20 Apr 2020

Hong Kong introduces bill to revamp fund industry

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In the 2019-2020 Budget, the Hong Kong government announced that it was studying the establishment of a limited partnership regime for private equity funds.  Following a consultation exercise, a bill was gazetted in March 2020, which would allow funds in Hong Kong to be registered as limited partnership funds.

The concept of limited partnerships is not new, indeed, Hong Kong already has a Limited Partnership Ordinance.  However, this was enacted over 100 years ago and, whilst suitable for professional firms, it is ineffective to cater to the needs of the modern funds industry.  This new legislation is being introduced specifically to attract investment funds to Hong Kong and is expected to come into operation on 31 August 2020.  The Limited Partnership Ordinance will continue to apply for non-fund limited partnerships. 

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