HK family offices on the rise

Wealth hub: Skyscrapers at Victoria Harbour are illuminated by the afternoon sun. — Photo: China Daily

HONG KONG’S appeal as a world hub for asset and wealth management continues to strengthen, with the number of single-family offices in the special administrative region (SAR) seeing robust growth in the past two years.

Senior government officials and industry experts say the authorities will further optimise tax incentives to make it easier for deep-pocketed families to invest in Hong Kong.

More than 3,380 single-family offices had been operating in the SAR late last year – an increase of about 680 from 2023, or over 25% – according to the Market Study on the Family Office Landscape in Hong Kong.

The study estimates that single-family offices contribute about HK$12.6bil annually to the city’s economy through operating expenditure alone, and directly employ more than 10,000 full-time professionals.

“Under the ‘one country, two systems’ framework, the HKSAR, backed by the motherland and connected to the world, offers a favourable environment that’s predictable and has high potential for family offices to grow,” says Secretary for Financial Services and the Treasury, Christopher Hui Ching-yu.

He says the global family office and asset management sector is undergoing a rapid evolution, placing greater emphasis on sustainable growth, inter-generational legacy and positive impact.

To reinforce Hong Kong’s competitiveness, Hui says the SAR government plans to introduce legislative proposals in the first half of this year to expand the scope of qualifying investment for the preferential tax regimes offered to funds and single-family offices. The broadened range is expected to include precious metals, loans and private credit investments, and digital assets.

With various policy measures in place, Hui said he’s confident of achieving the target set out in the 2025 Policy Address to help more than 220 family offices establish or expand their business in the city between 2026 and 2028.

Alpha Lau Hai-suen, director-general of InvestHK, said many overseas family offices showed strong interest in Hong Kong’s institutional advantages and tax incentives during the agency’s promotional activities in Europe and South-East Asia.

InvestHK is a government department tasked with attracting investment into the SAR.

The SAR offers a highly flexible investment environment, with a preferential tax regime that imposes no restrictions on the geographical location of investments, allowing family offices to deploy capital globally through the city, Lau says.

She says that, generally, single-family offices are not required to obtain a licence in Hong Kong, thus helping to maintain a high level of privacy.

The study, commissioned by InvestHK and conducted by Deloitte, also found that these family offices originate from various regions and economic sectors, “underscoring the city’s ability to attract capital from diverse geographical and industry backgrounds and across different wealth levels”.

As inter-generational wealth transfer is actively underway, more than half of the surveyed family offices are led by second-generation or later family members.

“Hong Kong’s family office ecosystem has evolved beyond simply increasing the number of family offices and is now focused on integrating family capital, businesses and next generations into the city’s long-term development,” says Deloitte Private Hong Kong Leader Anthony Lau Ming-young.

With more first-generation wealth holders passing assets on to their successors, the city is well positioned to serve as an optimal hub for this process, he adds.

The study also highlights Hong Kong’s pivotal role in asset and wealth management in Asia, with assets under management of about HK$35 trillion by the end of 2024.

Hong Kong ranked second globally in the number of ultra high-net-worth individuals as of June last year, cementing its position as one of the world’s top destinations for family offices.

Meanwhile, in a separate report, the HKSAR continues to retain its long-cherished status as a “corporate home”, as a large number of US companies with regional headquarters in the city have indicated that they have no plans to relocate elsewhere in the near future, the American Chamber of Commerce in Hong Kong (AmCham Hong Kong) says.

According to a two-month survey by AmCham Hong Kong, about 92% of US multinational corporations say they have no intention to relocate their businesses away from Hong Kong at least in the next three years, up from 79% recorded in 2025.

Experts say the poll shows renewed confidence in Hong Kong’s resilience and long-term competitiveness as an international business hub.

The survey also challenges the notion that many multinational companies are moving their operations out of the city amid concerns over China-US ties.

The poll shows that such strong commitment is underpinned by a robust belief in Hong Kong’s business environment and rule of law.

More than 50% of respondents expressed their optimism about the city’s business outlook for the next 12 months, up from 33% recorded in 2025, while confidence in the HKSAR’s rule of law has increased to 94%, continuing an upward trend from 83% recorded in 2025.

Around 74% of respondents said that their operations have not been negatively affected by the National Security Law for the HKSAR.

“The survey findings show that Hong Kong’s international reputation is continuing to recover, and that its legal system and advantages all remain intact.

“The city remains a great place to do business,” says Lynn Song, chief economist for Greater China at the European bank ING.

The fundamental strengths of Hong Kong as a competitive international business hub in Asia were endorsed by 86% of the surveyed companies, an increase of 11 percentage points compared with 2025.

Song believes “the worst of the cycle for the HKSAR” is over.

Conditions have improved in the past two years as the US Federal Reserve has started to reverse its tightening cycle, while China continues to meet its growth targets and external demand has held up despite renewed trade tensions, he says.

“As borders reopened after the Covid-19 pandemic and travel resumed, much of the uncertainty has cleared, allowing a more accurate view of the situation on the ground,” Song says, adding that the recovery of Hong Kong’s financial and real estate markets over the past year has lifted sentiment, but there’s still room for improvement.

According to AmCham Hong Kong, the trade tensions between China and the United States – the world’s two largest economies – are still viewed as the biggest challenge for business operations, but the level of pessimism has moderated to 59% from 70% in 2025.

The survey was conducted from Nov 11 to Jan 16, and drew responses from over 450 member companies. The findings echo those recorded recently by AmCham China.

In January, 71% of respondents in an AmCham China poll said they have no intention of relocating their businesses away from China, while nearly half of the surveyed companies said they are optimistic about the country’s market growth prospects in the next two years. — China Daily/ANN