KWM speaks to ICMA on China’s new securities law in an offshore perspective

From harbour tunnels to sports stadiums and retail focused commercial complexes, the public-private partnership (PPP) is a familiar and well-practised concept in Hong Kong.

Investors in private equity funds who are negotiating fund terms with fund managers can improve the transparency of the private equity industry and the commercial terms on which they invest by actively advocating for stringent terms and changes in market standards to protect their own interests. Pro-active efforts by investors during negotiations are essential to maintain high standards of investor protection.

The Securities and Futures Commission of Hong Kong (“SFC”) issued a circular on 17 February 2025, clarifying the requirements for closed-ended funds seeking a listing on the Stock Exchange of Hong Kong Limited (“SEHK”). This marks the latest initiative by the Hong Kong government to broaden distribution channels for private equity funds, following the launch of the New Capital Investment Entrant Scheme (as discussed in our previous article) and the expansion of the tax concession regime for funds and single-family offices.