Wealth management and family offices will be a major growth engine for Hong Kong, as many prominent clans in Asia have shown an interest in setting up entities to manage their fortunes, according to Deloitte’s regional head.
Dennis Chow Chi-in, Asia-Pacific chairman of the accounting and consulting firm, believes this will mainly be down to the appeal of the city’s capital market, as more companies from mainland China and the region list here and look to raise funds via other avenues.
“We definitely have come across increased inquiries from wealthy families that have demonstrated an interest in setting up family offices in Hong Kong,” Chow said in an exclusive interview with the Post. “Hong Kong is particularly appealing to wealthy families from mainland China and Southeast Asia.”
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Since May 2023, the Hong Kong government has introduced a series of measures, including tax concessions for single family offices to set up operations in the city. These tax incentives could be expanded to cover more investment products following consultations with the industry.
Hong Kong has introduced many measures to attract family offices to set up operations in the city. Photo: Elson Li alt=Hong Kong has introduced many measures to attract family offices to set up operations in the city. Photo: Elson Li>
Last March, the government introduced the Capital Investment Entrant Scheme (CIES), commonly known as the investment-migration scheme, for wealthy individuals and their families to get fast-track residency by investing HK$30 million (US$3.8 million) in stocks, bonds, insurance and property in the city.
“The tax concession and the immigration policy are like a boxing combo to attract both investments and [family offices] to Hong Kong,” Chow said. “These play a vital role in enhancing Hong Kong’s attractiveness as a hub for wealth management and capital in the family-office space.”
He said that many of the people he had spoken with believe Hong Kong had a more flexible regime than Singapore in terms of tax concessions for family offices, while the investment-migration scheme had a lower threshold than Singapore.
Singapore’s Global Investor Programme requires applicants to invest at least an amount equivalent to HK$58 million, while Hong Kong’s CIES requires HK$30 million.
