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Hong Kong’s emergence as global family office powerhouse
Hong Kong is rapidly solidifying its position as a global hub for family offices, attracting ultra-high-net-worth individuals (UHNWIs) worldwide. The city now hosts over 2,700 family offices, with forecasts predicting continued growth, outpacing competitors like Singapore. This surge is driven by a combination of government incentives, its strategic position in Asia, and its role as a financial and business center.
The Hong Kong government has implemented policies to support this growth, including tax benefits and streamlined processes for establishing family offices. These efforts align with its broader goal to enhance its global competitiveness in wealth management services, further attracting UHNW clients seeking robust financial infrastructure and expertise.
Hong Kong eyes Europe’s wealthy with London, Paris, Milan on family office agenda
Hong Kong is actively courting wealthy families and family offices from Europe, including cities like London, Paris, and Milan, as part of its strategy to strengthen its status as a global financial hub. This effort builds on the city’s recent tax incentives, simplified residency pathways, and its strategic position as a gateway to mainland China investments.
InvestHK, the government agency leading this initiative, has conducted roadshows in key European cities to highlight Hong Kong's advantages over competitors like Singapore. The city's low tax regime, robust capital markets, and integration into China's Greater Bay Area economic zone are major draws. These measures are part of a broader push to position Hong Kong as a premier destination for wealth management, philanthropy, and succession planning, appealing to ultra-high-net-worth individuals worldwide.
Families' Desire To Safeguard Generational Wealth Endures – Study
A recent study on multi-generational family wealth emphasizes the enduring desire among families to safeguard generational wealth amidst modern challenges. Key findings include a shift toward diversifying investments and adopting strategies to manage wealth sustainably over generations. Many families are also prioritizing entrepreneurial ventures led by younger, tech-savvy members, alongside implementing governance structures like family investment committees.
The report notes that next-generation members are increasingly focused on leveraging wealth to improve society, rather than merely accumulating it. Additionally, economic uncertainties, such as inflation, are pushing families to reconsider how they allocate capital, including exploring green financing and ESG-aligned investments. Succession planning and adapting to shrinking family sizes are also critical areas of focus, with some families opting to sell businesses or redefine their strategies to ensure longevity and alignment with evolving values.
Druckenmiller leads family offices in ramping up US bank bets
Family offices, including those led by prominent investors like Stanley Druckenmiller, are increasing investments in U.S. banks, signaling a resurgence of interest in the sector. This trend comes as banks recover from earlier turbulence in 2024, driven by stabilization in economic conditions and improved earnings outlooks. These offices are selectively targeting institutions with robust capital structures and diversified revenue sources, leveraging their long-term investment horizons to capitalize on perceived value.
This move reflects a broader shift among high-net-worth investment managers who are recalibrating portfolios in response to changing market conditions, emphasizing strategic opportunities in financials and other undervalued sectors.