HONG KONG: Many Hong Kong-based family offices are planning to add exposure to private equity and digital assets over the next three years, according to a report commissioned by local authorities.
Interest from wealthy families in those assets, alongside private credit and venture capital, are expected to “rise notably”, the Hong Kong Institute for Monetary and Financial Research (HKIMR) wrote in a report.
Hong Kong has sought to encourage more wealthy individuals and their families to anchor their investments in the city, as it aims to be the link between mainland China and global markets.
The number of single-family offices based in the financial hub rose to 3,384 by the end of last year, a 25% increase from 2023, according to a Deloitte survey commissioned by the Hong Kong government released last month.
The digital asset market is “growing, but still at an early stage”, Giorgio Valente, head of the HKIMR, said at a briefing on Tuesday.
“Many long-term investors, including family offices, are watching this space and reassessing their positioning.”
The report is based on a survey of 101 entities, including single and multiple family offices, between October 2024 and April 2025.
About 44% managed at least US$1bil. Their wealth mostly originated from Hong Kong, mainland China and other parts of Asia.
In line with demands from wealthy investors, Hong Kong’s government has been easing some rules to encourage crypto trading activity.
Last year, the city’s Securities and Futures Commission started to license platforms that would be allowed to connect local entities with their global order books.
As part of a three-year push to boost digital assets trading since 2022, the former British colony established a licensing regime for crypto platforms, listed exchange-traded products that track bitcoin and ether, and began to oversee digital-asset funds.
Still, crypto activity remains relatively muted compared with hubs such as the United States, whose President Donald Trump has embraced the industry.
“While the exact magnitude of those investments remains uncertain, the direction of travel is clear, there’s rising structural interest in this area, and we expect that to deepen over time,” said HKIMR’s Valente. — Bloomberg
