As of 1 April 2019, Hong Kong has a new profits tax exemption regime for investment funds operating in Hong Kong, regardless of their location of central management and control, their size or the purpose that they serve, to be able to enjoy tax exemption for transactions in specified assets subject to meeting certain conditions. A fund can also enjoy the tax exemption in connection with its investments in both overseas and local private companies. Ironically, this new exemption regime was actually triggered by concerns of the Council of the European Union.