Hong Kong Family Offices Eye Private Equity and Digital Assets

Hong Kong's family offices are set to play a key role in driving growth in the city's financial sector, with many planning to increase their exposure to digital assets and other investment classes over the next three years.

According to a report by the Hong Kong Institute for Monetary and Financial Research (HKIMR), wealthy families based in the city are showing growing interest in private equity, digital assets, and other alternative investments. The report found that these families, who manage at least $1 billion in assets, have seen their wealth originate primarily from Hong Kong, mainland China, and other parts of Asia.

The HKIMR's survey of 101 family offices found that while the digital asset market is still 'at an early stage', many long-term investors are reassessing their positioning. The report noted that the number of single-family offices in Hong Kong rose by 25% last year, to 3,384, as the city continues to attract wealthy individuals and families looking to anchor their investments.

The Hong Kong government has been easing regulations to encourage crypto trading activity, with the Securities and Futures Commission licensing platforms that connect local entities with global order books. As part of a three-year push to boost digital assets trading, the city has also established a licensing regime for crypto platforms, listed exchange-traded products tracking bitcoin and ether, and overseen digital-asset funds.