Hong Kong, July 26, 2024 - At the "Professional Financial Institution Services Awards 2024" ceremony, during the expert forum titled "Family Offices and New Investment Technologies," several experts proposed that the Hong Kong government further enhance policies when attracting family offices. They suggested optimizing tax policies, simplifying entry mechanisms, and establishing an "interconnectivity" system between family offices and other international financial centers.
The forum was moderated by Stella Lee, Chief Executive Officer of the Great Bay Area Family Office Association. Speakers included Gideon Ho, CEO of Oxbridge Family Office Limited; Cliff Ip, President, Managing Director, and CEO of Wings Securities Limited; and Jimmy Chow, part-time lecturer at the Institute for China Business of the University of Hong Kong.
Unique Advantages in Attracting Family Offices
Chow noted that the Hong Kong government has accumulated significant advantages in attracting single-family offices. "However, can the capital gains tax policies be made more 'aggressive'? Although Hong Kong's current tax rate is not particularly high, can more tax incentives be provided?" He suggested that the authorities further explain the legal differences between Hong Kong and the Mainland to address any concerns family offices might have.
Chow noted that the Hong Kong government has accumulated significant advantages in attracting single-family offices. "However, can the capital gains tax policies be made more 'aggressive'? Although Hong Kong's current tax rate is not particularly high, can more tax incentives be provided?" He suggested that the authorities further explain the legal differences between Hong Kong and the Mainland to address any concerns family offices might have.
Additionally, Chow proposed that the government establish a "market entry mechanism" for family offices to streamline the approval process and provide greater convenience. He also believes Hong Kong should collaborate with other international financial centers to build a mechanism for family office interconnectivity.
Diverse Investment Preferences Among Wealthy Families
Ho pointed out that the investment preferences among wealthy families vary significantly across generations. He stated, "For example, older generations tend to invest conservatively, focusing on stocks and bonds. In contrast, second- and third-generation wealth holders are more polarized in their investments, simultaneously investing in bonds or real estate funds with a 5-6% yield while also focusing on pre-IPO projects or art investments."
Ho pointed out that the investment preferences among wealthy families vary significantly across generations. He stated, "For example, older generations tend to invest conservatively, focusing on stocks and bonds. In contrast, second- and third-generation wealth holders are more polarized in their investments, simultaneously investing in bonds or real estate funds with a 5-6% yield while also focusing on pre-IPO projects or art investments."
Investment Approaches of Wealthy Families Differ Significantly
As Hong Kong continues to actively attract capital from the Middle East, Ip emphasized the importance of understanding the "pain points" Middle Eastern investors aim to solve. He noted that Hong Kong has done an excellent job as a super-connector and value-adder in the "bring in, go out" strategy and hoped that these strengths could be further developed in the future.
As Hong Kong continues to actively attract capital from the Middle East, Ip emphasized the importance of understanding the "pain points" Middle Eastern investors aim to solve. He noted that Hong Kong has done an excellent job as a super-connector and value-adder in the "bring in, go out" strategy and hoped that these strengths could be further developed in the future.
Diverse Investment Options in Hong Kong
When the Hong Kong government released its "Family Office Policy Statement" a few years ago, it proposed promoting the airport's art storage facilities. Ip believes that to invigorate Hong Kong's art investment market, there should be more art auctions and more talent trained to assist financial institutions in appraising artwork.
When the Hong Kong government released its "Family Office Policy Statement" a few years ago, it proposed promoting the airport's art storage facilities. Ip believes that to invigorate Hong Kong's art investment market, there should be more art auctions and more talent trained to assist financial institutions in appraising artwork.
In comparison to Singapore, Ip believes Hong Kong has the advantage of offering a wider variety of investment products, including not only virtual assets but also private credit, venture capital funds, green bonds, and even art and wine investments. "For high-net-worth individuals, Hong Kong offers more investment options, which are superior to Singapore."
The image caption reads: "Experts (from right) Stella Lee, Cliff Ip, Jimmy Chow, and Gideon Ho share their insights on Hong Kong's family office development at the 'Family Offices and New Investment Technologies' forum."