Hong Kong eyes tax breaks for funds holding crypto and precious metals

Hong Kong wants to widen the tent on fund tax breaks. The government is proposing to extend preferential tax treatment to funds that put money into digital assets and precious metals, according to tokenpost.com. Loans and private credit would also join the eligible list.

The package goes beyond the asset menu. It would cover carried interest and stretch the exemption system to large funds with a single investor — a structure that until now has sat outside the sweet spot of Hong Kong's fund incentives.

Timing hinges on the legislature. The measures could kick in from the 2025-26 year of assessment if an amendment bill clears the chamber. Until then, it's a plan on paper.

The rewrite matters because Hong Kong has spent the last few years pitching itself as a crypto-friendly hub while keeping its tax perks narrowly drawn. Widening eligible investments and fund structures gives managers more room to park digital asset and metals strategies in the city without tripping over the rules.

Gold gets its own lane too. Hong Kong's central gold clearing and settlement system is slated for a formal launch in the first quarter of 2027, per tokenpost.com, with trial operations having started in July 2026. The system is built to clear over-the-counter gold trades done to international standards.

Put the two together and the pitch is clear: friendlier tax treatment up front, plus infrastructure to settle physical gold trades later. What's still missing is the bill — and a vote.