Hong Kong’s funds industry is calling for a profit tax exemption for private credit assets, as the city is failing to attract a booming business and is losing out to Singapore because of its existing tax regime. The Unified Fund Exemption (UFE) regime allows most private-equity funds operating in Hong Kong to enjoy profit tax exemption provided that certain conditions are met, a move that is aimed at promoting Hong Kong as an asset-management centre. However, interest income on private credit in
