[KPMG: Hong Kong Fund Tax System Undergoes Major Reform, Set to Attract Global Asset Management Firms] Odaily Planet Daily News – KPMG today released its latest report, *Hong Kong Asset Management and Private Equity Outlook*, highlighting reforms to Hong Kong's fund tax exemption system and carried interest tax relief system. 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 system, eligible 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 reach a historic high, with net fund inflows surging 193% year-on-year, approximately three times last year's figure. KPMG forecasts that Hong Kong's annual IPO fundraising could reach approximately HK$350 billion. As investor demand expands to include products such as virtual assets and tactical trading, the ETF market is expected to continue its growth. (KPMG)