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Hong Kong Family Office Group Hails Moves To Boost Sector

Editorial Staff

31 December 2022

Hong Kong’s government wants to make the jurisdiction more attractive to family offices, a sector being courted by financial hubs around the world, including rival Asia centre Singapore.

A few days ago, Financial Secretary Paul Chan set out ambitions to foster the growth of family offices in Hong Kong. “To enhance our attractiveness as a hub for family offices, InvestHK and regulators will offer one-stop support services to family offices interested in establishing a presence in Hong Kong. We will also review the relevant tax arrangements,” a document said. (Invest Hong Kong is the department of the Hong Kong SAR Government responsible for foreign direct investment, supporting overseas, mainland and Taiwanese businesses to set up and expand in Hong Kong.)

While specific details don't appear to be ready yet, beyond what are understood to be proposed tax concessions, the initiative was welcomed by FamilyOfficeHK, an industry group representing family offices in Hong Kong.

“The relevant tax concessions are expected to come into effect in fiscal 2022/23, demonstrating the increasing emphasis placed by the government on fostering the growth of family offices in Hong Kong,” Dixon Wong, head of financial services and head of family office at Invest Hong Kong, said. 

“Initiatives like targeted tax policies, the establishment of a dedicated family office team, FamilyOfficeHK, and the introduction of a limited partnership fund system, have widened investment opportunities and created an ideal environment to nurture the development of family offices,” Wong said. 

With Singapore reportedly mulling changes to its Variable Capital Companies regime to attract single family offices, Hong Kong policymakers know they must retain a competitive edge. 

“The latest budget has also highlighted the continuous effort in promoting offshore Renminbi business and green and sustainable finance, and deepening mutual access with the mainland,” Wong said. “We are confident that these measures can further strengthen Hong Kong's position as a family office hub in Asia. The connectivity with China and the world has allowed Hong Kong to become a `super-connector’ and the city’s existing advantages of having a well-established legal system, competitive tax system, and world-class professionals specialising in asset management, will all help to create a conducive environment for the development of family offices in Hong Kong.”

There are an estimated 5,250 family offices in Asia, according to industry figures (source: The Family Office, by William L Woodson, Edward Marshall, 2021, Columbia Business School).