Exclusive | Hong Kong sets sights on 220 new family offices in next growth phase Hong Kong will embark on the second phase of its family office development strategy over the next three years, aiming to attract 220 family offices from around the world – including those from Europe, the Middle East and Asia – as well as major multifamily office operators, according to Jason Fong, global head of family office at InvestHK. Over the past three years, Hong Kong had built an ecosystem to draw wealthy families by rolling out eight policy measures, including tax concessions and an investment-migration scheme, Fong said. “We are now ready to launch the ‘Family Office 2.0’ initiative from 2026 to 2028,” Fong told the Post in an exclusive interview on Friday. “We want to see the sector broaden its horizon and deepen its development.” InvestHK is a government department charged with increasing foreign direct investment. “A key element of Family Office 2.0 is internationalisation. Besides wealthy mainland families, we would like to see high-net-worth individuals from Europe, Asia and the Middle East come to the city over the next three years to set up their family offices. Chief Executive John Lee Ka-chiu, in his latest policy address last month, set the new target of attracting another 220 family offices to Hong Kong by 2028, after the government achieved its previous goal of bringing in 200 such firms between 2023 and 2025. Family offices are entities established by wealthy individuals or families to manage their investments, succession planning and philanthropic activities. Fong said he and his team spent two weeks in London, Italy, Zurich and Geneva last month meeting family office operators to promote the city’s tax incentives and other supportive measures. More roadshows in Europe, the Middle East and Asia are planned for next year. “Many family office operators in Italy, Switzerland and Britain have shown interest in coming after learning about the tax benefits we can offer,” Fong said. “They also want to use Hong Kong as a platform to expand into the Chinese Mainland and Asia to capture new opportunities in technology and artificial intelligence.” Hong Kong enacted a law in May 2023 that waived the 16.5 per cent profits tax on income derived from global stocks, bonds and other qualifying investments by family offices established in the city. To qualify, family offices must have an investment portfolio of at least HK$240 million (US$30.66 million), employ two staff in Hong Kong, and incur annual operating expenses of at least HK$2 million. “Hong Kong’s tax incentives for family offices are more flexible than Singapore’s,” Fong said. “Hong Kong allows family office operators to invest globally, while Singapore requires at least 10 per cent of their assets to be invested locally to qualify for its tax benefits.” He added that Hong Kong’s active stock market – which reclaimed the title of the world’s largest IPO venue in the first nine months of this year – had also attracted strong interest from family office operators. Under Family Office 2.0, Hong Kong would seek to attract more multifamily office operators. The city had about 2,700 single-family offices as of end-2023, the highest number in Asia, according to a Deloitte report released in March, 2024. However, Hong Kong hosted only a handful of large multifamily offices, and none were ranked among the top global players, according to a July study by the Chinese University of Hong Kong’s Centre for Family Business. “Some global multifamily offices are so big that one firm may invest on behalf of over 100 families,” Fong said. “We would like to see more of these major players come to Hong Kong.” The Family Office 2.0 initiative would not only encourage operators to invest in Hong Kong but also to base their business operations here. “Hong Kong is an ideal location for wealthy families to run their businesses and act as a regional headquarters in Asia,” Fong said. “The listing reforms in recent years also make it easier for international firms to list in the city to raise funds.” https://www.scmp.com/business/article/3329651/hong-kong-sets-sights-220-new-family-offices-next-growth-phase (ICE HONG KONG)

Fonte notizia: South China Morning Post