Hong Kong and Singapore property shrug off fund tax breaks

The long-standing rivalry between Asia’s two leading financial centres is heating up. As Hong Kong and Singapore compete harder for investment talent, tax incentives for fund managers have emerged as the new battleground.A government bill working its way through Hong Kong’s Legislative Council would result in sweeping changes to tax rules on carried interest. The legislation, which is expected to be approved later this year, would offer preferential tax treatment to a wider range of alternative investment groups.The move by Hong Kong prompted a swift response from Singapore. On August 19, Singapore’s central bank announced a package of measures designed to enhance the appeal of the asset management industry, including a proposal that would exempt a share of profits made by fund managers when they deliver strong returns for investors in qualifying funds.