Hong Kong needs to lift its regulatory game as China’s billionaires eye Singapore for its stability, cost advantages

Greater Bay Area billionaires see Hong Kong as a natural choice for establishing family offices for investing, succession planning

Singapore offers stiff competition because of its greater political stability and efficiency in asset management industry

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Hong Kong’s allure has suffered several knocks from the US-China trade war, anti-government protests and the promulgation of national security law. Photo: Sun Yeung

Published: 9:30am, 21 Jul 2020Updated: 10:55pm, 21 Jul 2020

Hong Kong will need to step up its efforts to streamline regulations on family offices amid competition from Singapore and a series of political and economic setbacks in recent months, according to bankers and accountants.

The matter is gaining urgency after the recent introduction of a wealth management scheme to facilitate movement of capital across the border. A recent surge in stock prices on mainland bourses have also generated large fortunes for companies, adding to a horde of first-time billionaires minted in 2019.

Among others, a clearer licensing requirement on family offices will help attract more billionaires to the city, according to Rex Ho, financial services tax leader at PwC. Pictet, a Swiss private bank, is keen to see better organised rules for family offices.

“For Hong Kong to compete, the government should further streamline its regulations to make it easier for family offices to set up here,” said Claude Haberer, chairman of Pictet Wealth Management Asia. “Singapore will be a major rival” given its political stability and cost advantages, he added.

Claude Haberer, chairman of Pictet Wealth Management Asia.

An active stock market, rule of law and free flow of capital and information have made Hong Kong a natural choice for wealthy mainland families to set up offices here, he added.