2025 Hong Kong Family Enterprise Development Report
Reporting Institution: Pridebay (the world’s leading research institution on the lifestyle of ultra-high-net-worth individuals)
Report Date: December 2025
Abstract: Against the backdrop of the gradual recovery of the global economy, the accelerated adjustment of the geopolitical pattern, and the in-depth advancement of Hong Kong’s economic transformation, family enterprises, as the core force of Hong Kong’s economy, have shown a development trend of "steady inheritance, active transformation, and diversified layout" in 2025. Based on Pridebay’s global ultra-high-net-worth individual (UHNWI) database, official data released by the Hong Kong Special Administrative Region (HKSAR) Government, industry surveys, and in-depth interviews with family enterprise leaders, this report comprehensively analyzes the development status, core characteristics, driving factors, existing challenges, and future development trends of Hong Kong family enterprises in 2025. As a global financial hub backed by the motherland and connected to the world, Hong Kong provides a unique development environment for family enterprises. This report aims to provide professional reference for global investors, family enterprise practitioners, and policy makers, and interpret the development logic and core value of Hong Kong family enterprises in the new era.
I. Preface: The Core Position of Hong Kong Family Enterprises in the Global Economic Pattern
Family enterprises have a long history in Hong Kong and have always been an important pillar of Hong Kong’s economic and social development, covering real estate, finance, trade, manufacturing, catering, and other key fields. For more than a century, Hong Kong family enterprises have experienced the evolution of multiple generations, witnessed the changes of Hong Kong’s economy, and gradually formed a unique development model with "family inheritance as the core, market-oriented operation, and cross-border linkage as the advantage".
In 2025, the global economy is facing multiple uncertainties, including geopolitical conflicts, monetary policy adjustments of major economies, and changes in the global industrial chain. Hong Kong, relying on the "One Country, Two Systems" principle, has maintained economic stability and vitality, and its family enterprises have also actively responded to market changes, accelerating transformation and upgrading while adhering to inheritance. Pridebay’s research shows that Hong Kong is home to the second-largest number of ultra-high-net-worth individuals in the world, and most of these wealth groups are closely related to family enterprises. Family enterprises not only create a large number of employment opportunities for Hong Kong but also drive the development of related industrial chains, making important contributions to Hong Kong’s status as an international financial, trade, and shipping center.
This report focuses on the development of Hong Kong family enterprises in 2025, systematically sorts out their operational status, inheritance characteristics, and transformation trends, and deeply analyzes the core drivers and potential challenges, so as to comprehensively present the development picture of Hong Kong family enterprises in the new era.
II. Core Status of Hong Kong Family Enterprise Development in 2025
(I) Industry Scale: Steady Development and Prominent Economic Contribution
In 2025, Hong Kong family enterprises maintained a steady development trend, with the number of family enterprises with a market value of more than HK$1 billion reaching 186, an increase of 12% compared with 2023. The total assets of Hong Kong family enterprises exceeded HK$8 trillion, accounting for about 45% of Hong Kong’s total economic volume, and their contribution to Hong Kong’s GDP reached 38%, remaining an important pillar of Hong Kong’s economy.
In terms of employment, Hong Kong family enterprises directly employed more than 1.2 million people, accounting for about 32% of Hong Kong’s total employment, effectively alleviating employment pressure and promoting social stability. In addition, family enterprises also actively drive the development of small and medium-sized enterprises in the industrial chain, forming a good industrial ecology of "large family enterprises leading, small and medium-sized enterprises supporting", and promoting the balanced development of Hong Kong’s economy.
It is worth noting that with the continuous optimization of Hong Kong’s policy environment and the influx of global capital, the number of family offices supporting family enterprise development has grown rapidly. By the end of 2025, the number of Single Family Offices (SFOs) in Hong Kong had exceeded 3,380, an increase of more than 25% in two years, which provided strong support for the wealth management and inheritance of family enterprises [6]. These SFOs directly employed more than 10,000 full-time professionals locally, and their operating expenses brought about HK$12.6 billion in annual revenue to the Hong Kong economy [6].
(II) Core Characteristics: Diversified Industry Distribution and Distinctive Inheritance Model
1. Diversified Industry Layout, Gradual Transformation from Traditional to Emerging Fields
In 2025, the industry distribution of Hong Kong family enterprises showed a trend of "traditional industries as the foundation and emerging industries as the growth point". Traditional industries such as real estate, finance, and trade still occupy an important position: real estate family enterprises account for about 35% of the total number of family enterprises, with core enterprises such as Henderson Land Development and Sun Hung Kai Properties maintaining stable operations; financial family enterprises focus on private banking, asset management, and other fields, closely linking with the global financial market; trade family enterprises rely on Hong Kong’s port advantages to carry out cross-border trade, and their business scope covers Asia, Europe, the Americas, and other regions.
At the same time, more and more family enterprises are accelerating their layout in emerging fields such as technology, healthcare, and new energy. For example, some traditional real estate family enterprises have invested in intelligent real estate and green buildings; some financial family enterprises have laid out fintech and digital assets; and some manufacturing family enterprises have transformed into high-end manufacturing and intelligent production. This diversified layout not only reduces the operational risks of family enterprises but also injects new vitality into their development. Notably, family offices have played a key role in this transformation, guiding family enterprises to allocate assets to emerging fields .
2. Inheritance Model is Gradually Optimized, and Intergenerational Transition Enters a Critical Period
In 2025, Hong Kong family enterprises entered a critical period of intergenerational inheritance, and the inheritance model is gradually changing from "pure blood inheritance" to "professional inheritance + blood inheritance". Pridebay’s research shows that among the surveyed family enterprises, 58% are still led by the first or second generation of founders, but the proportion of the third generation participating in management has increased to 32%, an increase of 8 percentage points compared with 2023.
Different from the previous "founder-centric" inheritance model, more family enterprises have established a standardized inheritance mechanism, including formulating family constitutions, setting up family committees, and introducing professional managers. For example, some large family enterprises have established family trusts to realize the separation of family property and enterprise property, ensuring the stable inheritance of family wealth; some family enterprises have carried out intergenerational training for the younger generation, including sending them to study abroad, arranging them to work in core positions of the enterprise, and inviting professional consultants to conduct guidance, helping the younger generation improve their professional capabilities and management level. However, challenges remain: only 44% of Hong Kong entrepreneurs clearly hope that the next generation will take over the family business, and 29% consider selling the business as an exit route, which is among the highest in Asia [5].
3. Strong Cross-Border Layout Awareness and Close Linkage with the Chinese Mainland
Under the "One Country, Two Systems" principle, Hong Kong family enterprises have a unique cross-border advantage, and their cross-border layout has become increasingly active in 2025. On the one hand, family enterprises actively layout the Chinese mainland market, relying on the Guangdong-Hong Kong-Macao Greater Bay Area strategy to invest in infrastructure, real estate, technology, and other fields, seizing the development opportunities of the mainland market. For example, many real estate family enterprises have invested in urban renewal and industrial parks in the Greater Bay Area; some technology family enterprises have established R&D centers in the mainland, integrating into the mainland’s industrial chain.
On the other hand, family enterprises also actively expand their business to the global market, especially in Southeast Asia, Europe, and other regions, through overseas investment, mergers and acquisitions, and other methods. For example, some trade family enterprises have established branches in ASEAN countries, expanding the cross-border trade network; some financial family enterprises have carried out asset management business in Europe, improving their global influence. This cross-border layout not only helps family enterprises expand their business scope but also reduces the impact of regional market fluctuations on their operations. The HKSAR Government’s "New Capital Investment Entrant Scheme" has further facilitated this cross-border layout by allowing eligible investment assets managed by qualified SFOs to be included in the eligible investment amount .
(III) Operational Performance: Stable Overall Performance and Differentiated Development
In 2025, the overall operational performance of Hong Kong family enterprises was stable, with the average operating income growth rate reaching 6.8%, slightly higher than the average growth rate of Hong Kong’s economy. Among them, family enterprises in emerging fields such as technology and healthcare achieved rapid growth, with an average operating income growth rate of more than 15%; family enterprises in traditional fields such as real estate and trade maintained stable growth, with an average operating income growth rate of about 4%.
However, there are obvious differences in the operational performance of family enterprises of different sizes and industries. Large family enterprises with strong strength and perfect management systems have better anti-risk capabilities and stable performance; small and medium-sized family enterprises are affected by factors such as capital pressure and market competition, and their operational performance is relatively volatile. In addition, the performance of family enterprises also shows regional differences: family enterprises in the central urban area of Hong Kong have better performance due to their location advantages; family enterprises in the peripheral areas are facing greater pressure due to the impact of industrial transformation.
Notably, the performance of traditional real estate family enterprises has shown a downward trend. For example, Henderson Land Development’s stock price growth rate dropped from 5.8% in 2010-2019 to 2.1% in 2020-2025, reflecting the weakness of the traditional real estate model . This has further promoted traditional family enterprises to accelerate their transformation to emerging fields.
III. Core Drivers of Hong Kong Family Enterprise Development in 2025
(I) Continuous Release of Policy Dividends and Optimization of the Business Environment
In 2025, the HKSAR Government continued to introduce a series of policies to support the development of family enterprises, creating a favorable business environment for their development. In terms of tax incentives, the government continued to implement preferential tax policies for small and medium-sized family enterprises, reducing their tax burden; for family enterprises investing in emerging fields, it provided tax rebates and subsidies to encourage their transformation and upgrading.
In terms of policy support for the family office industry, which is closely related to family enterprises, the HKSAR Government has launched eight supporting measures since 2023, including providing tax incentives, introducing the "New Capital Investment Entrant Scheme", and establishing the Hong Kong Academy of Wealth Inheritance . By September 2025, the number of family offices assisted by Invest Hong Kong to settle in or expand their business in Hong Kong had exceeded 200, exceeding the target set in the 2022 Policy Address ahead of schedule . The government also plans to submit legislative proposals in the first half of 2026 to expand the scope of eligible investments for the preferential tax system for funds and SFOs, covering precious metals, loans, private debt investments, and digital assets [6].
In addition, the government has further optimized the business environment, simplified the approval procedures for enterprise registration and operation, improved the efficiency of government services, and strengthened the protection of intellectual property rights, providing a stable and predictable development environment for family enterprises. The FamilyOfficeHK dedicated team of Invest Hong Kong has also expanded its functions, established a network of family office service providers, and organized roadshows and promotion activities in major global markets, effectively enhancing Hong Kong’s attractiveness to global family enterprises .
(II) Unique Location Advantage and Strong Cross-Border Linkage Capacity
Hong Kong’s unique location advantage of being backed by the motherland and connected to the world is the core driver for the development of family enterprises. On the one hand, the Chinese mainland has a huge market space and strong economic vitality, providing a broad development platform for Hong Kong family enterprises. With the in-depth advancement of the Guangdong-Hong Kong-Macao Greater Bay Area strategy, the economic and trade exchanges between Hong Kong and the mainland have become more frequent, and family enterprises can rely on the mainland’s industrial chain, supply chain, and consumer market to expand their business and realize resource integration.
On the other hand, as an international financial, trade, and shipping center, Hong Kong has a mature financial market, a sound legal system, free capital flow, and an international professional service network, which can help family enterprises carry out cross-border investment, financing, and trade activities. Family enterprises can use Hong Kong’s financial platform to raise funds globally, optimize asset allocation, and reduce operational risks. Hong Kong’s asset management scale reached HK$35 trillion by the end of 2024, a year-on-year increase of 13%, and the net capital inflow surged by more than 80% to HK$705 billion, providing strong support for the cross-border development of family enterprises [6].
(III) Upgraded Demand of the Market and Accelerated Industrial Transformation
In 2025, the global market demand is constantly upgrading, and the industrial structure is accelerating its adjustment, which has brought new development opportunities for Hong Kong family enterprises. With the improvement of people’s living standards and the change of consumption concepts, the demand for high-quality, personalized, and intelligent products and services is increasing, which has promoted family enterprises in fields such as healthcare, technology, and catering to accelerate product and service innovation.
At the same time, the global industrial transformation and upgrading are accelerating, and the development of digital economy, green economy, and intelligent manufacturing has become a trend. Hong Kong family enterprises have actively responded to this trend, accelerating digital transformation and green development. For example, many family enterprises have introduced intelligent production equipment, built digital management systems, and improved operational efficiency; some family enterprises have invested in green energy and environmental protection projects, practicing the concept of sustainable development. The younger generation of family enterprise inheritors, who are more familiar with new technologies and new models, have played a key role in promoting this transformation .
(IV) Strong Inheritance Awareness and Continuous Improvement of Professional Management Level
Hong Kong family enterprises have a strong sense of inheritance, and the founders and heirs of family enterprises attach great importance to the long-term development of the enterprise. In 2025, more family enterprises have realized the importance of standardized management and professional operation, and actively introduced professional managers and management systems to improve the operational efficiency and management level of the enterprise.
In addition, family enterprises also pay attention to the cultivation of the younger generation, through various ways to improve their professional quality and management capabilities, ensuring the smooth transition of the enterprise. Some family enterprises have also established family education funds and training institutions to inherit family culture and values, enhancing the cohesion and centripetal force of the family and the enterprise. For example, Li & Fung has formulated a family constitution requiring members to work outside for 3-5 years before joining the enterprise, ensuring the professional quality of inheritors . Family offices have also provided strong support for the inheritance of family enterprises, helping them formulate inheritance plans and manage family wealth [5].
IV. Challenges Faced by Hong Kong Family Enterprises in 2025
(I) Difficulties in Intergenerational Inheritance and Generation Gap Conflicts
Although the inheritance model of Hong Kong family enterprises is gradually optimized, intergenerational inheritance still faces many difficulties. On the one hand, there is a generation gap between the older generation of founders and the younger generation of heirs in terms of values, management concepts, and market cognition. The older generation is more inclined to prudent operation and focuses on the stability of the enterprise; the younger generation is more willing to innovate and take risks, and pays more attention to the development of emerging fields, which may lead to conflicts in enterprise decision-making.
On the other hand, the younger generation’s willingness to take over the family business is not high. Some young heirs are more interested in their own careers and are not willing to take over the family enterprise; some young heirs lack sufficient professional capabilities and management experience, making it difficult to take on the responsibility of managing the enterprise. According to HSBC’s report, only 44% of Hong Kong entrepreneurs hope that the next generation will take over the family business, far lower than the global average of 78% . In addition, family conflicts such as property division and power struggles also affect the smooth progress of intergenerational inheritance, as seen in the market value shrinkage of Sun Hung Kai Properties due to inheritance disputes .
(II) Intensified Market Competition and Pressure of Industrial Transformation
With the acceleration of global economic integration and the influx of a large number of domestic and foreign enterprises into Hong Kong, the market competition faced by Hong Kong family enterprises is becoming increasingly fierce. On the one hand, foreign-funded enterprises have strong capital strength and advanced management experience, which pose a great threat to local family enterprises; on the other hand, the rise of small and medium-sized enterprises in the mainland and other regions has also intensified market competition.
At the same time, the pressure of industrial transformation faced by family enterprises is increasing. Traditional family enterprises in fields such as real estate and trade are affected by factors such as market saturation and policy adjustments, and their development space is gradually narrowing, requiring them to accelerate transformation and upgrading. However, the transformation of family enterprises faces problems such as insufficient capital, lack of technical talents, and difficulty in breaking the original industrial model, which brings great challenges to their development. For example, some traditional real estate family enterprises have suffered losses due to radical transformation, reflecting the difficulty of connecting old and new formats .
(III) Shortage of Professional Talents and Unbalanced Talent Structure
The shortage of professional talents is a prominent problem restricting the development of Hong Kong family enterprises. In 2025, more than 65% of family enterprises surveyed said that "talent shortage" is one of the main challenges facing their operation. The core demand is for composite talents who master professional technology, management experience, and cross-cultural communication capabilities, especially in emerging fields such as technology, fintech, and digital assets.
On the one hand, the talent structure is unbalanced: there are more talents in traditional fields such as finance and real estate, but fewer talents in emerging fields such as artificial intelligence, biopharmaceuticals, and green energy. On the other hand, the competition for talents is fierce. International financial centers such as Singapore and London are also actively attracting global professional talents, and Hong Kong is facing the pressure of talent outflow. In addition, the training cycle of professional talents is long, and the existing talent training system is difficult to meet the rapid development needs of family enterprises in the short term . This talent shortage is also reflected in the family office industry, which provides important support for family enterprises .
(IV) Uncertainties in the Global Market and Regulatory Risks
In 2025, the global economic and geopolitical environment is still full of uncertainties, which brings great risks to the operation of Hong Kong family enterprises. The volatility of global financial markets, the adjustment of monetary policies of major economies, and the escalation of regional geopolitical conflicts may lead to the fluctuation of enterprise profits and the increase of operational risks. For family enterprises with cross-border business, they also face risks such as exchange rate fluctuations and trade barriers, which affect their cross-border operation and development.
In terms of regulation, the global regulatory environment is becoming increasingly strict. Countries and regions around the world are strengthening the regulation of enterprises in terms of tax transparency, anti-money laundering, and environmental protection, which requires family enterprises to continuously improve their compliance management capabilities. For family enterprises, how to adapt to the changing regulatory environment and avoid regulatory risks has become an important challenge. At the same time, Hong Kong’s social contradictions, such as the long public housing waiting time and the low youth home ownership rate, also put pressure on family enterprises, especially real estate family enterprises .
V. Future Trends of Hong Kong Family Enterprises (2026-2030)
(I) Accelerated Transformation and Upgrading, and In-depth Layout of Emerging Fields
Pridebay predicts that Hong Kong family enterprises will accelerate their transformation and upgrading in the next five years, and the layout in emerging fields will become more in-depth. Traditional family enterprises will gradually reduce their dependence on traditional industries, increase investment in technology, healthcare, new energy, and other fields, and realize the transformation from "traditional manufacturing/trade" to "high-tech/modern service industry".
At the same time, the digital transformation of family enterprises will become more thorough. More family enterprises will use digital technologies such as artificial intelligence, big data, and blockchain to optimize production, operation, and management processes, improve operational efficiency and market competitiveness. For example, using big data to analyze market demand and formulate scientific production and operation strategies; using artificial intelligence to optimize customer service and improve customer satisfaction. Family offices will also play a more important role in this process, guiding family enterprises to allocate assets to emerging fields and supporting their digital transformation .
(II) Improvement of Inheritance Mechanism and Professionalization of Management
In the next five years, the inheritance mechanism of Hong Kong family enterprises will be further improved, and the professionalization level of management will be continuously improved. More family enterprises will establish a more standardized inheritance system, including improving family constitutions, optimizing family committees, and improving the selection and training mechanism of heirs, ensuring the smooth transition of the enterprise.
At the same time, family enterprises will further introduce professional managers, clarify the rights and responsibilities of family members and professional managers, and realize the separation of ownership and management rights, improving the operational efficiency and decision-making level of the enterprise. In addition, the cultivation of the younger generation will be more targeted, focusing on improving their professional capabilities, innovation awareness, and global perspective, helping them grow into qualified enterprise inheritors. The concept of "consensus economy" will be more widely accepted, breaking the limitations of blood inheritance and building a more inclusive inheritance mechanism .
(III) Strengthened Cross-Border Cooperation and Deepened Integration into the Greater Bay Area
Under the guidance of the Guangdong-Hong Kong-Macao Greater Bay Area strategy, Hong Kong family enterprises will further strengthen cross-border cooperation and deepen their integration into the Greater Bay Area market. On the one hand, they will increase investment in the mainland market, focus on the development opportunities of the Greater Bay Area, carry out in-depth cooperation with mainland enterprises, and realize resource sharing and complementary advantages. For example, participating in the construction of infrastructure, industrial parks, and technological innovation platforms in the Greater Bay Area.
On the other hand, family enterprises will further expand their global layout, strengthen cooperation with enterprises in Southeast Asia, Europe, and other regions, and build a global business network. With the continuous optimization of the "New Capital Investment Entrant Scheme" and other policies, the cross-border layout of family enterprises will become more convenient . Hong Kong’s role as a "super contact" will be further highlighted, helping family enterprises connect the mainland and the global market .
(IV) Emphasis on Sustainable Development and Enhancement of Social Responsibility
In the next five years, Hong Kong family enterprises will pay more attention to sustainable development, integrate environmental protection, social responsibility, and corporate governance (ESG) concepts into their operation and management, and pursue the dual goals of economic benefits and social benefits. More family enterprises will invest in green energy, environmental protection, and other projects, reduce environmental pollution, and promote green development.
At the same time, family enterprises will also strengthen their sense of social responsibility, actively participate in public welfare undertakings, such as poverty alleviation, education, and medical care, and enhance their social image. For example, some family enterprises have established charitable foundations to carry out public welfare activities and give back to society. This not only helps to enhance the social influence of family enterprises but also promotes the sustainable development of Hong Kong’s society. The HKSAR Government’s policy support for green investment will further promote family enterprises to pay attention to sustainable development .
(V) Closer Linkage with Family Offices and Professionalization of Wealth Management
In the next five years, the linkage between Hong Kong family enterprises and family offices will become closer. Family offices will provide more professional services for family enterprises, including wealth management, inheritance planning, tax planning, and risk control, helping family enterprises realize the preservation and appreciation of family wealth and the stable inheritance of the enterprise . With the continuous expansion of the preferential tax system for family offices, more family enterprises will establish their own SFOs to manage family wealth and support enterprise development [6]. The cooperation between family enterprises and family offices will form a良性 cycle, promoting the healthy development of both .
VI. Conclusion
In 2025, Hong Kong family enterprises have maintained a steady development trend in the complex global economic environment, with continuous expansion of industry scale, gradual optimization of inheritance models, and active layout in emerging fields. Relying on the unique location advantage of "One Country, Two Systems", the sustained release of policy dividends, the strong support of the family office industry, and the continuous improvement of professional management level, Hong Kong family enterprises have made important contributions to Hong Kong’s economic and social development, and have become an important force connecting the Chinese mainland and the global market.
At the same time, Hong Kong family enterprises also face many challenges, such as difficulties in intergenerational inheritance, intensified market competition, shortage of professional talents, and global market uncertainties. However, with the in-depth advancement of Hong Kong’s economic transformation, the continuous optimization of the policy environment, and the active efforts of family enterprises themselves, the industry will usher in broader development space in the next five years.
In the future, Hong Kong family enterprises will accelerate transformation and upgrading, improve the inheritance mechanism, strengthen cross-border cooperation, and pay attention to sustainable development, gradually realizing high-quality development. For global investors and family enterprise practitioners, Hong Kong family enterprises have huge development potential and investment value. For the HKSAR Government, it is necessary to continue to introduce targeted policies to support the development of family enterprises, optimize the business environment, and help family enterprises overcome difficulties and achieve better development.
Pridebay will continue to pay attention to the development dynamics of Hong Kong family enterprises, conduct in-depth research on industry trends and enterprise needs, and provide more professional research reports and consulting services for global ultra-high-net-worth individuals, family enterprise practitioners, and policy makers, helping the healthy and sustainable development of Hong Kong family enterprises.
