“For family offices in Hong Kong, the good thing is that they can access really world-class private-equity and infrastructure funds through private banks and wealth management companies in the city,” said Grace Tam, chief investment adviser, Hong Kong, and managing director at BNP Paribas Wealth Management. It is important for clients to have diversified portfolios for more “enhanced, risk adjusted returns in the long term”, she added.

Family offices will find Hong Kong’s business environment “very friendly”, said Jasmine Lee, managing partner of EY Hong Kong and Macau, who spoke in another session at the conference.

“Hong Kong is a regional financial centre with one of Asia’s largest cross-border private wealth management centres,” she said. “It is a world-class capital markets platform for companies around the globe for raising funds, and for global investors to come invest their money.”

Bitcoin, NFTs attract family offices, super-rich in Hong Kong, Singapore

The main board run by bourse operator Hong Kong Exchanges and Clearing has ranked as the world’s largest initial public offering market seven times over the past 13 years. Total assets under management in the city reached US$4.55 trillion last year, government data shows.

“Hong Kong is also Asia’s largest hedge fund centre and the second-largest private-equity market in Asia, trailing only mainland China, which is a capital-controlled market,” said Joseph Chan, Undersecretary for Financial Services and the Treasury.

The Hang Seng Index, Hong Kong’s benchmark gauge, has dropped more than 30 per cent this year, but many speakers still had a positive outlook about it.

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Family offices explained video

Family offices explained video

“I think the first half of next year will still be a struggle. But in the second half, we may see growth,” BNP’s Tam said, adding that the US Federal Reserve might ease off rate cuts by then, which could lead to a strong rebound in equity markets.

The stock market will report nominal growth next year, said Martin Hennecke, head of Asia investment advisory at British wealth management company St James’s Place. “When the headlines are bad, investors tend not to buy in,” he told the conference. “But when markets are bottomed out, its also the best time to buy in anticipation of a strong rebound.”

After a sharp year-to-date correction in the local stock market, “there are opportunities to buy local Hong Kong equities, which are focused on domestic businesses that benefit from Hong Kong’s accelerating economic reopening”, said HSBC’s Fan.

“We expect progress on the reopening of the city will continue next year, and this will support the economic recovery of Hong Kong,” she added.

Hong Kong scrapped its hotel quarantine rules in late September, replacing them with a so-called 0+3 policy under which visitors face three days of medical surveillance. During this time they can go to work or schools, but cannot go to places that require vaccine passes, such as restaurants or pubs.

The city is also an ideal place for family offices to manage their charity work, as it is a transparent market with many financial professionals who can help charities achieve the best returns on donations they receive, Alice Chiu Tsang Hok-wan, the co-founder of Sheen Hok Charitable Foundation, said in the keynote speech.