There were an estimated 87,000 High Net Worth Individuals in Hong Kong at the end of 2006, up 12.2 per cent from a year earlier, according to the second annual Asia-Pacific Wealth Report published by Merrill Lynch and Capgemini. The 2006 growth rate followed a 14.4 per cent increase in 2005. Hong Kong’s HNWs held a combined $460 billion in financial assets at the end of last year, a 12.2 per cent increase from the previous year. The increase in Hong Kong’s HNW population was driven by robust economic conditions and a strong performance on the stock market, say the reports authors. Last year, Hong Kong HNWs held 34 per cent of their assets in real estate and allocated 26 per cent to equity investments. “Economic conditions in Hong Kong remained buoyant in 2006 on the back of China’s continued expansion,” said Stephen Corry, Asia Pacific Investment Strategist for Merrill Lynch Global Wealth Management at this morning’s launch. “The twin drivers of higher real estate prices and robust stock market returns fuelled the double-digit increase in the number of HNWs in the city.” HNWs are defined as individuals with more than $1 million in net assets, excluding their primary residence and consumables. According to the 2007 Asia-Pacific Wealth Report, Hong Kong HNWs had an average net worth of $5.4 million, the highest among the nine countries covered in the report. China’s HNWs had a net worth of $5 million per person, followed by Singapore’s $4.9 million. The average in Asia Pacific was $3.3 million, compared with the global average of $3.9 million.