Anyone from ‘man in the street’ to wealthy heir can set up family office in Hong Kong if money is legitimate, John Lee says
- Chief executive encourages efforts to bring in family offices, after UAE prince entered media spotlight over delayed launch plan
- ‘We will do our best to invite as many to come, and provided that the money is legitimate money, we welcome it,’ John Lee says
Hong Kong welcomes the “man in the street” to set up a family office as long as the money is legitimate, the city’s leader has said amid recent controversy over a Dubai prince’s commitment to investing in the international finance hub.
He attracted further public attention when he called off the inauguration ceremony for the office at the eleventh hour, which sparked questions about his commitment to the investment.
Government sources earlier said only “basic” checks were performed before the sheikh’s engagement as they feared a stringent review might offend the VIP.
The sheikh later issued several statements repeating his commitment to the plan, which was postponed to the end of May.
Without naming Maktoum, Lee said authorities should balance benefits against risks when they approached family offices.
“Overall, provided the money is legitimate money, I think we should take all reasonable action to attract them to come,” he said.
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Lee emphasised the city had done a lot to improve its attractiveness to the super-rich, such as offering tax concessions to family offices.
Last year, the government announced plans to develop a “conducive and competitive environment” for such businesses by introducing a range of measures aimed at fostering their growth.
Among them was an exemption from a 16.5 per cent tax on profits generated from global stocks, bonds and other qualified investments by family offices set up in Hong Kong.
To qualify, the firms must have an investment portfolio valued at HK$240 million (US$30.7 million), two employees in the city who are not required to be locals and annual operating expenses of at least HK$2 million.
Financial Secretary Paul Chan Mo-po said in his budget speech last year that the government had allocated HK$100 million to promote family offices and other wealth-management businesses.