How HK Cos. Can Expand Consulting Services in Mainland China and Unlock New Wealth Management Opportunities?

Expanding into Mainland China’s Consulting and Wealth Management Sector via Hong Kong Opportunities and Strategies

In today's globally integrated economy, an increasing number of international enterprises are choosing to enter the mainland Chinese market through Hong Kong-based entities-particularly in the consulting and wealth management sectors. As one of the world’s leading financial centers, Hong Kong offers a unique legal framework, a favorable tax regime, and close economic ties with the mainland, making it the preferred base for many foreign companies seeking to operate across the Asia-Pacific region.

With the gradual liberalization of China’s financial markets and the continuous advancement of the Guangdong-Hong Kong-Macao Greater Bay Area initiative, operating consulting businesses in mainland China via Hong Kong-based firms is opening up new growth opportunities for the wealth management industry.

I. Unique Advantages of Hong Kong Companies

Firstly, Hong Kong ranks among the freest economies globally, offering streamlined company registration procedures, relatively low operational costs, and a low tax environment-all highly attractive for cross-border consulting firms. According to data from the Inland Revenue Department IRD of Hong Kong in 2025, the profits tax rate stands at 16.5%, significantly lower than that of most Western countries. Additionally, there is no value-added tax or sales tax, substantially reducing corporate tax burdens.

Secondly, Hong Kong and mainland China have established multiple cooperation mechanisms, such as the Cross-boundary Wealth Management Connect scheme. Since its expansion in 2025, this initiative has broadened pilot programs and investment quotas, enabling residents of Hong Kong and Macao to purchase financial products issued by mainland institutions through bank channels. This two-way capital flow mechanism provides consulting firms with diverse service scenarios, especially in asset allocation, tax planning, and family office services.

Moreover, Hong Kong’s internationally oriented linguistic and cultural environment facilitates the attraction of global talent and fosters effective communication with overseas clients. For firms providing high-end consulting services, this represents a significant competitive edge.

II. The Vast Potential of the Mainland Market

In recent years, the number of high-net-worth individuals HNWIs in mainland China has continued to grow steadily. According to the Hurun Report’s 2025 White Paper on Wealth Management Among China’s High-Net-Worth Individuals, as of the end of 2025, there were over 2 million households in mainland China with net assets exceeding RMB 10 million, and approximately 3 million households holding investable assets above RMB 6 million.

This group demonstrates growing demand for wealth management and diversified asset allocation. At the same time, their expectations regarding service quality, compliance standards, and personalization are rising. While domestic financial institutions possess certain capabilities, they still have room for improvement in terms of global perspective, product diversity, and customized solutions.

Hong Kong-based firms, with their international resources and professional expertise, can offer mainland clients consulting services with a more global outlook. Taking family offices as an example, an increasing number of mainland entrepreneurs are focusing on intergenerational wealth transfer and risk isolation strategies. In this regard, Hong Kong’s mature trust system and robust legal protections provide safer and more efficient solutions for mainland clients. Through Hong Kong-based consulting firms tailored to local needs, comprehensive services-including tax optimization, estate planning, and offshore structure design-can be developed and delivered effectively.

III. Business Models and Implementation Strategies

To successfully conduct consulting operations in mainland China via Hong Kong-based entities, companies must establish a clear business model and practical implementation path.

Firstly, licensing remains a key issue. Although Hong Kong companies cannot directly hold financial licenses in mainland China, they can collaborate with licensed local institutions or set up joint ventures. For instance, partnerships with mainland securities firms, fund companies, or private banks can involve providing research support, product design recommendations, or client training. Such approaches help circumvent regulatory restrictions while expanding customer reach.

Secondly, brand building and trust establishment are crucial. Given the knowledge gap among some mainland clients regarding foreign institutions, long-term brand development and consistent delivery of professional services are essential to gain market acceptance. Activities such as hosting seminars, publishing research reports, and participating in industry associations can enhance visibility and credibility.

Thirdly, leveraging digital tools is increasingly important. The wealth management industry is becoming increasingly reliant on technology to improve efficiency. Tools such as AI-driven asset allocation models and blockchain-based transparency systems not only enhance service quality but also assist foreign consulting firms in meeting mainland regulatory requirements.

IV. Policy Support Driving Growth

In recent years, China has continued to open its financial markets, creating more opportunities for foreign institutions. In July 2025, the People's Bank of China and the China Securities Regulatory Commission jointly issued a notice aimed at further facilitating foreign institutional investors’ access to China’s bond markets. The policy clarifies plans to simplify investment procedures and expand the range of eligible instruments, which will attract more foreign capital inflows and create additional business scenarios for consulting firms.

The coordinated development of the Greater Bay Area also offers Hong Kong-based firms a more integrated regional platform. Areas such as Qianhai in Shenzhen and Nansha in Guangzhou have introduced preferential policies targeting foreign institutions-including tax incentives and office space subsidies-greatly lowering the cost of market entry.

Conclusion

In summary, conducting consulting activities in mainland China through Hong Kong-based entities aligns with current global market trends and presents new growth opportunities for the wealth management industry. With the expanding HNWI population and continuously improving policy environment, the next few years will represent a critical window for foreign consulting firms to establish a foothold in the Chinese market.

By clearly defining their positioning, ensuring regulatory compliance, and emphasizing localized strategies, international consulting firms can stand out in this emerging blue ocean and achieve sustainable growth.