The popularity of Limited Partnership Funds in Hong Kong

With the increasing trend of setting up limited partnership funds (LPF) in Hong Kong, there are wonders on the reason behind this phenomenon.

As a matter of fact, a new regulation regarding LPF HK is introduced by the government that helps save the application cost, thereby attracting investors to set up LPF. In this regard, it gives a competitive edge to LPF HK when comparing to Cayman Fund with similar cost. The flexible regulation is another reason that gives rise to LPF HK. Under the latest regulation, partners can enjoy a higher degree of freedom for contracts, encouraging more foreign investments in Hong Kong. In addition, the absence of capital requirement leads to the prevalence of LPF setup in Hong Kong since investors can decide on their capital injection according to their own preference.

There is a rapid growth of LPF HK thanks to the inexpensive cost and regulation with a high level of flexibility.