Hong Kong has attracted over 200 family offices to set up shop or expand their business in the city, achieving its target before the year ends, the Financial Services and the Treasury Bureau said Monday.

The bureau said in a statement that the family offices’ decision to set up a presence in the special administrative region, with support from Invest Hong Kong (InvestHK), buttressed the city’s standing as Asia's leading cross-border private wealth management center and a hub for global family offices.

It added that the city's total assets under management surpassed HK$35 trillion ($4.5 trillion) as of end-2024, a year-on-year increase of 13 percent, with net fund inflows surging by over 80 percent to HK$705 billion, reflecting the growing appeal of Hong Kong as an international asset allocation hub.

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Chief Executive John Lee Ka-chiu had set in his 2022 Policy Address the target of facilitating no fewer than 200 family offices in establishing or expanding their operations in Hong Kong by the end of 2025.

“The fact that InvestHK has surpassed the milestone of attracting 200 family offices ahead of schedule is a testament to this city's strong competitive advantage in private wealth and asset management,” Secretary for Financial Services and the Treasury Christopher Hui Ching-yu was quoted as saying in the statement.

“We will continue to refine our policy measures, such as further enhancing the preferential tax regimes for funds, single family offices and carried interest, to keep up the growth momentum of the family office sector."

Over the past two years, the SAR government launched eight policy measures, including offering tax concessions and introducing the New Capital Investment Entrant Scheme, that provided a conducive and competitive environment for family offices to come to Hong Kong.

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The bureau also noted that the reported figure of over 200 new family offices does not cover those that have established themselves independently or through support from the city's professional services network.

“In other words, the actual scale of Hong Kong's development as a family office hub is even more substantial,” the bureau said.  

The dedicated FamilyOfficeHK team of InvestHK had expanded its role and launched a Network of Family Office Service Providers to serve as a platform for family offices to access the expertise of various professional services.

It also stepped up promotion and hosted activities around the globe, including running roadshows in the Chinese mainland, Europe, and the Association of Southeast Asian Nations region, and took a proactive approach with ultra-high-net-worth individuals interested in establishing a presence in the SAR.

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As the annual flagship event for family offices, the Wealth for Good in Hong Kong Summit organized by the SAR government also brought to the city many influential global family office principals.

"As the world's second-largest cross border wealth management center, Hong Kong is a preferred destination for investors,” said Alpha Lau Hai-suen, director-general of investment promotion at InvestHK.

“As strategic investors, family offices actively invest in local innovation and technology as well as start-ups, contributing to the sustainable growth of Hong Kong's innovation economy,” she added.