Deloitte China Vice Chair Patrick Yip views HK's prospect as a hub for PE funds

Our Vice Chair, Patrick Yip, is featured in AsianInvestor‘s article dated April 24 on Hong Kong's new regime for limited partnership funds.

In the article, Patrick says Hong Kong could "make a head start and grab back market share" lost to Singapore for #privateequity investments, and the new regime could put Hong Kong in an advantageous position to compete for #privateequity investments post #COVID19.

Hong Kong's new rules are expected to come into effect at the end of August.  A consultation on the tax treatment of carried interest and fund managers' performance fees is underway. Patrick is hoping Hong Kong will follow the US's practice and consider carried interest as non-taxable long-term capital gains.

Given Hong Kong now has the "upper hand in controlling the virus" relative to Singapore, it is expected that China focused funds and those with exposure to Asia Pacific will be "very interested in moving to Hong Kong" once the regime is established. Patrick believes "money will probably find these regions (China and Asia Pacific) to be more of a safe haven than the more developed countries in the west".

The full article is available here (registration required)