South China Morning Post - Enoch Yiu (18.09.2023) - Hong Kong’s newly launched tax incentives and resumption of investment migration schemes are set to boost its family office hub ambitions, according to the head of Swiss private lender Union Bancaire Privee (UBP) in the city.
The Geneva-headquartered bank expanded its team in Hong Kong in the first half of this year. It had hired 10 senior bankers to tap wealthy clients on the mainland and in Hong Kong, Taiwan and other Asian markets for the setting up of family offices in the city, said Ivan Wong Wai-kee, regional head of North Asia and CEO of Hong Kong at UBP.
"After the Hong Kong government introduced the tax incentives and resumed the investment migration schemes for family offices, we have found more mainland and overseas wealthy investors expressing an interest in establishing family offices in Hong Kong,"
Yvan Wong said in an interview with the Post.
The government in March unveiled measures to entice billionaires to set up family offices – corporations established to pursue investment, philanthropy and succession planning – in the city. A refreshed investment migration programme, tax breaks and art storage facilities, among other measures, have been introduced with the aim of achieving Chief Executive John Lee Ka-chiu’s target of attracting 200 new family offices to the city by 2025.
"These government measures have created many talking points among our wealthy family clients in China and Asia," Wong said. "Many of them want to know more about the tax incentives and investment migration schemes, a trend that is set to give further strength to Hong Kong as a family office hub in Asia.
"Hong Kong is an ideal place for wealthy families in the Greater Bay Area to manage their wealth. Clients living in the Greater Bay Area only need about an hour of travel time to come to Hong Kong, while the city also speaks the same language and shares a common culture."
UBP joins the likes of Citigroup, Zurich-based private bank EFG International, wealth management firm Janus Henderson and the Bank of Singapore in expressing interest in expanding in Hong Kong to capture the growing opportunities in the family office segment.
The lender, which had about 140 billion Swiss francs (HK$1.2 trillion) in assets under management as of the end of June, is also a family business.
Founded in 1969 by Edgar de Picciotto, UBP has been managed by his son, Guy de Picciotto, for more than 25 years.
The bank focuses on wealth management and asset management, and likes to use a combined approach of organic growth as well as mergers and acquisitions to expand its business. The acquisition in 2015 of the international business of 300-year-old British wealth manager Coutts from Royal Bank of Scotland allowed UBP to expand its footprint in Asia and the Middle East.
Wong said both Hong Kong and Singapore were important to UBP in its Asia business.
"Naturally, we use Singapore to provide services to clients in Southeast Asia, while Hong Kong is the hub for mainland China and North Asia," he said.
Ivan Wong
Region Head North Asia and Chief Executive Hong Kong
