Editorial | Hong Kong should aim to attract wealth from around the world
Examples such as Zhang Yiming show Hong Kong is a magnet for wealthy entrepreneurs to set up family offices and asset management firms
When it comes to the ultra-rich, the line between asset management and family investment office is increasingly blurred. A prime example is Zhang Yiming, who has been listed by the Hurun Research Institute this year as China’s wealthiest entrepreneur.
The founder of ByteDance, the parent company of TikTok, has been granted a special licence by Hong Kong regulators to operate a private investment fund to conduct asset management, paving the way for him to use the city as a base to manage his wealth.
That’s good news for Hong Kong, which is in a unique locale and financial position to exploit the vast opportunity. The number of Asia-Pacific single-family offices is expected to surge by 40 per cent to 3,200 by 2030, outpacing all other regions globally, according to a Deloitte report.
To entice the rich, the city’s authorities have been rolling out the red carpet with tax breaks and residency, as well as a transparent process to set up shop. They are starting to see success after the lean years of the Covid-19 pandemic.
Private wealth net inflows to Hong Kong nearly tripled to HK$341 billion (US$44 billion) in 2023. Total assets rose to about HK$9 trillion after sliding for two years.
According to Bloomberg Intelligence, private wealth assets are expected to double to US$2.3 trillion by 2030 as Chinese seek offshore diversification, with Hong Kong and Singapore being their primary destinations.
