Core Insights - 2021 marked a significant year for the development of family offices in Hong Kong, with the establishment of the FamilyOfficeHK team by the Hong Kong government to promote the city as a global family office hub [1] - The family office sector in Hong Kong is experiencing growth due to policy support, market opportunities, and industry resources, positioning it as a key player in global wealth management [1][7] Group 1: Family Office Definition and Function - Family offices are primarily focused on the concept of inheritance, encompassing the transmission of family wealth, values, and beliefs, with 85% of family offices linked to family businesses [1] - The distinction between family offices and family enterprises lies in their focus on wealth management and cultural transmission [1] Group 2: Hong Kong's Role in Wealth Management - Hong Kong serves as a crucial offshore financial center, facilitating Chinese enterprises' international expansion and enhancing their global influence [1][2] - The city offers a unique advantage in wealth management, being both an international financial center and a leading capital hub, which is difficult for other regions to replicate quickly [1][2] Group 3: Global Family Office Demand - Family offices in Hong Kong cater to diverse needs from various regions, including mainland China, Europe, and Southeast Asia, with each group having different levels of familiarity and requirements regarding family governance and wealth management [2][3] - Hong Kong's low tax regime and transparent legal framework attract established European family offices seeking favorable conditions for wealth management [2] Group 4: Promotion and Growth of Family Offices - In 2024, the Hong Kong government organized 260 promotional events, engaging over 1,000 family office managers, highlighting the city's proactive approach to attracting family offices [4][5] - The number of family offices in Hong Kong has rapidly increased, supported by various stakeholders, including banks and professional service providers [5] Group 5: Professional Support and Ecosystem - The Hong Kong government acts as a facilitator for family offices, providing a network of service providers, including 61 international institutions, to support their establishment and operation [5] - Family offices benefit from a robust ecosystem of professionals, including accountants and lawyers, who assist in setting up compliant frameworks for wealth management [5][6] Group 6: Competitive Advantages of Hong Kong - Hong Kong has become the leading hub for ultra-high-net-worth individuals in Asia, with a high density of professionals (267,000) dedicated to wealth management [6] - The city offers a stable and secure investment environment, ensuring investment freedom and transparency, which is crucial for long-term investors [6] Group 7: Future Policy Support - The Hong Kong government plans to further optimize tax policies for family offices to solidify its position as a top global wealth management center [7] - The evolving global wealth management landscape positions family offices as a focal point, with Hong Kong emerging as a new coordinate for global family offices [7]

Group 1 - The Hong Kong government has successfully assisted over 200 family offices to establish or expand their operations in the region, surpassing the performance target set in the 2022 Policy Address, reinforcing Hong Kong's status as a leading cross-border private wealth management center in Asia and a global hub for family offices [1][2] - The government introduced eight key measures in March 2023, including tax incentives and the "New Capital Investor Entry Scheme," to create a competitive environment for family office-related industries [1][2] - The FamilyOfficeHK team has expanded its functions and established a new network of family office service providers to offer comprehensive services and support to family offices [1][2] Group 2 - The "New Capital Investor Entry Scheme" has gained popularity among high-net-worth individuals, with enhancements made to the eligibility criteria, allowing investors who reside in Hong Kong for seven years or more to apply for permanent residency [2][3] - The total asset management value in Hong Kong is projected to exceed HKD 35 trillion by the end of 2024, reflecting a year-on-year growth of 13%, with net capital inflow increasing over 80% to HKD 705 billion [2] - The Hong Kong government aims to continue optimizing policies, including tax incentives for funds and single family offices, to sustain the growth momentum of family offices [3][4] Group 3 - Hong Kong's family office ecosystem is thriving, contributing to the capital market, professional services, and talent development, creating a positive feedback loop [4] - The government plans to further enhance tax incentives for funds and single family offices, while the Investment Promotion Agency will continue to collaborate with business associations and service providers to promote Hong Kong as a leading family office hub [4]

Group 1: Forum Overview - The 2025 Global Family Office Forum was held in Shanghai, supported by the Hong Kong SAR Government and attended by nearly 200 entrepreneurs and high-net-worth individuals [1] - The forum featured a keynote speech by Zhang Liyun, CEO of the Harbor Family Office, emphasizing the importance of customized wealth management solutions [3][5] Group 2: Industry Trends - Zhang Liyun identified four key trends in the family office industry: the rise of "joint family offices" for younger, smaller wealth families; a shift from wealth management to comprehensive family governance; a younger client demographic; and a move towards long-term, comprehensive services [6] - The Harbor Family Office aims to provide tailored services through a multi-dimensional framework addressing various client needs [6] Group 3: Economic Insights - During a dinner speech, Chief Economist Xing Lei discussed the impact of de-globalization on sustainable family business development, highlighting the need for cross-border asset allocation and risk hedging [8] - Zhang Liyun shared insights from the 2024 Hurun Wealth Report, predicting a wealth transfer of 20 trillion yuan to the next generation over the next decade, increasing to 79 trillion yuan in 30 years [11] Group 4: Financial and Technological Integration - The Harbor Family Office is collaborating with Innovation Qizhi to integrate finance and technology, focusing on AI and digital solutions to enhance financial services [12][13] - The partnership aims to create intelligent blockchain applications and comprehensive solutions for the financial industry, enhancing the Harbor Family Office's service capabilities [13] Group 5: Company Profile - Henry Group Limited, listed as 3638.HK, operates in financial services, electronic product trading, and life sciences, with a focus on providing comprehensive family office services through its subsidiary, the Harbor Family Office [14]

Group 1 - The Hong Kong government is actively promoting the development of family offices to enhance its asset and wealth management sector, with a dedicated team assisting 50 family offices in establishing or expanding their operations in the first five months of 2025, a 19% increase compared to the same period last year [1] - Approximately 150 family offices are preparing or have decided to set up or expand their operations in Hong Kong, indicating a growing interest in the region [1] - The government has implemented optimization measures for the "New Capital Investor Entry Scheme" effective from March 1, 2025, allowing applicants to invest through qualified single-family offices and wholly-owned private companies [1] Group 2 - Since 2016, Hong Kong has been promoting a talent training program for asset and wealth management, with over 4,800 applications for tuition subsidies approved and more than 1,100 students provided with internship opportunities [2] - The government has included "Asset and Wealth Management Professionals" and "Asset and Wealth Management Compliance Professionals" in the talent list to facilitate the entry of skilled professionals [2] - In 2023, the Wealth Succession Academy was established to provide a platform for knowledge sharing and training for asset owners, heirs, and family office professionals [2] Group 3 - The policy declaration on developing family office business in Hong Kong was published in March 2023, proposing eight measures to create a competitive environment for global family offices [3] - The "Taxation (Amendment) (Tax Relief for Family Investment Vehicles) Ordinance" came into effect on May 19, 2023, allowing eligible family investment vehicles managed by single-family offices to be exempt from profits tax if they meet a minimum asset threshold of HKD 240 million [3] - The response from the family office industry to the proposed measures, including tax incentives and the Wealth Succession Academy, has been positive, with an increase in interest from family offices to establish or expand in Hong Kong [3] Group 4 - The Hong Kong government plans to further optimize the tax incentives for single-family offices in the 2025-26 budget, including expanding the types of eligible transactions for tax relief [4] - The government has completed industry consultations on optimizing tax incentives and aims to submit legislative proposals to the Legislative Council in 2026 [4] - Current tax incentives do not cover joint family offices, as they typically serve as independent service providers and may not meet the minimum asset threshold and substantial activity requirements [4] Group 5 - Family investment vehicles that meet the definition of "fund" under the Tax Ordinance and are managed by licensed entities in Hong Kong can now benefit from a unified fund tax exemption for eligible transactions [5]

Core Viewpoint - Family offices are not just "investment platforms" but essential tools for global families to promote wealth inheritance, governance, next-generation education, and charitable planning [4][17]. Group 1: Family Office Landscape in Hong Kong - As of now, there are over 2,700 single-family offices in Hong Kong, with more than half established by ultra-high-net-worth individuals with assets exceeding $50 million [3]. - The Hong Kong government has assisted over 1,300 overseas and mainland enterprises in establishing or expanding their businesses in Hong Kong from January 2023 to mid-2025, with 179 family offices among them [2]. Group 2: Reasons for Family Offices Establishing in Hong Kong - Hong Kong's rich history and robust ecosystem in wealth management make it Asia's leading cross-border wealth management center [8]. - The "One Country, Two Systems" framework allows Hong Kong to serve as a natural springboard for mainland capital to go global, aligning with the "14th Five-Year Plan" which positions Hong Kong as an international financial center [8]. - Hong Kong's low and direct tax rates, stable currency exchange, and mature legal system attract global funds, especially in the context of rising trade protectionism [8]. Group 3: Regional Differences in Family Office Needs - Family offices from different regions exhibit varying needs in wealth inheritance and asset allocation. For instance, European and American family offices often have established governance structures and seek investment opportunities in Asia through Hong Kong [9]. - ASEAN family offices, often established by first or second-generation entrepreneurs, focus on private investments and global expansion, using Hong Kong as a gateway to the Chinese market [9]. - Mainland family offices prioritize global asset allocation and wealth inheritance planning, emphasizing tax compliance and risk control [9]. Group 4: Advantages and Protections Offered by Hong Kong - Hong Kong's status as a leading international financial center benefits from the "One Country, Two Systems" framework, attracting family offices globally [10]. - The region has a mature anti-money laundering regulatory framework and strong privacy protection laws, making it an attractive jurisdiction for high-net-worth individuals [11]. Group 5: Future Trends and Developments - An increasing number of families are expected to use Hong Kong for global asset allocation, investing in stocks, alternative investments, sustainable investments, and digital assets [16]. - Family offices are evolving into tools for governance, next-generation education, and charitable planning, with Hong Kong supporting long-term family development and wealth transmission [17]. Group 6: Role of Technology in Family Offices - Many family offices are leveraging technology for daily operations and reporting, while also focusing on investments in the tech sector [18]. - Hong Kong's proximity to Shenzhen, a tech hub, provides significant opportunities for family offices to engage with technological advancements [18][19].

Core Insights - The Hong Kong Special Administrative Region (HKSAR) government has assisted over 1,300 overseas and mainland Chinese enterprises in establishing or expanding their businesses in Hong Kong from January 2023 to mid-2025, with family offices accounting for 179 of these entities [2] - There are currently over 2,700 single-family offices in Hong Kong, with more than half established by ultra-high-net-worth individuals with assets exceeding $50 million [2] - Family offices serve as important tools for wealth management, family governance, education, and charitable planning, providing specialized services for long-term family development and wealth transmission [2] Investment Trends - 147 family offices are preparing or have decided to establish or expand their operations in Hong Kong, with over 40% coming from regions such as Europe, Asia-Pacific, Oceania, and the Middle East [4] - Hong Kong's historical depth in wealth management and its status as Asia's leading cross-border wealth management center attract global family offices [5] - The "One Country, Two Systems" framework allows Hong Kong to serve as a natural springboard for mainland capital to access international markets, aligning with China's 14th Five-Year Plan [5] Regional Differences in Family Office Needs - Family offices from Europe typically have mature management philosophies and governance structures, focusing on long-term capital preservation, technology investments, and cultural transmission [6] - ASEAN family offices, often established by first or second-generation entrepreneurs, prioritize private investments and global expansion, using Hong Kong as a gateway to the Chinese market [6] - Mainland family offices emphasize global asset allocation, wealth transmission planning, tax compliance, and risk control, increasingly focusing on impact investing and family governance [6] Regulatory and Operational Advantages - Hong Kong's unique dual attributes as a common law jurisdiction with high autonomy and international connectivity attract family offices globally [7] - The region has a robust anti-money laundering framework and privacy protection laws, making it a preferred jurisdiction for high-net-worth individuals [7] - Family offices can leverage Hong Kong's international financial system for global asset allocation and easier access to mainland investment opportunities [8] Future Development Trends - Family offices are expected to increasingly use Hong Kong for global asset allocation, investing in stocks, alternative investments, sustainable investments, art, and digital assets [10] - The region's resilience amid international political and economic instability positions it as an ideal safe haven for family offices [10] - Family offices will evolve beyond mere investment platforms to become essential tools for family governance, education, and charitable planning [10] Technological Integration - Many family offices are adopting technology to assist with daily operations and reporting, while also focusing on investments in the tech sector [11] - Hong Kong's proximity to Shenzhen, a hub for technological advancement, provides significant opportunities for family offices to engage with tech innovations [11] - The region's strong intellectual property protection framework further attracts technology companies and family offices seeking to explore opportunities [11]

Group 1: Family Office Growth - The family office industry is rapidly expanding, with over 8,000 family offices managing approximately $3.1 trillion in assets globally, comparable to the hedge fund industry [1][5] - By 2024, the number of family offices is expected to exceed 8,000, managing $3.1 trillion, and by 2030, this number is projected to grow to nearly 11,000, managing $5.4 trillion [5] Group 2: Singapore's Competitive Edge - Singapore has significantly reduced the tax incentive waiting period for wealthy individuals establishing family offices from 12 months to a maximum of 3 months [2] - The Monetary Authority of Singapore (MAS) is collaborating with private banks to further shorten client onboarding times to attract more high-net-worth individuals [2] - As of 2024, Singapore is expected to have over 2,000 single-family offices, a 42.9% increase from 1,400 in 2023 [6] Group 3: Regulatory Challenges and Responses - Following a major money laundering case, Singapore tightened regulations on family offices, increasing scrutiny and raising qualification criteria for tax incentives [2][4] - The MAS has imposed significant fines totaling 27.45 million SGD (approximately 15.4 million RMB) on nine financial institutions for anti-money laundering violations [4] Group 4: Global Competition for Family Offices - The competition among global financial centers for family offices is intensifying, with regions like Switzerland, Hong Kong, and Dubai also implementing tax incentives to attract wealthy individuals [9] - Hong Kong is enhancing its position as a family office hub with favorable tax policies and streamlined processes, aiming to attract 200 family offices by 2025 [10][12] Group 5: UAE's Emergence as a Family Office Hub - The UAE is becoming a modern family office center due to its favorable tax regime, low crime rate, and strategic geographic location [13][15] - Dubai International Financial Centre (DIFC) has launched the world's first family wealth center, aiming to deepen its family wealth ecosystem [13]

Investment Rating - The report assigns an "Accumulate" rating for the first time to Derlin Holdings (01709.HK) [1] Core Views - Derlin Holdings is positioned as a leading financial services platform in Asia focused on family office business, with a strong emphasis on wealth management and technology-driven solutions [9][14] - The company is expected to see significant growth in its family office business, driven by increasing demand from high-net-worth individuals and supportive policies in Hong Kong [9][45] - The integration of AI technology into financial services is a core strategy for Derlin, aiming to democratize access to wealth management services [9][58] Summary by Sections Company Overview - Derlin Holdings, formerly known as Derlin Securities, has evolved into a comprehensive financial services provider since its establishment in 2011, focusing on high-net-worth families and businesses [14][15] - The company has successfully completed a reverse takeover and has been actively expanding its service offerings through acquisitions [15][17] Business Performance - The company reported a revenue of HKD 1.90 billion for the fiscal year ending March 31, 2025, a decrease of 6.4% year-on-year, while net profit increased by 36.9% to HKD 1.37 billion [9][26] - The family office business has shown significant growth, with service fees from investment management reaching HKD 58.08 million in FY2023, up from HKD 18.70 million in FY2022 [56] Market Opportunities - The number of high-net-worth individuals in China is increasing, with a total of 3.16 million individuals holding investable assets of HKD 101 trillion as of 2022, creating a growing market for family office services [38][40] - Hong Kong is positioned to become a hub for family offices due to its favorable regulatory environment and the increasing number of ultra-high-net-worth individuals [45][49] Technological Integration - Derlin Holdings is committed to using AI to enhance its service offerings, having launched Asia's first AI family office, which aims to provide personalized wealth management solutions [58][62] - The company has introduced Synapse Technology, a project designed to create an intelligent financial ecosystem that leverages AI for investment and financial services [62][64] Financial Projections - The report forecasts Derlin Holdings' net profit to reach HKD 1.38 billion, HKD 1.53 billion, and HKD 1.65 billion for the fiscal years 2026, 2027, and 2028, respectively, with corresponding growth rates of 0.81%, 11.18%, and 7.84% [1][9]

Core Viewpoint - Hong Kong government is enhancing the tax incentives for family offices and funds to attract more high-net-worth individuals and family offices to establish their operations in the region [1][6][8]. Group 1: Regulatory Framework - Family offices are defined as private wealth management companies established by ultra-high-net-worth individuals to manage family assets [2]. - The Hong Kong government emphasizes strict compliance with regulations for family office activities, including due diligence by professionals providing services to these offices [3][4]. - The licensing system under the Securities and Futures Ordinance requires family offices engaging in regulated activities to obtain a license and adhere to applicable conduct standards [2][3]. Group 2: Tax Incentives - The government has implemented measures to prevent tax avoidance within the tax incentive framework for family offices and funds, ensuring that entities operating for commercial purposes do not benefit from tax exemptions [3][4]. - Proposed optimizations to the tax incentive system include broadening the definition of "funds," increasing the types of eligible transactions for tax relief, and introducing a tax reporting mechanism to ensure compliance with tax exemption conditions [6][8]. Group 3: Industry Growth and Talent Development - The Hong Kong government aims to strengthen its position as a global hub for family offices, with a target of assisting at least 200 family offices to establish or expand their operations by the end of 2025 [8][9]. - Since 2016, over 4,700 applications for funding of professional training courses in asset and wealth management have been approved, indicating a commitment to developing a skilled workforce in this sector [7]. Group 4: Market Potential - According to UBS's report, Asia-Pacific is expected to become the primary investment hotspot, with nearly half of the family offices in the region planning to increase their asset allocation there over the next five years [8]. - As of the end of 2023, Hong Kong is home to approximately 2,700 single-family offices, with over half managing assets exceeding $50 million [9].

Core Viewpoint - Hong Kong is positioned as a leading global hub for family offices, leveraging its unique advantages under the "One Country, Two Systems" framework to attract high-net-worth individuals and their wealth management needs [2][4][6] Group 1: Family Office Landscape - There are currently over 2,700 single-family offices in Hong Kong, with more than half established by ultra-high-net-worth individuals with assets exceeding $50 million [2] - The Hong Kong Investment Promotion Agency aims to attract an additional 200 family offices this year [2] - Newly established family offices in Hong Kong could generate an additional $600 million in local business spending annually [3] Group 2: Economic Impact - The development of family offices can expand specialized financial and non-financial services, creating more job opportunities through both internal hiring and outsourcing [3] - The growth of family offices is expected to enhance Hong Kong's financial market and asset management sector, contributing to the sustainable development of finance, technology, culture, and philanthropy [3] Group 3: Regulatory and Tax Environment - Hong Kong's legal system, characterized by its common law framework, provides a secure and stable investment environment for family offices [6][7] - The territory has a simple and low tax regime, with no sales tax, capital gains tax, or inheritance tax, making it an attractive location for family offices [6] - A tax incentive law specifically for single-family offices was passed by the Legislative Council in May 2023 [6] Group 4: Privacy and Security - Hong Kong is recognized for its robust privacy protection laws and high standards of confidentiality, which are crucial for the operation of family offices [7] - The region has a comprehensive regulatory framework, including anti-money laundering and counter-terrorism financing measures, ensuring a secure environment for family office activities [7] Group 5: Future Outlook - Hong Kong aims to attract family offices from both developed and emerging markets, with a focus on regions such as ASEAN and the Middle East [7] - The Investment Promotion Agency plans to host over 260 events in 2024 to promote Hong Kong's advantages and attract more family offices [7]