According to the 2023 Global Wealth Report, Hong Kong is the largest cross-border wealth management center in Asia, with its cross-border private wealth management scale reaching $2.2 trillion in 2022, ranking second globally only to Switzerland. It is projected that Hong Kong’s cross-border wealth management scale will experience a compound annual growth rate of 7.6 percent over the next five years, surpassing Switzerland by 2027. Deloitte’s market research indicates that Hong Kong has over 2,700 single-family offices, showcasing the robust growth of the sector. The study predicts that with favorable government measures, Hong Kong will become the world’s leading hub for family offices. By the end of 2022, Hong Kong’s asset management scale had reached HK$30.5 trillion ($3.92 trillion), with over 12,500 ultra-high-net-worth individuals, making it an ideal location for establishing family offices. Other market research also shows that Hong Kong occupies a crucial position in the Asian asset management landscape.
Hong Kong is a multicultural city where Eastern and Western cultures converge, offering rich experiences and opportunities to expatriates and allowing them to enjoy unique lifestyles and values. This cultural atmosphere not only enhances cultural understanding but also broadens horizons. For those with children, considering international school options and integrating into local communities through expatriate groups can help in cultural adaptation.
Hong Kong’s position as a major cross-border wealth management center is a testament to its strategic importance in the global financial landscape. The city’s robust infrastructure, regulatory environment and business-friendly policies make it an attractive destination for high-net-worth people looking to establish family offices. The projected growth in wealth management underscores Hong Kong’s potential to become the leading global hub in this sector.
One of the critical factors contributing to this growth is the city’s ability to offer a comprehensive suite of services tailored to the needs of family offices, including wealth management, investment advisory, estate planning and philanthropy services. The presence of a well-developed financial services sector, coupled with a network of professional advisors, lawyers and accountants, provides a conducive environment for family offices to thrive.
The government’s proactive measures to attract and support family offices are also noteworthy. Initiatives such as tax incentives, streamlined regulatory processes and dedicated support services have played a significant role in bolstering Hong Kong’s appeal. These measures not only enhance the ease of doing business but also ensure family offices operate efficiently and effectively.
Transforming Hong Kong into a hub for family offices requires a multifaceted approach that leverages the city’s strengths in financial services, healthcare and cultural diversity
Healthcare is another vital aspect that makes Hong Kong an attractive destination for family offices. The city boasts a world-class healthcare system, offering high-quality medical services and comprehensive health protection. Ensuring that high-net-worth individuals and their families have access to top-notch healthcare is crucial for attracting and retaining family offices. Information and channels to help expatriates navigate the healthcare system can enhance their confidence in establishing a presence in Hong Kong.
Hong Kong’s cultural richness adds to its appeal. As a multicultural metropolis, the city offers a unique blend of Eastern and Western cultures, providing expatriates with diverse experiences. This cultural fusion enhances the overall living experience, making it easier for expatriates to adapt and thrive. Exposure to different lifestyles and values can broaden perspectives and foster greater cultural understanding.
For families with children, education is a primary consideration. Hong Kong’s international schools are renowned for their high standards and diverse curricula, catering to the educational needs of expatriate families. Integrating into local communities through expatriate groups and learning basic Cantonese can also enhance the living experience, making it easier for families to settle in and feel at home.
Meticulous planning in areas such as visas, housing, healthcare and social integration is essential for ensuring a smooth transition for expatriates. Providing comprehensive information and support in these areas can help expatriates navigate the complexities of relocating to and settling in Hong Kong. By addressing these practical aspects, Hong Kong can solidify its position as a preferred destination for family offices.
In conclusion, transforming Hong Kong into a hub for family offices requires a multifaceted approach that leverages the city’s strengths in financial services, healthcare and cultural diversity. By providing targeted support and creating a conducive environment for family offices, Hong Kong can attract and retain high-net-worth individuals and their families, driving economic growth and enhancing its global standing. Through strategic initiatives and a commitment to excellence, the city can cement its position as the leading global hub for family offices, benefiting both the local economy and the international financial community.
The author is a specialist in radiology, Master of Public Health of the University of Hong Kong, and an adviser of the Our Hong Kong Foundation.
The views do not necessarily reflect those of China Daily.
