Deloitte Market Study on Family Office Landscape in Hong Kong: 885 Single Family Offices in Hong Kong with More than $100 Million Wealth in 2023, 682 SFOs with $50 Million to $100 Million Wealth, 1,136 SFOs with $10 Million to $50 Million Wealth, Total of 2,703 SFOs in Hong Kong
21st March 2024 | Hong Kong
Deloitte has released the Deloitte Market Study on Family Office Landscape in Hong Kong, reporting 885 single family offices (SFOs) in Hong Kong with more than $100 million wealth in 2023, 682 SFOs with $50 million to $100 million wealth, 1,136 SFOs with $10 million to $50 million wealth (535 SFOs with $10 million to $30 million, 601 SFOs with $30 million to $50 million), and a total of 2,703 SFOs in Hong Kong at the end of 2023. Deloitte: “In the recent 2024-25 Hong Kong Budget, the Government proposed to further enhance the preferential tax regime for single family offices. In addition, Deloitte continues to advocate for the repeal of the 5% incidental transaction threshold, expanding the scope of qualifying assets to cover investments in artworks and digital assets, and reducing the profits tax rate applicable to single family offices from 16.5% to 8.25% … … The Market Study on the Family Office Landscape in Hong Kong adopts a research methodology that leveraged a comprehensive database of 200,000 UHNW individuals and families, on which a robust statistical and econometric model was built to arrive at an estimate of 2,703 single-family offices in Hong Kong as of 31 December 2023. To help corroborate the findings in the report, Deloitte also interviewed a large number of industry experts and stakeholders, including founders and CEOs of prestigious family offices and representatives from the industry association and the Hong Kong Academy for Wealth Legacy. In addition to family offices that are newly established with the help of the dedicated FamilyOfficeHK team of InvestHK, UHNW individuals have been bringing their own professional and sophisticated teams to establish family offices in Hong Kong while keeping an extremely low profile.” More info below:
“ 885 Single Family Offices in Hong Kong with More than $100 Million Wealth in 2023, 682 SFOs with $50 Million to $100 Million Wealth, 1,136 SFOs with $10 Million to $50 Million Wealth, Total of 2,703 SFOs in Hong Kong “
Deloitte China Vice Chair Patrick Yip: “Deloitte is pleased to have been commissioned by FamilyOfficeHK to perform this first-of-its-kind market study that estimates the number of pre-existing Hong Kong family offices as of 31 December 2023. Building on Hong Kong’s historical foundation as a centre for family offices to call home, the HKSAR Government’s Policy Statement on Developing Family Office Businesses will further enhance Hong Kong’s competitive advantage as a preferred location for global family offices and wealth management professionals. As a leading global professional services organisation, Deloitte is proud to be a trusted partner and advisor to many local, cross-border and international family offices. We are committed to continuing to advocate for family offices and support Hong Kong’s initiative as a premier centre for global family offices.”
Deloitte Private Hong Kong Leader Anthony Lau: “A competitive tax regime is often considered a key factor in a family office’s evaluation process to decide where to set up shop. With the introduction of the new Capital Investment Entrant Scheme (CIES), tax concessions for Family-owned Investment Holding Vehicles (FIHVs), market facilitation measures and the establishment of the Network of Family Office Service Providers, we have witnessed a sharp increase in interest and enquiries from ultra-high net worth (UHNW) individuals and families considering the establishment of family offices in Hong Kong. The HKD3 million required allocation to the CIES Investment Portfolio for each CIES application is an exciting and unique opportunity to invest in project companies with a Hong Kong nexus hand-picked by the government in technology and innovative industries that might otherwise not be made available. Interest in this government investment portfolio will be piqued further when more details about its underlying assets and expected potential are announced.”
Deloitte China Hong Kong Government & Public Services Industry Leader Rita Chan: “Among Hong Kong’s many competitive advantages, flexibility was often cited by the interviewees as one of the city’s most obvious edges for the global family offices that were drawn to the premier international financial centre. The depths and innovation of Hong Kong’s capital markets, its proximity to the Mainland market and global connectivity, also stand out as key strengths. With the rise of digital technology that breaks down geographical boundaries, and the untapped potential of emerging markets in Asia and beyond, we expect a rapidly expanding group of UHNW individuals and HNWIs in Asia and globally to regard Hong Kong as the preferred location to establish their family offices. With the pre-existing single-family offices in Hong Kong as a solid bedrock, the HKSAR Government’s newly introduced family office regime and policy measures will only make Hong Kong’s pre-eminent position as a premier centre for family offices even stronger and more unassailable.”
Deloitte Market Study on Family Office Landscape in Hong Kong
- More than $100 million wealth – 885 single family offices (SFOs)
- $50 million to $100 million wealth – 682 SFOs
- $10 million to $30 million – 535 SFOs
- $30 million to $50 million – 601 SFOs
- Total – 2,703 SFOs
18th March 2024 – As one of the world’s pre-eminent international financial centers, Hong Kong strives to be the international center for wealth and asset management. Hong Kong’s history of family wealth management, a substantial part of the asset management sector, can be traced back to as early as the late 1800s. Over the years, Hong Kong has transformed itself into one of Asia’s largest cross-border wealth management centres. Recently, Hong Kong has further increased its investment in, and commitment to, the development of an enhanced, world-class family office regime to build on its historical success as a family office center. In March 2023, the Hong Kong Special Administrative Region (“HKSAR”) Government announced several policy measures in the Policy Statement on Developing Family Office Businesses in Hong Kong, which are expected to be instrumental in taking Hong Kong’s family office platform to the next level.
- In general, there are two types of family offices: single-family offices and multiple-family offices. A single- family office arrangement is established to serve the needs of members of a single family, while a multiple- family office serves more than one high net-worth family. While there is a vibrant ecosystem for both types of family offices in Hong Kong, this report focuses on single-family offices only. This study defines “single- family office” as an independent, private business entity with the sole purpose of managing various needs of a single family such as financial needs, family governance, wealth planning, wealth preservation, wealth transfer, and philanthropic endeavors.
- There are no published statistics on the number of single-family offices incorporated or based in Hong Kong, primarily because there is no pre-approval required for the establishment of or any registration requirement for a family office in Hong Kong. Notwithstanding, it is common knowledge, particularly in the business and financial communities, that many family offices have been operating in Hong Kong for long periods and been one of the key forces driving investment and deal-making activities in the city.
- To estimate the number of single-family offices currently operating in Hong Kong, this study employs a commonly accepted statistical methodology based on a global and proprietary database of 200,000 ultra- high net worth (“UHNW”) individuals and families. The statistical analysis has three steps:
- Hong Kong has long enjoyed a sterling reputation as one of the world’s most important financial centres. With the rise of digital technology and the untapped potential of emerging markets, it would be expected that the rapidly expanding group of UHNW individuals from all corners of the globe would have selected Hong Kong as their preferred location to establish their family offices on account of factors such as the city’s highly open and internationalised market, sophisticated capital market, internationally aligned regulatory regime, rule of law, wealth of talent, robust infrastructure, free flow of information and capital, and easy access to the vast investment opportunities in the region.
- In addition to family offices that are newly established with the help of the dedicated FamilyOfficeHK team of InvestHK, UHNW individuals have also been bringing their own professional and sophisticated teams to establish family offices in Hong Kong while keeping an extremely low profile. At the same time, if multiple- family offices, which are not covered in this study, are included, the total number of family offices in Hong Kong will be much higher than 2,700. With the current single-family offices and multiple-family offices in Hong Kong as a strong pre-existing foundation, it is anticipated that the newly introduced family office regime and its favorable measures introduced by the HKSAR Government will take Hong Kong to the next level as the world’s pre-eminent center for family offices.
About Deloitte
Deloitte China provides integrated professional services, with our long-term commitment to be a leading contributor to China’s reform, opening-up and economic development. We are a globally connected firm with deep roots locally, owned by our partners in China. With over 20,000 professionals across 31 Chinese cities, we provide our clients with a one-stop shop offering world- leading audit & assurance, consulting, financial advisory, risk advisory, tax and business advisory services.
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