China Family Office

China Family Office

With its economy growing incredibly fast, there has been an amazing amount of wealth generated in China in a relatively short period of time.  This has led to a heightened demand for wealth management solutions including family offices, although the concept is still fairly new in China. The following free guide to China Family Offices will help you better understand China family offices and provide you with resources to learn more about Chinese family offices. You should also check out our 100% free book on family offices.

Introduction to China

The Chinese economy has experienced unprecedented growth in recent years with a huge spike in manufacturing, real estate and corresponding sectors.  China is also, of course, home to the largest population of any country with some 1.3 billion people.  While there are signs that the Chinese economic growth is slowing, it is by no means lagging like other major countries around the world.  China is also gaining ground as a leading financial center with Hong Kong, Shanghai and Beijing attracting foreign businesses and investors looking to get a foothold in Asia’s emerging markets.

Why China?

China is a natural destination for those wealth management firms and family offices looking for new emerging markets where a tremendous amount of wealth is being created and where opportunities and clients are virtually endless.  The trouble is that the family office concept is only now gaining traction in Asia and among the Chinese elite who have long trusted their wealth to private banks rather than a family office.  However, in Hong Kong more and more family offices are opening their doors to serve the local executives and financial professionals in the area.

Hong Kong is one of the biggest financial capitals in the world and it serves the financial center for Asia.  Hong Kong is a city-state on China’s southern coast that is home to more than 7 million people, mostly ethnic Chinese.  While many parts of China are not entirely capitalistic, Hong Kong operates under a different governance than the rest of China and has fully embraced free-market capitalism.  In fact, Hong Kong is one of the major international financial centers with many businesses establishing their Asian headquarters in the city.  Like most family office locations, Hong Kong has relatively low taxes and is very friendly to wealthy families, wealth managers and high-net-worth individuals.  Shanghai has a similar offering, however, Hong Kong has been able to grab hold of the Asian family office industry more easily than Shanghai, Beijing or other Chinese cities.

Family Offices in China 

Since other cities in China have yet to fully embrace the family office model, let’s focus on Hong Kong which is already home to several family offices.  There is a high concentration of wealth in Hong Kong; this wealth means that there is also a high number of family offices operating in the city.  Unlike Tokyo, Hong Kong allows standard family offices to operate in the city and it is one of the most popular locations in Asia for family offices.  Hong Kong has the highest concentration of ultra-high-net-worth individuals in Asia making it a very attractive location for family offices that want access to the big pool of potential family office clients.

Most Asian single family offices are located in either Hong Kong or Singapore.  Hong Kong is the most popular destination for multi-family offices in Asia.  This can largely be attributed to the city’s long-standing reputation as a financial capital and the fact that most residents are already well-accustomed to wealth managers and financial advisers, unlike some other newer financial capitals in the region.

In Asia, the concept of a family office is still evolving, but new family offices are being formed monthly in Asia and Europe so it can be assumed that there are a growing number of family offices in Hong Kong.  It is expected that in the coming years the majority of Asian family offices will continue to be in Hong Kong and Singapore.  Many experts expect that wealthy individuals and families will transfer their wealth from Taiwan, Vietnam, the Philippines and India to Hong Kong.  So, there will undoubtedly be more family offices set up in Hong Kong to serve the ultra- and high-net-worth individuals and families in the city.

The following is a collection of China family office resources:

China Family Office Resources Guide

China Family Office Resource #1: VP Bank has conducted a great study on family offices in Asia that is worth reading.  There is a good amount of attention given to Hong Kong and Chinese family offices including background on the economy and financial sector as well as the environment for China’s family offices. Click here to download the PDF..

China Family Office Resource #2: If you are looking for contact details of family offices places such as China you may want to consider using a Family Offices Database.  A Family Office Database provides you with the complete contact details for 100′s or sometimes even up to 1,000 global single and multi-family offices within an easy to use Excel spreadsheet format.  Learn more about this by clicking here.

China Family Office Resource #3: Here’s an article on the Family Office Association’s venture into Hong Kong.

China Family Office Resource #4: Here is an article about Citi Private Bank’s effort to launch an Asian family office and the naming of its Hong Kong head.

China Family Office Resource #5: The 9th Annual Asian Pacific Family Office conference takes place every year in Hong Kong.  Here is a brochure.

China Family Office Resource #6: The Family Wealth Report put out a report titled “As Chinese Wealth Flourishes, Opportunity Emerges For The Family Office” that has a focus on Hong Kong and family offices.

China Family Office Resource #7: Here is our regional guide to Hong Kong family offices.

China Family Office Resource #8: Here is an interesting article on the opportunities for family offices in China as the country’s wealth continues to grow.

Are you an employee or manager of a family office in China?  Then we’d like to keep in touch with you.  Simply send us an email at Richard@RichardWilsonCapital.com

Be sure to check out FamilyOffices.com for our family office database and our free book on family offices.

Related Resources

Tags: China  Family office, China Family offices, China family offices guide, guide to China family offices, family offices in China , China finance, China wealth management

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