European wealth pivots to Hong Kong family offices, BNP Paribas says
A surge in European family offices setting up in Hong Kong highlights the city's enduring role as a critical capital conduit between Western investors and mainland Chinese assets.
BNP Paribas, France’s largest lender and the second-largest in Europe, has reported a marked increase in wealthy European clients establishing family offices in Hong Kong. The trend is directly driven by a desire to access Asian technology start-ups and broader mainland business opportunities.
This influx is supported by targeted local policy shifts, as the Hong Kong government has introduced tax incentives and other measures since 2023 to attract private wealth structures. The regulatory strategy is already yielding tangible results for the local financial sector. A recent Deloitte study found that single-family offices in the city grew 25 percent over two years, reaching approximately 3,384 by the end of 2025.
The movement of capital through these newly established offices is proving to be strictly bidirectional. Affluent mainland investors are simultaneously leveraging Hong Kong to acquire European assets, creating a continuous loop of cross-border dealmaking. "The two-way capital flow between Europe and mainland China is expected to continue in the coming years, while Hong Kong is playing an important role as a connector in the process," Lee said.
For market professionals, this signals a structural shift in how European ultra-high-net-worth capital accesses Chinese markets. Rather than allocating passively to distant offshore funds, family capital is establishing direct operational footprints to source, negotiate, and oversee investments. "For these European investors who want to invest in technology start-ups or other businesses in Asia and mainland China, Hong Kong is the best location for them to set up family offices to do due diligence or negotiate deals," Lee added.
A 25 percent expansion in the single-family office sector over two years represents a significant acceleration in capital migration. It indicates that European family wealth is willing to build out permanent operational infrastructure in the city to navigate the complexities of Asian dealmaking. This direct-booking approach suggests a long-term commitment to deploying capital into mainland ventures rather than retreating from the region.
Ultimately, the data underscores the enduring financial relevance of Hong Kong's legal and regulatory infrastructure for European executives. Despite broader geopolitical headwinds, the city remains the primary physical bridge for sophisticated wealth looking to move fluidly between European and Chinese markets.
