Open mobile menu
Make an enquiry
All services Fund and Asset Managers Asset Owners Debt, Capital Markets and Corporate

Asset classes & fund types

Impact funds Digital assets Energy and infrastructure Hedge funds Hybrid funds Real assets services Private debt and credit Open-ended funds Private equity and venture capital View full offering

Key services

Alternative investment fund manager (AIFM) services Anti-money laundering services Asset servicing CFO support services Data services Depositary services Fund administration services IQ-EQ Switch Know your customer services Outsourcing Portfolio monitoring and reporting Regulatory compliance services Technology services
Close

Asset Owners

UHNW and their family office

Multi Family office

Sovereign Wealth Funds

Insurance

Pension and endowments

View full offering

Services

Asset owner solutions Asset servicing Fund services Governance, risk management, compliance and reporting ESG services Banking and treasury Portfolio monitoring and reporting Corporate administration services CFO and middle office support services to asset owners Luxury assets Foundation and trust administration services
Close

All services

Aviation finance services Banking and treasury Collateralised loan obligations (CLOs) Corporate administration services Global entity management solutions Insurance Loan services Securitisation Special Purpose Vehicle (SPV) management services View full offering
Close
Home Insights Tax and business insights: Key takeaways from Hong Kong’s 2025 Policy Address

Tax and business insights: Key takeaways from Hong Kong’s 2025 Policy Address

19 Sep 2025

By Clare Chang, Managing Director, Greater China and Summer Ha, Manager, Tax Services

The Hong Kong 2025 Policy Address, published on 17 September 2025, outlines strategic initiatives designed to reinforce the jurisdiction’s position as a leading international financial centre, a preferred base for family offices, and a hub for fund and corporate services. This article provides a focused analysis of the most relevant tax, wealth management and business policy highlights, along with specific implementation measures that clients should note.

1. Tax incentives and concessions

  • Authority to introduce incentives: The Chief Executive and Financial Secretary are now empowered to introduce new tax concessions directly, provided they align with international standards. This allows Hong Kong to respond swiftly to global competition
  • Commodity trading: A half-rate tax concession will be introduced for eligible commodity trading firms. Legislative amendments are expected in the first half of 2026, creating a tax-efficient environment for commodity traders, shipping, logistics and financing service providers
  • Personal tax (salaries tax): From the 2026/27 assessment year, the child allowance will double to HK$260,000 per child in the first two years after birth (up from the previous one year). This supports family-friendly policies but impacts tax planning for higher-income earners

2. Family office and private wealth

  • Enhanced preferential regimes:
    • The Government will further strengthen the tax regimes for funds, single family offices and carried interest
    • Measures include improving the Qualified Foreign Limited Partnership (QFLP) mechanism with Qianhai and Shanghai to facilitate foreign capital inflows into Mainland private markets
    • The Hong Kong Investment Corporation (HKIC) will provide direct and co-investments into local private equity and hedge fund institutions, nurturing promising asset managers
    • The Securities and Futures Commission (SFC) is exploring the inclusion of real estate investment trusts (REITs) under mutual market access, expanding liquidity options for wealth managers
  • Cross-boundary wealth management: Accounts under Wealth Management Connect 2.0 surged from 25,000 to 110,000, enhancing Hong Kong’s trajectory toward becoming the world’s largest cross-boundary wealth management centre
  • Enhancement of new capital investment entrant scheme:
    • Minimum investment remains at HK$30 million
    • Cap for qualifying non-residential property raised to HK$15 million (from HK$10 million), with no transaction price threshold
    • Cap for residential property remains at HK$10 million, but the transaction price threshold is reduced to HK$30 million (from HK$50 million)

3. Fund and asset management

  • Carried interest and fund taxation: Preferential regimes for funds and carried interest will be further refined to maintain Hong Kong’s competitiveness in private equity and hedge fund management
  • REIT market development: The SFC will expand REIT access under mutual market mechanisms, boosting market liquidity and product diversity
  • Digital assets and tokenisation:
    • Project Ensemble by the Hong Kong Monetary Authority (HKMA) will launch tokenised deposits and money market funds
    • A new licensing regime is in development for stablecoin issuers, digital asset dealers and custodians, aligning Hong Kong with global regulatory standards
    • Cyberport will host a new AI Supercomputing Centre and the Government will tender a 10-hectare data facility cluster at Sandy Ridge to provide computational infrastructure for AI and fintech

4. Corporate and professional services

  • Headquarters economy:
    • In 2024, Hong Kong is home to more than 1,400 regional headquarters, including over 300 firms from Mainland China
    • Mainland enterprises expanding globally are encouraged to establish corporate treasury centres (CTCs) in Hong Kong for settlement, remittance, financing and tax-efficient treasury operations
  • Legal and dispute resolution hub:
    • Hong Kong will host the headquarters of the International Organisation for Mediation
    • The new Hong Kong International Legal Service Building will consolidate arbitration, mediation and legal service platforms
    • These initiatives strengthen Hong Kong’s appeal as a bilingual common law hub for cross-border dispute resolution and governance
  • AI and administrative efficiency:
    • An AI Efficacy Enhancement Team will coordinate AI adoption across government departments
    • Planned applications include AI for licensing approvals, traffic management, regulatory compliance reporting and digital corporate identity platforms
    • This push for AI-driven government services signals how corporate service providers may similarly integrate AI into accounting automation, compliance monitoring and company secretarial work

5. Market competitiveness and confidence

  • Global rankings: Hong Kong is now ranked third globally as a financial centre, third in overall competitiveness and fourth in talent competitiveness
  • Equity market growth:
    • The Hang Seng Index rose more than 20% year-to-date
    • Average daily turnover reached HK$250 billion (nearly double from last year
    • IPO fundraising surpassed HK$130 billion by August 2025, nearly six times higher than last year, placing Hong Kong first globally in IPO fundraising

Implications for clients

  1. Fund administrators: Prepare for ESG reporting and compliance frameworks aligned with new SFC and HKMA digital asset rules
  2. Family offices and private wealth managers: Enhanced tax regimes, revised New Capital Investment Entrant Scheme thresholds and REIT access offers new opportunities for structuring and portfolio diversification
  3. Corporate services providers: Rising demand for CTC structures, dispute resolution support and AI-enabled compliance tools will shape service delivery

Navigating Hong Kong’s transformation

The 2025 Policy Address blends tax reforms, financial market development and digital innovation to reinforce Hong Kong’s global competitiveness. With clear concessions, regulatory enhancements and infrastructure investments, Hong Kong is well positioned to remain Asia’s hub for funds, private wealth and corporate services.

How we can help

As a leading global investor services firm, IQ-EQ is uniquely positioned to help clients navigate these policy shifts and capture new opportunities. Our integrated platform offers support across fund administration, corporate services, tax advisory and compliance solutions.

Meet the authors

Clare Chang

Managing Director, Greater China

Hong Kong

+852 3180 0497
LinkedIn

Summer Ha

Manager, Tax Services

Hong Kong

LinkedIn
Subscribe to insights

Related insights

Insight

Asset Owners

A guide to private funds: why, when, and where

26 Jun 2024

Insight

Fund & Asset Managers

Japan’s private equity market: a beacon in Asia

17 Jun 2024

The state of digital adoption report
Insight

Fund & Asset Managers

The state of digital adoption report

17 May 2024

View more insights
Working with IQ-EQ has been seamless – you and your team understand our business, advise us appropriately, and handle your side of our collective partnership so that we can focus on making good investment decisions. Evan Gibson SVP, Merchants Capital

Get in touch with us today

We’re ready to listen.

Make an enquiry

Interested in joining our team?

We are always on the lookout for passionate people that possess IQ and EQ to join our growing team.

View job vacancies