[The following is issued on behalf of the Institute of Philanthropy]
Report explores how Hong Kong's combination of financial and philanthropic strengths could support the development of impact capital.
As governments, investors, and philanthropies around the world seek new ways to finance solutions to increasingly complex social and environmental challenges, a new report highlights opportunities to further develop Hong Kong’s impact capital ecosystem. Launched by the Institute of Philanthropy (IoP), the Financial Services Development Council (FSDC), and the Hong Kong Academy for Wealth Legacy (HKAWL), Unlocking Impact Capital in Hong Kong: Learnings from Global Ecosystems was unveiled at IoP's annual flagship Foundations Circle event.
Drawing on lessons from leading ecosystems worldwide, the report highlights several strengths already present in Hong Kong, including deep capital markets, a strong philanthropic tradition, sophisticated professional services, and a growing family office ecosystem. Based on interviews with more than 50 leaders and their teams in Hong Kong and select cases across Europe, North Asia, and Southeast Asia, alongside polling of select Hong Kong family offices and wealth holders, many stakeholders suggested that Hong Kong's challenge is less about the availability of capital and more about creating the conditions that allow different forms of capital to work together effectively towards shared outcomes.
This perspective suggests that the development of impact capital in Hong Kong may depend less on attracting new pools of funding and more on strengthening connections between existing sources of capital, according to Lester Huang, Chairman of IoP. “The most important lesson from leading ecosystems is that impact can be scaled when different sectors align around a common purpose. Hong Kong has world-class capabilities across government, philanthropy, finance, and civil society. There is an opportunity to connect those capabilities more deliberately and create pathways that allow promising ideas to move from innovation to adoption and, ultimately, to scale.”
The report shares how some of the world's most developed impact capital ecosystems have emerged through different pathways. In one jurisdiction, government played a catalytic role in building market infrastructure. In another, philanthropy acted as an anchor for ecosystem development. Elsewhere, financial-sector development and philanthropic institution-building evolved in parallel. The lesson for Hong Kong is not which model to copy, but that successful ecosystems are intentionally built rather than left to emerge organically.
Benjamin Hung, Chairman of the FSDC, said: “The significance of impact capital goes beyond philanthropy. Around the world, we are seeing investors evolve to place greater value on long-term and sustainable outcomes. This presents a strategic opportunity for Hong Kong. As an international financial centre, we have the capabilities, connectivity and expertise to mobilise capital at scale. By linking financial excellence with impact objectives, Hong Kong can strengthen its competitiveness while contributing to sustainable and inclusive growth across the region.”
The report also highlights shifts taking place across wealth management, philanthropy, and family enterprise throughout Asia. Drawing on stakeholder interviews and directional feedback from family offices, it notes growing interest in deploying different forms of capital across a spectrum of financial and social objectives. Against this backdrop, Hong Kong's period of intergenerational wealth transfer may create space for broader conversations about purpose, legacy, and long-term value creation.
Adrian Cheng, Chairman of HKAWL, said: “The next generation is asking a different question from previous generations. It is not how wealth should be preserved, but what role wealth should play in shaping the future. That creates an important moment for Hong Kong. We can become a place where families learn how to deploy wealth with greater purpose, partnering with government, philanthropy, and communities to create lasting value.”
Rather than prescribing a single solution, the report highlights three areas for further exploration and ecosystem development: leadership and collaboration, organisational and advisory capabilities, and stronger mechanisms for sharing knowledge and evidence. Stakeholders interviewed during the research consistently pointed to these areas as important enablers of a more mature impact capital ecosystem.
The research suggests that the implications extend beyond impact capital itself. The broader question is whether Hong Kong can bring together its strengths in ways that address increasingly complex challenges. Over time, this could help position Hong Kong as a place where capital, capability, and collaboration are increasingly aligned in support of both economic prosperity and societal progress.
Download Unlocking Impact Capital in Hong Kong: Learnings from Global Ecosystems: https://www.iop.org.hk/en/unlocking-impact-capital-in-hong-kong/
About the Institute of Philanthropy
The Institute of Philanthropy was established in September 2023 through a seed grant of HK$6.8 billion (US$870 million) from The Hong Kong Jockey Club and its Charities Trust. Established as an independent “think-fund-do” tank for China, Asia and beyond, IoP is dedicated to promoting philanthropic thought leadership and enhancing sector capabilities at local, regional and global levels in collaboration with fellow funders. It seeks to provide an Asia-based platform bringing global stakeholders together to promote the betterment of societies everywhere.
About the Financial Services Development Council
The Financial Services Development Council (FSDC) was established in 2013 by the Government of the HKSAR as a high-level advisory body to engage the industry in formulating proposals to promote the further development of the financial services industry of Hong Kong and to map out the strategic direction for the development. In September 2018, the FSDC was incorporated as a company limited by guarantee. This change allows it to better discharge its functions through research, market promotion, and human capital development with greater flexibility. Keep up with the latest FSDC news by following our LinkedIn, X & YouTube.
About The Hong Kong Academy for Wealth Legacy (HKAWL)
The Hong Kong Academy for Wealth Legacy (HKAWL) is committed to invigorating a vibrant ecosystem for family offices worldwide by fostering knowledge sharing, capacity building, peer connection, and collaboration. It equips business and wealth owners and inheritors with knowledge in building enduring family legacies, while mobilising family capital to drive measurable social impact and facilitating a strategic philanthropy platform via its Impact Link initiative. By bridging wealth with purpose, HKAWL reinforces Hong Kong’s status as a principal centre for managing family wealth legacies. For more information, please visit our website. Follow us on LinkedIn and Instagram.
