Business · Companies · 52 mins ago
Hong Kong and Singapore compete to attract global fund managers
Hong Kong and Singapore are competing for global hedge funds and asset managers to strengthen their roles as Asia’s leading financial centers.
Hong Kong proposed expanding tax breaks for eligible funds, including exemptions on investment gains and performance fees paid to fund managers.
The proposed changes would cover more types of funds and investments, and Hong Kong aims to complete the lawmaking process by year-end.
Singapore plans a similar tax exemption from the 2027 tax year, though the detailed rules are not yet set.
Singapore also plans to add investment management experts to a five-year visa and introduce a program to work with hedge funds that set up or expand there.
Both cities want the jobs and services that fund managers bring, including demand for legal, accounting, audit and other financial services.
Their rivalry is also extending to gold storage and trading infrastructure as investors and central banks seek more places to hold gold.
Some global firms may establish bases in both cities, which have different strengths in financial markets and asset management.
Hong Kong and Singapore are competing to attract global hedge funds and asset managers with tax incentives and plans to expand visa benefits.
Hong Kong proposed expanding tax breaks for funds and family offices, including exemptions for eligible hedge fund carried interest.
Singapore announced a similar exemption for performance-linked fees from qualifying fund management, planned to start in the 2027 tax year.
Singapore also plans to add investment management professionals to its five-year ONE Pass visa.
The competition is expanding beyond fund incentives to talent recruitment and gold storage and trading infrastructure.
- Who
- Hong Kong and Singapore, seeking to attract global hedge funds and asset managers.
- What
- They are competing with tax incentives and visa measures, among other efforts.
- When
- Hong Kong proposed its tax bill in June; Singapore announced its plan in August. The report was published on November 7, 2026.
- Where
- Hong Kong and Singapore.
- Why
- To attract global capital and financial professionals and strengthen their financial industries.
Hong Kong
Singapore
Tax incentives
Hong Kong
Hong Kong proposed broader tax exemptions for eligible fund investment returns and carried interest.
Singapore
Singapore announced a tax exemption for performance-linked fees from qualifying fund management.
Attracting talent
Hong Kong
Hong Kong is expanding tax benefits to draw global funds and asset managers.
Singapore
Singapore plans a hedge fund investment programme and to add investment management professionals to its five-year ONE Pass visa.
Financial strengths
Hong Kong
Hong Kong has strengths in links to mainland China’s capital markets and offshore yuan trading.
Singapore
Singapore is strong in foreign exchange and commodities trading and wealth management for global investors.
Hong Kong’s government introduced a bill to expand tax benefits for funds and family offices.
Singapore’s Monetary Authority announced plans for a tax exemption on performance-linked fees from qualifying fund management.
The vacancy rate for Grade A offices in Hong Kong’s Central district was 7.2%, according to JLL.
Hankyung published its report on the competition between Hong Kong and Singapore.
- Hong Kong tax bill
- Introduced in June; the government aimed to complete legislation by year-end.
- Hong Kong tax relief
- Proposed to apply from the 2025–2026 tax year.
- Singapore tax relief
- Planned to start in the 2027 tax year; detailed criteria were not yet finalised.
- Singapore visa
- Plans to add investment management professionals to its five-year ONE Pass.
- Hong Kong funds
- More than 2,000 limited partnership funds had been established.
- Offshore assets
- Hong Kong managed $2.9 trillion in offshore assets last year, according to BCG.
What people are saying
Many overseas clients are showing great interest in Hong Kong’s fund tax reform.
Some global managers are moving to establish bases in both financial centres.