Moves afoot to boost PE market

Business | Stella Zhai 2 Dec 2019

Hong Kong aims to become an onshore hub for private equity funds by establishing a limited partnership regime for PE funds, according to Secretary for Financial Services and the Treasury James Henry Lau.

The government is reviewing the legal framework for the establishment and registration of PE funds to encourage more firms to set up funds locally, and expects to table the related bill before the Legislative Council in the first half of next year, Lau wrote in his blog.

He said total assets under management of 520 PE fund companies amounted to HK$1.2 trillion as of end-2018, the second-largest in Asia. Fifteen of the 20 biggest PE funds in the world have branches in the city, and Hong Kong acts as a springboard for mainland PE funds to overseas business.

The FSTB suggests that the limited partnership be a registration system, through which PE funds need to file an application to Companies Registry. Also, a limited PE fund must have a registered office in Hong Kong with at least two partners, including a general partner and a limited partner.

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