Alan Xu: Hong Kong will further optimize the preferential tax system for funds, single family offices, and associated equities.

On April 22, the Secretary of Financial Services and the Treasury of Hong Kong, Christopher Hui, provided a written response during a Legislative Council meeting to a question from Member Alice Mak. He stated that Hong Kong is a leading hub for asset and wealth management globally, and the ecosystem for family offices continues to flourish. According to a study released by consultants commissioned by Invest Hong Kong in February 2026, by the end of 2025, there were over 3380 single-family offices operating in Hong Kong, an increase of approximately 680 in two years, representing a growth of over 25%. As a safe, stable, and internationally connected hub, Hong Kong is the preferred location for ACR Holdings and wealth management centers for international investors, attracting many high-net-worth individuals to consider investing their funds in Hong Kong. Recent geopolitical events further highlight the importance of Hong Kong as an international financial center in providing security, stability, and certainty, demonstrating its role as a safe haven. In light of this, Invest Hong Kong has observed an increased interest from family offices around the world in setting up in Hong Kong, with more inquiries and visits taking place. These offices are considering increasing their investments and wealth allocation in Hong Kong to seek a more stable and secure risk environment, reflecting Hong Kong's attractiveness as a global financial center. Christopher Hui further mentioned that to attract more funds and family offices to establish and operate in Hong Kong, they will further optimize tax incentives for funds, single-family offices, and associated equity, covering more eligible investment categories that qualify for tax relief. These categories include carbon emission rights derivatives/carbon emission quotas, carbon credits, and insurance-linked securities, which will help broaden the investment choices for funds and family offices. Their goal is to submit legislative proposals to the Legislative Council for consideration in the first half of 2026. If approved, the measures could come into effect for the 2025/26 tax year.