Growing with Certainty Amid Growing Uncertainty
Following
the fruitful result of the inaugural Wealth for Good in Hong Kong Summit in
March last year, the second Summit is set to return on the 27th of this month. This exclusive event is part of the Financial
Mega Event Week in March, designed to gather asset owners and family office
managers around the globe, highlighting Hong Kong’s unique strengths in the
wealth management industry.
The
theme chosen for this year’s Summit, "Growing with Certainty Amid Growing
Uncertainty", symbolises Hong Kong’s commitment to assuming the role of a
global financial market leader by blending a "competent government"
with an "efficient market". As
a navigator steering a rudder to ride through waves, this theme encapsulates
Hong Kong's determination to lead investors towards a new dimension in the
uncertain global market, safeguard and grow their wealth, and at the same time,
foster positive development in society.
The
Financial Services and the Treasury Bureau, alongside Invest Hong Kong
(InvestHK), have dedicated significant effort to organise the Summit in recent
months. The event aims to provide a
platform for discussion and exchange of views for family office delegates from
Hong Kong, the Mainland, Southeast Asia, the Middle East, Europe, the United
States and beyond. They will focus on crucial
industry topics such as green technology, art and high-end luxury goods market,
philanthropy and wealth legacy, and the sports industry.
Hong
Kong stands as an international hub for asset and wealth management with assets
under management over HK$30 trillion. It
is also the largest hedge fund centre in Asia and the second largest private
equity centre in the region after the Mainland. According to the BCG Global Wealth Report
2023, Hong Kong's wealth management business is projected to grow at 7.6% per
annum between 2022 and 2027, with the potential to become the world's largest
booking centre by the end of 2025. Through
continuous collaboration between the Government and industry stakeholders, we
are confident that Hong Kong's position as an international financial centre
can be consolidated and further enhanced.
The
recent announcement in the Budget Speech by the Financial Secretary emphasised
the Government’s proactive efforts to attract more family offices and asset
owners to establish their presence in Hong Kong, thereby advancing the asset and
wealth management industry. Initiatives
include the establishment of a dedicated committee to promote industry development,
and extending the Grant Scheme for Open-ended Fund Companies and Real Estate
Investment Trusts for three years, etc. We will also further enhance the tax
incentives for related funds, single family offices and carried interests,
including reviewing the scope of the tax concession regimes, increasing the
types of qualifying transactions, and enhancing the flexibility in handling
incidental transactions, which is expected to attract more potential funds and
family offices to expand their operations in Hong Kong.
Encouraging
developments have also emerged in the asset and wealth management industry in
Hong Kong. According to the statistics from
the Securities and Futures Commission (SFC), the net inflow of funds domiciled
in Hong Kong surged to HK$87.1 billion in 2023, marking a year-on-year increase
of 92.9%. Just in the fourth quarter of
last year alone, net capital inflows amounted to HK$33.5 billion, an increase
of 179% quarter-on-quarter. To gain deeper insights into the current landscape of
family office development in Hong Kong, InvestHK has commissioned a
professional organisation to conduct a survey and plans to unveil the findings later,
including the current number of family offices that operate from Hong Kong.
Reflecting
on the inaugural Wealth for Good in Hong Kong Summit held last year when Hong Kong
had just emerged from the pandemic, the Government and the industry have worked
tirelessly over the past year to advance the development of Hong Kong's asset
and wealth management industry, positioning the city as a central hub for
global family offices. To become an
attractive investment and financing centre for family offices, and cater to
their diverse business needs, comprehensive and innovative policies are
imperative. In this regard, over the
past year, the Government has implemented the eight initiatives outlined in
last year's "Policy Statement on Developing Family Office Businesses in
Hong Kong", including the introduction of the new Capital Investment
Entrant Scheme (CIES), tax concessions, the formation of a new "Network of
Family Office Service Providers", and the establishment of the Hong Kong
Academy for Wealth Legacy, amongst others. Since the launch of the new CIES on 1 March,
the Scheme has received a very positive response, with more than 600 enquiries received
to date and applications submitted on the first day of the launch.
With the second Wealth for Good in Hong Kong Summit just around the corner, we are poised to once again unite the world's top family office decision-makers and managers to explore mutual interests. Together with other international events in the Hong Kong Financial Mega Events Week, we aim to showcase Hong Kong's distinctive advantages and financial influence, fostering positive societal progress and realising "Wealth for Good" - benefiting the community and upholding universal values of mutual inclusivity.
13 March 2024