TechFlow news, July 22: KPMG released its latest "Hong Kong Asset Management and Private Equity Outlook" report today, noting that reforms to the Hong Kong market's fund tax exemption regime and carried interest tax concession regime are expected to attract a new wave of regional and global asset management companies to establish presence in Hong Kong. Under the new regime, eligible carried interest and performance fees can enjoy an effective tax rate of 0% whether at the corporate level or at the individual level of employees stationed in Hong Kong.
Data shows that Hong Kong's Assets Under Management (AUM) in 2025 grew by 20% year-on-year to a historical high, with net fund inflows during the year surging 193% year-on-year, approximately three times that of last year. KPMG predicts that Hong Kong's full-year IPO fundraising amount is expected to reach about HK$350 billion, and as investor demand expands to products such as virtual assets and tactical trading, the ETF market will continue to expand.
