Officials weigh exempting performance pay for proprietary traders to lure firms amid competition with Singapore and New York.
Hong Kong is considering expanding tax reforms to include proprietary trading firms like Jane Street and Citadel Securities, aiming to enhance its appeal as a financial hub. The proposed changes could exempt performance-related pay for traders, though relief may not apply universally across all firms.
The legislation, introduced in June, initially targeted funds and family offices. Officials are now debating whether to amend the bill or issue guidance to clarify eligibility for proprietary traders. The move follows years of subdued activity and intensifying competition with Singapore, which is also evaluating tax reductions to retain talent.
Proprietary trading firms, which trade with their own capital, differ from traditional asset managers. The reforms seek to attract high-end financial talent as Hong Kong vies with global rivals for dominance in the sector.