Hong Kong’s game-changing New Capital Investment Entrant Scheme
- New Capital Investment Entrant Scheme aims to attract talent and high-net-worth asset owners from across the globe
- Initiative is expected to inject capital into the city’s economy, strengthen its asset and wealth management sector and create new business and investment opportunities
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Hong Kong is witnessing a remarkable surge in the growth of family businesses, particularly from the Asia-Pacific region. According to global real estate consultants Knight Frank, the number of ultra-high-net-worth (UHNW) individuals in the region is growing faster than anywhere else in the world, creating more wealth for their families – and Hong Kong is at the forefront of that growth. These families have a common desire to establish a family office where they can leverage local infrastructure and resources to look after and grow their wealth.
The appeal of Hong Kong lies in its strategic location and position as Asia’s premier financial centre, as well as having a government that is highly supportive of the family office sector. That support extends across the city’s financial and business ecosystem, addressing the core needs of family businesses, as well as driving creativity, innovation and entrepreneurship – all key factors for a dynamic international city, adding to the range of investment opportunities offered.
As the number of family businesses in Asia has grown, so has Hong Kong’s role as a home for family offices. In addition to a strong macro environment, family offices also demand a robust and transparent market infrastructure, favourable government policies and an opportunity for new wealth creation. Foreign businesses can incorporate their operations in Hong Kong, register branches and set up representative offices without encountering obstacles or undue regulation, and there are no restrictions on ownership.
According to a survey conducted by the Commerce and Economic Development Bureau, published in December 2023, the number of Hong Kong businesses with parent companies in mainland China or overseas stood at more than 9,000, with a total of 468,000 staff in the city. Hong Kong is home to more of the world’s top 500 family enterprises than any other territory in Asia-Pacific, including mainland China, India and South Korea. The city benefits from being part of the Greater Bay Area (GBA), with a population of more than 86 million and 20 per cent of China’s UHNW and high-net-worth (HNW) households.
New scheme aims to attract capital
