Wealthy Chinese Choose Hong Kong for Post-IPO Family Offices

High-net-worth shareholders of mainland Chinese firms are increasingly establishing family offices in Hong Kong after their IPOs, reflecting the city’s rise as a leading post-listing wealth hub.

Oakwise Capital, a Hong Kong-based asset manager overseeing up to USD2bn, reports that 70% of its family office clients are shareholders of Hong Kong-listed companies with market capitalisations between HKD5bn (USD637m) and HKD50bn. The trend coincides with a surge in listings, with 44 of 50 IPOs raising USD15.8bn in Hong Kong as of mid-July.

Hong Kong’s tax concessions and its revamped Capital Investment Entrant Scheme are further driving the growth. As of June, around 2,700 family offices operate in the city, a number expected to surpass 3,000 soon.