Hong Kong is reinforcing its role as a key center for family business succession and cross-border wealth management in Asia, as affluent families navigate economic uncertainties and generational wealth transfers, according to financial regulators and industry leaders.

At a conference focused on next-generation wealth management held recently in Hong Kong, Joseph Chan Ho-lim, Undersecretary for Financial Services and the Treasury, emphasized the city’s distinctive advantages under the “one country, two systems” framework. Chan noted that Hong Kong uniquely combines access to the China market with global financial connectivity, supported by a free flow of capital, a common law legal system, a straightforward low-tax regime, and a regulatory environment designed to provide certainty and transparency for high-net-worth families.

This positioning comes amid a rising number of Asian family enterprises preparing for leadership transitions. Industry speakers highlighted that younger family members are approaching succession not merely as an inheritance but as an opportunity to redefine their businesses. Sujoy Ghosh, CEO of Sun Life Private Wealth, observed that the next generation of business leaders in Asia is actively involved in pushing into new geographic markets, adopting innovative business models, and focusing on emerging sectors such as artificial intelligence and green technology. He described these successors as “change-makers” intent on establishing their own legacies rather than simply managing existing assets.

Christina Gaw, managing principal at Gaw Capital Partners, noted a strong interest among younger family members in diversifying their investment portfolios by entering emerging markets. However, many are still allocating capital to traditional sectors that generate steady cash flow, including shipping and areas related to the global energy transition. Gaw emphasized the need for modernisation within these industries, especially in light of persistent supply chain disruptions worldwide. To support expansion and resilience, she suggested that family businesses increasingly require institutional capital.

Carlo Pesenti, chairman and CEO of Italy-based Italmobiliare, reinforced this view, pointing to the benefits of a broader institutional investor base in enhancing the financial capacity of family enterprises to pursue larger-scale transactions. Chan echoed these sentiments, stating that Hong Kong has strategically developed its market depth and liquidity to accommodate evolving investment strategies, enabling families and their businesses to achieve diverse objectives and manage complex global portfolios.