Broadening investor choice in Hong Kong's private markets

February 2025

The global interest in broadening investor access to private asset investments has been on the rise over the past few years, driven by investors’ evolving demands for diversification opportunities and higher yields beyond traditional markets. In Hong Kong SAR, the funds industry has also been advocating to broaden retail access to private markets, which so far is mainly available to individual Professional Investors (PIs), who have a portfolio of at least HK$8 million.

On 17 February 2025, the Securities and Futures Commission (SFC) released its ‘Circular on listed closed-ended alternative asset funds’, clarifying its regulatory requirements to facilitate the listing of closed-ended alternative asset funds on the Stock Exchange of Hong Kong Limited (SEHK). This circular and future industry initiatives are expected to broaden investor choice and bolster market development in the private investment landscape.