“Magnet” Effect Facilitates Hong Kong’s Leap to World’s Top Spot

Hong Kong’s financial sector has recently reached an exciting historic milestone. According to the latest global wealth report released by an international consulting firm last week, global financial wealth grew by 10.7% year-on-year in 2025 to a total of US$333 trillion, while cross-boundary wealth rose by 8.4% to US$15.7 trillion. Amidst the reshaping of the global wealth landscape, Hong Kong’s performance was particularly eye-catching—its cross-boundary wealth recorded a significant growth of 10.7% to reach a total of US$2.9 trillion, higher than that of Switzerland for the first time ever, and officially propelling Hong Kong to the world’s largest cross-boundary wealth management centre.

This hard-earned achievement not only underscores Hong Kong’s strong resilience as an international financial centre, but also reflects a vote of confidence cast by global investors through concrete actions.

Three Years of Resilient Progress from Policy Vision to Global Leadership

Looking back at the journey of more than three years, we have taken steadfast steps towards clear goals. In March 2023, the SAR Government hosted the inaugural Wealth for Good in Hong Kong Summit, bringing together top global family offices (FOs), entrepreneurs and philanthropists to showcase Hong Kong’s unique advantages to the world. At the same time, the Policy Statement on Developing Family Office Businesses in Hong Kong was published, setting a clear direction for advancing the development of the relevant industries.

Eight forward-looking measures introduced back then included the New Capital Investment Entrant Scheme, tax concessions, establishing the Hong Kong Academy for Wealth Legacy, developing art storage facilities, fostering Hong Kong’s development as a philanthropic centre, strengthening the dedicated team in InvestHK, setting up an FO service network, and enhancing market facilitation measures. These measures, serving as eight engines, have comprehensively revitalised Hong Kong’s wealth management ecosystem.

In just over three years, the policies have evolved from a blueprint into concrete achievements, taking Hong Kong to the world’s pole position. This is by no means a coincidence, but the inevitable outcome of the concerted efforts by the Government and the industry to implement policies with precision.

The “Magnet” Effect of Wealth

The emergence of an international financial centre is never a mere accumulation of figures, but a reflection of a structural virtuous cycle. In my view, wealth is like a powerful “magnet”. When the regime, policies and infrastructure combine to create an attractive environment, wealth will continuously draw in global capital and generate a self-reinforcing development force.

It all starts with establishing a presence and settling in. As transnational capital and FOs establish their presence in Hong Kong, substantial wealth is amassed in the city, providing sufficient liquidity to the market and a foundation for long-term development. The accumulation of wealth will attract more high-net-worth individuals to Hong Kong, and foster cross-boundary and cross-domain exchanges and co-operation, thereby showcasing our role as a “super connector”.

This is followed by investment and allocation. FOs and high-net-worth individuals are not only asset managers but also proactive investors. Their demand for asset allocation is the living water that nourishes the capital market. The resulting increase in capital flow attracts quality enterprises to go public and raise capital in Hong Kong, fostering positive interactions among the capital, enterprises and the market, and promoting the continuous growth of the financial market.。

Meanwhile, wealth leads to good causes. With changing perceptions of wealth, more and more families are becoming committed to giving back to society. They support sustainable development and impact investing through charitable organisations and trusts, and ESG and social values are particularly valued among their next-generation members. Hong Kong’s determination to develop into a global philanthropic centre aligns exactly with this trend.

Furthermore, the accumulation of wealth promotes the expansion of the professional service ecosystem. Demands for high-end professional services such as legal, accounting, tax and trust services growing in tandem will in turn enhance the overall service quality and competitiveness, producing an ever-stronger attraction toward this “wealth magnet”

Leverage the Unprecedented Wealth Transfer and Embrace the Wave of Wealth Succession

While celebrating our achievements, we should also embrace the profound shifts in the global wealth landscape. Over the next two to three decades, the world will witness the cross-generational succession of US$83 trillion in private wealth, the largest wealth transfer in modern history.

This situation is particularly imminent in Asia, where the first wave of large scale wealth succession has already commenced. With the incumbent leaders of its top 20 family businesses reaching a median age of over 70, Asia will see frequent cross-generational transfer in the coming decade. Nevertheless, modern wealth succession has long evolved beyond asset allocation, covering multiple aspects such as ownership structures, governance models, leadership transfer and family missions.

This high complexity requires the support of a highly internationalised financial centre with a sound institutional framework and a robust legal system. Building on its strengths under “One Country, Two Systems”, the common law system, its globally-aligned regulatory framework and pool of world-class professional talent with the establishment of the Hong Kong Academy for Wealth Legacy, Hong Kong can effectively assist family businesses in navigating the challenges in wealth succession and governance. We are capable and well-positioned to serve as the premier platform and trustworthy partner for global families amidst this unprecedented wave of wealth succession.

Aim High, Stay Pragmatic

Hong Kong’s rapid rise to the pinnacle of global cross-boundary wealth management is a testament to the joint efforts of the industry, the Government and regulatory bodies. However, the global economic environment remains fraught with uncertainty, and geopolitical risks have not dissipated. In an era of frequent change, it is all the more essential for us to stay clear-headed and resolute.

Our immediate priority is to “aim high and stay pragmatic”. The former requires us to possess a forward-looking vision, actively positioning ourselves for trends such as artificial intelligence in financial applications, green and sustainable finance, and the rise of wealth in emerging markets, while continuously optimising policies and regimes to consolidate our status as an international financial hub. The latter emphasises implementation and execution, notably through advancing the New Capital Investment Entrant Scheme, deepening connectivity with the Mainland market, and refining tax arrangements, including the introduction of legislative proposals into the Legislative Council this month to further enhance the preferential tax regimes for funds, single FOs and carried interest. Besides, we will soon announce an action plan for promoting the development of corporate treasury centres in Hong Kong, an effort to positively address the practical demands from the industry.

Topping the world list marks a significant milestone in the history of Hong Kong’s financial development. Yet, this is by no means the finish line, but rather a new starting point on the path to greater heights. The SAR Government will continue to work concertedly with the industry in a humble and pragmatic manner to unlock new opportunities and consolidate our strengths.

Let us leverage this powerful “wealth magnet” to make Hong Kong shine even brighter on the stage of global finance.

2 June 2026