Hong Kong-headquartered Sun Hung Kai Financial has been prompted to enter the wealth management field by a commission price war among brokerages, according to an interview with its chief executive, William Leung Wing-cheung in the South China Morning Post.

The former top Hong Kong banker told the publication he expects the firm's wealth management business to become the biggest revenue driver in five years, from less than half that amount today.

“A price war on the commission of wealth management products was unlikely because investors always need someone to talk to when making an investment with a large sum of money,” Leung was quoted as saying. He was a former senior executive at Hang Seng Bank.

“Stock trading commissions have become lower because much of the human costs have been replaced by computers,” he said.

In July this year, local brokerage, King Fook Securities - owned by listed King Fook Holdings - said it would close its business after sluggish transaction volumes and surging costs forced the parent company's hand, the publication said.

Hong Kong had 507 brokerage firms at the end of June, down from 511 at the end of last year. The top 65 accounted for more than 90 per cent of market turnover at the end of April, stock exchange figures show, the publication said.

“Some high-net-worth individuals were actually at the lower bottom of the wealthy customer base of private banks, and they are getting less service from banks because of cost-cutting exercises in the industry," he says. "But we welcome them with open arms,” he added.

SHKFL, through its subsidiaries, had over HK$56 billion ($7.22 billion) in assets under management, custody and/or advice, according to figures from 30 June last year.