Full Breakdown
Hong Kong's Family Offices Shift Amid Geopolitical Uncertainty
3/12/2026, 11:35:03 PM
Rising Interest in Hong Kong as a Family Office Hub
As geopolitical tensions in the Middle East escalate, particularly due to the ongoing Iran conflict, Hong Kong is positioning itself as an attractive alternative for wealthy families reconsidering their investment locations. Legal experts, including Gaven Cheong from Charles Russell Speechlys, report a significant uptick in inquiries from families interested in establishing family offices in Hong Kong. This interest has surged particularly in the last two weeks, coinciding with the Hong Kong government's proposal for new tax incentives aimed at single-family offices and investment funds. These incentives include tax breaks on various asset classes such as gold, cryptocurrencies, and overseas real estate, with legislation expected to be submitted by June 2026.
Background: The Shift from Dubai to Hong Kong
Historically, Dubai has been a favored destination for ultra-high-net-worth individuals due to its favorable tax regime and political stability. However, the recent geopolitical instability has prompted many affluent families to reassess their exposure to the region. In contrast, Hong Kong is actively seeking to attract these families back, especially after witnessing a wealth exodus in 2019, when approximately 4,200 millionaires left the city. The introduction of tax concessions in 2023 was a strategic move to regain lost ground, particularly as Singapore's family office population surged from 400 to over 2,000 during the same period.
Strategic Pivot Towards Alternative Investments
A recent report from the Hong Kong Institute for Monetary and Financial Research indicates that family offices in Hong Kong are increasingly diversifying their portfolios to include alternative assets. By the end of 2025, the number of single-family offices in Hong Kong rose to 3,384, marking a 25.2% increase from 2023. The report highlights a notable shift towards private equity, venture capital, private credit, and digital assets, driven by a desire for higher risk-adjusted returns and collaboration opportunities among family offices. Approximately 39% of surveyed family offices plan to increase their allocations to private equity and venture capital over the next three years, while 28% intend to invest more in digital assets.
Official Statements & Responses
Hong Kong's Financial Secretary, Paul Chan, emphasized the government's commitment to enhancing the family office ecosystem through favorable tax policies. Gaven Cheong remarked on the intensified discussions with families exploring a move to Hong Kong, attributing this trend to both geopolitical factors and regulatory changes. Giorgio Valente from the HKIMR noted that while the digital asset market is still developing, there is a clear trend of increasing interest among long-term investors, including family offices.
Criticism & Opposition
Despite the optimistic outlook, some experts caution that Hong Kong's efforts to attract family offices may face challenges. Critics point out that while the city is easing regulations to promote crypto trading, it still lags behind more established markets like the United States. The overall sentiment among some investors remains cautious, as they await clearer regulatory frameworks and market stability.
Verbatim Quotes
“While the exact magnitude of those investments remains uncertain, the direction of travel is clear – there’s rising structural interest in this area, and we expect that to deepen over time.” — Giorgio Valente, Head of HKIMR
“We're seeing a lot more interest in Hong Kong. This interest, especially in the last two weeks, has shot through the roof,” — Gaven Cheong, Partner at Charles Russell Speechlys
“There was a mad rush to set up family offices in Singapore, and Hong Kong realized they needed to do something otherwise a lot of their families would shift,” — Edmund Leow, Senior Partner at Dentons Rodyk
What's Next
As Hong Kong continues to refine its tax incentives and regulatory framework, the coming months will be critical in determining whether it can successfully reclaim its status as a premier destination for family offices amid ongoing geopolitical uncertainties.
