HK's safe-haven appeal to capital lauded

With tensions flaring up in the Middle East and changes in the international situation emerging, Hong Kong's stable environment, growth potential, cultural allure, and technological prowess are cementing the special administrative region's status as a safe harbor for global capital.

On Tuesday about 400 family office decisionmakers and next-generation successors from Asia, Europe, the Americas, Oceania and Africa joined the fourth Wealth for Good in Hong Kong Summit, co-organized by the Financial Services and the Treasury Bureau, and Invest Hong Kong.

Themed "Building Lasting Legacies", the summit focused on cross-sector dialogues and exploration of potential collaborations in areas of cross-generational wealth management, building cultural legacy and philanthropy, as well as fostering technological innovation.

Delivering remarks at the WGHK gala dinner on Tuesday, Financial Secretary Paul Chan Mo-po said:"Hong Kong is a safe harbor, a city of opportunities, and a platform for growth, for connection and for the purposeful deployment of capital.

"Families seeking to preserve their legacy look for a safe haven — not merely a place to park capital, but a place with institutional strengths, legal clarity and credible commitments."

Deputy Financial Secretary Michael Wong Wai-lun said Hong Kong is a perfect base to support the prudent diversification of investments by family offices.

"Our common law legal system, independent judiciary, open economy, free flow of capital, freely convertible currency, simple tax regime and a vibrant financial market are all attractive for global family offices", Wong said at the summit.

Hong Kong's assets under management rose 13 percent annually to over $4.5 trillion in 2024, which was 11 times the city's GDP. That momentum continued into 2025, with Hong Kong-domiciled funds registering strong net inflows of $45.8 billion last year. In terms of the number of ultrahigh-net-worth individuals, Hong Kong ranks second in the world.

The SAR is working to expand the preferential tax regimes for funds, family-owned investment holding vehicles of single family offices and carried interest, and the administration hopes to have new legislation ready by June.

"Family offices in Hong Kong will soon enjoy more flexibility as their investment portfolios evolve," Wong added, as qualifying investment vehicles will be extended to private credit, precious metals and commodities, carbon credits, insurance-linked securities and digital assets.

He said the SAR government has introduced tax incentives designed to encourage philanthropic giving. The city does not levy estate duty, capital gains tax or any tax on dividends, which are attractive to family office managers.

"Hong Kong offers the safe harbor, the policy stability and the sophisticated ecosystem that ambitious families need to turn vision into lasting impact. We remain fully committed to strengthening this foundation to drive Hong Kong as a nexus of legacies and innovation,"Secretary for Financial Services and the Treasury Christopher Hui Ching-yu said at the summit.

Under Secretary for Financial Services and the Treasury Joseph Chan Ho-lim said more than 20 family offices leveraged InvestHK's assistance to establish or expand their businesses in Hong Kong in January and February.

Chan said: "After family offices have established their bases here, they can utilize the city's efficient refinancing platform for activities such as share placements and bond issuances, and even operate other businesses, expanding the breadth and depth of the market.

"The Hong Kong family office ecosystem is maturing, forming a powerful network that can match different family offices with alternative or impact investing opportunities, facilitating resource integration."

InvestHK — the overseas direct investment promotion agency of the Hong Kong SAR — had assisted 242 family offices in establishing or expanding their businesses in Hong Kong as of the end of February, an increase of more than 20 percent compared to September last year.

Another 156 family offices are preparing or have decided to set up in Hong Kong, of which 60 percent are from the Chinese mainland and Hong Kong, and the remainder are from Europe, the United States, the Middle East and other regions.