Hong Kong plans to waive tax on investment gains from cryptocurrencies and other alternative assets for hedge funds, private equity funds and certain family offices as the city strives to enhance its appeal as a wealth management hub.

HONG KONG (Reuters) -- Hong Kong plans to waive tax on investment gains from cryptocurrencies and other alternative assets for hedge funds, private equity funds and certain family offices as the city strives to enhance its appeal as a wealth management hub.

Hong Kong has sought to position itself as a centre for crypto businesses. Bitcoin has surged since Donald Trump won the US presidential election this month, with investors betting his return to the White House will boost the crypto industry after he championed it on the campaign trail.

Hong Kong has initiated plans to exempt private equity funds, hedge funds, and billionaires from paying taxes on realized gains from crypto investments. The policy changes could see Hong Kong emerge as a competitive rival against Singapore and Switzerland in the race for the top offshore financial hub.