Hong Kong family offices shift their investment focus: planning to increase allocations to private equity and cryptocurrency assets over the next three years, driven by rising structural demands.

A research report released by the Hong Kong government shows that many Hong Kong family offices plan to increase their allocation to private equity and digital assets in the next three years. The Hong Kong Institute of Monetary and Financial Research (HKIMR) released a report on Tuesday stating that wealthy families' interest in these assets, as well as private credit and venture capital, is expected to "significantly increase." Hong Kong has been actively attracting more wealthy individuals and their families to invest in the city, aiming to be a bridge between Mainland China and global markets. According to a survey commissioned by the Hong Kong government and conducted by Deloitte last month, the number of single family offices based in Hong Kong increased to 3,384 by the end of last year, a 25% increase from 2023. Giorgio Valente, Director of the HKIMR, stated during a briefing on Tuesday that the digital asset market "is growing, but still in its early stages. Many long-term investors, including family offices, are paying attention to this area and reevaluating their positions." The report is based on a survey conducted from October 2024 to April 2025 with 101 entities (including single family offices and multi-family offices). Approximately 44% of the surveyed institutions manage assets of at least $1 billion. These wealth sources are mainly from Hong Kong, Mainland China, and other regions in Asia. To meet the demand of wealthy investors, the Hong Kong government has been easing some regulations to encourage crypto trading activities. Last year, the Securities and Futures Commission of Hong Kong started issuing licenses to platforms that allow connectivity between local entities and their global order books. As part of a three-year plan to promote digital asset trading since 2022, Hong Kong has established a licensing regime for cryptocurrency platforms, listed exchange-traded products tracking Bitcoin and Ethereum, and started regulating digital asset funds. However, compared to crypto trading centers like the U.S., Hong Kong's crypto activities are still relatively subdued, as U.S. President Trump embraced the crypto industry. Valente from the HKIMR stated: "While the exact size of these investments is still uncertain, the development trend is clear - there is a growing structural demand for this area, and we expect this trend to deepen over time."