Secretary for Financial Services & the Treasury Christopher Hui welcomed the passage of the Limited Partnership Fund Bill by the Legislative Council today.

The new ordinance establishes a limited partnership fund regime which enables funds to be registered in the form of limited partnerships in Hong Kong and will take effect on August 31.

Mr Hui said that as Hong Kong strives to develop into an international asset and wealth management centre, the new ordinance made impressive strides on this front in attracting investment funds to set up and operate in Hong Kong.

He added this would further promote the city’s private equity market and drive demand for local related professional services, and in turn strengthen Hong Kong's position as an international financial centre.

The limited partnership fund regime is an opt-in registration scheme administered by the Companies Registry. It is a common constitution form for private funds such as private equity funds.

Mr Hui explained that in a limited partnership, the general partner with unlimited liability in respect of the debts and liabilities of the fund and limited partners, who are essentially investors, with limited liability will have freedom of contract in respect to the operation of the partnership.