FINANCIAL SERVICES AND THE
TREASURY BUREAU

財經事務及庫務局
香港添馬添美道2號
政府總部24樓

24/F, Central Government Offices,
2 Tim Mei Avenue,Tamar, Hong Kong

Policy Statement on Developing Family Office Businesses in Hong Kong
This statement issued by the Financial Services and the Treasury Bureau sets
out the Government’s policy stance and measures on developing a vibrant ecosystem
for global family offices and asset owners in Hong Kong.
Our Objective
2.

The Government attaches great importance to developing Hong Kong asa leading family office hub. The Chief Executive, in the 2022 Policy Address, sets thetarget of facilitating no less than 200 family offices to establish or expand theiroperations in Hong Kong by end-2025. Having more family offices in our market willbring greater good to the socio-economic development of Hong Kong and bolster theasset and wealth management industry as well as Hong Kong’s progression as a family
office hub. The diversified and sophisticated needs of these ultra-high-net worth
investors will also support the future growth of our financial and professional services,innovation and technology, green and sustainability, arts and culture, as well as
philanthropic sectors.
3.

We are committed to creating a conducive and competitive environment

for global family offices and asset owners to thrive in Hong Kong. Through thefollowing policy measures, and our inaugural and exclusive event “Wealth for Good inHong Kong”, we are prepared to unveil our comprehensive offerings and welcome
1global family offices to deploy and manage wealth in Hong Kong, capturing newinvestment opportunities and delivering long lasting social impact –(a)Introducing a new Capital Investment Entrant Scheme (“CIES”);(b)

Offering tax concessions;(c)Providing market facilitation measures;(d)Establishing the Hong Kong Academy for Wealth Legacy;(e)Promoting art storage facilities at the Hong Kong International Airport;(f)Developing Hong Kong into a philanthropic centre;(g)Further expanding the role of the dedicated FamilyOfficeHK team in Invest Hong
Kong (“InvestHK”); and(h)Launching a new Network of Family Office Service Providers(a)Introducing a new Capital Investment Entrant Scheme (“CIES”)
4.

As announced by the Financial Secretary in his 2023-24 Budget, we will

introduce a new Capital Investment Entrant Scheme (“CIES”) with a view to further
enriching our talent pool and attracting new capital to Hong Kong. Our policy intent isto invite asset owners to deploy and manage their wealth and tap into the diverse
investment opportunities in Hong Kong, and explore the holistic attractions and life
experience Hong Kong has to offer as a vibrant and international metropolitan city.
5.

Investment threshold for the scheme is planned to be increased to a

multiple of the original requirement yet still competitive. With reference to theoriginal CIES as the basis, we propose the permissible assets for the scheme to include
equities listed in Hong Kong; debts issued or fully guaranteed by companies listed inHong Kong, by the Government, or by other corporations, agencies or bodies wholly2

or partly owned by the Government; subordinated debts issued by authorisedinstitutions; and eligible collective investment schemes (including investment-linked
assurance scheme (“ILAS”)). Besides assets denominated in Hong Kong dollar, assets
denominated in RMB will also be considered. We will also explore, apart from financial
assets, new asset categories benefitting the long-term development of Hong Kong,
with a view to achieving the policy objective of attracting more new capital to Hong
Kong and bringing new impetus to the economy. Upon approval, applicants may resideand pursue development in Hong Kong along with his/her spouse and dependantunmarried children. Details of the Scheme will be announced later.
(b)

Offering tax concessions
6.

We introduced legislative amendments into the Legislative Council(“LegCo”) to provide profits tax exemption for family-owned investment holding
vehicles (“FIHVs”) managed by single family offices in Hong Kong.

Qualifying

transactions include investments in securities, futures contracts, foreign exchange
contracts, deposits, exchange-traded commodities, OTC derivative products, andinvestment in private companies, etc. The tax concession arrangements will beapplicable to any years of assessment commencing on or after 1 April 2022 subject toLegCo’s passage. Moreover, information on the proposed tax concessions is available
at the Inland Revenue Department (“IRD”)’s website1 for easy reference. FIHVs andfamily-owned special purpose entities can also apply to the IRD for advance rulings ontheir eligibility for the profits tax concessions upon the entry into force of the relevant
amendment ordinance.

1

https://www.ird.gov.hk/eng/tax/bus_fihv.htm

3

7.

Going forward, the Government will review the existing preferential tax

regimes for funds and carried interest with a view to creating a more facilitative tax
environment for the asset and wealth management industry and further strengthening
our advantages as an international asset and wealth management centre.
(c)Providing market facilitation measures
8.

In terms of market facilitation measures, the Securities and Futures

Commission has recently issued a few quick reference guides to address frequentlyasked questions about licensing requirements, with one specifically catering for family
offices. It has also set up a dedicated communication channel maintained by its
licensing team for family office related enquiries both by e-mail or telephone.
Furthermore, our regulators will continue to work closely with the wealthmanagement industry, and having due regard to investor protection, they will
introduce a set of more risk-based measures to streamline intermediaries’ suitability
assessment and disclosure process for sophisticated or ultra-high-net worth individual
clients.
(d)

Establishing the Hong Kong Academy for Wealth Legacy
9.

We recognise the importance of cultivating a deep talent pool for thefamily office sector in Hong Kong, and it should include ongoing training, knowledge
exchange and networking sessions for both industry practitioners and next-generation
wealth owners. As such, the Government will fund the setup of a new Hong Kong
Academy for Wealth Legacy, with a view to continuously nurturing and enlarging thetalent pool serving and managing wealth in Hong Kong. The academy will be housed
under the Financial Services Development Council, and be supported by partnerships
4

with the industry, professional service providers, universities, and our dedicatedFamilyOfficeHK team under InvestHK. The academy will target global audience aroundthe world, offering talent development services to industry practitioners and nextgeneration wealth owners.

Besides offering training in relation to wealthmanagement, e.g. capital preservation and inheritance, the academy will also cover
topics around arts and culture, green and sustainable investments, and philanthropy,
so as to match the multiple new aspirations of global wealth owners. The academy
will develop partnerships with global peer organisations, building a network to achievesynergies and delivering best values to our wealth management sector.
(e)Promoting art storage facilities at Hong Kong International Airport
10. Hong Kong is a vibrant and diverse city that offers a rich and varied artand culture scene. Our new museums, including the M+ museum for contemporary
art and the Hong Kong Palace Museum for Chinese art, along with other existing andupcoming cultural venues, have solidified and strengthened our position as an art andculture hub facilitating global exchanges. Hong Kong is also one of the world’s largest
art markets by auction sales, with a leading position in Asia. In 2021, the total tradevalue of artworks, collectors’ pieces and antiques in Hong Kong has exceeded over
HK$66 billion , demonstrating our unique advantages as a global art auction andtrading hub.
11. To further develop our art auction and trading market, we are prepared
to enhance our infrastructure and the Airport Authority Hong Kong is actively studying
the establishment of storage, display and appreciation facilities for art and treasuresat Hong Kong International Airport, as part and parcel of the Airport City development.
As an important global aviation hub, our airport has a network of air routes connecting
5

all over the world and also efficiently connects with other cities in the vibrant Greater
Bay Area. The high-security and comfortable environment, combined with the abilityof our airport to handle various special cargo safely and efficiently, will be able toprovide quality services to local, Mainland and world art collectors and enthusiasts.
The new facilities will consolidate Hong Kong’s position as a leading art exhibition andtrading centre in Asia, and global family offices with capital allocation in art will
increasingly benefit from the thriving art ecosystem in Hong Kong.
(f)

Developing Hong Kong into a philanthropic centre
12. Hong Kong’s financial services sector can play a vital role in supportingand enhancing the philanthropic sector in our city. Financial services can provide
various tools and platforms for philanthropists to manage and grow their wealth, aswell as channel their resources to the most effective and impactful social initiatives.
From an advisory perspective, financial institutions can assist in due diligence,monitoring, evaluation and reporting on the outcomes of grants. From the legal
perspective, Hong Kong can provide the structures required for charitable entities toachieve proper governance and continuity. Further, in terms of product availability,
the thriving and developing sector of green and social investments in Hong Kong will
provide philanthropists with the financial tools needed to achieve both financial andsocial returns.
13. To further develop our philanthropic sector, we will enhance theprocessing of applications for recognition of tax exemption status of charities2. The
IRD will devise a standard form containing a checklist and essential questions tofacilitate the submission of applications and streamline processing. Moreover, the IRD
2Under section 88 of the Inland Revenue Ordinance.

6

will provide further guidance for applicants in drafting their governing instrument,
facilitating the precise statement of charitable objects. The number of charities
recognised as exempt from tax in Hong Kong exceeded 9,7003, and the amounts ofapproved charitable donations allowed under profits tax (for business donors) andsalaries tax (for individual donors) were HK$4.35 billion and HK$7.45 billion
respectively in year 2020-21 4. Our city has the further potential to develop into aphilanthropic centre, serving as a base for global family offices and philanthropists todeploy charitable capital benefiting Hong Kong, the Mainland and the overseas.
14. For tax exemptions offered to FIHVs managed by single family offices inHong Kong, we plan to enhance the legislative proposal by expanding the extent ofbeneficial interest that an exempted charity may hold in an FIHV. This will facilitate
wealth owners in admitting exempted charities as beneficiaries of FIHVs and at thesame time benefitting from the proposed tax concessions.
(g)Further expanding the role of the dedicated FamilyOfficeHK team in InvestHK
15. The Financial Secretary has announced in his 2023-24 Budget that $100million will be allocated to InvestHK over the next three years for attracting morefamily offices to Hong Kong. To step up our efforts in facilitating global family offices
to set up and expand in Hong Kong, the dedicated FamilyOfficeHK team will expand its
role and further enhance its offerings as a one-stop and customised services team.
Specifically, the following services will be provided -34

As at 31 March 2022.
For the year of assessment 2020-21.

7i.

Philanthropy: Recognising the important synergies between family officebusiness and philanthropic endeavors, the FamilyOfficeHK team will provide
services to facilitate the philanthropic initiatives conducted by wealth owners
with existing and future presence in Hong Kong. The team will assist incommunication and coordination with Government bureaux and departments,and forging partnerships among organisations to develop Hong Kong into aphilanthropic centre for global wealth owners.

ii.

Education needs: The needs of family offices go beyond financial services andthey cover a wide variety of considerations for family members. Education is an
important consideration factor and the FamilyOfficeHK team will seek to offer
services in this regard.

Liaising with relevant Government bureaux anddepartments, the team would refer to them the contacts of admission offices ofinternational schools, and facilitate meetings and discussions with them as
needed. We will also enhance channels for information dissemination, such that
global family offices can better understand the international schools available inHong Kong.
(h)

Launching a new Network of Family Office Service Providers
16. We recognise the importance of partnerships with service providers in thefamily office sector, upon which the Government can promote new business
opportunities and explore further cooperation with the industry. In this regard, theFamilyOfficeHK team under InvestHK will convene and launch a new Network of Family
Office Service Providers, covering private banks, accounting and legal firms, trusts andother professional services firms, which provide comprehensive services to family
offices. The network will provide a two-way channel for the Government to brief the8industry on the latest policy development, and for us to seek advice and assistance onmobilising the industry’s global network to advocate and promote the opportunities inHong Kong for family offices.
Conclusion
17. We welcome global family offices and asset owners to set up in HongKong. We understand the diverse needs of family offices and we are committed toproviding a conducive environment for their long-term growth and prosperity. The
policy stance and measures unveiled in this statement represent the beginning of ajourney for Hong Kong as we position bringing family offices to our market as astrategic priority. We will seek to cultivate direct partnerships and cooperation withfamily offices, so that we can join hands and continuously enhance thecompetitiveness of our market and build an ecosystem to benefit all.

Financial Services and the Treasury Bureau
24 March 2023

9