Strong optimism for private equity, Paul Chan says

Hong Kong, home to over 650 private equity firms and assets under management standing at around US$230 billion (HK$1,794 billion), is open for business, innovation-focused, investor-friendly, and ready to lead in Asia's private markets, Financial Secretary Paul Chan Mo-po said.

He highlighted the city's compelling investment opportunities in hard technology, such as artificial intelligence, biotech, and new energy, as well as strong capital inflows and deep liquidity in the asset and wealth management sector, rapid growing family office ecosystem, and a substantial private capital base, which will make Hong Kong a leading-international financial center and premier private capital hub in the region.

Chan said Hong Kong offers fundamental support, including strategic enterprise attraction, patient capital via the Hong Kong Investment Corporation, enhanced tax regimes, family office facilitation, modernized listing rules, and encouragement of alternative asset fund listings. 

While acknowledging geopolitical, technology shifts, and climate risks will pose challenges ahead of 2026, he stressed that Hong Kong's institutional strengths, national backing, and targeted initiatives will enable the private equity and venture capital community to convert uncertainty into lasting value, embodying the agility, stamina, and transformation symbolized by the upcoming Year of the Horse.

Gloria Leung