KPMG said in its latest "Hong Kong Asset Management and Private Equity Outlook" report that changes to Hong Kong’s tax treatment for funds and carried interest are expected to attract a new wave of regional and global asset management firms to the city. Under the revised regime, eligible carried interest and performance fees can enjoy an effective 0% tax rate at both the corporate level and for relevant Hong Kong-based employees personally. The report also said Hong Kong’s assets under management rose 20% year over year in 2025 to a record high, while net fund inflows jumped 193% from a year earlier, roughly triple last year’s level. KPMG added that full-year IPO fundraising in Hong Kong could reach about HK$350 billion, and said the ETF market is likely to keep expanding as investor demand broadens to products tied to virtual assets and tactical trading.
KPMG said in its latest "Hong Kong Asset Management and Private Equity Outlook" report that reforms to Hong Kong’s fund tax exemption regime and carried interest tax concession are expected to bring in a new round of regional and global asset management firms.
Under the new framework, eligible carried interest and performance fees can enjoy an effective 0% tax rate at both the corporate level and the personal level for Hong Kong-based employees, according to the report.
KPMG said Hong Kong’s assets under management (AUM) in 2025 increased 20% from a year earlier to a record high. Net fund inflows for the year surged 193% year over year, or about three times the level recorded last year.
The firm also forecast that Hong Kong’s full-year IPO fundraising could reach about HK$350 billion. It added that the ETF market will continue to expand as investor demand extends to products such as virtual assets and tactical trading.
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