The Middle East war has created new opportunities for family offices and private banking businesses in Hong Kong and Asia, as wealthy investors in the region seek to diversify their investments away from the conflict zone, according to industry players.

Ida Liu, CEO of HSBC Private Bank, said some affluent Middle Eastern customers were diversifying into Asia. The bank is the largest wealth manager in Asia with US$1.05 trillion in wealth balances in Asia last year, up 16.3 per cent from a year earlier, according to the lender.

“When we do check in regularly with our clients there, we have seen some remarkable resilience in the Middle East where we continue to invest as a wealth management hub,” Liu said in an interview with the South China Morning Post at the HSBC Global Investment Summit earlier this month. “The clients there are leaning into HSBC for their global diversification, and we have seen some families in the Middle East diversify their investments into Asia.”

Since the US-Israeli strikes against Iran began in late February, the financial and legal sectors in Hong Kong have been increasingly fielding inquiries from global investors about moving their wealth management business and family offices to the city, said Secretary for Financial Services and the Treasury Christopher Hui Ching-yu last month.

“This strongly signals that, amid geopolitical conflicts, Hong Kong remains the safest, most stable and ideal asset management platform and hub,” Hui said.