Unlocking Global Wealth: Effective Strategies for Managing Your Financial Future

Hong Kong is becoming the go-to place for family offices, offering tax incentives, policy support, and a strong regulatory framework. By 2027, it could surpass Switzerland as the top asset manager.

In 2022, Cameron Harvey searched for the perfect Asian location for his multi-family office. He needed a place with strong capital markets, a stable economy, and a great quality of life. His choice? Hong Kong.

“Hong Kong is the premier hub for family offices and wealth management in Asia,” says Mr. Harvey. He established Landmark Family Office’s headquarters there due to the city’s unique advantages and its connection between Asian and global markets.

Other founders share similar experiences. Charles Luchangco, from Arete Capital Asia, mentions how easy it is to set up a venture and hire skilled professionals here. “Hong Kong’s straightforward tax system is a major advantage for businesses,” he adds.

By 2023, Hong Kong boasted over 2,700 single-family offices. It is recognized as Asia’s leading financial center and the world’s third overall, trailing only London and New York. According to the Boston Consulting Group, it might become the largest global asset management center by 2027, depending on the growth of the Chinese economy and investment inflows from mainland China.

Hong Kong’s geographical position allows investors to tap into the opportunities of the second-largest economy, while benefiting from a robust international financial and legal system.

Another significant perk is its status as a global arbitration center. “English and Chinese are both official languages,” Mr. Harvey points out, making communications easier between Western firms and Chinese markets. Additional benefits include a currency pegged to the US dollar, numerous regional trade agreements, and top-notch infrastructure.

Hong Kong is well-known for its low tax regime. There’s no capital gains tax, value-added tax, or estate tax. Corporate taxes are reasonable, and family investment holding vehicles are entirely exempt from profit tax. This makes it a favorable location for family offices.

Mr. Fong, from Invest Hong Kong, emphasizes the strength of the judiciary and the clear legal frameworks that enhance business stability. The city also has a deep talent pool in areas like estate planning and wealth management.

The government also supports family offices. In March 2023, it announced plans to expand the FamilyOfficeHK team and set up training programs to boost industry talent. Charitable initiatives have also been enhanced, allowing charities more involvement in family-owned investment vehicles.

Hong Kong is not just a financial hub; it also offers a vibrant lifestyle. It has become a preferred location for global family offices, drawing individuals with its blend of East and West.

“Hong Kong has established itself as a center of opportunity and growth,” says Mr. Fong. Many successful asset managers are drawn by the city’s quality of life. Mr. Harvey highlights the importance of living standards, mentioning access to quality education and healthcare.

With 54 international schools, diverse housing options, and a varied recreational scene—from dining and sailing to hiking and horse racing—Hong Kong is a dynamic place to live. It’s also well-connected, making travel to other Asian cities convenient.

“Hong Kong is wonderful for families,” notes Mr. Luchangco, praising its great balance between work and life. He appreciates the city’s vibrant energy and family-friendly atmosphere. “It truly ticks all the boxes!”