The Li Ka-shing family will institutionalize its family office in Hong Kong, says Victor Li Tzar-kuoi, the elder son of tycoon Li Ka-shing and the chairman of CK Hutchison.

The trailblazing move will make it the first family among the city’s wealthiest to institutionalize its wealth in Hong Kong, in support of the government’s drive to bolster the city’s status as an Asian wealth hub.

He said the Li family has been making various investments in Hong Kong and will set up its family office in an institutionalized manner.

The office will be managed by long-time colleagues and family members, he added.

Li Ka-shing retained his spot as Hong Kong’s wealthiest person with a net worth of US$36.2 billion (HK$282.36 billion) on the 2024 Forbes list.

He was followed by real estate tycoon Lee Shau-Kee, who founded Henderson Land Development, with US$27 billion.

Henry Cheng Kar-shun, whose family fortune includes Chow Tai Fook Jewellery and New World Development, came third with US$22.1 billion.

However, these billionaires have seen their wealth diminish amid a sluggish property sector and trade landscape, according to Forbes.

Victor Li, who now runs a global empire founded by the senior Li that spans ports and property to telecommunications and retailing, has repeatedly emphasized that Hong Kong should strive to maintain its status as a financial hub. He has said he will invest in his hometown if there are projects with reasonable returns.

His announcement came as the city’s treasury chief said the government will study the possibility of linking the policy initiatives to attract family offices with the New Capital Investment Entrant Scheme launched in March this year.

Secretary for Financial Services and the Treasury Christopher Hui Ching-yu told the Legislative Council that many investors have reflected their concerns about the connectivity between different policies in Hong Kong.

If there are applicants under the New CIES who intend to set up a family office in Hong Kong when allocating HK$30 million in capital, the authorities will follow up and make arrangements, Hui said.

Hui, however, reiterated that the government has no intention to include residential real estate as a qualified investment.

More than 130 family offices are preparing or have decided to expand their businesses in Hong Kong, according to InvestHK.

Separately, Hui said the bill to waive stamp duty on transactions of real estate investment trusts or REITs will be introduced within this year.

Sources: The Standard