HONG KONG ASSET MANAGEMENT: KPMG Sees More Firms Entering After Tax Reforms

KPMG released its latest Hong Kong Asset Management and Private Equity Outlook report on Tuesday, saying reforms to Hong Kong’s fund tax exemption and carried interest tax relief regime are expected to attract a new wave of regional and global asset managers to the city. According to Odaily, under the new system, eligible carried interest and performance fees can receive an effective 0% tax rate at both the corporate level and the individual level for staff based in Hong Kong. The report said Hong Kong’s assets under management rose 20% year on year in 2025 to a record high, while net fund inflows during the year jumped 193% year on year, or about three times last year’s level. KPMG also forecast that Hong Kong’s full-year IPO fundraising could reach about HK$350 billion, and said the ETF market will continue to expand as investor demand extends to virtual assets and tactical trading products.