Hong Kong appearing in negative headlines has become a common occurrence. This is due to a lack of thorough understanding about trends in the financial hub, according to FamilyOfficeHK global head Jason Fong in a conversation with finews.asia.

Since 2019, Hong Kong has been hit by numerous challenges including social unrest and stringent Covid-related restrictions, resulting in bad news about fleeing people and funds. But according to FamilyOfficeHK global head Jason Fong, the data paints a different picture.

«While some people overseas may not have a thorough understanding of the situation in Hong Kong and tend to write negative headlines like talent and capital outflow, I hold a different perspective on these matters,» Fong said in a conversation with finews.asia.

Talent Movement

On talent, the financial services sector in Hong Kong accounted for around 276,200 jobs in 2022, according to census data from the government. While this marks a 2.8 percent year-on-year decrease, it is 1.3 percent above the 2019 level of 272,600.

«Hong Kong possesses a strong talent pool, which naturally leads to some individuals pursuing opportunities abroad,» Fong said. «However, it is equally noteworthy that we have also witnessed an influx of talent returning to Hong Kong. This phenomenon is driven not only by pull factors, such as attractive prospects in our city, but also by push factors, like inflation or limited opportunities in other locations.»

Asset Flows

On capital, assets under management within the city’s asset and wealth management business exceeded HK$30.5 trillion ($3.9 trillion) at end-2022, according to data from the Securities and Futures Commission, up from HK$28.8 trillion at the end of 2019.

«Money does flow around different financial centers, but the data supports the fact that Hong Kong has experienced positive inflows over the past three years, despite the social unrest and the impact of the global pandemic in 2019,» Fong explained.

Policy Drivers

Meanwhile, there are numerous policies underway to support Hong Kong’s ambitions to be a leading financial hub, especially with regard to attracting family offices. This includes tax concessions, training initiatives and a revamped investment-based residency scheme. The government is also making efforts to attract investors from the Middle East.

This has resulted in closer ties with the Future Investment Initiative Institute – a non-profit organization run by Saudi Arabia's Public Investment Fund – hosting its annual summit in Hong Kong and attended by 600 guests. Fong also noted increased engagement from Middle Eastern family offices with local banks and other financial firms. 

Rival Hubs

One of the oft-discussed subjects is the competition between hubs in Asia, including Singapore, which has frequently appeared in headlines as a top beneficiary of Hong Kong’s challenges. On this topic, Fong noted that the market was big enough for more than one hub.

«Asia boasts a significant economic landscape, providing room for the existence of multiple financial hubs. Various centers have unique value propositions tailored to specific requirements. For those seeking to capitalize on the tremendous growth in China, Hong Kong emerges as an obvious choice,» he said.

Hub Promotions

FamilyOfficeHK was established in 2021 as part of InvestHK, a government department focused on promoting Hong Kong as a leading global hub. It currently has staff covering Europe in Brussels, the Middle East in Dubai and Southeast Asia in Singapore alongside Hong Kong and China. Following government approval, it obtained a HK$100 million budget over three years.

«We prioritize fostering investment activity in Hong Kong over the sole focus on financial gains [...] our core interest lies in promoting a thriving investment ecosystem in Hong Kong, which will help attract global family offices to set up operations in the city,» Fong added.