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While major US stock indices have recently hit record highs, the market now faces new political uncertainty. Due to Congress's failure to reach agreement on healthcare and other spending issues, the US federal government has officially shut down on October 1st, marking the first shutdown in nearly seven years since 2018. This shutdown will force hundreds of thousands of federal employees into furlough and may delay the release of key economic data including non-farm payrolls and inflation figures. This will undoubtedly challenge the Federal Reserve's future interest rate decisions, forcing them into a "blindfolded" decision-making situation and adding new risks to the market.

Before the government shutdown, markets widely expected the Fed to cut rates again later this year. However, the contradictory situation of "weak employment, high inflation," compounded by the economic impact of this political deadlock, makes the future policy path even more uncertain.

In sharp contrast to US market uncertainty, the Hong Kong stock market has performed exceptionally well. The Hang Seng Index rose over 7% cumulatively in September, hitting a four-year high at one point. The enthusiastic market atmosphere is mainly driven by a number of positive factors:

World's Top IPO Market: Hong Kong's Initial Public Offering (IPO) market is exceptionally hot. In the first half of 2025, Hong Kong's IPO fundraising reached HK$107.1 billion, surging seven-fold year-on-year and ranking first globally. Entering the third quarter, the new listing boom continues - on September 30th alone, three companies went public simultaneously, with Zijin Mining's spun-off subsidiary Zijin Gold International raising approximately HK$25 billion. The hot IPO market has attracted numerous companies queuing for listings, injecting strong vitality into the stock market.

International Capital Inflows: A notable trend is the continuous flow of international capital, including from the United States, into the Hong Kong market. Hong Kong's Financial Secretary Paul Chan recently stated that he has observed considerable funds coming from the US and expects this momentum to continue. Market analysts believe that as global investors seek to diversify from highly-valued US stocks and reassess Chinese assets, Hong Kong stocks are particularly favored due to their valuation advantages and unique position as offshore RMB assets.

Private equity now commands 28% of family office portfolios, combining fund, direct, and venture capital investments (BNY Wealth 2025 Report). This represents a fundamental portfolio restructuring, not merely tactical rebalancing.

Public equity allocations have plummeted to just 15% overall—a 28% year-over-year decline. Offices managing over $1 billion hold only 19% in public markets (BNY Wealth 2025 Report).

AI has become the decade's defining investment theme. 69% of billion-dollar family offices plan to increase private equity allocations, with AI opportunities driving much of this enthusiasm (BNY Wealth 2025 Report).

Real estate maintains strategic importance for cash flow and inflation hedging (BNY Wealth 2025 Report). Cryptocurrency gains mainstream acceptance following regulatory clarity in key jurisdictions (BNY Wealth 2025 Report).

Next-generation family members drive ESG integration beyond screening to active implementation. They view sustainability as fundamental to wealth preservation (AgilLink Emerging Trends).

Thematic investment frameworks capture structural trends while addressing global challenges. Families analyze long-term changes, assess cyclicality, evaluate profitability, and examine theme convergence (Mercer 2025 Outlook).

Impact investing reflects both values and returns. Families implement multi-manager, multi-theme strategies to capture opportunities while maintaining performance standards (Mercer 2025 Outlook).

32% of family offices prioritize expanding investment offerings, reflecting the growing universe of investable assets (BNY Wealth 2025 Report).

Talent acquisition priority increased 50% over twelve months. Offices compete for expertise in direct investing, technology, and ESG integration (BNY Wealth 2025 Report).

16% identify technology advancement as primary focus, driven by AI opportunities and portfolio complexity management needs (BNY Wealth 2025 Report).

Next-generation involvement reshapes strategies. 16% prioritize younger family members in governance and investment decisions, shifting from preservation to purpose-driven approaches (BNY Wealth 2025 Report).

Direct investment capabilities align with in-house expertise, enabling greater control over outcomes (BNY Wealth 2025 Report).

The WMI Global-Asia Family Office Summit 2025 was held on 29–30 September 2025 at Conrad Singapore Marina Bay, organized by the Wealth Management Institute (WMI). The summit is widely recognized as a leading regional platform for family offices, principals, industry advisors, and thought leaders from Asia, the United States, Europe, and beyond.

At the WMI Global-Asia Family Office Summit 2025, Chee Hong Tat (Deputy Chairman of MAS and Minister for National Development) announced new measures to make Singapore’s family office tax incentives more accessible and efficient.

Key new tax incentive measures:

Opening Remarks by Mr. Chee Hong Tat (Minister for National Development, and Deputy Chairman of the Monetary Authority of Singapore)
https://www.mas.gov.sg/news/speeches/2025/speech-by-deputy-chairman-at-wmi-global-asia-family-office-summit-on-29-september-2025

The Bank of New York Mellon Wealth, 2025 Investment Insights for Single Family Offices
https://info.wealth.bny.com/rs/636-GOT-884/images/BNYW_2025_Investment_Insights_Single_Family_Offices_Report.pdf

Mercer, Single-family offices 2025 outlook
https://www.mercer.com/insights/investments/market-outlook-and-trends/single-family-offices-outlook/