Investor Presentaiton
Implications for US Managers Marketing Private Funds
to Investors in Hong Kong & Mainland China
• Regulatory Capital Requirement
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Hong Kong requires a minimum amount of "liquid capital" to be maintained by the
regulated entity. This minimum is set at HK $100,000 (USD $12,820) or five percent
(5%) of "adjusted liabilities" and must be maintained at all times.
Managers have a biannual reporting requirement in July and February along with a
prompt updating requirement under certain conditions. Given the requirement that
regulatory capital be monitored at all times (and given that this is an area of particular
focus by the SFC), it would be advisable for a manager's finance team to review the
rules early to set up systems to enable daily monitoring of regulatory capital.
Morgan Lewis
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