On July 22, KPMG released the latest “Hong Kong Asset Management and Private Equity Outlook” report, which indicates that the reform of the fund tax exemption system and tax relief system for ancillary equity is expected to attract a new round of regional and global asset management companies to enter Hong Kong. KPMG predicts that Hong Kong's annual IPO capital raising is expected to reach about HK$350 billion. The Hong Kong capital market is also showing strong momentum. Hong Kong regained the top position in global initial public offering capital in 2025, and the related upward trend continued until 2026. Currently, it still ranks among the top two in the world in terms of capital raising scale. The KPMG report also pointed out that ETFs will become an important growth engine for Hong Kong's asset management industry. In the first half of this year, the average daily turnover of Hong Kong ETFs reached HK$39.6 billion, an increase of 17% over the same period last year. Bao Diyun, head of KPMG's alternative investments department in the Hong Kong Special Administrative Region of China, said that by providing a traceable 0% actual tax rate on ancillary equity and performance fees, Hong Kong will further eliminate uncertainty in the current tax system and enhance the appeal of private equity, private credit and hedge funds to set up and operate investment platforms in Hong Kong. It is expected that the measures will attract more international asset managers to establish long-term investment teams in Hong Kong and use Hong Kong as an important base for managing high-value investment portfolios in Asia.

Disclaimer:Webull uses external vendor Google Translation Service for news translations where we endeavour to ensure these are correct, however, we recommend that you please double-check this information accordingly. Webull is not responsible for translation errors or issues.