Hong Kong has boosted its competitiveness as a private equity fund centre by confirming, this week, that it would review its tax treatment of carried interest as income.
Insurance firms are directly investing more in private equity in China, and their lower return expectations can help them win deals, say general partners.
Institutional-grade capital must be properly incentivised to participate in the Hong Kong government’s new HK$2 billion tech fund, says Denis Tse of the HKVCA.
Private equity firms are taking advantage of booming domestic stock markets to exit their Chinese investments, a forum is told. But many are regretting their hasty moves when valuations continue to soar.
It has long been unclear under what circumstances foreign private equity firms would need to register with the Hong Kong regulator. That situation may soon change.