Hong Kong revamps family office rules to widen global appeal, targets 220 more by 2028 Hong Kong is widening its appeal to global family offices, as it shapes new policies designed to meet emerging trends in the sector, according to Secretary for Financial Services and the Treasury Christopher Hui Ching-yu. The city’s “robust legal system, world-class financial infrastructure, strategic proximity to the mainland and competitive and simple tax regime” made it an “ideal destination for family offices, including those from Africa, seeking to establish or expand their operations”, the treasury chief said at the Raffles Family Office annual forum on Wednesday. The forum featured Yusuf Murangwa, Minister of Finance and Economic Planning of the Republic of Rwanda, as a speaker. Hui also announced that the “Wealth for Good in Hong Kong Summit” would return next year. The third edition of the summit was held in March. “The government is steadfast in our commitment to positioning our city as the premier hub for family offices in Asia and beyond,” he said. Hong Kong aimed to assist at least 220 family offices in setting up operations or expanding businesses in the city from 2026 to 2028, according to Hui. Last month, the government achieved its previous target of facilitating 200 family offices to establish a presence in the city, which now has 2,700 single-family offices, he added. A key factor behind that success was the profit tax exemption for family-owned investment holding vehicles managed by single-family offices in Hong Kong, which reduced operational costs. The government would expand the qualifying investments for tax concessions to include private credit and other new asset classes, according to Hui. Family offices are focusing more on private markets, Hui said, as they channel more capital into private equity, co-investments and direct company investments – moving beyond passive public market exposure. Many are also adopting fund structures to centralise asset management, gain scale and support succession planning, he added. “By elevating tax constraints, we empower family offices to allocate resources strategically, aligning with their goals of intergenerational wealth preservation and [positive social] impact,” Hui said. The government has proposed that carbon credits and digital assets would also be eligible for tax concessions for funds and single family offices, with plans to introduce such a bill to the Legislative Council in the first half of next year. The newly revamped Capital Investment Entrant Scheme – which offers residency to those who invest HK$30 million (US$3.85 million) in assets or equities in Hong Kong – would create synergies with the tax concessions regime, encouraging more family offices to set up in the city, Hui said. Since March, Hong Kong has eased asset assessment rules, lowered the qualifying transaction price for residential property, raised the overall real estate investment cap, and allowed investments via wholly owned private companies to count towards the threshold. Another positive factor was the city’s efforts to develop talent in the family office space, Hui said. The Hong Kong Academy for Wealth Legacy, established by the Financial Services Development Council in 2023, has held more than 20 events that engaged with over 3,000 family asset owners and next-generation leaders. “The academy supports the professionalisation of the sector, ensuring family offices have access to the expertise needed to thrive in the competitive landscape,” Hui said. Murangwa, the Rwandan minister, praised Hong Kong’s competitiveness and efficiency as an international financial centre. “We connect Africa and also connect Africa beyond Africa – that’s where Hong Kong comes in,” he said. https://www.scmp.com/business/banking-finance/article/3328251/hong-kong-revamps-family-office-rules-widen-global-appeal-targets-220-more-2028 (ICE HONG KONG)

Fonte notizia: South China Morning Post