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Market Chatter: Hong Kong May Extend Tax Breaks to Trading Firms

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Hong Kong is considering extending proposed tax concessions to proprietary trading firms such as Jane Street and Citadel Securities, the Financial Times reported Tuesday, citing people familiar with the matter.

Authorities are reportedly considering changes that could exempt performance-related pay for staff at some trading firms from tax.

Officials could also issue guidance to clarify eligibility rather than amend legislation now before the Legislative Council, the report said.

The broader reforms would expand carried-interest tax treatment to a wider range of investments, potentially benefiting hedge funds, private equity, venture capital, private credit, and family offices, the report added.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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