Hong Kong’s asset and wealth management industry is vital to its economic landscape and global financial ecosystem. According to the Boston Consulting Group (BCG), Hong Kong is expected to surpass Switzerland to be the world’s largest booking centre in 2027.¹ As a leading international financial centre, Hong Kong has established itself as a hub for asset and wealth management (AWM), attracting a diverse range of investors, funds, and financial institutions. The industry’s significance stems from its ability to mobilise and allocate capital efficiently, facilitate investment opportunities, and provide wealth preservation and growth solutions.

As a destination for wealth preservation, Hong Kong has witnessed a rapid development of family offices (FOs). FOs and private trusts have continued to contribute to the industry significantly, accounting for 17% of the total assets under management (AUM) of the private banking and private wealth management business.²

Expanding their propensity for and involvement in philanthropy, FOs present the need for Hong Kong to establish itself as a premier destination for philanthropy, combining both positive social impact and family legacies. Establishing a more comprehensive ecosystem for FOs with a philanthropic pillar incorporated is crucial to establishing Hong Kong as a hub for FOs, as well as strengthening its status as an asset and wealth management hub.

Hong Kong possesses several strengths that position itself favourably as a philanthropic hub. Its proximity to Mainland China drives cross-border/ boundary philanthropy and collaboration among local, Mainland and international philanthropic actors. The city’s robust financial infrastructure, including a strong banking system, extensive capital markets, and the availability of professional services and talents, provides a solid foundation to facilitate philanthropic activities. Hong Kong’s adherence to the rule of law, strong corporate governance, and free market approach continue to inspire trust among philanthropists and donors. Additionally, its global connectivity as an international financial centre allows Hong Kong to attract international and Mainland philanthropic capital, foster partnerships, and leverage global expertise.

Recognising these strengths, Hong Kong can further attract FOs and involve their participation to contribute to the city’s financial ecosystem and global societal development. Issued in March 2023, the Policy Statement on Developing Family Office Businesses emphasised the importance of establishing Hong Kong as a philanthropic hub in complementary to strengthening Hong Kong’s stature as a FO hub.³ By positioning itself as a philanthropic hub and leveraging its strengths to connect between Mainland China and the rest of the world, Hong Kong is uniquely placed to attract philanthropic capital and facilitate cross-border/ boundary philanthropic activities, especially to reap the natural benefits of its proximity and role as an international financial centre to Mainland China and its deep-rooted connections to global markets.

The Financial Services Development Council (FSDC) acknowledges the need to bolster Hong Kong’s philanthropic sector to fully capitalise the city’s potential and strength as a regional philanthropic hub. By enhancing the regulatory environment, promoting transparency, and providing robust infrastructure, the FSDC believes Hong Kong can attract more philanthropic capital, foster innovation, and contribute to social and economic development.

To this end, the FSDC has formed a dedicated Working Group comprising industry experts with a view to gathering market feedback and formulate policy recommendations for the Government’s and public stakeholders’ consideration.

¹ Boston Consulting Group. (2023, June). Global Wealth Report 2023: Resetting the Course.
² Securities and Futures Commission. (2023, August). Asset and Wealth Management Activities Survey 2022.
³ Financial Services and the Treasury Bureau. (2023, March). Policy Statement on Developing Family Office Businesses in Hong Kong.