New tax exemption seen drawing hedge funds to Hong Kong

South China Morning Post 3 June 2013
Lobby group says more funds and private equity firms can be expected to set up in the city because of the government’s proposed reforms.
More hedge funds and private equity firms will set up in the city because of a government reform plan and the internationalisation of the yuan, industry representatives say.
Philip Tye, chairman of the Hong Kong branch of the Alternative Investment Management Association, a hedge-fund lobby group, said he expected more funds to domicile their products here because Financial Secretary John Tsang Chun-wah in February proposed to expand tax exemptions for private equity funds and to allow fund products to be structured more flexibly. Tsang made the proposal in his budget speech.
“The government reform plans, as well as the internationalisation of the yuan, are going to make Hong Kong more attractive to many hedge funds,” Tye said.
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