KPMG: Major Reform of Hong Kong Fund Tax System to Attract Global Asset Management Companies to Set Up

Odaily Planet Daily News KPMG today released its latest "Hong Kong Asset Management and Private Equity Outlook" report, pointing out that the reform of the fund tax exemption system and the carried interest tax concession system in the Hong Kong market is expected to attract a new wave of regional and global asset management companies to establish a presence in Hong Kong. Under the new system, qualifying carried interest and performance fees can enjoy an effective tax rate of 0% at both the corporate level and the individual level for staff based in Hong Kong.

Data shows that in 2025, Hong Kong's assets under management (AUM) grew by 20% year-on-year to a historical high, while net fund inflows during the year surged by 193% year-on-year, approximately three times that of last year. KPMG forecasts that Hong Kong's total IPO fundraising for the year is expected to reach about HK$350 billion. As investor demand expands into products such as virtual assets and tactical trading, the ETF market is expected to continue expanding. (KPMG)