Hong Kong's Financial Services and the Treasury Bureau said proprietary trading firms will not be included in the city's proposed tax concession changes, clarifying that businesses trading with their own capital do not qualify as a "fund" under the Inland Revenue Ordinance. That means remuneration earned through proprietary operations by firms such as Jane Street, Citadel Securities and Jump Trading cannot benefit from the 0% carried-interest tax concession proposed in the Inland Revenue (Amendment) (Preferential Tax Regimes for Funds, Family-owned Investment Holding Vehicles and Carried Interest) Bill 2026. The bill was introduced to the Legislative Council in June 2026 and is expected to have its second reading later this year. It expands a carried-interest framework first introduced in 2021 for private equity, extending the concession to a broader range of fund managers and family offices rather than limiting it to private equity alone. The bureau made clear, however, that trading firms deploying their own balance sheets are conducting a trading business, not fund management, and so remain outside the regime. The clarification comes as Hong Kong competes with Singapore and Dubai to attract global asset managers and family offices through tax and regulatory incentives. Under Hong Kong's standard 16.5% profits tax rate, the tax treatment of performance-based payouts can be significant, underscoring why the proposed 0% rate matters for eligible fund structures but not for proprietary trading businesses.