Hong Kong considers including trading firms in major tax overhaul- FT

Hong Kong is considering modifications to its proposed tax legislation that could potentially grant benefits to proprietary trading firms, according to a report by the Financial Times. These firms, which include notable names like Jane Street and Citadel Securities, might be exempted from taxes on performance-related compensation, the FT reported, drawing on insights from two individuals familiar with the matter.

The authorities may either amend the current bill or issue guidance to clarify the qualification criteria for traders. Introduced in June, the bill aimed to attract more funds and family offices to establish operations in Hong Kong. The proposed changes reflect Hong Kong's efforts to compete with other financial hubs such as Singapore, New York, and Miami for financial talent.

However, not all proprietary trading firms may qualify for these benefits, according to the FT report. The Chinese territory is striving to bolster its standing as a global financial center following a period of stagnation.