27 Mar 2023
Hong Kong on Friday announced new measures on developing family office businesses, aiming to develop a vibrant ecosystem for global family offices and asset owners in the international financial center and wealth management center. “Developing family office business will be conducive to pool capital from around the world in Hong Kong, bolster our financial market as well as the asset and wealth management industry,” Financial Secretary Paul Chan Mo-po said in a government statement on Friday. “Many decision-makers have also said the speed of Hong Kong’s economic recovery, as well as its vitality and charm, is impressive. They are planning or have already decided to establish a family office in Hong Kong,” he wrote on his official blog, without revealing names. Under the blueprint, the government will introduce a new Capital Investment Entrant Scheme which aims to attract ultrahigh-net worth individuals to deploy their capital in the city by giving applicants Hong Kong permanent residency status, if they invest in eligible Hong Kong asset markets. The administration will provide a profits tax exemption to family-owned investment holding vehicles managed by single family offices in Hong Kong, subject to approval by the Legislative Council. It will also review the existing preferential tax regimes for funds and carried interest.