Hong Kong Guanlan: Hong Kong’s “competition” for family offices has unique advantages

　　China News Service, Hong Kong, March 31: Title: Hong Kong’s “competition” for family offices has unique advantages

　　China News Service reporter Xiang Luping

　　Recently, more than 400 global family office decision-makers and their professional teams gathered in Hong Kong to participate in the second "Yu Ze Xiangjiang" summit forum. The scale was larger than last year's first forum, which shows that high-net-worth individuals around the world are interested in setting up family offices in Hong Kong. desire is increasing.

　　The latest data also shows that as of the end of 2023, there are more than 2,700 single-family offices in Hong Kong, of which 885 have assets of more than US$100 million. These data are far more than some developed economies in Asia.

　　The number of the world's richest people has doubled over the past decade, and the number and asset size of family offices have also expanded. Their huge wealth has attracted many international financial centers to compete for it. Relatively speaking, Hong Kong started late in promoting the development of the family office industry, but it can occupy a place in this round of competition.

　　First, as an international financial center, Hong Kong is also the largest hedge fund center and cross-border wealth management center in Asia. It has always brought together financial capital, talents and risk management professional services from traditional and emerging markets, and has a highly open and international market. . At the same time, Hong Kong has a transparent judicial system, free entry and exit of funds without restrictions, and thanks to its special status of "backed by the mainland and connected to the world", the financial "interconnection" between mainland China and Hong Kong is getting closer, which is beneficial to global family office investment. Mainland market.

　　The second is policy advantages. Low tax rates have always been a "sharp weapon" for Hong Kong. Most of the eight measures in the "Policy Declaration on the Development of Family Office Business in Hong Kong" announced by the SAR government last year have been officially implemented. Among them, qualified families managed by single family offices in Hong Kong Investment control instruments provide profit tax reductions and are directly exempted from the 16.5% profits tax, which greatly reduces their operating costs and virtually enhances Hong Kong's business advantages and attractiveness. It can be described as a "win-win".

　　Third, investment areas are diversified. Hong Kong is in the process of economic transformation. The country's "14th Five-Year Plan" proposes eight central positions. In addition to consolidating traditional fields such as finance and commerce, Hong Kong also vigorously develops emerging industries such as innovation and technology, private equity and venture capital, enriching the investment portfolio of family offices. , increase returns.

　　It is worth mentioning that because high-net-worth individuals pay attention to philanthropy, the SAR government recently launched the charity project plan "Impact Link" to help family business offices connect with global philanthropic causes such as medical health, poverty alleviation and development, education, and green technology, thereby increasing their Earn profits and give back to the society, and enhance your own social image.

　　The fourth is the "synergy" advantage. When making investments, some family offices will choose to cooperate with family offices from different backgrounds based on the characteristics of the industry in order to obtain stable returns or expand their influence. Hong Kong is a hub for family offices, making it easier to find a suitable partner.

　　From issuing policy declarations to setting the goal of promoting no less than 200 family offices to establish or expand their business in Hong Kong by the end of 2025, Hong Kong is determined to develop the family office industry. Officials from the SAR government also revealed that more than 100 family offices will be located in Hong Kong one after another. It is believed that as more convenient measures are implemented, it will provide more unique advantages for family offices operating in Hong Kong.

　　In fact, attracting global family offices to settle in Hong Kong not only adds new impetus to their business, but also provides assistance to Hong Kong's economy. The two complement each other. (over)