
Core Viewpoint - The report by the Hong Kong Financial Development Council emphasizes the importance of alternative investment funds in supporting startups and enhancing Hong Kong's position as a leading global asset and wealth management center [1][2] Group 1: Importance of Alternative Investment Funds - Alternative investment funds play a crucial role in risk diversification and aiding early-stage companies in scaling up while driving the transformation of mature industries [1] - These investment tools have been widely adopted by family offices and ultra-high-net-worth individuals, proving to be practical wealth management tools for risk diversification [1] Group 2: Recommendations for Development - The report outlines six strategic recommendations to enhance the alternative investment landscape in Hong Kong, including: 1. Formulating a strategic and forward-looking policy vision [2] 2. Establishing a dedicated licensing system for private equity, venture capital, and private credit [2] 3. Modernizing the tax and regulatory framework to support alternative investment development [2] 4. Optimizing public funding to promote private equity, venture capital, and private credit growth [2] 5. Accelerating innovation growth through innovative financing models and technology transfer [2] 6. Incorporating specific alternative investment options into the Mandatory Provident Fund to enhance portfolio diversification [2]