While the external environment remains challenging, the Hong Kong government has continued to make efforts to build a healthier and more stable asset management ecosystem. It has introduced a variety of new regulations such as new rules, guidance and circulars on virtual assets, KPMG continued. The introduction of the licensing regime for virtual assets' trading platforms will move trading virtual assets into a regulated space, which will bring about more stability, certainty and investor protection. With its "proactive" approach to regulation, Hong Kong has established itself as a hub in the virtual assets space, and it is expected that more regulatory developments will follow in 2024, KPMG said.

While 2023 saw a lot of interest from clients who want to learn about the structure and requirements, KPMG expects that more family offices will be established in the year ahead as UHNW individuals put their plans into action.

Hong Kong and mainland China are working to recover from the Covid-19 pandemic. There are competitive challenges: Geopolitical shifts, relating to Hong Kong’s relations with mainland China, have also raised Singapore’s relative standing as a wealth management hub, with its conducive environment for family offices, for example.

A number of groups have urged Hong Kong to sharpen incentives including the Alternative Investment Management Association. In June 2023, Hong Kong's government unveiled its “Network of Family Office Service Providers.” The rollout of the network was one of eight initiatives in the government's Policy Statement on Developing Family Office Businesses in Hong Kong, announced on 24 March 2023.