85% of UHNW individuals and families in Mainland China and Hong Kong are engaged in philanthropy.
HONG KONG (February 23, 2023)—The Better Hong Kong Foundation (BHKF) today released a research report entitled “Hong Kong as a Philanthropy Hub”, in collaboration with the Centre for Asian Philanthropy and Society (CAPS), emphasizing the strengths and potential of the city to be a philanthropy hub. Highlighting how Hong Kong can enhance its attractiveness, for both individual and corporate private wealth owners, the report discusses how the city can develop its role as Asia’s pre-eminent philanthropy hub.
Hong Kong can strengthen its role as Asia’s Philanthropy Hub
Hong Kong has long had a tradition of strong philanthropic principles. Chinese values, coupled with a market focus, have spurred a profound philanthropic history in the city, evidenced by significant altruistic gifts and the presence of The Hong Kong Jockey Club Charities Trust, one of the biggest charity donors in the world. In addition, since 2007, the number of registered charities in the city has increased threefold to a total of over 15,000.
Hong Kong is a leading wealth management hub in Asia with a deep pool of talent. In 2021, net fund inflows amounted to HKD638 billion, while the total number of staff engaged in private banking and private wealth management increased, of which one third were Private Wealth Management Practitioners according to SFC data1. Hong Kong is also the world’s foremost city for its ultra-high-net-worth (UHNW) population, with estimates suggesting over 15,000 residing in the city in 20222, cementing Hong Kong’s status as an international hub of donors.
Furthermore, Hong Kong is the globe’s natural gateway to Mainland China, a country that hosts the largest number of billionaires in the world, as well as the fastest-growing number of foundations. According to a CAPS survey, 85% of UHNW individuals and families in Mainland China and Hong Kong are engaged in philanthropy, with 97% eager to learn more about topics such as social investment and philanthropic donation. Encouragingly, over 60% of respondents reported that philanthropy has a positive impact on strengthening their family bonds, and it has a strong impact on boosting one’s sense of purpose.
Mr Ronnie C. Chan, the Executive Committee Chairman of the Better Hong Kong Foundation, said, “While Hong Kong is renowned as a leading international financial center, relatively little has been said about its role as a philanthropy hub. We are therefore delighted to present this study to help support a better Hong Kong. Our research recognizes the strengths of the city as a philanthropy hub for Asia. We are encouraged to witness the Hong Kong Government promoting the attractiveness of the city for private wealth owners and corporate philanthropy, such as the establishment of an advisory task force and the inclusion of philanthropy during the Asia Financial Forum. We hope our research will inspire more discussions and collective actions, helping ensure Hong Kong to be the philanthropy hub for Asia.”
The report analyzes the strengths and potential that each stakeholder group, including donors, policymakers, private wealth practitioners and academia, brings to the philanthropy ecosystem in Hong Kong. It also points out that the Hong Kong Government can and should take an active role in creating regulations and tax incentives which will aid in the establishment of philanthropic foundations, initiatives and collaborations. When all stakeholders work in partnership, Hong Kong can reinforce its status as the pre-eminent philanthropy hub for Asia.
Commenting on the research, Mr. Christopher Hui, GBS, JP, Secretary for Financial Services and the Treasury, said, “We welcome the report and the suggestions. Hong Kong not only has a long history of philanthropy, but also the unique advantages to become Asia’s philanthropy center for global family offices to deploy wealth for good causes. In the past years, we have been ramping up joint-departmental efforts to optimize the philanthropic ecosystem in Hong Kong, by offering a full range of investment choices and financing solutions for alternative assets. The Hong Kong SAR government is committed to maximizing the role of each stakeholder group toward the enhancement of our philanthropy hub.”
The full report is now available for download on the CAPS website.
About The Better Hong Kong Foundation (BHKF)
The Better Hong Kong Foundation is a politically non-affiliated, privately-funded, nonprofit making organization. It was established in 1995 by a group of influential local business and community leaders in Hong Kong who were committed to the territory and wanted to share their confidence in its future with the corporate and political leadership overseas. The Foundation is a realization of this vision, actively liaising with counterparts in the international community and updating them on Hong Kong’s dynamic activities in trade, finance, business and communications. For more information on the BHKF, please visit: www.betterhongkong.org.
About The Centre for Asian Philanthropy & Society (CAPS)
Established in 2013 and working across more than 17 economies in Asia, the Centre for Asian Philanthropy and Society (CAPS) is a nonprofit organization committed to improving the quantity and quality of philanthropic and private giving throughout Asia. Our mission is to maximize private capital for public good, conducting research, advisory, convening and capacity building to engage philanthropists, foundations, family offices, corporates, government bodies, social sector organizations and experts on best practices, models, policies and strategies to facilitate private giving and social investment in the region.