SFST's speech at Hong Kong Academy for Wealth Legacy's launch ceremony (English only)
Distinguished guests, ladies and gentlemen,
I'm delighted to attend the launch ceremony of the Hong Kong Academy for Wealth Legacy today. With the staunch support and efforts from the stakeholders gathered here today, our family office sector in Hong Kong is thriving with strong momentum to grow further.
Capitalising on the momentum generated by the pioneer Wealth for Good in Hong Kong Summit in March this year, the Financial Services and the Treasury Bureau published on the day of the summit a policy statement outlining our vision and eight policy measures to enhance Hong Kong as a premier hub for family offices.
The establishment of the Hong Kong Academy for Wealth Legacy is one of the eight initiatives of the policy statement to develop a vibrant ecosystem for global family offices and asset owners. Recognising the importance of cultivating a deep talent pool for the family office sector in Hong Kong, the academy will provide ongoing training, knowledge exchange and networking sessions for both industry practitioners and next-generation wealth owners. The academy is housed under the Financial Services Development Council, and will be supported by an advisory board, and also partnerships with the industry, professional service providers, universities, and our dedicated FamilyOfficeHK team under Invest Hong Kong.
Well-established family governance policies and plans play a significant role in preserving family values and unity, facilitating asset owners for wealth management, succession planning, and the strengthening of family cohesion. These traditional objectives aside, we see more next-generation wealth owners engaging in philanthropy and sustainable investments to do "good" with their wealth. It is now a defining trend for next-generation wealth owners to promote social and community inclusive development while achieving investment returns with their family offices.
The academy will thus integrate training and knowledge exchanges for philanthropic and sustainable investments into its overall plan. It will organise different initiatives, including seminars and workshops, to promote the transformative power of using wealth for social betterment, and foster dialogues around philanthropic giving and impact investing. The academy will also serve as a training hub for family office professionals and wealth owners, facilitating their understanding of the best practices and latest trends concerning the industry through continuous knowledge exchanges and networking sessions, bolstering the sustainable growth of the entire family office ecosystem in Hong Kong.
Hong Kong is already an international asset and wealth management hub. A market study reported that Hong Kong achieved the highest AUM (assets under management) growth rate among top booking centres from 2017 to 2022 with a cumulative average growth rate of 13 per cent. Hong Kong is also projected to become the world's largest booking centre by 2025.
To foster the growth of the sector, the Government and regulators implemented a number of market-facilitating initiatives, including a profits tax concession regime for single family offices, streamlining the suitability assessment for sophisticated professional investors, and the launch of a Network of Family Office Service Providers under Invest Hong Kong. And more exciting initiatives will come, for example art storage facilities will be built at Hong Kong International Airport for collectors and investors, including family offices that deploy their wealth in art. The FamilyOfficeHK team will also launch new resources, including a destination guidebook, to help families navigate Hong Kong and make the most of everything we have to offer, from investment to philanthropic and lifestyle possibilities.
In the recent Policy Address, the Chief Executive announced we will implement the Capital Investment Entrant Scheme to allow eligible investors who make investments of HK$30 million or above in assets such as stocks, funds, bonds, etc. (excluding real estate) to apply for entry into Hong Kong. This will further strengthen the development and growth of our asset and wealth management sector, and consolidate Hong Kong's role as a wealth centre seamlessly connecting with global capital markets.
In March next year, we are going to host the second Wealth for Good in Hong Kong Summit themed "Growing with Certainty Amid Growing Uncertainty" with Invest Hong Kong, following the success of the first Summit this year. We hope to engage even more global family offices and their professional teams with this second edition to showcase our unique advantages.
Ladies and gentlemen, to conclude, I once again congratulate the establishment of the Hong Kong Academy for Wealth Legacy. I also look forward to the Academy in playing an active role in fostering the growth and success of the family offices sector in Hong Kong. May I wish you all the best of health and business to come.
Ends/Tuesday, November 14, 2023
Issued at HKT 18:07
Issued at HKT 18:07