Hong Kong Financial Destination for Capital-Raising
Hong Kong is a prime location for U.S. General Partners (GP) to raise capital. GPs may include, but are not limited to hedge funds, venture capitalists, private equities, and startups. As one of the leading international financial centers, Hong Kong offers a highly developed financial system, light regulation, and relatively low taxes. It acts as a gateway to the vast mainland China and other Asian markets and is particularly competitive when it comes to human capital and infrastructure. The city-state’s financial markets operate under effective and transparent regulations that align with international standards.
Fundraising opportunities in Hong Kong are abundant. The region’s economies have shown robust growth, especially in the first half of the year, setting the stage for robust deal-making. Hong Kong is already one of Asia’s main asset and wealth management hubs, with asset under management at the end of 2021 worth USD 4.6 trillion. The city has seen 1,100 family offices established, and the government’s target for 2025 is to attract an additional 200 large families. This strong ecosystem for family offices and high-net-worth individuals makes it an attractive destination for US GPs.
It is worth noting that China has implemented capital outflow controls, which can make it challenging for investors to move money out of the country. This makes Hong Kong’s open and flexible financial system even more appealing.
There are three significant events for Limited Partners (LP) in 2024:
- The SuperReturn Asia Event, a leading private equity and venture capital conference, is scheduled to take place from September 24-27, 2024.
- The APAC Family Office Investment Summit, which is set to occur in October 2024 at the Ritz Carlton, Hong Kong.
- Trademissions.org - | 2024 Certified Trade Mission to Hong Kong, specifically designed for investors who want to connect with prominent U.S. alternative asset fund managers on Dec. 4-6, 2024.
These events provide excellent opportunities for networking and exploring potential collaborations. Any interested parties should contact our office at office.hongkong@trade.gov for more details.