Hong Kong’s four key advantages as the premier family office hub – Investing Abroad News

In its latest push to turn Hong Kong into a top destination for wealth family offices, supervised by the Hong Kong Government, FSDC has recently set up the Hong Kong Academy for Wealth Legacy (HKAWL), which will be steered by the city’s tycoons, to offer a full suite of programme tailored to the upper echelon.

Already a popular family office hub due to its robust financial infrastructure, low taxation and free market economy, Hong Kong is eyeing the next wave of new family offices. Asia is projected to witness a doubling of assets under management (AUM) and a 60% increase in revenues by 2025 compared to 2021 levels, with Hong Kong being the prime destination for wealth management business.

The family offices landscape has been developing rapidly in Asia in the last decade. Following the recent establishment of the HKAWL, which will double as an open platform for family offices, Hong Kong is further sweetening the deal for wealth owners worldwide.

“As part of a family office that has been rooted in Hong Kong for more than 50 years, I am delighted to offer my support and insights to the HKAWL. Our goal is to educate the next generation of family business leaders, equip them with the knowledge and skills necessary to effectively manage their family offices and build upon the legacy we have established.＂said Adrian Cheng, Chairman of HKAWL and internationally renowned business leader.

Led by industry experts and tycoons such as Cheng, who is also the CEO of Hong Kong conglomerate New World Development and the Founding Chairman of HKAWL, HKAWL serves as a significant step towards attracting global family offices to Hong Kong. It aims to offer comprehensive support, insights and knowledge exchange on wealth management to both draw global family offices and wealth managers to Hong Kong.

Hong Kong currently boasts a massive asset and wealth management industry that is worth US$3.9 trillion. In 2022, family offices and private trusts contributed 17% of the private banking and private wealth management business in Hong Kong, roughly HK$1,520 billion, or US$195 billion. The city is also projected to be the largest booking centre by 2025.

Hong Kong’s four Key Advantages as the Premier Family Office Hub

At the recent launch of the HKAWL, Cheng shared his views on the timely launch of the Academy and the major draws of Hong Kong as a premier family office hub. He said that Hong Kong offers four key comparative advantages over its peers for family offices.

These include its status as the dominant gateway to the massive Mainland market and the global hub for offshore renminbi business. Hong Kong also provides a supportive regulatory environment underpinned by a well-established legal system with a favorable tax regime.

As an international financial centre, it is home to the world’s leading banks, and a large asset management market with diverse investment products. Additionally, the city is establishing itself as a hub for emerging financial trends that cater to the diversified needs of family offices, such as green and sustainable finance and the art and collectibles market.

Christopher Hui, Secretary for Financial Services and the Treasury, also shared the roadmap of HKAWL at its launch event, emphasising the importance of offering innovative events and investment opportunities that speak to next-generation wealth owners. They include:

Hong Kong will host the second “Wealth for Good in Hong Kong Summit” themed “Growing with Certainty Amid Growing Uncertainty” in late March next year. It will be a flagship summit organised by the Hong Kong Government to engage and collaborate with the decision makers and professional teams of family offices around the globe, showcasing Hong Kong’s unique opportunities.

Hong Kong will implement a new Capital Investment Entrant Scheme to allow eligible investors who make investments of HK$30 million or above in assets such as stocks, funds, bonds, etc. (excluding real estate) to apply for entry into Hong Kong.

(Press Release)