Accelerating the development of family office businesses in Hong Kong

Hong Kong is determined to establish itself as a regional wealth management hub for high-net-worth (HNW) families.

After announcing the relaunch of the new Capital Investment Entrant Scheme (CIES) at the Hong Kong 2023-24 Budget speech, the Hong Kong government issued the Policy Statement on Developing Family Office Businesses in Hong Kong last month, which outlined the government’s policy stance and measures on developing an ecosystem for global family offices and asset owners. To attract global family offices, the FamilyOfficeHK team under InvestHK will launch a new Network of Family Office Service Providers to provide comprehensive services to family offices. The government will also fund the setup of a new Hong Kong Academy for Wealth Legacy, which offers talent development services to industry practitioners and next-generation wealth owners.

Hong Kong has a long and established history as a wealth management centre for high-net-worth individuals. It is serviced by a huge network of professionals in finance, law and accounting, as well as a strong capital market. Regarding the new government policies above, the Hong Kong government foresees talent shortage as a potential challenge for the industry. Hence, Hong Kong’s CIES and Top Talent Pass Scheme will be vital to beefing up the city’s talent pool.

Founded by ethnic Chinese partners, Lioner is well-positioned to provide Insurance, Trust and Family Office services to HNW clients from the Greater China region who wish to set up a base in Hong Kong. The government’s latest efforts will undoubtedly accelerate the development of family office businesses in Hong Kong. As part of the ecosystem, we are ready to utilise these developments to enhance our services for HNW clients.

After borders reopened earlier this year, there has been a significant increase in HNW clients traveling to Hong Kong for wealth planning consultancy and various financial services. The government’s timely measures can help attract and assist family wealth owners in establishing a presence in Hong Kong.

The industry is on high alert for more information on CIES and the proposed permissible assets, which are expected to include equities listed in Hong Kong as well as debt issued by Hong Kong listed companies or the government. Assets denominated in RMB will also be considered.

In addition, the Hong Kong Airport Authority is exploring venues to establish storage facilities for art and treasures at Hong Kong International Airport. This will enable family offices with capital allocations in art to benefit from Hong Kong’s art ecosystem. To facilitate Hong Kong’s development as a philanthropic centre for global family offices and philanthropists, the government will enhance the processing of applications for recognition of charities’ tax exemption statuses. All these measures will reinforce Hong Kong as a regional wealth management hub in the future.