If Hong Kong is to retain its status as the primary jurisdiction for alternative investments in Asia, there needs to be dialogue and agreement between policymakers, regulators, asset managers, investors and service providers. This is the conclusion of a report produced by the Alternative Investment Management Association (AIMA) in association with PwC Hong Kong. The report, ‘Alternatives in Hong Kong: Building on the City’s Strengths’, identifies six ‘pillars’ it deems to be critical to the continued growth of Hong Kong’s alternatives market. These comprise rule of law; tax system; regulatory environment; talent pool; capital markets; and proximity to mainland China. While Hong Kong is the dominant alts domicile in the Asia-Pacific market, it still lags some way behind New York and London on a global scale. According to Lisa Tsui, partner, asset and wealth management, PwC Hong Kong, there is still much more room to grow given the increase in wealth in China and the region. “Between 2009 and 2020, billionaire wealth in Mainland China grew twelve-fold,” said Tsui. “By comparison, billionaire wealth in the US and UK grew less than three times. This significant shift in global wealth is not yet reflected in the growth of Hong Kong’s alternative investments sector.” “Now is the time for all stakeholders with skin in the game to collaborate on how to strengthen Hong Kong’s strategic blueprint in order to attract – and retain – alternative asset managers to ensure Hong Kong continues to be a leading international financial centre in Asia,” said Phillip Meyer, chair, executive committee Hong Kong, AIMA. © 2022 funds global asia