Recognising that demand for asset and wealth management services are set to increase and that certain alternative asset classes are currently less attractive due to their taxation, the government of Hong Kong aims to boost its investment sector with a broadening of profit tax exemptions, with insurance-linked securities (ILS) one asset class in focus.
Hong Kong has developed a regulatory regime for the issuance of catastrophe bonds and ILS, but so far investment management of these assets has not been an obvious target for the ILS ambitions of the Special Administrative Region.
But Hong Kong already has a developed investment management industry and also numerous local and regional institutional investors that are active there, so with cat bonds and ILS an asset class that continues to grow in stature around the world, it’s perhaps no surprise they come in for some asset management focus in a location that has already done the hard work on establishing itself as a viable issuance domicile.
FULL ORIGINAL PUBLICATION HERE
