Market study reveals more than 2,700 single-family offices are thriving in Hong Kong

Hong Kong’s family office sector is flourishing, with more than 2,700 single-family offices in the city, according to a market study published by Deloitte in collaboration with FamilyOfficeHK. The Market Study on the Family Office Landscape in Hong Kong underscores Hong Kong's ascent as the global hub for family offices, in addition to its long-established status as an international asset and wealth management centre.

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 developed into one of Asia's largest cross-border wealth management centres. Recently, the city has increased its investment in, and commitment to, the development of an enhanced, world-class family office regime.

“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,” says Deloitte China Vice Chair Patrick Yip.

“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.”

The market study represents the first formal independent study to estimate Hong Kong’s total number of single-family offices, which are independent entities dedicated to managing the financial and wealth-related needs of one family. This study fills a critical gap in the understanding and recognition of one of the major drivers of Hong Kong’s business and financial success, primarily because Hong Kong has never required family offices to be pre-approved or registered to be established in the city. Furthermore, on the reasonable assumption that a not insignificant number of multiple-family offices operate in the city, the total number of family offices in Hong Kong will comfortably exceed 2,700.

Deloitte Private Hong Kong Leader Anthony Lau says, “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.”

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%.

Anthony Lau adds, “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.”

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.

Deloitte China Hong Kong Government & Public Services Industry Leader Rita Chan says, “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.”

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.

Rita Chan adds, “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.”

Click here for the executive summary of the report.