Hong Kong takes step towards becoming Asia’s hub for wealthy families to protect their fortunes
- Hong Kong faces stiff competition from Singapore in its efforts to become the regional centre for family offices
- InvestHK, a government agency, has set up a new team to help boost the city’s chances
“Hong Kong can win due to its stock market and its proximity with mainland China,”said Stephen Phillips, director-general of investment promotion at InvestHK, at a briefing on Tuesday.
“The family offices want to diversify their investment. Hong Kong has an active stock market which is much bigger than Singapore’s. Hong Kong is also one of the largest market in the world in wine and arts trading. These provide a lot of alternative investment opportunities for family offices.”
The FamilyOfficeHK team of eight people will have its own office in Admiralty, close to Central where it houses a cluster of family offices. It will aim to link up the family offices with thousands of bankers and professionals in the city to help them open bank accounts and set up offices here.
In September, InvestHK introduced an information portal for family offices, while the Securities and Futures Commission (SFC) issued guidance on the licensing regime to prospective family offices that may set up in Hong Kong.
“The family office business has flourished in recent years, becoming an important growth segment in the wealth and asset management industry. The set-up of our family office team is a milestones in promoting Hong Kong as an ideal location for family offices,” said Dixon Wong, who will head the new team.
The upcoming Wealth Management Connect scheme which will allow cross-border investment in fund products between Hong Kong and the mainland is likely to provide growth opportunities for family offices too.
There were 196 dollar-denominated billionaires in Hong Kong, Guangzhou and Shenzhen last year, according to the Hurun Research Institute.
Besides investment options, Phillips said Hong Kong’s lifestyle and entertainment offerings were also a draw for wealthy families.
“The Jockey Club in Hong Kong provides horse racing and other activities here. The many arts events here also made Hong Kong an attractive place for wealthy families to come,” he said.