On 22 July 2026 — today — KPMG published its Hong Kong Asset Management and Private Equity Outlook, confirming that Hong Kong’s long-awaited reforms to its fund exemption rules and carried interest regime are set to prompt a significant influx of regional and global asset managers to the city. Furthermore, the timing could not be better: Hong Kong’s business expansion activity is accelerating, FDI is rising and investor confidence is at its highest level in years.
Record AUM, tripled fund inflows, and a 9% rise in business expansion
The numbers speak clearly. According to the Securities and Futures Commission’s latest survey, total assets under management in Hong Kong rose 20% to a record high in 2025. Moreover, net fund inflows nearly tripled during the year, recording a 196% increase. Additionally, the average daily turnover of ETFs in the first half of 2026 reached HKD 39.6 billion — a 17% increase year on year.
Alongside this, InvestHK reported that 413 companies either established new entities or expanded their operations in Hong Kong in H1 2026 — a 9% year-on-year increase. Furthermore, these firms are expected to contribute over HKD 53 billion in FDI, representing a 36% rise from the prior year, and generate more than 8,600 new jobs, up 8%.
What the fund tax reforms mean in practice
The reforms centre on two key areas. First, changes to fund exemption rules make it significantly easier for a wider range of fund structures — including private equity, real estate and hedge funds — to qualify for tax exemption in Hong Kong. As a result, managers who previously needed to structure offshore are now finding Hong Kong itself a viable and more cost-efficient domicile.
Second, the reform of the carried interest regime makes Hong Kong more competitive for fund managers and their senior teams. Consequently, this is expected to attract not only fund management firms but also the talent, legal infrastructure and advisory services that surround them.
US and European companies are leading the expansion
InvestHK specifically noted that US and European companies continued to expand their presence in Hong Kong during the first half of 2026. Therefore, this reinforces Hong Kong’s role as a superconnector — a platform where Western capital and expertise can access Asian markets through a trusted, internationally recognised legal and financial framework.
For Italian businesses, this creates a direct opportunity. Moreover, with Italy already maintaining approximately 200 active companies in Hong Kong and bilateral trade reaching EUR 7.2 billion in 2024, the foundation for deeper engagement is already in place.
Practical opportunities for Italian businesses
The combination of fund tax reforms, record AUM growth and rising business expansion activity creates concrete entry points across several areas:
Asset management and family office structuring
The reformed fund exemption and carried interest rules make Hong Kong a more attractive jurisdiction for structuring investment vehicles — particularly for Italian family offices and private investors with Asia-facing portfolios.
Regional headquarters
For Italian companies seeking a base to coordinate Asia-Pacific operations, Hong Kong’s legal framework, financial infrastructure and China connectivity continue to be difficult to replicate elsewhere in the region.
Financial and professional services
The influx of global asset managers creates downstream demand for legal, accounting, compliance and advisory services — areas where Italian professional services firms can establish a competitive presence.
How Kelmer Group can help
Successfully entering Hong Kong means more than identifying the opportunity. Furthermore, it requires understanding the right corporate structure, the applicable tax framework and the local regulatory environment — all of which are evolving rapidly in 2026.
Kelmer Group supports Italian businesses at every stage of their Hong Kong market entry: from company incorporation and tax advisory to regulatory compliance and business matching with vetted local partners.
📩 Contact our Hong Kong team at kelmer.com/hong-kong/