Tax efficiency drives growth of (HK) hedge fund industry

Vasilopoulos believes Hong Kong's favourable tax regime has helped its hedge fund industry blossom. Top-level corporate tax is just 16.5%, but managers can legitimately structure their arrangements and reduce that significantly. This, she says, makes Hong Kong a highly efficient tax jurisdiction: "There are no local capital gains taxes, withholding taxes or foreign corporation taxes to act as a disincentive."

Hong Kong has more of a balance between a regulatory framework that is robust and protective of investors' interests, whilst also respecting the interests of business and allowing them to succeed commercially.