to reverse as Asian financial centers continue to expand more rapidly than traditional European wealth hubs.

Wealth flowing out of China and a surge in IPO activity during 2025 played a major role in Hong Kong's rise, BCG said. "Hong Kong is cementing its role as China's gateway to global markets, though that same concentration ties its trajectory tightly to economic and regulatory developments on the mainland," the report's authors said.

BCG projected that both Hong Kong and Singapore would continue to grow as major cross-border wealth centers at annual rates of around nine percent through 2030. Switzerland, by comparison, is expected to grow at an average annual pace of about 6 percent over the same period.

Globally, cross-border wealth increased 8.4 percent last year to reach $15.7 trillion, supported by stronger financial markets and growing demand among wealthy clients for geographical diversification of assets.

According to the report, most of that wealth continued to flow into the world's top 10 offshore booking centers, further increasing concentration in the sector.

Despite losing the top position, Switzerland's broader geographic diversification could still prove advantageous, BCG said, because the country attracts clients from multiple regions rather than relying heavily on one market.

"Geopolitical uncertainty reaffirms Switzerland's role as a core global booking center, attracting flight-to-safety flows from more volatile regions such as the Middle East," BCG said.

Bankers and financial advisers told Reuters that wealthy individuals from Gulf countries have increasingly moved assets into Switzerland amid ongoing regional instability and conflict.

Michael Kahlich, co-author of the BCG report, said proximity to clients was becoming increasingly important in global wealth management.

"What ultimately matters is client proximity," Kahlich said, adding that two major wealth-management clusters were emerging globally, Singapore and Hong Kong serving Asia, and Switzerland, the United Kingdom, and the United States serving Western markets.

Kahlich also noted that Swiss banks have responded to these trends by expanding operations in major Asian financial centers.

"UBS is number one in wealth management in both Singapore and Hong Kong," he said.