HONG KONG - "Private equity is an important component of Hong Kong's asset-management business. Our region has become a magnet for venture capital investment," said John Tsang, Financial Secretary of the Hong Kong government.

Tasng addressed the second Asia Private Equity Forum on Wednesday. "We are also attracting more financial talent from around the world. General partners, fund-of-funds managers, fund administrators, consultants, and other service providers all give quality support to the private equity industry," Tsang said.

Total capital under management in private equity in Asia has been rising steadily in recent years. It reached some $360 billion in 2011, a 22 percent increase over a year earlier.

Last year, Hong Kong ranked second for capital under management in the region, accounting for 19 percent of the total. Taken together, Hong Kong and the Chinese mainland manage over half of the total private equity in Asia.

Hong Kong is home to around 375 private equity firms, with over 250 of these companies having their regional headquarters in the city.

"Hong Kong is an ideal launching pad for private equity funds seeking opportunities in the Chinese mainland, with an open and internationalized market, the rule of law supported by an independent judiciary, and a low and simple tax regime," Tsang said.

Held in conjunction with the annual Asian Financial Forum, the Asia Private Equity Forum 2012 featured a range of senior speakers from across Asia's dynamic and increasingly private equity industry.

The forum attracted more than 200 participants and attendance, including representatives of several regions' sovereign wealth funds and the growing number of institutional investors active in Asia.