KUALA LUMPUR, May 21 (Bernama) -- Bursa Malaysia ended at its intraday low on Thursday as investor sentiment remained cautious amid ongoing foreign outflows, although the recent weakness may present bargain-hunting opportunities in fundamentally sound blue-chip counters. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 9.33 points, or 0.54 per cent, to 1,708.36, from yesterday’s close of 1,717.69. The benchmark index, which opened 3.74 points higher at 1,721.43, hit an intraday high of 1,722.50 in early trade before losing momentum for the rest of the day. Market breadth was negative, with losers outpacing gainers 656 to 508, while 565 counters were unchanged, 989 untraded and 32 suspended. Turnover fell to 3.49 billion units worth RM3.70 billion compared with 4.15 billion units worth RM4.29 billion on Wednesday.
Hong Kong’s banking sector is poised for a meaningful wealth-management windfall in 2026, with fee income expected to surge well above market expectations, according to Bloomberg Intelligence (BI).
Banks such as HSBC Holdings PLC and BOC Hong Kong Holdings Ltd could see wealth fees grow by more than 20% this year, driven by stronger fund sales, brokerage activity and bancassurance demand.
What’s Driving the Fee Surge
Bloomberg Intelligence highlights several tailwinds supporting wealth fee growth:
Improving global risk sentiment, underpinned by optimism around artificial intelligence investments
Favourable market conditions across equities, fixed income and precious metals
Expectations of further US rate cuts, keeping risk appetite firm
These factors are encouraging clients to deploy capital more actively, lifting transactional and advisory income for banks.
China Flows & IPO Activity Add Momentum
Wealth demand is also being supported by:
Rising inflows from new mainland Chinese migrants and visitors
Stronger interest in higher-yielding bancassurance products
Reviving IPO activity in Hong Kong, creating additional tailwinds for wealth and brokerage sales
Asset inflows have rebounded sharply alongside the recovery in Hong Kong’s stock market, helped by government efforts to attract high-net-worth individuals through tax incentives and residency programmes.
A Sharp Turnaround from the Covid Years
The current trend marks a clear reversal from the pandemic period, when Hong Kong saw:
Net population outflows
Mainland capital shifting towards Singapore
The return of capital and people is now re-energising banks’ fee-based businesses, particularly in wealth and insurance.
Outlook: Beating Consensus Expectations
Bloomberg Intelligence expects:
Wealth fee growth to exceed low-teens consensus forecasts
Sustained momentum across major banks
At least double-digit growth in insurance fees and service income in 2026, supported by an easing local rate environment
Investor Takeaway
Wealth management is emerging as a key earnings growth engine for Hong Kong banks
Fee income diversification reduces reliance on net interest margins
Strong capital inflows and IPO momentum could support earnings upgrades
For investors, Hong Kong banks are increasingly looking like structural beneficiaries of the region’s wealth rebound, rather than just rate-cycle plays.
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