Hong Kong Fund Office Setup Guide (2025–2026)

Since 2025, Hong Kong has implemented a 0% tax rate on eligible fund performance fees. This policy is encouraging more asset managers, hedge funds, private credit funds and family offices to establish or expand their onshore substance in Hong Kong, driving stronger demand for Grade A offices in Central and Admiralty.

1. Substance requirements and the need for a physical office

To benefit from the 0% performance fee tax regime, funds are expected to demonstrate real operational substance in Hong Kong, including:

• Physical office space
• Investment and compliance teams based in Hong Kong
• Meeting rooms and adequate privacy
• IT and data infrastructure suitable for regulated activities

2. Why Central and Admiralty are preferred by funds

Fund managers typically choose Central / Admiralty because of:

• Proximity to banks, brokers, law firms and financial institutions
• Convenience for client meetings
• Brand image and credibility
• Transport connectivity
• Cluster effect from other financial tenants

Central Grade A Buildings

Central is Hong Kong’s core financial district and home to the city’s highest‑quality Grade A office buildings, preferred by asset managers, hedge funds, private credit funds and family offices. You can view the full list of Central office buildings here: Central Office Buildings – MOKU PROPERTY.

3. Regional cost dynamics

Rising Grade A rents, labour costs and structural expenses in other regional hubs have led some funds to reassess their long‑term location strategy. Combined with Hong Kong’s performance fee tax advantages, this has contributed to a gradual rebalancing of fund operations back into Hong Kong.

4. ETF growth and asset management expansion

The growth of Hong Kong’s ETF market has encouraged many asset management firms to increase their investment, compliance and operations headcount locally, further supporting demand for high‑quality office space in core districts.

Summary: Fund inflows and Grade A office demand

The combination of tax policy, substance requirements, regional cost dynamics, ETF growth and capital flows has made 2025–2026 an important turning point for Hong Kong’s fund industry. This environment is driving increased demand for Grade A office space in Central and Admiralty.

Need Central / Admiralty Grade A office market intelligence?

If your team is planning office setup, relocation or expansion in Hong Kong, we can provide:

• Latest Central / Admiralty Grade A vacancy data
• Current rent benchmarks and trend analysis
• Fund tenant patterns and building positioning
• Off‑market opportunities
• Practical guidance on office requirements for regulated activities

For enquiries about Grade A fund offices in Hong Kong, please contact MOKU PROPERTY.

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