Hong Kong has attracted more than 200 family offices to set up or expand operations in the city, achieving a key objective well ahead of its 2025 target, the Financial Services and the Treasury Bureau announced on Monday.

In a statement, it noted that the early achievement of this goal – facilitated by Invest Hong Kong (InvestHK) and established as a key performance indicator in the 2022 Policy Address – underscores the city’s solid position as Asia's leading cross-border private wealth management centre and a premier global hub for family offices.

The initiative to strengthen this vital segment of the wealth management industry began when Chief Executive John Lee’s first policy address set a clear target of facilitating no fewer than 200 family offices in Hong Kong by the end of 2025.

To support this growth, the government released a policy statement in March 2023 detailing measures to enhance the ecosystem, including tax concessions and the New Capital Investment Entrant Scheme (New CIES).

The government has since made enhancements to the New CIES to boost Hong Kong's appeal, now allowing certain investments by private companies to count towards residency eligibility.

"Hong Kong is a place where favourable conditions for family offices converge, ranging from world-class professional services and a high-quality, liveable lifestyle to strong advantages for the development of sectors such as green investments, art and philanthropy," said Secretary for Financial Services and the Treasury Christopher Hui.

"All these contribute to a diverse and well-rounded ecosystem for family offices."

To support this ecosystem, InvestHK's dedicated FamilyOfficeHK team has launched a Network of Family Office Service Providers to offer comprehensive support and has hosted global promotional activities to attract ultra-high-net-worth individuals.

The success is reflected in the city's financial performance, with total assets under management exceeding HK$35 trillion by the end of 2024, a 13 percent year-on-year increase bolstered by significant net fund inflows.

"As strategic investors, family offices actively invest in local innovation and technology as well as start-ups, contributing to the sustainable growth of Hong Kong's innovation economy," said Alpha Lau, director-general of investment promotion.

"In addition to actively attracting more family offices to set up in Hong Kong, InvestHK is also committed to building a capital-matching platform to promote the dual development of finance and technology.

"Through capital investment that fuels research and innovation, the expanded innovation and technology ecosystem can attract more patient capital, creating a virtuous cycle that injects sustained momentum into Hong Kong's diversified economy."

Moving forward, the government plans to further refine tax regimes for family offices and continue promoting Hong Kong’s status as a leading global hub.