‘Free market DNA’ and proximity to innovation hubs: Why Hong Kong appeals to family offices and investors

With trade tensions rattling global supply chains and geopolitical uncertainty on the rise, ultra-high-net-worth individuals (UHNWIs) and wealthy families are rethinking how, and where, to protect generational wealth.

In this climate, stability is more crucial than ever. Family offices are gravitating towards safe harbours that can serve as strategic launchpads for long-term wealth planning. 

Hong Kong is one such destination. The city’s legal strength and certainty, institutional strength, and access to global and Chinese markets offer a rare blend of security and opportunity.

At the heart of Hong Kong’s appeal is its legal system. Operating under the “One Country, Two Systems” framework, the city retains the common law system and an independent judiciary, providing the legal transparency and protected property rights international investors rely on. This regulatory regime aligns with global standards, allowing family offices to manage cross-border trusts, foundations and philanthropic vehicles with confidence and assurance.

This solid foundation has not gone unnoticed. In the Global Financial Centres Index (GFCI 37) released in March, Hong Kong ranked first in Asia-Pacific and third globally.

Such recognition reflects what business leaders see firsthand. Says Robert Buchbauer, vice-chairman of Swarovski International Holding: “When I look at Hong Kong, I see a city that offers stability, predictability and an environment that is business-friendly – key elements for any family office seeking a solid foundation for long-term growth.”

He adds that people in Hong Kong still want to do business and that the entrepreneurial spirit has not changed. It is what makes the city dynamic and a perfect place for legacy-focused companies like theirs to explore new partnerships and paths for growth.

Despite economic headwinds, Hong Kong continues to punch above its weight in capital markets. In the first half of 2025, it led the world in initial public offerings (IPOs), raising US$14 billion (S$17.9 billion) or about 24 per cent share of global activity, as reported by Ernst and Young.

Much of that was driven by listings in biotech, healthcare and consumer sectors. For family offices seeking exposure to early-stage innovation, Hong Kong offers more than just access – it provides a mature, regulated market in which to participate.

A gateway to innovation

One of Hong Kong’s key advantages is its proximity to China’s innovation hubs. Across the border, Shenzhen is home to Huawei, ZTE and Tencent, while the Greater Bay Area is rapidly emerging as a tech powerhouse. Major Chinese firms such as Alibaba, Tencent and Xiaomi have chosen to list in Hong Kong, reinforcing its position as a conduit to China’s high-growth sectors.

As investors pursue the next wave in artificial intelligence, green energy and digital infrastructure, Hong Kong’s position as a bridge between the East and the West has never been more critical. Its free port status and open capital markets provide a neutral, flexible platform for cross-border investment – especially valuable amid rising geopolitical tensions.

Says Alibaba Group co-founder and chairman Joe Tsai: “Even through challenging times, Hong Kong’s free-market DNA, vibrant financial markets and supportive tax environment stand out – making it, in my view, one of the best places for businesses and family offices to thrive.”

Setting up family offices in Hong Kong

Establishing a family office in Hong Kong is relatively straightforward, mirroring the setup of a standard company. A single-family office does not require a license or prior approval from the regulatory body in general. Family offices established in Hong Kong can also manage assets from offices in other regions.

This regulatory certainty, coupled with fast, efficient corporate procedures, allows families to act quickly and strategically. The government has gone a step further, offering zero per cent profits tax for eligible family-owned investment holding vehicles managed by single family offices.

Says Horst Bente, founder of ADLEGACY, the grandson of Adidas founder: “Hong Kong has always been a special place for our family. The expansion of the company in the 1960s and 1970s to Asia came through Hong Kong. Investors are here, the money is here and obviously the talent is here.”

A deep, trusted ecosystem

What sets Hong Kong apart is not just its legal or financial advantages, but its ecosystem. The city has long been a base for Asia’s wealthiest dynasties, from real estate to shipping empires. Over time, this has given rise to a sophisticated network of private bankers, trust lawyers, governance advisors and tax specialists who understand the nuances of managing multi-generational wealth.

It is also home to Asia’s highest concentration of UHNWIs, with over 12,500 individuals each worth more than US$30 million, as highlighted in Altrata’s World Ultra Wealth Report 2024. Supporting them is a robust infrastructure, including Invest Hong Kong’s dedicated FamilyOfficeHK team, which offers one-stop support to global families setting up in the city.

In today’s volatile world, wealth protection requires more than just parking assets in a low-tax jurisdiction. Families are looking for strategic jurisdictions that offer legal certainty, growth opportunities and access to capital – all underpinned by strong governance.

Whether the priority is intergenerational transfer, strategic diversification or impact-driven investing, Hong Kong continues to offer relevance and resilience.

Learn more about how you can preserve your wealth in Hong Kong for the next generation.