【CityLinkers Business School】From Singapore to Hong Kong – What Are Hong Kong’s Advantages in Asset Management?
AIMA described this trend as “not an isolated event,” and even noted that at one globally leading asset management company, the number of employees in Singapore has declined while its Hong Kong team has grown several times over. For a time, the “Singapore-Hong Kong rivalry” has once again become a hot topic in Asia’s asset management circle.
For SME owners and high-net-worth individuals, this “great migration” of financial institutions may seem remote, but it is in fact closely tied to Hong Kong’s business environment and tax competitiveness.
It is believed that understanding the logic behind it can help businesses position themselves earlier in cross-border treasury and wealth succession.
Tax Reform Becomes a Key Bargaining Chip
In June this year, the Hong Kong government gazetted the Inland Revenue (Amendment) Bill 2026, further expanding the scope of tax concessions for diverse categories including hedge funds, private credit, and digital asset funds.
Performance fees of eligible funds may be exempt from profits tax; carried interest and performance fees of fund managers are also exempt from salaries tax upon meeting certain conditions.
The Secretary for Financial Services and the Treasury, Mr. Christopher Hui Ching-yu, stated in the Legislative Council that the enhancement measures can consolidate Hong Kong’s position as a leading asset and wealth management hub and create new business opportunities for Hong Kong’s asset and wealth management industry.
In contrast to Singapore’s recent more cautious approach to tax incentives, Hong Kong’s proactive “tax relief” moves naturally become an incentive for asset management companies to reassess their base of operations.
In 2025, Hong Kong’s asset and wealth management industry recorded total assets under management (AUM) of approximately HK$42.2 trillion (about US$5.4 trillion), a 20% year-on-year growth, hitting a record high. During the same period, Singapore’s AUM stood at approximately S$6.7 trillion (about US$5.2 trillion). Hong Kong’s growth rate and institutional flexibility are clearly demonstrating its asset management advantages.
As a “super connector” between Mainland China and the international community, Hong Kong benefits from the massive demand for mainland capital to go global, while also leveraging the common law system and free flow of capital, making it the preferred testing ground for funds to set up operations.
Professional Support Services are the Invisible Cornerstone
However, when funds decide where to locate, they look beyond tax rates and place greater emphasis on “soft infrastructure.”
From fund incorporation and compliance filing to annual audit and inspection, every step relies on the support of local professional business service providers.
Taking fund audits as an example, accounting firms in Hong Kong are required to practice in accordance with the Hong Kong Institute of Certified Public Accountants (HKICPA) and international standards, providing audit services for offshore funds in jurisdictions such as the Cayman Islands and the BVI, ensuring that financial statements meet regulatory and investor requirements.
It can be said that Hong Kong’s ability to retain funds is underpinned by a whole mature integrated service chain spanning legal, accounting, company secretarial, and other services.
In summary, hedge funds are “voting with their feet” and moving to Hong Kong, reflecting a combined contest among tax competitiveness, market depth, and professional support services. For enterprises looking to expand cross-border businesses or deploy offshore assets, it is becoming increasingly important to understand Hong Kong’s fund ecosystem and compliance requirements at an early stage.
The author suggests that before planning fund structures or treasury arrangements, enterprises should consult professional institutions with experience in fund audits and cross-border services, so as to tailor-fit solutions that will enable them to seize the initiative in this new landscape of Asian asset management.
Paxson Fung, Partner, CityLinkers Group
For original article, please visit: https://www.edigest.hk/2036284
