HONG KONG, July 24 (Xinhua) -- Hong Kong's combined fund- management business hit 9.63 trillion HK dollars (1,236 billion U.S. dollars) in 2007, a record year-on-year rise of 56.5 percent, Hong Kong Securities Futures Commission said on Thursday.

    In its annual Fund Management Activities Survey published Thursday, the commission said the record growth reaffirmed Hong Kong's draw as a hub in the region's fund-management industry.

    Overseas investors contributed 6.547 trillion HK dollars (840 billion U.S. dollars), or 68.4 percent, to assets under management, exclusive of real estate investment trusts. Asset management, historically the largest segment in the combined fund-management business, expanded 57.5 percent to 6.51 trillion HK dollars (836 billion U.S. dollars).

    Assets managed in Hong Kong logged a new high of 4.07 trillion HK dollars(522 billion U.S. dollars) or 62.5 percent of 6.51 trillion HK dollars (836 billion U.S. dollars) in the asset- management segment.

    The commission said Hong Kong was favored as a hub for managing investments in the Chinese mainland and other Asian markets with 82.1 percent of the assets managed locally invested in the region.

    Rapid accumulation of wealth in Asia boosted the fund advisory and private banking business, which expanded 102.9 percent and 36.7 percent respectively between 2006 and 2007.

    Bolstering the industry were financial markets' strong performance, more diversified sources of fund inflow and a wider selection of products, the survey said.

    The commission's Deputy Chief Executive Officer Alexa Lam said the impressive growth reflects both industry participants' commitment to broaden their expertise and range of asset- management services.

    The commission will devote more effort to develop Hong Kong as "the platform of choice" for the Chinese mainland asset managers to implement the QDII (qualified domestic institutional investor) scheme.

    "We welcome mainland fund managers becoming a part of our asset- management industry, they will bring new opportunities and growth, " Lam said.