Hong Kong SFC reclassifies private-market funds as complex, raising retail thresholds

Hong Kong's SFC will reclassify authorized funds with 50%+ net asset value in private market assets as complex products, imposing stricter retail distribution rules. This regulatory tightening targets indirect exposure via feeder structures and may curb retail access to private credit/equity funds. The move signals increased scrutiny of liquidity and valuation risks in private markets.