Wealth management and family offices will be a major growth engine for Hong Kong, as many prominent clans in Asia have shown an interest in setting up entities to manage their wealth, according to Deloitte’s regional boss.
Dennis Chow Chi-in, Asian-Pacific President of accounting and consulting companies, believes that this will mostly be reduced to the appeal of the city’s capital market, because more companies from continental China and the region will be listed and trying to raise funds through other avenues.
“We have definitely encountered increased inquiries of rich families who have shown interest in setting up family offices in Hong Kong,” Chow said in an exclusive interview with The Post. “Hong Kong is especially attractive to rich families from Continental China and Southeast Asia.”
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Since May 2023, the Government in Hong Kong has introduced a number of measures, including tax concessions for individual family offices for establishing operations in the city. These tax incentives could be expanded to cover more investment products after consulting the industry.
Hong Kong has introduced many measures to attract family offices to set up operations in the city. Photo: Elson Li Alt = Hong Kong has introduced many measures to attract family offices to set up operations in the city. Photo: Elson Li>
Last March, the Government presented the Capital Investment Scheme (CIES), usually known as the investment migration scheme, for rich individuals and their families to receive a quick residence in an investment in the amount of 30 million HK (3.8 million USD) in shares, bonds , bonds, insurance and property in the city.
“Tax concession and immigration policy are like a boxer combination to attract both investments and [family offices] Hong Kong, “said Chow.” They play a vital role in improving Hong Kong attractiveness as centers to manage wealth and capital in the space of family offices. “
He said many people he spoke to believe that Hong Kong had a more flexible regime than Singapore in terms of tax concessions for family offices, while the investment migration scheme had a lower threshold than Singapore.
The Singapore Global Investor Program requires the applicant to invest at least the amount of 58 million HK, while CIES Hong Kong requires 30 million HK.
In addition to family offices, Chow said the Hong Kong (IPO) starting public offer market showed signs of recovery last year after the fall of previous years.
Looking in advance, he said that the capital market in Hong Kong will benefit from the inclusion of big players in the Chinese industry.
“Some leading companies for shares have considered the issue of Hong Kong shares to raise funds for their expansion and improve their international investor base,” Chow said. “Among the first 500 largest companies A-ports listed in Shanghai or Shenzhen, only one-third of them are listed in Hong Kong, which means that there is a lot of potential for good candidates for the census from the mainland.”
The Chinese largest spice producer Foshan Haitian aroma and food submitted the application on January 13 to the list in Hong Kong. Brokers estimate that they can collect $ 1.5 billion.
Contemporary AMPEREX TECHNOLOGY, or CATL, such as the world’s largest electric vehicle battery manufacturer, could collect $ 5 billion in one of Hong Kong’s largest lists in recent years, according to media reports.
The IPO Hong Kong revenues increased to 87 percent last year compared to the previous year, and intensified in September Midea Group 35.6 billion USD in September, the second largest IPO in 2024. This was performed by Hong Kong on the heel on the global IPO league last year last year from the eighth 2023.
Still, Hong Kong lost to two main exchange of India and American Bourses Nasdaq and New York Stock Exchange, which are at the top of the ladder, according to London Buck Exchange Group.
India has a fast growing economy launched by many sectors, including technology, which explains why at the top of IPO tables, said Chow, adding that Hong Kong has influenced low estimates on the IPO market.
The Hong Kong stock market market has been traded 12 times the price ratio last year, compared to 18 times in 2021 and lower than many overseas markets. The US market estimate is currently 27.61 times, India in 24 and Australia at 20.
“A low estimate made it difficult to attract foreign companies to list now,” Chow said.
However, the market mood is expected to improve how a lower interest rate and cinema cycle will probably introduce more incentives, which could list some companies from Southeast Asia or India to consider the list here to use the funds from international investors, added is.
Chinese financial regulators said on Thursday that from this year, 30 percent of the annual insurance premiums from new polis in the Denominated Yuan shares will be placed from the beginning of this year. As part of this move, at least 100 billion Juan ($ 13.8 billion) of insurance funds will be allocated to the stock market in the pilot program in the first six months.
Hong Kong is likely to see about 80 IPO, which in 2025 could collect about 150 billion HK, and technology, science of life, health and consumer company as the main triggers, Chow said.
“Hong Kong could get back to the first three IPO markets this year.”
In Deloittea, Chow said that consulting revenues have grown strongly on the back of strong economic growth in the Asian-Pacific region in recent years.
He said India is one of the fastest growing markets of the company because of the rapidly expanding economy, digital transformation and successful business ecosystems.
“We also see strong growth in mature markets, such as Japan, with increasing demand for professional services in key business programs such as digital transformation, artificial intelligence, cyber -safety and sustainability.”
