Asset and Wealth Management
Topic Introduction
The asset and wealth management business of Hong Kong
amounted to over $30.5 trillion (US$3.9 trillion) as at end-2022, with 64% of
the funding sourced from non-Hong Kong investors. Hong Kong is also Asia’s largest hedge fund
hub and cross-border wealth management centre.
We strive to sharpen Hong Kong’s competitiveness as the
premier asset and wealth management centre in the region through a
multi-pronged approach.
Our Ongoing Work
Promoting family office business – The Government issued a policy statement on developing family offices businesses in Hong Kong in March 2023 to set out the Government’s policy stance and measures with a view to creating a conducive and competitive environment for the businesses of global family offices and asset owners to thrive in Hong Kong, including the profits tax exemption for family owned investment holding vehicles managed by single family offices in Hong Kong, the streamlined suitability assessment when dealing with sophisticated professional investors, the establishment of the Hong Kong Academy for Wealth Legacy, and the launch of the New Capital Investment Entrant Scheme.
Diversified fund structures – The Government has introduced the open-ended fund company (“OFC”) regime in Hong Kong in July 2018, and the limited partnership fund (“LPF”) regime in August 2020, making Hong Kong a more attractive fund domiciliation location and promote fund origination. The Government has also put in place a fund re-domiciliation mechanism since November 2021 for non-Hong Kong funds to re-locate to Hong Kong as OFCs or LPFs. The Government provides funding support for OFCs set up in or re-domiciled to Hong Kong.
A more facilitating tax environment – Publicly offered funds (onshore and offshore) and transactions in
specified assets of privately offered funds enjoy profits tax exemption in Hong
Kong. Furthermore, tax concession is provided for carried interest issued by
private equity funds operating in Hong Kong starting from 2020/21 year of
assessment. We will further enhance the
preferential tax regimes for funds, single family offices and carried interest
to attract more funds and family offices with potential to establish a presence
in Hong Kong.
Expanding the fund distribution network – Hong Kong has reached mutual recognition of funds (“MRF”) arrangements with the Mainland, Switzerland, France, the United Kingdom, Luxembourg, the Netherlands and Thailand, allowing eligible funds to be offered directly to retail investors in each other’s market under streamlined authorization or approval procedures. The Mainland announced in April 2024 measures to enhance MRF arrangements.
Promoting the Real Estate Investment Trust (“REIT”)
market – The Government has relaxed investment restrictions, broadened the investor base, introduced regulatory enhancements, and provided financial incentives to promote the development of the REIT market The Government will waive the stamp duties payable on the transfer of REIT units. The Mainland further announced in April 2024 the inclusion of REITs under Stock Connect to further expand the mutual access between the capital markets of the Mainland and Hong Kong.
For More Information
More information on family offices are available at the following designated website:
https://www.familyofficehk.gov.hk/
More information on the New Capital Investment Entrant Scheme are available at the following designated website: