Marc Pictet Interview

As Chinese Mainland economy takes time to recover, Hong Kong’s financial services industry is adapting. Marc Pictet, Senior Partner of the Pictet Group, believes that the extraordinary wealth creation in Chinese Mainland over the past 20 to 30 years is stabilising and that all market participants will have to adjust. This adjustment may take three to five years, but the worst is probably behind us. Hong Kong remains an attractive financial centre with a favourable business environment, and as wealth continues to grow in Greater China, the Group will invest more resources in Hong Kong.

In an interview with the Hong Kong Economic Journal, Marc Pictet discusses his meetings with executives from major institutions based in Shenzhen. The sheer size of the market, the level of professionalism, and the technology used by these firms is remarkable. Despite the ongoing uncertainty in the macro environment, wealth creation continues, however, he stresses that the real question is whether an institution is credible and organised in a way to capture this new wealth and remain relevant. There are growth opportunities for players perceived as stable, solid, and focused.

Hong Kong is competitive as a hub for family offices

The financial and economic ecosystems of Hong Kong and Chinese Mainland are interlinked, particularly with regard to wealth management. According to a recent research report, Hong Kong is set to overtake Switzerland as the world’s largest wealth management centre in the coming years, driven largely by wealth from Chinese Mainland .

Marc Pictet believes that Switzerland and Hong Kong are truly complementary. In the past, some assets have moved from Europe, particularly Switzerland, to Hong Kong, while others have moved from Hong Kong to other financial centres. However, he does not see this as a clear trend. As a business, Pictet has always adapted in order to best serve its clients based on their needs and preferences.

The wealth market in Hong Kong and across Asia is increasingly focused on how to structure wealth for the next generation, looking a investments beyond Asia. This is where Pictet can offer its expertise.

Commenting on the Hong Kong government’s efforts to promote the city as a hub for family offices, Marc Pictet notes that when high-net-worth clients consider establishing or relocating their family offices, they tend to compare options in the US, London, Switzerland, Hong Kong and Singapore based on several key criteria. These include the stability of the country, the reliability of its legal and tax environment, ease of access to highly qualified professionals, and, to some extent, the lifestyle available to the principals.

Marc Pictet believes that Hong Kong remains an attractive financial centre, particularly for family offices. The city’s access to talent is unparalleled. Family offices are a growing segment, and Pictet is serving an increasing number of them.

On the subject of Asian clients, Marc Pictet says that while no two Asian families are the same, there is a common archetype of trading-oriented, leveraged, and fee-conscious families. He believes that the industry has a crucial role to play in demonstrating the value of its services and solutions, such as family governance, wealth transfer to the next generation, wealth structuring and tax considerations. This is a significant task and, if done properly, can add significant value.

Private equity valuations normalising; a long-term investment approach is needed

Relatively high interest rates, which are now falling, have slowed the momentum in private equity, especially for IPOs. However, valuations have normalised and the market is becoming more active. “I wouldn't be surprised if, in ten years’ time, we look back on the 2025 private equity vintage and see that it has performed extremely well,” says Marc Pictet. He points out that private equity is an important asset class, particularly for large wealth owners, but that it is somewhat underrepresented in wealth management in Asia.

Marc Pictet confirms that the Group will continue to recruit talent, with a focus on quality rather than quantity, as it is essential to preserve Pictet’s corporate culture. Throughout its more than 200-year history as an independent private partnership, Pictet has always grown organically and has never diluted its culture through acquisitions. Therefore, before recruiting a new colleague, the firm ensures that the individual understands Pictet’s culture and its approach to conducting business, which focuses on building asset allocations with clients rather than pushing products.

As far as onshore wealth management in Chinese Mainland is concerned, Marc Pictet does not expect the barriers to entry to change significantly in the next three to five years. Pictet is currently active in asset management in Chinese Mainland. It has been investing in Chinese onshore assets for global clients for two decades and was one of the first international asset managers to offer a local currency renminbi bond fund. In other markets, Pictet has often established a local presence through its asset management business, as this approach is an effective way of building brand awareness.