Multifamily offices could yield bigger benefits for Hong Kong, industry executive says
Hong Kong should strive to become a hub for multifamily offices to enhance its economy and global standing in a volatile market, as these entities wield greater influence than single-family offices, according to the group CEO of Raffles Family Office.
Multifamily offices can enhance Hong Kong's 'economic landscape, contributing to greater gross domestic product, job creation and a positive global image for the city', said Kwan Chi-man. Such offices serve multiple ultra-high-net-worth families and typically need a licence as they operate as commercial ventures.
'For the wealth management industry to advance, multifamily offices are undoubtedly a key growth engine,' said Kwan, who is also the chairman of the Family Office Association Hong Kong. 'Hong Kong should look to diversify its focus beyond single-family offices.'
These 'institutional-grade entities' would contribute to the city's financial ecosystem, he added.
Raffles Family Office group CEO Kwan Chi-man at the company's new office in Central. Photo: Jonathan Wong
The Hong Kong government has taken several steps over the past three years to become a family office hub, with the number of single-family offices reaching 2,700 thanks to tax incentives and immigration policies. Meanwhile, there were only 'a couple of hundred' multifamily offices in Hong Kong, according to a March report by the Centre for Family Business at the Chinese University of Hong Kong.
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