Wealth management may boost Hong Kong's family office hub push: survey

An almost unanimous number of respondents agree the wealth management connect will benefit their businesses.

Majority of professionals sees the launch of the cross-border wealth management connect (WMC) scheme will position Hong Kong as a favourable destination for family office.

A survey conducted by the Family Office Association Hong Kong (FOAHK) found that 96% of professionals agree that the WMC will give the city the comparative advantage in the private wealth management and family office sector.

A total of 63% of the 421 respondents believe the launch will positively affect their businesses, with 34% of them saying their business will likely grow under 10%. Around 20% projected their business to grow between 10%-20% whilst the remaining 9% sees business growing by more than 25% due to the wealth scheme.

“The family office industry in Hong Kong has been thriving and will continue to flourish with further impetus and immense opportunities presented by the soon-to-be launched scheme,” FOAHK Chairman Chi Man Kwan said.

“It is our mission to ensure the industry is aware of and able to capture all the opportunities emerging from the latest pertinent developments as well as to work closely with the government to steer the city towards becoming a global family office hub,” he added.

The survey also found that 75% of respondents from the banking sector, 68% from the wealth and asset management, 66% from the professional, and 63% from the family office sector see their revenues to increase as a benefit of WMC.

Kwan said in early February this year, financial authorities in Mainland China, Hong Kong, and Macau signed a memorandum of understanding for the launch of the WMC in the Guangdong-Hong Kong-Macau Greater Bay Area (GBA). The WMC is an arrangement, allowing residents to carry out cross-boundary investment in wealth management products offered by banks in the GBA.

The FOAHK survey further reported that 64% of respondents from the wealth and asset management sector believe Hong Kong is the family office hub in the Asia-Pacific region.

This is largely due a well-defined regulatory regime for family office business (74%), favourable tax regime (67%), and professionals with the skills and capabilities to meet the needs of family offices (66%).