Destination: Hong Kong

Family offices are the way to go

In recent years, many high-net-worth families in mainland China have set up family offices in Hong Kong. They include founders and top executives of Hong Kong-listed companies. Why are they attracted to Hong Kong? There are several major factors:

1 Hong Kong is the largest cross-border private wealth management hub in Asia as well as one of the freest economies in the world. Its close proximity to mainland China also gives the city a unique advantage.
2 Hong Kong has a well-established capital market conducive to setting up family offices.
3 As the world’s biggest offshore renminbi center, Hong Kong is more able to meet the needs of mainland investors than any other place.
4 With the opening up of the financial market in the Guangdong- Hong Kong-Macau Greater Bay Area, the advantages of Hong Kong as a family wealth management hub will become more prominent.

As family offices become increasingly complex, more and more high-net-worth families are now investing in single-family and multi-family offices, and family offices are keen to invest in technology firms. Many people in the mainland who recently became rich are from the new economic sectors and they are more demanding about the level of professionalism and digitalization of family office services. That leads to greater demand for professionals with knowledge in multiple areas. In this regard, Hong Kong is the best place for running family offices for mainland Chinese families.

Linnovate Partners provides clients with a broad spectrum of fund related services that are crucial for establishing family offices. These services encompass fund management, investor relations, fund reports, consultation and regulatory compliance. We also have an excellent business network and can connect you with highly qualified service providers, including legal and tax advisors.

Core technology is one key to building an efficient family office, and office automation is one effective way to reduce costs and control risks. At Linnovate Partners, we always try to make good use of cutting-edge technologies. For example, we use data bridging technology to connect GPs, LPs and other related parties. We have also adopted blockchain technology to achieve seamless transmission of encrypted data, eventually creating SMP Net, our proprietary asset servicing platform.