Story by Themis Qi •
Hong Kong is becoming a focal point for Asian billionaires seeking to pivot away from US exposure, Deutsche Bank's private bank says
Deutsche Bank is seeking to capitalise on wealthy investors across mainland China, Hong Kong, Taiwan and the Philippines who are looking to diversify away from US assets, as it pushes ahead with ambitious expansion plans in the region.
Affluent investors from mainland China, Hong Kong, Taiwan and the Philippines - markets Deutsche Bank groups as "North Asia" - were becoming increasingly uneasy about their heavy exposure to US assets and were looking more closely at opportunities in Europe, according to Claudio de Sanctis, a member of the management board and head of Deutsche Bank's private bank.
The shift in asset allocation is creating growth opportunities for Deutsche Bank's private banking business, particularly in Hong Kong, which De Sanctis described as the region's most dynamic wealth management hub.
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"In the Asian region, I find there are exciting opportunities everywhere. But the most exciting momentum is here in Hong Kong," said De Sanctis in an interview with the South China Morning Post. "Hong Kong is definitely taking a leading position in terms of investment."
De Sanctis says affluent investors were becoming increasingly uneasy about their heavy exposure to US assets. Photo: Sun Yeung
Much of that growth is expected to come from Hong Kong and mainland China. Looking ahead, De Sanctis said the bank expected double-digit revenue growth, particularly from emerging markets in Asia, fuelled by a strategic pivot towards ultra-high-net-worth and family office clients.
Deutsche Bank's private banking division managed Euro685 billion (US$795.8 billion) in assets and reported Euro2.3 billion in profit before tax last year, increases of 8 per cent and 95 per cent, respectively, from a year ago.
The German lender overall reported a record net profit of Euro7.1 billion in 2025, driven largely by its global investment banking business.
Hong Kong has also been gaining traction as a wealth management hub for global billionaires. According to a February report by Deloitte, the number of single-family offices in the city rose by 681, or 25 per cent, to nearly 3,400 in the two years to the end of last year. Their origins span mainland China, Hong Kong, Europe, Asia-Pacific, the United States and the Middle East.
The Hong Kong government has been working to reinforce the city's position in wealth management.
Financial Secretary Paul Chan Mo-po said in his February 25 budget speech that authorities would expand the range of funds and asset classes eligible for tax incentives, as part of a plan to attract 220 additional family offices by 2028.
As interest in Hong Kong grows, Deutsche Bank is increasingly connecting Asian family offices and billionaires with European entrepreneurs seeking investment partners.
The trend mirrors a wave of Chinese acquisitions in Europe last year. E-commerce company JD.com agreed to acquire German electronics retailer Ceconomy in December, in a deal valuing the company at Euro2.2 billion, while home appliance manufacturer Midea completed the purchase of German rival Teka in April.
Despite stiff competition from other European wealth managers, De Sanctis said Deutsche Bank's long-standing presence in Europe provided an advantage.
The bank is also offering Asian billionaires institutional-style services for both their business and personal needs.
"The new generation of family offices in Asia is becoming more professional," De Sanctis said. "Particularly here in Hong Kong, the level of professionalism is extremely high."
"In addition, Chinese clients continue to favour liquidity, tactical flexibility, and capital-market products, especially as the mainland and Hong Kong markets have rebounded. They remain active in equities and structured products, while gradually adding semi-liquid alternatives," said De Sanctis.
With portfolio diversification likely to remain a dominant theme among wealthy investors, De Sanctis said the bank expected to deepen its investment in Hong Kong over the next two years.
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This article originally appeared on the South China Morning Post (www.scmp.com), the leading news media reporting on China and Asia.
Copyright (c) 2026. South China Morning Post Publishers Ltd. All rights reserved.
De Sanctis said Hong Kong and other North Asian markets were expected to account for the bulk of the private bank's planned 250 new hires globally over the next three years, a target announced last November that would expand front-office headcount in emerging markets by about 50 per cent.
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