【Family Office】91% of surveyed institutions have invested in Hong Kong! Business School: Family Office risk management needs are urgent; interest in participating in charitable activities and impact investing is increasing in the future

A survey conducted by the Hong Kong Monetary and Financial Research Center under the School of Finance shows that up to 91% of the surveyed institutions have already begun investing in Hong Kong. Vincent Feng, CEO of the School of Finance and Executive Director of the Hong Kong Monetary and Financial Research Center, pointed out that in the context of increasingly complex global political and economic environments and rising uncertainties, Hong Kong’s status as an international financial center—with its mature professional services, diversified products, and talent pool—can help family offices manage risks.

When asked about the tense situation in the Middle East and whether there has been a noticeable influx of capital recently, he stated that the survey did not cover this area. Family offices’ diversified investments are not driven solely by one or two events. However, he admitted that increased international uncertainty, macroeconomic conditions, and geopolitical risks pose additional challenges for family offices. There is a strong demand for risk management, and it is expected that in the next three years, the proportion of family offices purchasing investment risk products will rise from 54% to 78%.

He believes that Hong Kong’s capital markets are mature, and its long-standing financial stability provides confidence for family offices to establish operations in Hong Kong.

Family offices manage staggering assets: Nearly half manage over $1 billion USD

The survey covered 101 institutions and 35 industry professionals. 81% of respondents manage net assets of $50 million USD or more, with 44% of investment portfolios exceeding $1 billion USD.

Vincent Feng indicated that the main reasons for choosing Hong Kong as a financial hub include its comprehensive regulatory framework, free capital flow, mature financial markets, and competitive tax system.

Future Trends: Private Markets, Philanthropy, and Impact Investing

The survey revealed shifts in family office investment trends. While stocks and fixed income remain mainstream, interest in alternative investments has increased significantly. Over the next three years, an average of 34% of respondents plan to increase their allocations to private markets. Additionally, the proportion of respondents participating in philanthropy is expected to rise from 45% to 64%, and those involved in impact investing from 30% to 43%.

Building Investment Networks: Exploring High-Risk Projects with Like-Minded Partners

For family offices interested in social contributions, the market’s most sought-after resource is a professional network. Feng mentioned that collaborating with like-minded family offices can jointly explore projects such as blended finance. Such cooperation not only helps share the risks associated with impact investments but also stimulates market vitality and promotes long-term economic benefits.