Hong Kong Monetary Authority's subsidiary: 91% of surveyed family offices have invested in Hong Kong, alternative assets become the new favorite

21st Century Business Herald reporter Zhang Weize reports from Hong Kong Hong Kong's position as a global family office hub is increasingly solidified. On March 10, the Hong Kong Monetary Authority (HKMA) under the Hong Kong Monetary and Financial Research Centre released a latest report showing that up to 91% of surveyed family offices have made investments in Hong Kong. At the same time, alternative assets are becoming a new focus in their investment portfolios, with an average of 34% of surveyed family offices planning to increase their investment allocation in the alternative asset market over the next three years. Feng Yinuo, CEO of the Hong Kong Financial Academy and Executive Director of the Hong Kong Monetary and Financial Research Centre, told a reporter from 21st Century Business Herald that both geopolitical and macro risks are issues of great concern to family offices. Hong Kong's sound regulatory framework, freely flowing capital markets, and competitive tax system, along with its track record in maintaining financial and monetary stability, provide strong confidence for international family offices, enabling them to leverage Hong Kong's reliable and robust financial platform to develop their businesses. The changes in the global geopolitical landscape have also brought new opportunities to Hong Kong. With the ongoing turmoil in the Middle East, Hong Kong's Financial Secretary Paul Chan earlier stated that the situation in the Middle East has a minor short-term impact on Hong Kong, and pointed out that the uncertainty of geopolitical factors is prompting some Middle Eastern capital to reassess their asset allocation and turn their attention to the Asian market. With its stable political environment, free capital flow, and mature financial infrastructure, Hong Kong has become an important destination for this influx of capital. According to a "Hong Kong Family Office Market Research" commissioned by the Hong Kong Investment Promotion Agency, by the end of 2025, there will be over 3,380 single-family offices operating in Hong Kong, an increase of about 680 from two years ago, representing a growth of over 25%. Feng Yinuo noted that the increasing complexity of the international or external environment, whether macro, market, or geopolitical risks, brings additional challenges and uncertainties to family offices, which in turn drives the continuous rise in demand for risk management-related products and services. The report indicates that, in addition to traditional equity and fixed income allocations, alternative investments have significantly increased in family office portfolios. Over the next three years, 39% of surveyed family offices will increase their allocation to private equity/venture capital, and 36% will increase their allocation to private credit. As investment strategies become increasingly complex, the importance of risk management is also becoming more prominent. Feng Yinuo stated that different family offices are continuously strengthening their risk management functions, and the demand for related products and services is also on the rise. As an international financial center, Hong Kong has a complete range of professional services and product design talents that can effectively assist family offices in managing risks. The report data also confirms this trend: it is expected that over the next three years, the proportion of family offices purchasing investment risk management products will rise from 54% to 78%, while non-investment risk products (such as insurance categories) will increase from 43% to 61%. At the same time, the report predicts that in the coming years, the proportion of surveyed family offices participating in charitable activities will increase from the current 45% to 64%, and the proportion participating in impact investing will rise from 30% to 43% According to the report, it is based on a survey and interviews with 101 surveyed institutions and 35 industry experts. The surveyed family offices generally have strong financial strength, with 81% managing net assets of USD 50 million or more, and 44% having portfolio sizes exceeding USD 1 billion