Hong Kong will strengthen its role as a functional node for the Belt and Road (B&R) Initiative by deepening ties with ASEAN and Middle East markets while exploring opportunities in Central Asia, South Asia, and North Africa, Financial Secretary Paul Chan Mo-po announced on Wednesday.
Chan reported that the city has successfully concluded negotiations on investment agreements (IAs) with Qatar, Bangladesh, and Peru, with ongoing discussions to establish new IAs with Saudi Arabia and Egypt.
With a total of 55 Comprehensive Avoidance of Double Taxation Agreements (CDTA) currently in place, including recent agreements with Jordan, Maldives, Norway, and Rwanda, Chan reaffirmed the government's commitment to expanding this network to attract more international businesses.
He added that the government will continue reaching out to relevant authorities in B&R regions to seek project matching opportunities for Hong Kong enterprises and professional services.
To further promote the city’s professional services, outbound missions and project matching activities will be organized, while external organizations will be encouraged and assisted to stage roadshows in Hong Kong.
Building on last year's Policy Address, the government has unveiled plans for preferential policy packages aimed at promoting investment and industry development.
Chan explained that a preliminary framework has been formulated, considering various factors such as industry type, technology level, and the potential economic contributions of enterprises to Hong Kong’s economy.
The proposed policy tools include land grants, financial subsidies, and tax incentives, with preferential tax rates potentially set at half-rate or 5 percent. An amendment bill is anticipated to be introduced this year.
Recognizing that tax policy is a key component of economic competitiveness, Chan announced he will establish and chair a new Advisory Committee on Tax Policy, which will gather views from the commercial, industrial, and professional sectors.
Additionally, the government will leverage its Task Force on Supporting Mainland Enterprises in Going Global (GoGlobal Task Force) to organize promotional activities attracting mainland firms to venture into global markets through Hong Kong.
A new cross-sectoral professional services platform will also be established, bringing together Hong Kong's world-class service providers in legal services, accounting, financial services, testing and certification, and marketing to support enterprises in their global ventures.
