Hong Kong Strengthens Position as Global Family Office Hub Amid Next-Gen Wealth Transition

Keynote speech by SFST at Redefining Hong Kong: Next Generation Wealth

Following is the keynote speech by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, at Redefining Hong Kong: Next Generation Wealth today (October 3):

Catherine (Chief Executive Officer of South China Morning Post (SCMP), Ms Catherine So), distinguished guests, ladies and gentlemen,

It is my great pleasure to join you all today. Themed around "Guiding Leadership, Innovation, and Legacy", today's event gathers family office leaders, next-gen successors, and wealth management professionals to explore together the future of family offices.

Hong Kong's strengths

Amid the current complex global landscape, Hong Kong stands out as a stable and strategic hub under the "one country, two systems" framework. It benefits from the strong support of the Chinese Mainland while maintaining global connectivity, making it ideal for enterprises to establish or expand their presence. Hong Kong acts as a "super-connector" and "super value-adder", serving as a springboard for Mainland companies to go global and attracting overseas firms. This unique positioning is reflected in top international rankings, where Hong Kong ranked as the world's freest economy and among the top three most competitive economies. Hong Kong also continues to rank third globally and first in the Asia-Pacific region in the latest Global Financial Centres Index released just last week.

As a leading asset and wealth management centre, Hong Kong's assets under management reached HK$35.1 trillion as of end-2024, with an 81 per cent surge in fund inflows amounting to HK$705 billion. Within this industry, the family office sector is a vital pillar. Hong Kong's private banking and private wealth management business attributed to family offices and private trusts clients reached over HK$1,550 billion, underscoring Hong Kong's appeal among ultra-high-net-worth individuals and reinforcing its status as a global family office hub.

Government's initiatives on family offices

To anchor Hong Kong's position as the nexus where family legacies and family office expertise converge, the Government has strategically prioritised the development of the family office sector. We have been pressing ahead at full steam to create a conducive environment for family offices, including introducing a preferential tax regime for single family offices, establishing the Hong Kong Academy for Wealth Legacy (HKAWL), and introducing and enhancing the New Capital Investment Entrant Scheme.

Our efforts have already borne fruit. Our city counted more than 2 700 single family offices, and the recent growth has been remarkable: Invest Hong Kong has successfully supported over 200 family offices in establishing or expanding their operations here, surpassing the target of attracting no less than 200 family offices by end-2025, as outlined in the 2022 Policy Address. As announced in the Policy Address last month, we target to attract an additional 220 family offices to Hong Kong from the year of 2026 to the year of 2028, bringing in an increasing volume of capital, talent, and business opportunities.

The sector's dynamism is exemplified by the success of the flagship Wealth for Good in Hong Kong (WGHK) Summit, held annually since 2023, highlighting the city's commitment to developing its asset and wealth management ecosystem and solidifying the city's family office industry. Looking ahead, we will sustain robust investment promotion efforts and deepen collaboration with key stakeholders.

Trends in family office sector

The global family office landscape is undergoing rapid transformation, driven by next-generation leadership transitions, growing interest in philanthropy and impact investing, emerging investment themes such as digital assets, and leveraging insurance as a tool for strategic capital management.

So in my coming speech, I will highlight these areas, in particular how we can help and facilitate the growth of family wealth in these areas.

Next-generation leadership transitions

Family offices are increasingly focused on smooth succession planning as leadership transitions to the next generation. In recent years, it is observed that emphasis is placed on the engagement of younger family members, like all of you, to ensure continuity of family values, vision, and also wealth preservation across generations.

Next generation wealth is defined as the transfer and stewardship of assets, financial resources, knowledge, and values from one generation to the next within a family. It encompasses not only the inheritance of tangible assets such as cash, investments, real estate, and businesses, but also the intangible assets like financial literacy, family values, entrepreneurial skills, and social capital that are crucial for preserving and growing wealth across generations. This concept is more than just inheritance; it involves long-term planning, education, governance, and the creation of systems to sustain wealth beyond the original generation. Preparing the next generation involves imparting financial knowledge, fostering responsible management skills, and engaging heirs early to build confidence and establish a lasting legacy.

In this regard, the HKAWL continues to focus on deepening the engagement with next generation wealth owners by curating training and development resources. The HKAWL just celebrated its two-year anniversary last month. Over the last two years, the HKAWL organised two Legacy Summits, which brought global speakers including leaders of prominent family foundations, such as the Rockefeller Foundation, and venture capital firms, to engage with global family principals and next-gens on discussions around philanthropy, impact investing, family governance and wealth management, fostering interaction and exchange within the industry, and facilitating families in creating impact and long-lasting legacies.

Growing interest in philanthropy and impact investing

Many asset owners are looking to incorporate philanthropic initiatives into the overall wealth management framework for social betterment. In light of this, we announced the launch of the Impact Link (iLink) initiative in 2024. The iLink, administered by the HKAWL, connects philanthropists with each other and with impactful charity projects, builds a strong community around peers, and offers learning-by-doing opportunities through tangible projects.

In June this year, the iLink Online Portal was launched, bringing together Strategic Partners with some 50 family partners, offering a dedicated platform for invited family philanthropists to discover scalable initiatives that address critical challenges in Hong Kong and beyond.

On capacity building, the HKAWL organised various events and activities under the iLink, engaging global philanthropic foundations such as the Gates Foundation, Yidan Prize Foundation and Fondation de France Asia. These events provided family philanthropists with additional perspectives on deploying philanthropic capital and opportunities to explore collaborative and strategic approaches to philanthropy and impact.

There is also an increasing interest in sustainable investments, which offer attractive risk-adjusted returns amid market uncertainties. The global impact investing market, valued at an estimated US$1.57 trillion, reflects a growing recognition of the need to address critical challenges such as climate change, poverty and inequality. This evolution in capital flows and sectoral allocation reflects a global investment trend with broader commitment to resilience and long-term value creation.

Hong Kong, as Asia's leading international financial centre and sustainable finance hub, stands to contribute much in this aspect. Our capital market offers a wide range of green and sustainable investment products with over 200 Environmental, Social and Governance (ESG) funds authorised by the SFC (Securities and Futures Commission) with assets under management of over HK$1.1 trillion. The number of ESG funds and assets under management recorded an increase of 51 per cent and 18 per cent respectively from three years ago.

In 2024, the total green and sustainable debt (including bonds and loans) issued in Hong Kong exceeded US$84 billion, representing a growth of around 50 per cent compared with 2021. Among them, the volume of green and sustainable bonds arranged in Hong Kong amounted to around US$43 billion, capturing around 45 per cent of the regional total and ranking first in the Asian market for seven consecutive years since 2018.

We also see the importance of building up market infrastructure to connect capital with climate-related products and opportunities in Hong Kong, the Mainland, Asia and beyond. In 2022, Hong Kong Exchange and Clearing Limited launched Core Climate, an international carbon marketplace to facilitate effective and transparent trading of carbon credits and instruments and to support the global transition to Net Zero.

Emerging investment themes: digital assets

Investment diversification is increasingly embracing non-traditional asset classes such as digital assets. Digital assets attract interest from family offices due to their innovation potential and portfolio diversification benefits, supported by growing regulatory clarity globally. A recent industry survey showed that over 70 per cent of family office professionals have either invested in cryptocurrencies or are exploring the possibility. With its unique strengths, Hong Kong is well positioned to bridge traditional finance with the digital asset era.

In June this year, we issued the Policy Statement 2.0 on the Development of Digital Assets in Hong Kong, setting out a vision for a trusted and innovative digital asset ecosystem that prioritises risk management and investor protection, while delivering concrete benefits to the real economy and financial markets. One of the key focuses of the Policy Statement 2.0 is enhancing the legal and regulatory framework that provides a solid foundation for the sustainable development of the digital asset sector.

The digital asset market is developing and evolving rapidly. Guided by the principle of "same activity, same risks, same regulation" under a risk-based approach, the Government will continue to enhance and establish a regulatory framework that reflects local circumstances and aligns with international standards and practices.

To ensure that family offices benefit from these developments in digital assets and sustainable investments, which I just mentioned, we propose including carbon credits and digital assets, among others, as qualifying assets eligible for tax concessions for funds and single family offices. Our target is to introduce the bill into the Legislative Council in the first half of 2026. If approved, the relevant measures will take effect from the current year of assessment (2025/26).

Insurance as tool for strategic capital management

For the next-generation stewards of wealth in this room, Hong Kong's insurance sector is a critical tool for strategic capital management. It has evolved far beyond basic protection into a sophisticated ecosystem for wealth preservation and risk mitigation.

The primary connection lies in comprehensive risk mitigation. The concentration of wealth in a family office creates a concentration of risk. These are not simple risks; they are complex, cross-border, and often unique to your family's profile. They encompass everything from directors' liability and cyberattacks targeting your family's digital footprint to the physical protection of a globally dispersed art collection, real estate portfolio, or fleet of private assets. Hong Kong's insurers specialise in crafting bespoke, flexible policies for these complex exposures. They act as a critical buffer, transferring major risks away from your core capital and protecting the family's balance sheet from unforeseen events that could otherwise erode wealth built over generations.

Furthermore, insurance is a powerful tool for legacy and succession planning. While Hong Kong does not have an estate duty, the challenge of transitioning control and assets seamlessly across generations remains. Life insurance products, when structured within a robust financial plan, provide immediate liquidity and can be instrumental in facilitating the smooth transfer of ownership and assets. They can help equalise inheritances among heirs without forcing the liquidation of a prized family business or other illiquid, emotional assets. This ensures that the family's vision and values are preserved, and that transition happens according to plan, not by force of circumstance.

Hong Kong's role as the gateway to the Greater Bay Area and the Mainland adds a layer of strategic necessity. As your family's investments and interests grow within this dynamic region, understanding and mitigating local risks becomes paramount. Hong Kong's insurers possess the deep regional expertise and innovative capacity to structure solutions that protect these assets and facilitate secure investment.

In essence, for a modern family office, partnering with Hong Kong's insurance sector is about building a resilient framework. It is a strategic alliance that empowers you to de-risk your portfolio, optimise your capital, secure your legacy, and protect your family's well-being, allowing you to focus on what matters most: growing and stewarding your wealth for the future.

Closing

With our multipronged approach and the concerted efforts of the Government, regulators and the industry, I am confident that Hong Kong will continue to flourish as a leading family office hub in the region. I look forward to joining hands with each of you in shaping a better future for the family office sector.

Last but not least, may I thank the SCMP again for the invitation to this gathering of bright minds. I wish you all a rewarding day of discussions. Thank you.

Keynote speech by SFST at Redefining Hong Kong: Next Generation Wealth Source: HKSAR Government Press Releases

Keynote speech by SFST at Redefining Hong Kong: Next Generation Wealth Source: HKSAR Government Press Releases

CHP investigates imported measles case

The Centre for Health Protection (CHP) of the Department of Health (DH) today (April 6) is investigating an imported measles case and reminds members of the public that vaccination is the most effective way to prevent measles.

The case involves a 30-year-old male who developed a fever, cough and runny nose on March 31. He sought medical attention from a private doctor on the following day (April 1). He attended the Accident and Emergency Department (AED) of the North Lantau Hospital (NLH) on April 4 due to persistent symptoms, where he was admitted for treatment. He developed a rash on the same day after admission, and was immediately transferred to Princess Margaret Hospital for isolation and treatment. His clinical specimen was tested positive today for the measles virus upon nucleic acid testing. The patient is in stable condition.

An epidemiological investigation revealed that the patient works at the airport. He was uncertain whether he had received measles vaccination. He travelled to Indonesia with a household contact during the incubation period. His household contact is asymptomatic to date. Since there are continuous measles outbreaks in Indonesia, the case was classified as an imported case. No epidemiological linkages have been established between the case and other confirmed cases previously recorded in Hong Kong.

During the patient's communicable period (i.e. since March 31), in addition to visiting a private clinic on April 1 and the AED of the NLH on April 4, he worked at the airport on April 3. The CHP has been carrying out contact tracing in the private clinic that the patient had visited, the NLH and his workplace to identify any close contacts and high risk individuals. As of 4pm today, a total of 21 individuals who stayed in the same clinic with the patient, nine patients in the NLH and 238 relevant staff at his workplace at the airport were identified as close contacts. The CHP will continue to conduct medical surveillance for the identified close contacts.

The CHP will continue to investigate and follow up on the case.

"Measles outbreaks are currently occurring in many regions around the world. North America (including the United States, Canada and Mexico) and Southeast Asia (including Indonesia, Cambodia and the Philippines) have seen persistent measles outbreaks in recent years due to low vaccination coverage rates. In the first three months of this year, about 1 600 cases have been recorded in the United States, a figure far higher than during the same period last year. In Europe, the number of measles cases in the United Kingdom and Italy has increased recently, with 336 and 84 cases recorded respectively since January this year. In Asia, the incidence of measles remains high in the Philippines, Indonesia and Cambodia. Japan has also seen a substantial rise in cases this year, with 152 cases recorded as of the end of March, which is higher than in the same period for the past six years. Singapore and Australia have reported 24 and 87 measles cases respectively this year, also higher than in the same period last year. Most of the overseas cases have affected people who were not vaccinated against measles or had an unknown vaccination status, which highlights the importance of maintaining a high vaccination rate and herd immunity within the community," said the Controller of the CHP, Dr Edwin Tsui.

"Despite the abovementioned case is identified as an imported case according to the epidemiological information, airport workers who come into frequent contact with international travellers are at higher risk of contracting measles amid the current global resurgence of the disease. They are strongly advised to review their vaccination history and past medical history, especially those born outside Hong Kong who may not have received measles vaccination during childhood. Individuals who have not received two doses of measles-containing vaccine, or those with unknown vaccination history, should consult their doctor as soon as possible for vaccination. The CHP will work with the Airport Authority Hong Kong to remind all airport workers and their employers of the importance of ensuring that airport staff are fully immune to measles," Dr Tsui added.

The incubation period of measles (i.e. the time from infection to onset of illness) is seven to 21 days. Symptoms include fever, skin rash, cough, runny nose and red eyes. If travellers returning from places with high incidence or outbreak of measles develop symptoms of measles (e.g. fever and rash), they should seek medical advice immediately and avoid contact with non-immune persons, especially pregnant women and infants under one year old. They should also report their symptoms and prior travel history to healthcare workers so that appropriate infection control measures can be implemented at the healthcare facilities to prevent any potential spread.

"Under the Hong Kong Childhood Immunisation Programme, the overall immunisation coverage in Hong Kong has been maintained at a very high level through the immunisation services provided by the DH's Maternal and Child Health Centres and School Immunisation Teams. As evidenced by the findings on vaccination coverage of primary school students and the territory-wide immunisation surveys conducted regularly by the DH, the two-dose measles vaccination coverage has remained consistently high, well above 95 per cent, and the local seroprevalence rates of measles virus antibodies reflect that most people in Hong Kong are immune to measles. However, Hong Kong, as a city with a high volume of international travel, still faces the potential risk of importation of the measles virus and its further spread in the local community. Hence, a small number of people who have not completed a measles vaccination (such as non-local-born people including new immigrants, foreign domestic helpers, overseas employees and people coming to Hong Kong for further studies) are still at risk of being infected and spreading measles to other people who do not have immunity against measles, such as children under 1 year old who have not yet received the first dose of the measles vaccine," Dr Tsui said.

People born before 1967 could be considered to have acquired immunity to measles through natural infection, as measles was endemic in many parts of the world and in Hong Kong at that time. People born in or after 1967 who have not yet completed the two doses of measles vaccination, or whose measles vaccination history is unknown, should consult their family doctors as soon as possible to complete the vaccination and ensure adequate protection against measles.

Besides being vaccinated against measles, members of the public should take the following measures to prevent infection:

Maintain good personal and environmental hygiene;

Maintain good indoor ventilation;

Keep hands clean and wash hands properly;

Wash hands when they are dirtied by respiratory secretions, such as after sneezing;

Cover the nose and mouth while sneezing or coughing and dispose of nasal and mouth discharge properly;

Clean used toys and furniture properly; and

Persons with measles should be kept out of school till four days from the appearance of a rash to prevent the spread of the infection to non-immune persons in school.

For more information on measles, the public may visit the CHP'smeasles thematic page. Members of the public who are going to travel can visit the webite of the DH'sTravel Health Servicefor news of measles outbreaks outside Hong Kong.

Source: AI-found images