Hong Kong Offshore Wealth Policy
Hong Kong is a great center for asset and wealth management and its government is determined to make it more efficient than ever. In his recent budget speech, Financial Secretary Paul Chan outlined his plans to help the wealth sector compete for offshore activities.
Hong Kong recently established two new fund structures namely the Open-Ended Fund Company or OFC and the Limited Partnership Fund or LPF. Since then, and consequently, the Hong Kong investment fund regime has become more comprehensive. To date, 11 such centers and more than 100 LPF have been established. The Hong Kong government plans to submit a legislative proposal in the second quarter of this year to allow foreign investment funds to resettle in Hong Kong to be registered as OFC or LPF.
The government is to provide grants to cover 70% of the expenses paid to local professional service providers for CFOs based in Hong Kong (or relocated there from other jurisdictions) over the next three years, subject to a cap of 1 Hong Kong dollar. million ($ 129,000) by OFC. The Securities and Futures Commission will announce the details in due course.
InvestHK, a government department that supports foreign companies wishing to locate in Hong Kong, and regulators in the jurisdiction, will offer one-stop support services to family offices wishing to establish a presence in Hong Kong.
Tax benefits are also in effect for carried interest issued by private equity funds operating in Hong Kong.