Tag Archives: China

     Following is the keynote address by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, at the Bank of Singapore event “Beyond 2025: The Changing World Order” today (January 20):
 
Rickie (Head of Private Banking, Greater China, and Chief Executive, Hong Kong Branch, Bank of Singapore, Mr Rickie Chan), esteemed guests, ladies and gentlemen,
 
     Good afternoon. It is both an honour and a pleasure to join you today at this remarkable forum, which brings together wealth owners, leading professionals, market experts, and stakeholders from across the region. May I extend a warm welcome to all of you.
 
     As we stand at the beginning in 2025, it is inspiring to see familiar faces, as well as new ones, gathered here to discuss some of the most pressing topics shaping the future of family offices, the asset and wealth management sector, and the immense opportunities for ultra-high-net-worth individuals (UHNWIs) in Hong Kong. Together, we will explore how Hong Kong continues to position itself as Asia’s leading financial hub in an ever-changing global landscape.
 
The financial landscape of Hong Kong
 
     Hong Kong has long been recognised as a city of unparalleled opportunity, boasting an open and international market, extensive investment options, and a deep pool of professional talent. These attributes have cemented our position as a global leader in financial services and investment.
 
     Family offices, in particular, have become an increasingly vital component of the wealth management ecosystem. In recent years, we have witnessed a surge in the establishment of family offices in Hong Kong, driven by the growing number of UHNWIs in the region. Hong Kong is uniquely positioned to cater to their needs, offering a world-class platform for managing and growing wealth.
 
     As of the end of 2023, Hong Kong’s asset and wealth management business reached an impressive HK$31.2 trillion (approximately US$4 trillion), with 64 per cent of these assets sourced from non-Hong Kong investors. Our private equity capital under management stood at US$231.1 billion as of September last year, making us second only to Mainland China in Asia. Furthermore, Hong Kong remains the largest hedge fund hub and cross-border wealth management centre in the region.
 
     A recent published market study revealed that investments of billionaires have outperformed the performance of the broader equity markets for the past 10 years. Between 2015 and 2024, their total wealth increased by 121 per cent globally from US$6.3 trillion to US$14.0 trillion. The rise of family offices in Hong Kong is also reflective of this broader global trend. It is estimated that Hong Kong had over 12 500 UHNWIs in 2023, the highest amongst Asian cities. Moreover, there are around 2 700 single family offices in Hong Kong, with over half of them having assets of US$50 million or above.
 
     Looking ahead, the potential for UHNWIs in Hong Kong remains immense. As an international financial centre, Hong Kong is not only poised to maintain its leadership in asset and wealth management but also to grow alongside the Asia’s economic expansion. To achieve this, we have identified four key pillars that will underpin our strategy, and they can easily be remembered as ABCD, i.e. attracting wealth as a global family office hub, building stronger connectivity with the Mainland, championing capital for social good, and diversifying investments and business opportunities. Together, these pillars form the foundation of our vision for a dynamic and prosperous future.
 
Attracting wealth as a global family office hub
 
     The first pillar focuses on strengthening Hong Kong’s position as a global family office hub. In 2023, the Government issued the Policy Statement on Developing Family Office Businesses in Hong Kong, outlining a clear roadmap for creating a conducive and competitive environment for global family offices and asset owners.
 
     One of the measures is the establishment of a dedicated FamilyOfficeHK team in the Government. It has so far assisted over 140 family offices in either setting up or expanding their operations in Hong Kong as of November last year. This one-stop services platform underscores our commitment to fostering a thriving environment for family offices and solidifying Hong Kong’s reputation as a preferred destination for wealth management.
 
     As another important measure, we have also introduced legislative amendments to provide a profits tax exemption for family-owned investment holding vehicles (FIHVs) managed by single family offices. This exemption, effective for any years of assessment commencing on or after April 1, 2022, highlights our dedication to creating a favourable tax environment for family offices.
 
     Another significant initiative is the launch of the New Capital Investment Entrant Scheme (New CIES) in March last year. Under this scheme, eligible investors who make a minimum investment of HK$30 million in permissible assets are granted the opportunity to reside and develop in Hong Kong. As of December last year, the New CIES has attracted over 800 applications and generated nearly 7 000 inquiries. Not only does this scheme enhance Hong Kong’s appeal to global investors, but it also supports the development of strategic industries such as innovation and technology via a dedicated CIES investment portfolio, contributing to the long-term growth of our economy.
 
Building stronger connectivity with the Mainland
 
     The second pillar emphasises the importance of Hong Kong’s unparalleled connectivity with the Mainland. This unique advantage continues to offer investors and family offices a wide array of opportunities.
 
     In April last year, the Mainland announced a series of measures to enhance mutual access between the capital markets of the Mainland and Hong Kong. These included the inclusion of real estate investment trusts (REITs) under Stock Connect and enhancements to the Mutual Recognition of Funds (MRF) programme. In fact, during the recently concluded Asian Financial Forum, Governor Pan Gongsheng of the People’s Bank of China announced additional measures to support Hong Kong’s development as an international financial centre, and they include an increase of asset allocation of the country’s foreign reserves in Hong Kong.
 
     These initiatives further bolster Hong Kong’s role as an international gateway between the Mainland and the rest of the world, solidifying our position as a leading asset and wealth management hub. Moving forward, we will continue to explore new ways to deepen our integration with the Mainland while expanding our global reach.
 
Championing capital for social good
 
     The third pillar highlights Hong Kong’s role in aligning wealth management with social good. In today’s complex world, issues such as climate change, poverty, and health demand a more sustainable and impactful approach to managing wealth.
 
     Families are increasingly adopting a long-term perspective, focusing on sustainability and impact investing. Hong Kong is uniquely positioned to support this shift, given our emphasis on innovation, sustainability, and social responsibility.
 
     In 2023, the Government launched “Impact Link” (iLink) – an initiative under the Hong Kong Academy for Wealth Legacy (HKAWL). By gathering experienced donors and showcasing successful projects, this platform helps family offices and asset owners make informed decisions on philanthropic projects, fostering meaningful connections between donors and transformative ventures. By positioning Hong Kong as a global philanthropic hub, iLink enables wealth owners to deploy charitable capital in ways that benefit Hong Kong, Mainland China, and the broader international community.
 
Diversifying investments and business opportunities
 
     The fourth and final pillar focuses on creating a diversified and robust investment and business environment to attract and retain investors.
 
     To enhance our competitiveness, we have introduced initiatives such as the open-ended fund company (OFC) and Limited Partnership Fund (LPF) regimes, along with a re-domiciliation mechanism for foreign funds. These measures aim to provide greater flexibility and choice for asset and wealth managers, and market reception has been encouraging. The number of OFCs grew by over 90 per cent to 472 last year, while LPFs grew by over 35 per cent to reach around 1 000 for funds registered.
 
     Additionally, we are consulting the industry on proposals to expand the scope of qualifying investments eligible for tax concessions for funds and single family offices. They shall include emission derivatives/allowances, insurance‑linked securities, loans and private credit investments, virtual assets and so on, allowing transactions in assets of these classes to enjoy profits tax exemption.
 
Concluding remarks
 
     Ladies and gentlemen, as we look beyond 2025, Hong Kong remains steadfast in our commitment to excellence and innovation. Our city is not only an international financial centre but also a vibrant capital for engaging events and gatherings. In March later this year, we will host the Wealth for Good in Hong Kong Summit again. The third edition of the summit to be held under the theme “Hong Kong of the world, for the world” will gather and connect elites from around the world, underscoring Hong Kong’s status not only as a leading international financial centre, but also a hub for global family offices to pursue their dreams and seek business opportunities.
 
     In closing, let me emphasise that the future of Hong Kong’s asset and wealth management industry is bright. By leveraging the four pillars – attracting wealth as a global family office hub, building stronger connectivity with the Mainland, championing capital for social good, and diversifying investments and business opportunities – we will continue to sharpen our competitive edge, attract global capital, and foster sustainable growth for generations to come.
 
     I look forward to the engaging discussions today, exchanging ideas, and collaborating on strategies to advance our shared goals. Together, we will not only strengthen our industry but also contribute to the broader aspirations of Hong Kong.
 
     Thank you, and I wish you all a happy Chinese New Year and a prosperous Year of the Snake. read more

     The Labour Department (LD) is investigating a fatal work accident that happened in Jardine’s Lookout this morning (January 20) in which a man died.
      
     The LD immediately deployed staff to the scene upon receiving a report of the accident, and is now conducting an investigation to look into its cause. read more

     The Secretary for Health, Professor Lo Chung-mau, chaired the second meeting of the Steering Committee on Health and Medical Innovation Development today (January 20) to discuss the development direction and policy initiatives for driving medical innovation in Hong Kong. Members also offered advice on the progress of establishing the Hong Kong Centre for Medical Products Regulation (CMPR) and the development of the Greater Bay Area International Clinical Trial Institute (GBAICTI).
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     At the meeting, members were briefed on the latest developments of establishing the CMPR. Since its establishment in June last year, the Preparatory Office for the CMPR has been taking forward a number of measures, including reviewing the regulatory work of drugs and medical devices in other regions to formulate a regulatory framework of drugs and medical devices suitable for Hong Kong, assessing the need for legislation, devising the restructuring of the existing regulatory functions and service plans for drugs and medical devices, and proposing the timetable for the establishment of the CMPR and the roadmap towards the adoption of “primary evaluation” in the first half of this year.

     Furthermore, members also offered advice on the strategic development plan for the GBAICTI. The GBAICTI will take forward a number of key tasks this year, including promoting process optimisation, establishing a one-stop Hong Kong Clinical Trial Digital Portal, strengthening collaboration within the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), and planning for the GBAICTI’s move into one of the wet laboratory-enabled buildings at the soon-to-be-completed Hong Kong-Shenzhen Innovation and Technology Park, with a view to further enhancing Hong Kong’s overall clinical trial efficiency and capability. 

     Other key areas of work of the GBAICTI include talent training, strengthening Hong Kong’s role in regional and international clinical trial networks, and establishing a high-level international clinical trial services platform in collaboration with other GBA cities, with a view to pushing ahead with the development of an advanced biomedical industry at full steam by capitalising on Hong Kong’s unique advantages of enjoying strong support of the motherland and being closely connected to the world, thereby complementing the development goals as set out in the Development Plan for Shenzhen Park of Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone promulgated by the State Council.

     Professor Lo said, “At today’s meeting, members of the Steering Committee recognised the efforts of the Hong Kong Special Administrative Region (HKSAR) Government in promoting health and medical innovation and offered professional advice on the way forward regarding the development direction and policy initiatives. The Health Bureau (HHB) will actively follow up, and make every effort to take forward and implement the measures on expediting the reform of the approval mechanism for drugs and medical devices and enhancing Hong Kong’s clinical trial capability on all fronts as set out in ‘The Chief Executive’s 2024 Policy Address’ by complementing technological innovation with institutional innovation. The HHB will also collaborate with Shenzhen to establish the GBA Clinical Trial Collaboration Platform to extend the research and development (R&D) network and expedite clinical trials; and establish the Real-World Study and Application Centre to leverage Hong Kong’s vast and standardised high-quality medical databases, with a view to accelerating Hong Kong’s development into an international health and medical innovation hub.”

     “In the Resolution of the Communist Party of China (CPC) Central Committee on Further Deepening Reform Comprehensively to Advance Chinese Modernization adopted by the Third Plenary Session of the 20th CPC Central Committee, it mentions the development strategy for further reforming the medical and healthcare systems and improving the mechanisms for supporting the development of innovative drugs and medical equipment. The HHB will embrace changes while staying principled, and leverage Hong Kong’s advantages of ‘one country, two systems’, its high-quality healthcare professions and high compatibility with international standards and more, to develop Hong Kong into an international health and medical innovation hub and foster co-ordinated development with other GBA cities, so that patients may benefit from the most advanced diagnostic and treatment technologies, thereby achieving the goal of bringing the benefits of good drugs and R&D to Hong Kong. At the same time, we will promote the development of advanced biomedical technology industries and actively integrate into the overall national development by showing support for fostering new quality productive forces in biomedical technology as set out in the Resolution and the Development Plan to align with national development strategies,” he emphasised.

     Established and wholly owned by the HKSAR Government, the GBAICTI officially opened on November 21 last year in the Hong Kong Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone. The GBAICTI co-ordinates clinical trial resources in the public and private sectors in Hong Kong and serve as a one-stop clinical trial support platform for medical research institutions. The Greater Bay Area International Clinical Trials Center in the Shenzhen Park also officially opened on the same day. The “one institute, one center” will jointly establish the GBA Clinical Trial Collaboration Platform under the “one zone, two parks” co-ordinated development model.

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     Police today (January 20) appealed to the public for information on a girl who went missing in Lantau North.      Pun Ruth Elizabeth Guillergan, aged 15, went missing after she left her residenc… read more

     ​Invest Hong Kong (InvestHK) today (January 20) announced that the department achieved a record-breaking year for foreign direct investment (FDI) in 2024, assisting 539 overseas and Mainland companies to set up or expand their business in Hong Kong. This represents a 41 per cent increase compared to 2023, reflecting the strong appeal of Hong Kong as a leading business hub in the region.
     
     The strong FDI performance was driven by investment across diverse and high-value industries. It is estimated that the total investment thereby brought to Hong Kong’s economy has reached over HK$67.7 billion, which also represents a record high and a nearly 10 per cent increase compared to 2023. These companies expected to create 6 864 job opportunities in Hong Kong during their first year of operation, an over 67 per cent increase compared to 2023.
     
     The top five locations of origin among the companies assisted span markets in the United States, Europe and Asia.
           

Location of origin	Number
The Mainland	273
United States	52
France	24
The United Kingdom	24
Singapore	23

 
     Among the companies assisted, the top five sectors were as follows:
           

Sectors	Number
Innovation and technology	120
Financial services and fintech	110
Family offices	95
Tourism and hospitality	58
Business and professional services	47

               
     The Director-General of Investment Promotion, Ms Alpha Lau, said that the results in 2024 reflect overseas and Mainland enterprises having full confidence in Hong Kong, selecting the city as their base to expand regional businesses in Asia to capture the unique opportunities brought by Hong Kong as a “super connector” and a “super value-adder”.
     
     In addition, the New Capital Investment Entrant Scheme (New CIES), of which InvestHK is responsible for its financial requirements assessment, received more than 800 applications by the end of 2024 since its launch last March which will bring in around HK$24 billion in investments to the city. With enhancements to the scheme to be effective in March this year, this number is expected to further increase.
     
     Ms Lau said, “We are proud of the department’s outstanding performance in 2024. The number of companies we assisted and the amount of direct investment they brought to Hong Kong both hit record highs despite a complex and ever-changing global economic environment. It demonstrates Hong Kong’s resilience and adaptability and businesses’ strong confidence in the city as the preferred base to expand in the region. In 2025, we will encourage companies to expand their operations in Hong Kong beyond sales and services, covering areas such as research and development, treasury management, procurement and supply chains, regional management headquarters, listing or financing, etc.
     
     “Looking ahead, we are committed to enhancing quality and creating new opportunities. We will prioritise attracting businesses that can generate substantial economic benefits and quality investments for Hong Kong. We will strategically introduce emerging industries from traditional markets, supporting Hong Kong’s development in new competitive sectors like cultural and creative industries, and technology. And we will explore emerging markets and strengthen our promotional efforts in places along the Belt and Road, especially the Association of Southeast Asian Nations economies and Eastern Europe, to assist local companies to expand their regional operations via Hong Kong,” she concluded.
             
     InvestHK’s annual report 2024 is available on the department’s website here: www.investhk.gov.hk/en/resource-centre/?tab=&type=Annual%20Report. read more