Hong Kong’s Ambitious Plan to Become a Leading Family Office Hub

Hong Kong's Ambitious Plan to Become a Leading Family Office Hub

On March 24, 2023, the Hong Kong government issued the “Policy Statement on the Development of Family Offices” to attract global family offices to bring their wealth to Hong Kong. With assets under management reaching USD 2.3 trillion in 2021, Hong Kong has established itself as one of the largest cross-border wealth management centers in Asia. The growth of family offices in the region has received increasing attention, and Hong Kong is now poised to become a leading hub for these institutions.

Hong Kong’s unique position between mainland China and international markets, as well as the diversification of investment options it offers, make it an attractive destination for family offices. The Hong Kong government has set a target of promoting the establishment or expansion of at least 200 family offices by the end of 2025, demonstrating its commitment to the sector.

Eight Key Measures: Creating a Competitive Environment for Family Offices

The government has announced eight major measures in its policy manifesto to create a competitive and favorable environment for global family offices and asset owners in Hong Kong:

  1. Providing tax concessions: The government has submitted a draft amendment to provide profits tax concessions for family investment vehicles (FIVs) managed by a single-family office in Hong Kong.
  2. Introducing a new “Capital Investor Immigration Scheme”: The government will restart this scheme, which was suspended in 2015, to attract more new capital to settle in Hong Kong.
  3. Providing convenient market measures to family offices: The Securities and Futures Commission (SFC) recently issued a reference guide specifically for family offices, clarifying that single-family offices do not need to apply for any licenses under the Securities and Futures Ordinance if they do not conduct regulated activities in Hong Kong.
  4. Establishing the Hong Kong Institute of Wealth Management: This institute will provide continuous training, knowledge exchange, and other activities for wealth inheritors and industry practitioners.
  5. Promoting art storage facilities in Hong Kong: The Hong Kong government actively plans to establish facilities combining art and collectible storage, exhibition, and appreciation, attracting more global family offices that invest in art to settle in Hong Kong.
  6. Developing Hong Kong into a philanthropy hub: The government will streamline the application process for becoming charitable organizations and provide further guidance in this regard to facilitate the application process.
  7. Expanding the functions of the Investment Promotion Agency’s dedicated team: The government will allocate more resources to expand the functions of the dedicated team (FamilyOfficeHK) established in June 2021, providing more comprehensive one-stop services.
  8. Establishing a new network of family office service providers: The dedicated team of the Investment Promotion Agency will convene and establish a new network of family office service providers, including private banks, accounting and law firms, trust companies, and other professional service providers.

A Promising Future for Hong Kong’s Family Office Sector

With these comprehensive measures in place, Hong Kong is well on its way to becoming a leading hub for family offices. The government’s commitment to providing a competitive and favorable environment will ultimately attract global wealth, reinforce Hong Kong’s status as an international financial center, and ensure the ongoing success of the family office sector in the region.

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Hong Kong’s Ambitious Plan to Become a Leading Family Office Hub
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