Goldman Sachs forecasts offshore wealth growth despite China's regulatory scrutiny

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Goldman Sachs analysts Melissa Kuang and Wayne Wang maintained a positive outlook for offshore wealth management, forecasting 2026 fee income growth of 30 percent for Standard Chartered and 13 percent for HSBC. This projection came despite Beijing’s increased regulatory scrutiny, including intensified tax collection on offshore investment products and family trusts. The analysts characterized these measures as the enforcement of existing rules rather than the introduction of new restrictions, noting that Chinese clients primarily sought diversification and access to broader investment markets.

Consequences

Banking institutions in Singapore are projected to see fee income growth between 16 and 25 percent by 2026 as client demand for offshore allocation persists. Market concerns regarding cross-border wealth management remain elevated following reports of a 20 percent levy on overseas insurance policies.

Sources

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