LCQ18: Promoting the development of the family office industry in Hong Kong
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Question:
According to the Applied Research report "Beyond Wealth: Advancing Hong Kong's Family Office Ecosystem Through Philanthropy, Impact Investing, and Risk Management" (the report) released by the Hong Kong Institute for Monetary and Financial Research under the Hong Kong Academy of Finance in March this year, the family office (FO) sector in Hong Kong exhibits strong growth momentum, and over 3 380 single FOs were already operational in the city as of the end of 2025, representing an increase of about 680 FOs (or a growth rate of more than 25 per cent) over the past two years. Hong Kong's appeal as a premier FO destination is increasingly evident. In this connection, will the Government inform this Council:
(1) of the FOs that have been established in Hong Kong with the assistance or facilitation of Invest Hong Kong's FO team (dedicated FamilyOfficeHK team) each year since 2021, the breakdown and proportion by area of investment in the local market;
(2) in light of the recent changes in the Middle East situation, whether the Government has compiled statistics on the amount of capital inflows into Hong Kong from the Middle East region over the past three months, and whether it has assessed the impact of the recent trend in capital flows on the development of the FO industry in Hong Kong; and
(3) as the report mentions FOs' increasing demand for philanthropy, impact investing and risk management strategies, what measures the Government has put in place to promote development in such areas?
Reply:
President,
Hong Kong is a leading global asset and wealth management hub, with sustained and robust development in its family office (FO) ecosystem. According to the findings of the study by the consultant (consultant's study) commissioned by Invest Hong Kong (InvestHK) published in February 2026, there were over 3 380 single FOs operating in Hong Kong as of end-2025. This represents an increase of about 680 offices, or more than 25 per cent, over the past two years. In consultation with InvestHK and the Hong Kong Academy for Wealth Legacy (HKAWL), the reply to various parts of the question is as follows:
(1) The dedicated FamilyOfficeHK team (the dedicated team) of InvestHK provides one-stop support services to FOs and ultra-high-net-worth individuals interested in pursuing development in Hong Kong. Since its establishment in June 2021 up to end-March 2026, the dedicated team has assisted 252 FOs to set up or expand their business in Hong Kong. Separately, around 160 FOs have indicated that they are preparing or have decided to set up or expand their business in Hong Kong. As the investment categories and allocation of FOs are commercially sensitive information, and need not be disclosed to the Government, the Government does not have the relevant information.
For reference, according to the aforementioned consultant's study, the single FOs surveyed primarily invest in traditional asset classes, including public equities (in which 93 per cent of the respondents have investment allocation, the same for below), fixed income products (88 per cent) and cash and cash equivalents (96 per cent), as well as alternative asset classes, which include private equity (85 per cent), real estate (74 per cent), hedge funds (61 per cent), commodities and precious metals (58 per cent), digital assets (including cryptocurrencies) (53 per cent), private debt and direct lending (46 per cent), and arts and collectibles (42 per cent).
(2) Hong Kong, as a safe and stable hub with international connectivity, is a preferred asset and wealth management centre in Asia for global investors and attracts many high-net-worth individuals to consider allocating their assets here. Geopolitical events have highlighted the importance of security, stability and certainty that Hong Kong offers as an international financial centre, and it fully demonstrates Hong Kong's role as a "safe harbour". To this end, InvestHK has observed in recent months an increase in interest from FOs around the world in establishing operations in Hong Kong and a rise in related enquiries and site visits, reflecting Hong Kong's attractiveness as a global financial centre.
(3) The Government actively promotes the development of FO business and strengthens the competitive advantages of the asset and wealth management industry and related professional service sectors in Hong Kong.
To attract more funds and FOs to set up and operate in Hong Kong, we will further enhance the preferential tax regimes for funds, single FOs and carried interest to cover more types of qualifying investments eligible for tax concessions, which will include emission derivatives/emission allowance, carbon credits and insurance-linked securities and therefore help broadening the investment options for funds and FOs. Our target is to introduce the legislative proposal into the Legislative Council in the first half of 2026. If approved, the relevant measures will take effect from the year of assessment 2025/26.
Established under the Financial Services Development Council in November 2023, the HKAWL provides a platform for collaboration, networking, knowledge sharing and talent development around its six "Legacy Development Goals" (namely intergenerational integration, family governance, philanthropy, impact investing, arts and culture, and wealth management) for asset owners, wealth inheritors and the FO sector. It is also committed to promoting impactful philanthropic activities, with a view to consolidating Hong Kong's roles as the preferred destination for intergenerational wealth management and a global philanthropic hub. The HKAWL launched its flagship philanthropic initiative, Impact Link, in March 2024 and has since organised 17 workshops and seminars for over 700 family participants to encourage them to explore and develop philanthropic initiatives. In June 2025, the HKAWL further introduced the Impact Link Online Portal, a dedicated depository platform for invited family philanthropists to discover scalable impact investing initiatives in Hong Kong and beyond. As of end-March 2026, the portal has been joined by 55 family philanthropists and altogether nominated 12 non-governmental organisations and charitable projects.
Besides, as a leading green and sustainable finance centre in the world, Hong Kong has been actively leveraging its strengths as an international financial centre to provide diversified investment and financing channels, facilitate matching between international capital (including capital of FOs) and quality green projects, and promote green transformation of the economy in the region. In 2025, the volume of green and sustainable bonds arranged in Hong Kong amounted to around US$38 billion, accounting for 40 per cent of the regional total and ranking first in the Asian market for eight consecutive years since 2018. As of end-2025, there were about 200 Environmental, Social and Governance (ESG) funds authorised by the Securities and Futures Commission in total, with assets under management over HK$1.1 trillion. The number of ESG funds and assets under management recorded an increase of 11 per cent and 3 per cent respectively from three years ago.
FOs play a vital role in preserving family wealth and building a lasting legacy for future generations. As a global risk management centre with mature financial markets and robust regulatory framework, Hong Kong's insurance industry offers a wide range of products and services to fulfil FOs' functions of identifying and managing risks associated with the families' wealth according to the unique features and inheritance needs of individual families. In the past few years, the Insurance Authority (IA) has implemented various initiatives to help the industry launch more diversified products, including those related to indexed universal life policy which is popular amongst FOs. The IA has also established a bespoke regulatory regime and a grant scheme to facilitate issuances of insurance-linked securities which bear lower correlation to the fluctuating economic cycles and meet FOs' risk management appetite.
Ends/Wednesday, April 22, 2026
Issued at HKT 15:03
Issued at HKT 15:03
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