Hong Kong Fund Tax Overhaul to Attract Global Asset Managers as AUM Grows 20%

According to KPMG, Hong Kong's fund tax system underwent significant reforms on July 23, introducing zero percent effective tax rates for qualifying carry interests and performance fees at both corporate and individual employee levels. The reforms are expected to attract a new wave of regional and global asset management companies to Hong Kong.

Hong Kong's assets under management (AUM) grew 20 percent year-over-year to record highs in 2025, while net fund inflows surged 193 percent. KPMG forecasts Hong Kong's full-year IPO fundraising could reach approximately HK$350 billion, with the ETF market expected to continue expanding as investor demand extends to virtual assets and tactical trading products.