Special Feature
A Leading Centre for Family Offices
A Leading Centre for Family Offices <br/>領先的家族辦公室樞紐

Hong Kong has been a pivotal centre for family wealth management for over a century. The city’s engagement with family offices dates back to the late 1800s, marked by the emergence of affluent families such as the Ho Tung family, the Li Shek Men family, the Lee Hysan family and the Kadoorie family. Over the years, the expansion of family offices in Hong Kong has mirrored the region's increasing economic stature alongside the Mainland. The presence of over 2,700 family offices, as identified in the industry’s market study, underscores Hong Kong's significant and growing role as a global hub for family offices.


What is a Family Office?

At its core, a Family Office is an institutionalized advisory setup dedicated to managing the finances, investment portfolios, legacy and family matters of the ultra-wealthy. Unlike traditional wealth management, a family office handles more personalized services, from estate planning and legal affairs to philanthropy and multi-generational succession. This approach ensures financial prosperity and fosters the growth of the family's legacy, embedding long-term values and traditions into the fabric of its financial strategies.


Catalyst for a Vibrant Job Market

The economic benefits of Hong Kong's flourishing family office industry are multifaceted. As more asset owners establish operations in the city, they will create a significant demand for professional services across various sectors. This surge in demand will drive robust job creation in fields such as finance, investment management, legal services, accounting and more.

Imagine a ripple effect spreading across Hong Kong's professional landscape, as top-tier firms scramble to attract and retain the best talent to serve the discerning needs of family offices and their ultra-wealthy clients. From seasoned investment advisors and portfolio managers to skilled legal experts, a diverse array of highly skilled professionals will be in high demand, leading to a vibrant job market and attracting top talent from around the globe.

This influx of highly skilled professionals will not only contribute to the city's talent pool but also boost Hong Kong's reputation as a global financial centre of excellence. The presence of these esteemed family offices and the calibre of professionals they attract will solidify the city's status as a hub for sophisticated wealth management services, drawing more businesses and investment opportunities for everyone.


Attracting More Capital 

Family offices in Hong Kong will catalyse substantial capital inflows into the city's economy. These firms are entrusted with managing and investing the immense wealth of ultra-high-net-worth individuals and families, often amounting to billions or even trillions of dollars. The influx of such significant capital into Hong Kong's financial markets will have a profound economic impact, fuelling investment across a diverse range of sectors.

From real estate and infrastructure development to cutting-edge technologies and sustainable projects, this surge of investment capital will drive economic growth and innovation. Family offices, with their extensive resources and long-term investment horizons, will seek out lucrative opportunities in Hong Kong, injecting capital into various industries and propelling the city's economic landscape to new heights.

The strategic deployment of these vast sums of capital will help stimulate economic activity and position Hong Kong as a hub for innovative and transformative projects. By attracting family office investments, the city can leverage its financial prowess to support the development of groundbreaking technologies, sustainable infrastructure and forward-thinking initiatives. Family offices seeking promising ventures will also provide capital and mentorship to Hong Kong's startup ecosystem. This influx of investment could push the city to the forefront of innovation, attracting top talent and driving the development of cutting-edge solutions across industries.


Developing a Robust Ecosystem 

In March 2023, the Government unveiled a comprehensive policy statement outlining measures to attract and support family offices, recognizing their potential to drive economic growth and maintain Hong Kong's status as an international financial centre.

Significant progress has been made since then. Tax concessions have been introduced for family-owned investment vehicles managed by single-family offices in Hong Kong, creating a more favourable environment for these firms to establish operations. Additionally, the Government has launched a new Network of Family Office Service Providers, comprising private banks, accounting and legal firms, trustees and other professionals.

Recognizing the importance of nurturing talent, the Hong Kong Academy for Wealth Legacy was established in November 2023 to facilitate training, knowledge exchange, and networking opportunities for next-generation wealth owners. This year in March, during the second Wealth for Good in Hong Kong Summit, the Impact Link was launched, serving as a repository for charity projects seeking financial support, aligning with the philanthropic goals of many family offices.

While we strive to provide the best possible environment for family offices, our commitment does not end here. We will continue to enhance and expand our efforts, constantly seeking new ways to support and develop the family office ecosystem. This ongoing dedication not only attracts more family offices but also significantly enriches the economic and social fabric of Hong Kong, ensuring a future where prosperity is sustainably nurtured and shared.


Enhancing Hong Kong's Global Appeal

Beyond direct economic benefits, the family office industry will contribute significantly to Hong Kong's competitiveness and attractiveness as a premier business destination. As Hong Kong continues to capitalize on its competitive advantages and address potential challenges, it is poised to solidify its position as a leading hub for family offices. This will drive economic prosperity while underscoring its status as a premier international financial and banking centre, positioning it for sustained growth and success in the global business landscape. 


Jason Fong, Global Head of Family Office, Invest Hong Kong


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