HK reaches 200 family office target ahead of schedule

Hong Kong has lured over 200 family offices to set up or expand operations in the city, reaching the target set in the 2022 Policy Address well ahead of schedule, according to the Financial Services and the Treasury Bureau (FSTB).

According to its statement, the authorities stated that the early achievement of this goal – facilitated by Invest Hong Kong (InvestHK) marks the city's status as Asia's leading cross-border private wealth management centre and hub for global family offices which is firmly anchored to a greater extent.

Furthermore, as the largest cross-border wealth management centre in Asia, Hong Kong's total assets under management surpassed HK$35 trillion as of end-2024, a year-on-year increase of 13%, with net fund inflows surging by over 80% to HK$705 billion, reflecting the growing appeal of Hong Kong as an international asset allocation hub.

This comes after the city's leader John Lee said in his first Policy Address to put forward a clear target of facilitating no fewer than 200 family offices in establishing or expanding their operations in Hong Kong by the end of 2025.

Subsequently, the FSTB published in March 2023 a policy statement to demonstrate the government's commitment to enhancing the ecosystem for family offices and asset owners. The policy statement outlined eight policy measures, including offering tax concessions, introducing the New Capital Investment Entrant Scheme (New CIES), and establishing the Hong Kong Academy for Wealth Legacy, with a view to curating a conducive and competitive environment for the businesses of family offices.

At the same time, the dedicated FamilyOfficeHK team of InvestHK expanded its role and launched a new network of family office service providers to serve as a platform for family offices to access the expertise of various professional services so as to provide comprehensive services and facilitation.

The dedicated team also stepped up promotion and hosted activities under the theme of family offices around the globe, including running roadshows in Mainland China, Europe, and the Association of Southeast Asian Nations (ASEAN) region, publishing featured articles in major markets worldwide, and taking a proactive approach with ultra-high-net-worth individuals interested in establishing a presence in Hong Kong. As the annual flagship event for family offices, the Wealth for Good in Hong Kong Summit organised by the Government also brought to the city many influential global family office principals. 

Considering the positive response from the targeted client base to the New CIES, the government made enhancements to the scheme this March to further raise the city's appeal to global high-net-worth individuals seeking to invest and settle in Hong Kong.

Relevant enhancements include that investments in permissible investment assets made through a private company wholly owned by an applicant and managed by an eligible single family office can be counted towards the value of the applicant's eligible investments. Subject to the fulfilment of other requirements of the scheme, an entrant may apply in accordance with the law to become a permanent resident of Hong Kong if he or she meets the requirement of having ordinarily resided in Hong Kong for a continuous period of not less than seven years and other relevant provisions of the Immigration Ordinance. 

Christopher Hui, the secretary for financial services and the treasury, said, "Upon the active promotion and policy support by the Government in fostering a stable and predictable environment conducive to development over the past two years or so, family offices are now an important component of Hong Kong's financial industry. Hong Kong is a place where favourable conditions for family offices converge, ranging from world-class professional services and a high-quality, liveable lifestyle to strong advantages for the development of sectors such as green investments, art and philanthropy."

"All these contribute to a diverse and well-rounded ecosystem for family offices. The fact that InvestHK has surpassed the milestone of attracting 200 family offices ahead of schedule is a testament to this city's strong competitive advantage in private wealth and asset management. We will continue to refine our policy measures, such as further enhancing the preferential tax regimes for funds, single family offices and carried interest, to keep up the growth momentum of the family office sector," he added.

Alpha Lau, the director-general of investment promotion, added, "As the world's second-largest cross border wealth management centre, Hong Kong is a preferred destination for investors. As strategic investors, family offices actively invest in local innovation and technology as well as start-ups, contributing to the sustainable growth of Hong Kong's innovation economy."

"In addition to actively attracting more family offices to set up in Hong Kong, InvestHK is also committed to building a capital matching platform to promote the dual development of finance and technology. Through capital investment that fuels research and innovation, the expanded innovation and technology ecosystem can attract more patient capital, creating a virtuous cycle that injects sustained momentum into Hong Kong's diversified economy," Lau added.

Jason Fong, the global head of family office at InvestHK, added, "Hong Kong has a strong foundation in private wealth management for over 100 years and serves as an ideal hub for global high-net-worth families to establish and operate family offices. As Hong Kong's family office ecosystem continues to thrive, it is creating a reinforcing cycle that fuels the development of capital markets, professional services, and talent."

"Robust succession planning plays a critical role in mitigating family disputes over inheritance, enhancing corporate governance and preserving the family's reputation. We are dedicated to assisting more families in establishing a robust succession mechanism, enabling the smooth transfer of both wealth and values across generations," he added.

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