Hong Kong should focus on becoming a leading hub for multifamily offices to improve its economy and global reputation, as these entities hold more influence than single-family offices, according to Kwan Chi-man, the group CEO of Raffles Family Office. Multifamily offices, which manage the wealth of multiple ultra-high-net-worth families, operate as commercial ventures and often require a licence. They can provide significant economic benefits to Hong Kong, including contributing to gross domestic product (GDP), creating jobs, and improving the city’s global image.
Kwan, who also chairs the Family Office Association Hong Kong, stressed that multifamily offices are key to advancing the wealth management industry in the city. He believes that Hong Kong should shift its focus to include multifamily offices as part of its broader strategy to grow the financial sector. These entities are considered institutional-grade players that would strengthen the city’s financial ecosystem and play a critical role in its long-term economic development.
Over the past few years, the Hong Kong government has implemented several measures to make the city an attractive destination for family offices, including offering tax incentives and immigration policies that have helped the number of single-family offices grow to 2,700. However, according to a report by the Centre for Family Business at the Chinese University of Hong Kong, the number of multifamily offices in Hong Kong remains relatively low, with only a few hundred operating in the city.
Despite the smaller number, multifamily offices are seen as vital to Hong Kong’s efforts to diversify its wealth management sector. These offices often have larger portfolios and more complex needs compared to single-family offices, which can lead to more significant contributions to the local economy and financial infrastructure.
Kwan’s call for a greater focus on multifamily offices highlights a broader vision for Hong Kong to expand its role in the global financial landscape. By attracting these influential entities, Hong Kong has the potential to further establish itself as a key player in the wealth management and financial services sectors, ultimately benefiting the city’s economic growth and global standing in an increasingly volatile market.
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