Robert Lui (center), divisional president for greater China at CPA Australia; Karina Wong (right), deputy chair of the Greater China Taxation Committee at CPA Australia; and Paul Sin, divisional councilor for greater China at CPA Australia, present CPA Australia's proposals for Chief Executive John Lee Ka-chiu's upcoming 2023 Policy Address on Oct 10, 2023. (LI XIAOYUN / CHINA DAILY)
Accounting and finance professionals believe that in the face of intensifying competition, the 2023 Policy Address should prioritize allocating resources to solidify Hong Kong’s position as an international financial center, a poll conducted by accounting body CPA Australia showed on Tuesday.
Based on the poll covering 208 finance insiders, CPA Australia put forward a set of proposals to Chief Executive John Lee Ka-chiu’s second Policy Address, which will be delivered on Oct 25. The findings revealed that 84 percent of the respondents underscored the paramount importance of strengthening Hong Kong’s role as a global financial hub.
Forty-seven percent of the respondents emphasized the need to prioritize the allocation of resources on supporting the development of Hong Kong as an international innovation and technology hub, while 41 percent gave priority to the development of an international trade center
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Forty-seven percent of the respondents emphasized the need to prioritize the allocation of resources on supporting the development of Hong Kong as an international innovation and technology hub, while 41 percent gave priority to the development of an international trade center.
“Hong Kong’s status as an international financial center is a key competitive advantage for the city. However, with increasing competition, proactive measures are needed to sustain and reinforce this advantage,” said Robert Lui, divisional president for greater China at CPA Australia.
In a bid to bolster the city’s financial strengths, 71 percent of the surveyed expressed the belief that the government should maintain its low and simple tax system. This was followed by optimizing regulatory framework to attract enterprises and investment, with 48 percent.
In light of the fact that the 33 companies went public on the Hong Kong stock market raising HK$17.9 billion ($2.3 billion) in the first half of 2023, the lowest amount in the past five years, CPA Australia suggested that the policy address introduce measures to enhance market liquidity and attract investments.
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It proposed that the government can reduce the stamp duty on stock trading, recommending a decrease from the current rate of 0.13 percent for buyers and sellers to 0.05 percent for sellers only, in line with the mainland’s level.
“To align Hong Kong with other international bourses, we suggest that the HKEX’s trading hours be extended by 1.5 hours from the current 5.5 hours,” Lui added.
The survey also provided recommendations to reboot Hong Kong’s property market. Karina Wong, deputy chair of the Greater China Taxation Committee at CPA Australia, proposed that the government should expedite the implementation of the new capital investment entrant scheme, allowing qualified applicants under the scheme to enjoy the same Buyer’s Stamp Duty rate as local residents when they buy homes for the first time.
“The property market could be further supported by reducing the ad valorem stamp duty (AVD) of 15 percent on the acquisition of a second residential property. Should the property market remain weak for an extended period, the government should consider phasing out the AVD,” Wong said.
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Speaking of Hong Kong’s endeavors to develop into an international innovation and technology hub, Paul Sin, divisional councilor for greater China at CPA Australia, said building robust cybersecurity and data protection infrastructure is a vital pillar.
“We suggest the government open up more valuable data for commercial use, expanding the application of the open Application Programming Interface to other industries beyond the banking industry,” Sin added.
