Speaking at the 18th annual conference of the Hong Kong Investment Funds Association in Admiralty, Chan said net inflows into Hong Kong-domiciled funds surpassed US$44 billion for the 12-month period in the runup to March, almost three times higher year on year.
“We are optimistic about the upcoming SFC Asset and Wealth Management Activities Survey,” he told event participants, many of whom are fund management elites.
“At last count, Hong Kong managed nearly US$4 trillion in assets, more than 10 times of our GDP.
“Notably, two-thirds of this capital originates from outside of Hong Kong.
“Several factors are driving this growth. First, the Greater Bay Area (GBA). With its affluent population and growing demand for offshore asset allocation, Hong Kong is the natural choice.”
Chan said cross-border fund flows between the SAR and the GBA have increased by sevenfold to more than 100 billion yuan since the GBA Wealth Management Connect scheme was enhanced last February and hinted of more measures to come.
Also contributing to the increase in fund inflows is the growing number of family offices setting up shop here, with the total expected to exceed 3,000 soon from the current 2,700, he said.
Potential investments from some 1,400 ultra-rich individuals could amount to over US$5.2 billion following the introduction of the cash-for-residency New Capital Investment Entrant Scheme.
This, he said, was because the city continued to stand out as a trusted gateway and “safe harbour” for global capital under the One Country, Two Systems framework.
Chan said the government is improving the preferential tax regimes for family offices to further enhance the asset and wealth management industry.
The aim is for the legislation to be submitted to the Legislative Council next year, with implementation from the 2025-2026 assessment year onwards, he said.
