The asset and wealth management business of Hong Kong amounted to over $35 trillion (US$4.5 trillion) as at end-2024, with 54% of the assets sourced from investors outside the Chinese Mainland and Hong Kong, demonstrating Hong Kong’s status as an international asset and wealth management hub. Hong Kong is also Asia’s largest hedge fund hub and cross-boundary wealth management centre. There were over 3 380 single family offices operating in Hong Kong as of end-2025. This represents an increase of about 680 offices, or a growth of more than 25%, from end-2023.
We strive to sharpen Hong Kong’s competitiveness as the premier asset and wealth management centre in the region through a multi-pronged approach.
Diversified fund structures – The Government has introduced the open-ended fund company (“OFC”) regime in Hong Kong in July 2018, and the limited partnership fund (“LPF”) regime in August 2020, making Hong Kong a more attractive fund domiciliation location and promote fund origination. The Government has also put in place a fund re-domiciliation mechanism since November 2021 for non-Hong Kong funds to re-locate to Hong Kong as OFCs or LPFs. The Government provides funding support for OFCs set up in or re-domiciled to Hong Kong.
A more facilitating tax environment – Publicly offered funds (onshore and offshore) and transactions in specified assets of privately offered funds enjoy profits tax exemption in Hong Kong. Furthermore, tax concession is provided for carried interest issued by private equity funds operating in Hong Kong starting from 2020/21 year of assessment. We will further enhance the preferential tax regimes for funds, single family offices and carried interest to attract more funds and family offices with potential to establish a presence in Hong Kong.
Expanding the fund distribution network – Hong Kong has reached mutual recognition of funds (“MRF”) arrangements with the Mainland, Switzerland, France, the United Kingdom, Luxembourg, the Netherlands, Thailand, Ireland and the United Arab Emirates, allowing eligible funds to be offered directly to retail investors in each other’s market under streamlined authorization or approval procedures. The Mainland-Hong Kong MRF arrangement has been enhanced with effect from January 2025.
Promoting the Real Estate Investment Trust (“REIT”) market – In addition to seeking early inclusion of REITs under mutual market access, the Government will introduce an amendment bill this year to enable the privatisation or restructuring of REITs. The Government will also provide a stamp duty waiver for the transfer of non residential properties into REITs seeking to list.
| More information on family offices are available at the following designated website: |
| https://www.familyofficehk.gov.hk/ |
| More information on the New Capital Investment Entrant Scheme are available at the following designated website: |
| https://www.newcies.gov.hk/en/index.html |