[KPMG: Hong Kong Fund Tax Regime Undergoes Major Reform, Set to Attract Global Asset Management Firms] TechFlow News, July 22 – KPMG today released its latest report, *Hong Kong Asset Management and Private Equity Outlook*, highlighting reforms to Hong Kong's market fund tax exemption regime and carried interest tax concession regime. These changes are expected to attract a new wave of regional and global asset management firms to establish a presence in Hong Kong. Under the new regime, qualifying carried interest and performance fees will enjoy a 0% effective tax rate, both at the corporate level and for individual employees based in Hong Kong. Data shows that by 2025, Hong Kong's assets under management (AUM) are projected to grow 20% year-on-year to a historic high, with net fund inflows surging 193% year-on-year, approximately three times last year's figure. KPMG predicts that Hong Kong's total IPO fundraising for the year could reach approximately HKD 350 billion. As investor demand expands to include virtual assets and tactical trading products, the ETF market is expected to continue its growth.