Xu Zhengyu: Aiming to help no less than 220 more family offices set up or expand their business in Hong Kong between 2026 and 2028

The Zhitong Finance App learned that on October 23, Hong Kong Secretary for Treasury Xu Zhengyu said in his speech at the Hong Kong Economic Times Wealth Management Awards 2026 that currently, global investors are actively seeking diversified asset allocations. Hong Kong is attracting more and more ultra-high net worth individuals and family offices to settle in and invest in Hong Kong. In terms of family offices, there are currently over 3,380 single-family offices operating in Hong Kong. It is estimated that operating expenses alone have brought annual revenue of about HK$12.6 billion to the Hong Kong economy and directly employed more than 10,000 full-time professionals. It will aim to assist no less than 220 more family offices to set up or expand their business in Hong Kong between 2026 and 2028.

Xu Zhengyu explained that Hong Kong has become the world's largest cross-border wealth management center. According to the latest survey published by the Hong Kong Securities Regulatory Commission, the total value of assets managed in Hong Kong last year surged 20% year-on-year to a record high of HK$42.2 trillion; net capital inflows also nearly tripled year-on-year to HK$2.1 trillion. The scale of cross-border wealth managed by Hong Kong is expected to grow at an average annual rate of 9% between 2025 and 2030, continuing to maintain its leading position in the world. This fully reflects Hong Kong as the Asian asset and wealth management hub of choice for international investors.

The HKSAR Government has been strengthening Hong Kong's competitiveness as a major international asset management center through various measures, including promoting family office business, introducing a diversified fund structure, providing a more favorable tax environment for the fund industry, expanding the fund sales network, and promoting the development of the real estate investment trust (REIT) fund market.

In order to meet the development trends and needs of the industry, Xu Zhengyu mentioned that the preferential tax system for funds, single family offices, and ancillary benefits will be further optimized. Major plans include expanding the scope of the tax exemption system to cover large-scale single-investor funds, as well as more eligible investments, such as loans and private equity investments, digital assets, precious metals, etc. After the relevant legislation is passed, the optimization measures can be implemented from the 2025/26 tax year.

On the housing trust side, Xu Zhengyu said that he plans to submit draft regulations on the privatization or restructuring of convenient housing trust funds within this year, then submit a bill on stamp duty exemption for the transfer of non-residential properties for housing trust funds to be listed in the first half of next year, and continue to seek the integration of housing trust funds into the interconnection between Hong Kong and mainland capital markets.