Hong Kong's Financial Boom: Over 200 Family Offices Established!

In a stunning display of financial prowess, Hong Kong has already outstripped its ambitious target of establishing 200 family offices by the end of 2025! This milestone, heralded by the Financial Services and the Treasury Bureau (FSTB), showcases the city's dominant position as Asia's leading hub for private wealth management.

Family offices, exclusive firms dedicated to managing wealth, investments, and personal affairs for ultra-high-net-worth families, are rapidly finding a home in Hong Kong. The announcement, made on Monday by local broadcaster RTHK, emphasizes the city's reputation as a premier cross-border investment center.

A Vision Realized: The Journey to 200 Family Offices

This initiative was first laid out in Chief Executive John Lee's 2022 Policy Address, which aimed to attract at least 200 family offices by 2025. The business promotion agency, InvestHK, has played a pivotal role in this success by providing tailored support to prospective family office operators, especially those from the Chinese mainland.

To fuel further growth, the government rolled out a new policy framework in March 2023, introducing enticing measures such as tax incentives and the innovative New Capital Investment Entrant Scheme (New CIES). This revamped scheme allows select private company investments to help investors secure residency in the city.

The Perfect Storm for Wealth Management

FSTB secretary Christopher Hui highlighted that Hong Kong offers a unique blend of advantages for family offices, including world-class professional services, an exceptional quality of life, and opportunities in burgeoning sectors like green investments, art, and philanthropy. According to Hui, these elements culminate in a rich and diverse ecosystem for private wealth management.

Looking to the Future: A Thriving Financial Landscape

As the wealth management landscape evolves, total assets under management in Hong Kong are projected to reach a staggering HK$35 trillion by the close of 2024—a remarkable 13% increase year-on-year, fueled by robust net fund inflows. The government is committed to continually refining tax policies to nurture this sector, ensuring Hong Kong remains a formidable player on the global financial stage.

With its sights set on the future, Hong Kong is not only solidifying its status as a family office powerhouse but also entrenching itself deeper into the fabric of global wealth management.