Wealthy European clients eye Hong Kong for family offices, says BNP Paribas
BNP Paribas reports a surge in two-way wealth flows through Hong Kong, as affluent mainland investors also leverage the city to acquire European assets.
Intelligence analysis by Llama
Wealthy European clients are establishing family offices in Hong Kong to capitalize on growing opportunities in the region, while affluent mainland clients are investing in Europe. Hong Kong is playing a key role as a connector in this process.
Imagine you're a rich person with a lot of money to invest. You want to put your money into businesses in Asia and mainland China, but you need a way to do it safely and efficiently. That's where Hong Kong comes in. It's like a special place where you can set up a team to help you make smart investments and take care of your money. Many rich people from Europe are using Hong Kong as a base to invest in Asia and mainland China, and it's becoming a very popular place for this kind of thing.
Analysis
A Surge in Two-Way Wealth Flows
BNP Paribas, France's largest lender, has observed a significant increase in two-way wealth flows between Europe and mainland China. This trend is expected to continue in the coming years, with Hong Kong playing a crucial role as a connector in the process. According to Lemuel Lee, head of wealth management for BNP Paribas in Hong Kong, the city is an attractive location for European investors looking to invest in technology start-ups or other businesses in Asia and mainland China.
Why Hong Kong is the Preferred Location
Hong Kong's unique position as a financial hub, combined with its tax incentives and other measures introduced by the government since 2023, make it an ideal location for family offices. These offices are corporations set up by wealthy individuals to conduct investment activities, manage succession planning, or oversee non-financial assets like art collections or philanthropic foundations. By establishing family offices in Hong Kong, European investors can easily access the Asian market and conduct due diligence or negotiate deals.
The Growing Number of Family Offices
A recent Deloitte study found that the number of single-family offices in Hong Kong had risen 25% over the past two years, reaching about 3,384 by the end of 2025. This growth is a testament to the city's appeal as a financial hub and its ability to attract wealthy individuals and their families. The Hong Kong government's efforts to promote foreign investment and provide tax incentives have contributed to this growth, making the city an attractive destination for family offices.
Key points
- Wealthy European clients are establishing family offices in Hong Kong to capitalize on growing opportunities in the region.
- Affluent mainland clients are investing in Europe, with Hong Kong playing a key role as a connector in this process.
- The number of single-family offices in Hong Kong has risen 25% over the past two years, reaching about 3,384 by the end of 2025.
If this trend continues, Hong Kong's financial sector is likely to experience significant growth, attracting more foreign investment and creating new opportunities for businesses and individuals alike.
However, there are also risks associated with this trend, such as increased competition for resources and potential market volatility.
