Veteran business leader Frederick Ma Si-Hang poses for photos while sharing his views in the Hong Kong General Chamber of Commerce roundtable on March 13, 2024, Hong Kong. (OSWALD CHAN / CHINA DAILY)

Veteran business leader Frederick Ma Si-Hang expressed confidence about Hong Kong’s future during his address at a roundtable hosted by the Hong Kong General Chamber of Commerce on Wednesday.

Hong Kong is pushing toward the development of its financial services and innovation industries. Coupled with the city’s corruption-free government, independent judiciary, free flow of capital, internet freedom and top-notch educational system, Hong Kong is poised to reach new heights, he said.

Despite current uncertainties, including geopolitical risks, high interest rates, and the slower-than-expected economic recovery on the Chinese mainland, Ma said, he believes that once these factors improve, “market confidence will be restored and Hong Kong’s economy will fare better”.

In addition to its high sovereign credit rating, Hong Kong also stands as an international hub for asset and wealth management with assets under management totaling over HK$30 trillion ($3.834 trillion). It is also the largest hedge fund center in Asia and the second-largest private equity center in the region after the mainland

Ma served as Hong Kong’s commerce chief from July 2007 to July 2008, and the financial services chief from July 2002 to July 2007.

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The business leader also said he was not worried about the Hong Kong Special Administrative Region government issuing bonds to fund green projects and other infrastructure and land projects, citing its top-notch sovereign credit rating, as well as its debt servicing capability recognized by the International Monetary Fund.

“The important point is, Hong Kong has the financial capabilities to repay its debts,” Ma said.

The Financial Mega Event Week will take place in the last week of March. It will include the second Wealth for Good in Hong Kong summit, to be held on March 27.

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In his blog on Wednesday, Secretary for Financial Services and the Treasury Christopher Hui Ching-yu said, “The event aims to provide a platform for discussion and an exchange of views for family office delegates from Hong Kong, the Chinese mainland, Southeast Asia, the Middle East, Europe, the United States and beyond, focusing on the green technology, art and high-end luxury goods market, philanthropy and wealth legacy, as well as the sports industry.”

He emphasized Hong Kong’s prominence as an international hub for asset and wealth management, with over HK$30 trillion ($3.83 trillion) in assets under management. It is also the largest hedge fund center in Asia and the second-largest private equity center in the region after the mainland.

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Boston Consulting Group estimates that Hong Kong’s wealth management business will grow at 7.6 percent annually between 2022 and 2027, with the potential to become the world’s largest booking center by the end of 2025.

Data from the Securities and Futures Commission shows that the net inflow of funds domiciled in Hong Kong surged to HK$87.1 billion in 2023, marking a year-on-year increase of 92.9 percent.

InvestHK has commissioned a professional organization to survey the landscape regarding family office development in Hong Kong — including the current number of family offices operating from Hong Kong — with the findings set to be announced later.

Hui said that since the launch of the new Capital Investment Entrant Scheme on March 1, more than 600 inquiries have been received, with applications having been submitted on the first day of the launch.