Hong Kong’s limited partnership fund bill passed on July 9, but it faces many problems if it is to succeed, including inertia and potentially the city's controversial new security law.
Hong Kong could steal a march on Singapore and benefit from a rebound in China’s private equity activities if its limited partnership bill isn't held up in the legislative process.
Chinese and HK state investors may well expect private fund firms to use the new limited partnership regime, for which a proposal is imminent, says a lawyer involved in the process.
Hong Kong’s de facto central bank voices its support for the upcoming limited partnership regime as more details of the developing legal framework emerge.
Private equity professionals and the regulator appear divided over how fund managers should be licensed, potentially thwarting the city's aspirations to become a fund services hub.
Hong Kong may struggle to become Asia’s private equity hub despite tax incentives thanks to the city's deep-rooted issues, suggest investment industry executives.