John Tsang: Hong Kong as magnet for PE funds

"Our region has become a magnet for venture capital investment," said Tsang. "It is an ideal launching pad for private equity funds seeking opportunities in the Chinese mainland, with an open and internationalized market, the rule of law supported by an independent judiciary, and a low and simple tax regime."

The financial secretary stressed the importance of Hong Kong being the key renminbi offshore market. He said the government welcomes private equity funds setting up in Hong Kong, and launching renminbi products such as  funds., coming after Vice Premier Li Keqiang announced a range of initiatives to promote the city's renminbi activities last August.

"We are also attracting more financial talent from around the world. General partners, fund-of-funds managers, fund administrators, consultants, and other service providers all give quality support to the private equity industry," Tsang added.

Tsang also said he believes investors can reap rewards from the healthy appetite for initial public offerings. "The Hong Kong stock market, with its liquidity, attractive valuations and access to Asian investors, is a popular route for private equity-backed exits," said Tsang.

Last year, total capital management in private equity in Asia reached $360 billion, a 22 percent year-on-year increase on 2010's figures. Hong Kong ranked second for capital under management in Asia, accounting for 19% of the region's total.

Hong Kong has attracted a number of 375 private equity firms, with more than 250 of these companies having their regional headquarter in the city.

 

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• Topics
• Fundraising
• Investments
• Greater China
• Hong Kong (China)
• IPO
• Renminbi