Hong Kong had more than 2,700 single-family offices based in the city last year, following the government’s push to bolster its status as an Asian wealth hub.
The single family offices managed at least US$10 million, while 885 of them had at least US$100 million in assets as of the end of last year, according to a Deloitte survey commissioned by the Hong Kong government.
Hong Kong Lures Single Family Offices | Some 885 such entities managed at least US$100 million in assets
The Asian financial hub has been seeking to rebound after an exodus of international firms brought on by the pandemic and US-China tensions. The city managed HK$30.5 trillion ($5.22 trillion) of assets as of the end of 2022, while boasting more than 12,500 ultra high-net-worth individuals, according to a government report.
The moves follow Chief Executive John Lee’s target of having 200 large family offices set up in the city by 2025. Currently, Hong Kong requires single family offices to employ no fewer than two full-time employees and incur no less than HK$2 million of operating expenditure in the city each year. There is no requirement on minimum local investment.
See also: Singapore is one of the most popular business locations for world’s wealthiest entrepreneurs: HSBC
Singapore has more stringent requirements for larger-sized family offices when it comes to local business spending and staff numbers.
Hong Kong will be hosting the Wealth for Good summit this month, welcoming participants including Avenue Capital Group chief executive Marc Lasry and former NBA player Dwyane Wade.
The Hong Kong government will also start a new capital investment entrants scheme likely by mid-2024 for those that invest at least HK$30 million.
