Hong Kong’s Financial Secretary Paul Chan Mo-po speaks at the Wealth for Good in Hong Kong Summit on March 27, 2024. (PHOTO / HKSAR GOVT)

Hong Kong is well-positioned to develop into a global family office hub, capitalizing on its unique role in bridging the Chinese mainland and the world, as well as its multiple edges from policy, infrastructure, and industry perspectives, local officials said on Wednesday.

Thanks to the “one country, two systems” principle and the unwavering support of the country, Hong Kong is in a unique position to create value for family offices, Financial Secretary Paul Chan Mo-po said in his speech at the Wealth for Good in Hong Kong Summit.

“On the one hand, we enjoy priority access to the mainland market. On the other, Hong Kong continues to be an international city practicing the common law system, with the judiciary exercising its power independently,” he said.

In the face of growing uncertainty, we have been working tirelessly with partners and stakeholders to create an environment that not only safeguards your wealth but empowers you to grow it in a way that benefits the greater good.

Christopher Hui, Secretary for Financial Services and the Treasury, HKSAR

Hong Kong’s multiple advantages, including the free flow of capital, talent, goods, information, a freely convertible currency pegged to the US dollar, world-class professional services, transparent government policies, and a stable political environment, have laid the groundwork for the city to become a leader in this field, Chan continued.

The finance chief cited a recent Deloitte study, commissioned by Invest Hong Kong — a government agency tasked with facilitating inward investment — as an example to showcase Hong Kong’s strength in wealth management.

According to the survey, Hong Kong was home to more than 2,700 single-family offices at the end of last year, with 885 managing at least $100 million in assets.

In total, the city has nearly $4 trillion in assets under management.

“We are also Asia’s largest hub for hedge funds, and the second-largest for private equity, behind only the mainland,” Chan added.

The special administrative region government announced eight policy measures in March 2023, aimed at creating a conducive and competitive environment for global family offices and asset owners to thrive in Hong Kong.

They include the introduction of a new Capital Investment Entrant Scheme and the offering of tax concessions.

Chan said “good progress” has been made since the policy statement launch. That includes the enactment of legislation to offer tax concessions, the expansion of the services portfolio of the FamilyOfficeHK team, and the launch of the new Network of Family Office Service Providers.

Themed “Growing with Certainty amid Growing Uncertainty”, this year’s summit, which is its second edition, brought together more than 400 influential decision-makers and professionals from the world’s leading family offices.

Secretary for Financial Services and the Treasury Christopher Hui Ching-yu speaks at the Wealth for Good in Hong Kong Summit on March 27, 2024. (PHOTO / HKSAR GOVT)

A new philanthropic initiative was launched by the government at the event, which aims to help family offices in their philanthropic drive.

The Impact Link (iLink) under the Hong Kong Academy for Wealth Legacy will serve as a database by attracting, selecting and showcasing charitable projects of high potential and high social impact.

It will initially focus on global public health, early life sciences research, poverty alleviation and development, education, youth empowerment, as well as community well-being.

Secretary for Financial Services and the Treasury Christopher Hui Ching-yu reiterated Hong Kong’s “unwavering” commitment to developing family office business.

“In the face of growing uncertainty, we have been working tirelessly with partners and stakeholders to create an environment that not only safeguards your wealth but empowers you to grow it in a way that benefits the greater good,” he said.

Calling Hong Kong a place “where innovation and resilience go hand in hand”, Hui called on industry players to embrace the opportunities Hong Kong offers to “turn our vision into reality”.

Since the inaugural summit last year, Hong Kong has received hundreds of inquiries from family offices worldwide, and over 100 have expressed their intention to set up an office or expand operations in the city, according to Undersecretary for Financial Services and the Treasury Joseph Chan Ho-lim.

He said he has confidence in achieving the stated goal of attracting over 200 family offices to Hong Kong before 2025.

Contact the writer at sally@chinadailyhk.com