The Hong Kong Special Administrative Region government is actively promoting the development of family office business and boosting advantages in developing the asset and wealth management (WAM) industry and related professional service sectors in Hong Kong, the city’s financial services chief said on Wednesday.

“The dedicated FamilyOfficeHK team of Invest Hong Kong has already assisted 50 family offices (FOs) to set up or expand their business in Hong Kong in the first five months of 2025, representing a 19 percent increase compared with the same period last year,” Christopher Hui Ching-yu told the Legislative Council.

Separately, around 150 family offices have indicated that they are preparing or have decided to set up or expand their businesses in Hong Kong, he said in a written reply to a related query.

As of end-2023, there were around 2,700 single FOs operating in the city, and the number is expected to exceed 3,000 in the near future, the secretary for financial services and the treasury said, citing findings of the consultant commissioned by InvestHK, the special administrative region government’s investment promotion arm.

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The size of private banking and private wealth management business attributed to FOs and private trusts clients reached HK$1,551 billion by the end of 2024, providing significant business opportunities for the WAM sector and other related professional services, he added.

Referring to the Policy Statement on Developing Family Office Businesses, which the SAR government issued in March 2023, Hui said the FO sector has responded positively to the eight measures set out in the policy statement, and the number of FOs interested in setting up or expanding their business in Hong Kong has also increased.

Responding to the industry's view, the government has implemented enhancement measures with effect from March 1 this year, including allowing applicants to make investments under the New Capital Investment Entrant Scheme through an eligible private company managed by an eligible single FO and wholly owned by the applicant. Such investments can be counted towards the applicant's eligible investment.

The SAR government is committed to expanding the talent pool in wealth management and FOs to meet the needs for professional talents, said the secretary.

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“We have since 2016 implemented the Pilot Programme to Enhance Talent Training for the Asset and Wealth Management Sector to nurture more industry talents.”

Over 4,800 applications for reimbursement of eligible professional training course fees have been approved, and the pilot program has provided internship opportunities for over 1,100 tertiary students, he added.

Besides adding "management professionals in WAM" and "professionals in compliance in WAM" to the talent list since 2018 and 2021, respectively, the government set up the Hong Kong Academy for Wealth Legacy in 2023 to provide a platform for collaboration, networking, knowledge sharing and talent development for asset owners, wealth inheritors and the FO sector, Hui told the LegCo.

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Speaking about a proposal to further enhance the preferential tax regime for single FOs as a means to attract more FOs to Hong Kong, he said the HKSAR government has completed the industry consultation and is currently formulating the relevant enhancement measures.

The SAR government targets to work out the details by this year and submit the legislative proposals to the LegCo in 2026, he said, adding: “If approved, the relevant measures will take effect from the year of assessment 2025/26.”