Business Daily Media

The Times Real Estate

.

Asset managers eyeing investment opportunities in growing Chinese Mainland market, says KPMG

Hong Kong government continues to introduce new regulations to build a healthier and more stable asset management ecosystem

HONG KONG SAR - Media OutReach Newswire - 29 March 2024 - Recent growth in the institutional investor segment in the Chinese Mainland is providing an opportunity for global asset managers that have experience in this area.

The Chinese Mainland remains a huge economy with massive and evolving investment opportunities.

The Asset Management and Private Equity Outlook considers the prospects for the asset management and private equity sector, from broad issues including regulatory developments to key topics like capital markets, virtual assets and family offices.

Andrew Weir, Global Chair, Asset Management, KPMG International says: "The domestic asset management market in China continues to mature, mostly driven by the retail sector. Recent growth in the institutional investor segment in the Chinese Mainland is also providing an opportunity for global asset managers that have experience in this area. Amid the uncertain global environment, a wait-and-see approach has sometimes been adopted, but now firms should also consider the upside opportunity compared to the downside risk of waiting."

The environment for IPOs in Hong Kong and other markets has a significant impact on the performance of the asset management sector, particularly private equity. 2023 was a quiet year for IPOs in terms of number and funds raised across all major stock markets globally. Looking ahead, interest rates may continue to come down this year. This will benefit the IPO market by improving liquidity and valuations, although the timing and pace of such rate cuts remains a matter for debate. While 2024 is unlikely to see a major resurgence in IPOs in Hong Kong or other markets, KPMG is cautiously optimistic in expecting that this year could mark the beginning of a longer term recovery in activity.

Hong Kong's favourable tax regime is one of the key pillars of its success as a global asset management hub, but the city must ensure that its advantages remain competitive with other locations. The Family Office incentive introduced last year shows how well-designed and promoted incentives can be successful in attracting investment to Hong Kong. However, fund managers may face difficulties in fulfilling the requirements of some other incentives, such as the Tax Concession for Carried Interest. The Government has announced that it is currently reviewing the incentive and it is anticipated that changes will be made to the regime in order to make it more in line with industry's expectation.

Darren Bowdern, Head of Asset Management Tax, ASPAC, KPMG China says: "Removing the uncertainty around some of the current incentives is the most important step. More clarity about the scope of the incentives available and the conditions that need to be satisfied will also address concerns of global asset managers about domiciling funds and SPVs in Hong Kong."

While the external environment remains challenging, the Hong Kong government has continued to make efforts to build a healthier and more stable asset management ecosystem. It has introduced a variety of new regulations such as new rules, guidance and circulars around virtual assets. The introduction of the licencing regime for virtual assets trading platforms will move the trading of virtual assets into a regulated space, which will bring about more stability, certainty and investor protection. With its proactive approach to regulation, Hong Kong has successfully established itself as a hub in the virtual assets space, and it is expected that more regulatory developments will follow in 2024.

There have also been a range of incentives specifically aimed at encouraging family offices and high-net-worth individuals, including the Family Office tax incentive policy and the Capital Investment Entrant Scheme (CIES). These incentives have been widely welcomed by asset managers in Hong Kong and have generated a lot of interest from ultra-high-net-worth families, especially from the Chinese Mainland. Hong Kong is already an attractive destination for family offices, given its competitive tax regime, finance professionals and variety of investment products. While 2023 saw a lot of interest from clients in learning about the structure and requirements, it is expected that more family offices will be established in the year ahead as UHNWIs put their plans into action.

Vivian Chui, Head of Securities and Asset Management, Hong Kong, KPMG China says: "Looking at the longer term outlook, the Chinese Mainland remains a huge economy with massive and evolving investment opportunities. This will continue to be to Hong Kong's advantage when the global economy recovers and activity in the asset management sector picks up again. Hong Kong should be making the effort to emphasise its attractions as a global hub for asset management to be ready to capture the opportunities when growth resumes."


Hashtag: #KPMGChina

The issuer is solely responsible for the content of this announcement.

About KPMG China

KPMG China has offices located in 31 cities with over 15,000 partners and staff, in Beijing, Changchun, Changsha, Chengdu, Chongqing, Dalian, Dongguan, Foshan, Fuzhou, Guangzhou, Haikou, Hangzhou, Hefei, Jinan, Nanjing, Nantong, Ningbo, Qingdao, Shanghai, Shenyang, Shenzhen, Suzhou, Taiyuan, Tianjin, Wuhan, Wuxi, Xiamen, Xi'an, Zhengzhou, Hong Kong SAR and Macau SAR. Working collaboratively across all these offices, KPMG China can deploy experienced professionals efficiently, wherever our client is located.

KPMG is a global organization of independent professional services firms providing Audit, Tax and Advisory services. KPMG is the brand under which the member firms of KPMG International Limited ("KPMG International") operate and provide professional services. "KPMG" is used to refer to individual member firms within the KPMG organization or to one or more member firms collectively.

KPMG firms operate in 144 countries and territories with more than 236,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. Each KPMG member firm is responsible for its own obligations and liabilities.

KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.

In 1992, KPMG became the first international accounting network to be granted a joint venture licence in the Chinese Mainland. KPMG was also the first among the Big Four in the Chinese Mainland to convert from a joint venture to a special general partnership, as of 1 August 2012. Additionally, the Hong Kong firm can trace its origins to 1945. This early commitment to this market, together with an unwavering focus on quality, has been the foundation for accumulated industry experience, and is reflected in KPMG's appointment for multidisciplinary services (including audit, tax and advisory) by some of China's most prestigious companies.

News from Asia

"Relaxing Jiaxing" Creative Naming Journey Launches, A Hong Kong Influencer Lead the Way in Cultural Tourism

HONG KONG SAR - Media OutReach Newswire - 7 May 2025 - Recently, a well-known travel influencer from Hong Kong was invited by Jiaxing Municipal Bureau of Culture and Tourism and Putike Internation...

Amari Bangkok: Gateway to the Vibrant Heart of the City, Creating Unforgettable Experiences at Every Moment

BANGKOK, THAILAND - Media OutReach Newswire – 7 May 2025 - Located in the dynamic heart of Thailand's capital, Amari Bangkok is an upper-upscale luxury hotel managed by ONYX Hospitality Group — a ...

INIU Expands European Footprint Through Strategic Partnership with SFR

PARIS, FRANCE - Media OutReach Newswire - 7 May 2025 - Powering ahead with innovation, INIU, a globally trusted brand in portable power solutions, is proud to bring its products to even more Fren...

Rhenus signs MoU with Inland Waterways Authority of India (IWAI)

MUMBAI, INDIA - Media OutReach Newswire - 7 May 2025 - Through the Memorandum of Understanding (MoU), leading global logistics service provider, the Rhenus Group, will operate barge services in va...

INIU Partners with Boulanger to Launch Innovative Charging Products in France

PARIS, FRANCE - Media OutReach Newswire - 7 May 2025 - INIU has expanded its partnership with France's leading electronics retailer Boulanger, making its latest innovations—MagPro Slim 5K/10K, P...

New Report Highlights Need for Ecosystem Approach to Help MSMEs in Southeast Asia Adopt More Sustainable Practices

Report by the Centre for Impact Investing and Practices (CIIP) finds growing momentum among micro, small, and medium enterprises (MSMEs) in Southeast Asia to adopt sustainability practices...

His Highness Shaikh Mohammed Bin Sultan Bin Hamdan Al Nahyan acquires Warrants of Diginex Limited to Purchase 6.75 Million Ordinary Shares of Diginex for USD$300 million via a Private Transaction

LONDON, UNITED KINGDOM - Media OutReach Newswire - 7 May 2025 - Diginex Limited ("Diginex") (NASDAQ: DGNX), a global leader in ESG sustainable RegTech, is pleased to announce that His Highness Sha...

CTF Life Title-Sponsored "Fencing Plus" Training Programme by Kai Tak Sports Initiative Officially Kicks Off

Nearly 800 Students Participate in the Selection to Become Future World Champions HONG KONG SAR - Media OutReach Newswire - 7 May 2025 - Title-sponsored by CTF Life and organised by Kai Tak Sport...

Chubb Life Launches "Health Up" Insurance Plan to Foster a Wellness Lifestyle for the Tech-savvy Generation

HONG KONG SAR - Media OutReach Newswire - 9 May 2025 - Chubb Life Hong Kong today announced the launch of Health Up Insurance Plan (Health Up), a digital insurance plan aimed at promoting and faci...

F88 officially becomes a public company, paving the way for UPCOM listing

HANOI, VIETNAM - Media OutReach Newswire - 8 May 2025 - On May 6, F88 Investment Joint Stock Company (F88) was officially recognised as a public company, marking a major milestone in its growth an...

UNSW startup accelerator offers $200K to the next generation of Australian deeptech unicorns

UNSW Founders, Australia’s most recommended startup accelerator, has partnered with fund manager Luminary Partners to invest $200,000 each into 18...

The Future Is Now: AI Modernization Is Reshaping How Business Gets Done

The present business environment imposes stronger requirements on Australian organizations to match the fast-paced digital-first economy requireme...

Businesses losing an average of $493k from data integrity flaws

Managing data responsibly and effectively for the AI age can give organisations a strong competitive advantage, but many are failing to harness th...

AI shopping disruptor Zyft raises $7.5M to lead the next gen of retail tech

Zyft appoints new CEO, Richard Stevens, to lead the latest Waller Group success story, valued at $30 million SYDNEY, 28 April 2025: Zyft, the lea...

Little known law offers savvy Kiwis the opportunity to supercharge their retirement savings

A little-known legal amendment is being leveraged by savvy New Zealanders and expat Brits to supercharge their retirement savings. Not many peop...

Cutting edge AI technology designed for doctors to reduce patient wait times launched in NZ

New Zealand specialist doctors now have access to Artificial Intelligence technology to help reduce patient wait times and experts say it could be...

Sell by LayBy