FOAHK survey – Financial & Professional Services sectors: WMC to bring business growth
[ Hubbis ] Family Office Association Hong Kong (“FOAHK”) recently conducted a survey for the views of professionals from different sectors on the state of the family office industry in Hong Kong and their perspective on aspects important to the industry’s development.
Key findings include:
64% of respondents from the wealth and asset management sector believe Hong Kong is the regional family office hub in Asia-Pacific.
The top three factors respondents have indicated that will drive the development of Hong Kong as a global family office hub are: a well-defined regulatory regime for family office business (74%); a favourable tax regime (67%); and professionals with the skills and capabilities to meet the needs of family offices (66%).
An almost unanimous number of respondents (96%) agree that Wealth Management Connect (WMC) will give Hong Kong a comparative advantage in growing the city’s private wealth management and family office sector.
Of the 63% of respondents that said the launch of WMC would positively impact their business:
- 34% said they expect their business to grow by under 10% due to the WMC.
- 20% said they expect their business to grow between 10% and 20% due to the WMC.
- 9% said they expect their business to grow by more than 25% due to the WMC.
In particular, close to three-quarters of the respondents from the banking sector (74%), and around two-thirds of respondents from the wealth and asset management (68%), the professional sector (66%) and the family office sector (63%) said their business would benefit from the launch of WMC with increased revenue.
Commenting, FOAHK Chairman Mr. Chi Man Kwan, said “In early February 2021, financial authorities in Mainland China, Hong Kong and Macao jointly signed a Memorandum of Understanding on the upcoming launch of the Wealth Management Connect pilot scheme in the Guangdong-Hong Kong-Macau Greater Bay Area. The family office industry in Hong Kong has been thriving and will continue to flourish with further impetus and immense opportunities presented by the soon-to-be launched scheme. It is our mission to ensure the industry is aware of and able to capture all the opportunities emerging from the latest pertinent developments as well as to work closely with the government to steer the city towards becoming a global family office hub.”