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A Supportive Government

Hong Kong will capitalise on the opportunities arising from the national Belt and Road Initiative and the Guangdong-Hong Kong-Macao Bay Area development proactively and holistically. The government shall play the role of a “facilitator” and “promoter”.

Key initiatives announced in the 2021-22 Budget include:

Support Enterprises

  • Extend the application period of 100% guarantee low-interest loan for enterprises to the end of this year, raise loan ceiling to $6 million, extend repayment period and duration of principal moratorium
  • Reduce profits tax for 2020-21 assessment year by 100%, subject to a $10,000 ceiling
  • Provide rates concession for non-domestic properties in 2021-22, subject to a ceiling of $5,000 per quarter in first two quarters and $2,000 per quarter in remaining two quarters
  • Waive business registration fees for 2021-22
  • Continue to waive 75% of water and sewage charges of non-domestic households for 8 months, subject to a monthly ceiling of $20,000 and $12,500 respectively
  • Continue to grant 75% rental/fee concession for eligible Government properties/short-term tenancies and waivers for 6 months (100% concession for those closed at the Government’s request)

Reviving the Economy

  • Issue $5,000 electronic consumption vouchers in instalments
  • Inject $1.5 billion into the Dedicated Fund on Branding, Upgrading and Domestic Sales, increase funding ceiling per enterprise to $6 million and extend its geographical coverage in phases
  • Allocate $375 million to Hong Kong Trade Development Council (HKTDC) to enhance its capability to organise online activities and to proceed with digitalisation
  • Develop the business version of the “iAM Smart” digital authentication platform
  • Explore the development of the Hong Kong Legal Cloud

Tourism, Cultural and Creative Industries

  • Earmark $169 million to continue to take forward local cultural, heritage and creative tourism projects
  • Earmark $765 million to support Hong Kong Tourism Board (HKTB) in reviving the tourism industry
  • HKTB to conduct a comprehensive review of the positioning of Hong Kong’s tourism in the long run, formulate strategies to spur industry’s recovery
  • Consider reviving local group tours provided that public health can be safeguarded, allowing room for industry’s business operation
  • Discuss and work out Air Travel Bubble arrangement with suitable places
  • Inject an additional $1 billion into the CreateSmart Initiative

Financial Services

  • Issue no less than $24 billion of Silver Bond and no less than $15 billion of iBond this year. Lower the eligible age for Silver Bond subscription from 65 to 60
  • Issue green bonds totalling $175.5 billion within the next 5 years, and plan to issue retail green bonds
  • Roll out Green and Sustainable Finance Grant Scheme to subsidise expenses on bond issuance and external review services
  • Strive for the launch of Southbound Trading of Bond Connect within this year, and enhance the domestic Central Moneymarkets Unit
  • Provide subsidy for Real Estate Investment Trusts to list in Hong Kong
  • Launch a Pilot Insurance-linked Securities Grant Scheme to subsidise issuance costs
  • Provide subsidy for Open-ended Fund Companies to set up in or re-domicile to Hong Kong
  • Review tax arrangements relevant to family office business

Innovation and Technology

  • Earmark over $200 million to roll out “Knowing More About IT” Programme, subsidise primary schools to enhance students’ interests and knowledge in I&T and their applications through extra-curricular activities
  • Regularise the pilot scheme which subsidises students studying science and technology in local universities to enrol in short-term I&T related internships
  • Inject $9.5 billion into the Innovation and Technology Fund by two yearly instalments
  • Hong Kong Monetary Authority to consider enhancing its Fintech Supervisory Sandbox to reduce time for launching innovative financial products in the market
  • Press ahead with the development of the Hong Kong-Shenzhen Innovation and Technology Park in the Lok Ma Chau Loop
  • Continue to implement the Science Park expansion and Cyberport 5 development
  • Continue to support the development of 5G networks and applications
  • Commence progressively the operation of the first batch of about 20 R&D laboratories under the “InnoHK Research Clusters” in the first quarter of this year

Air Cargo Sector

  • With the expansion of the existing express air cargo terminal, the commissioning of a new premium logistics centre and the Three Runway System, annual cargo handling capacity of Hong Kong International Airport (HKIA) is expected to increase to some 9 million tonnes in 2024
  • Explore measures to facilitate trans-shipment through Hong Kong, so as to maintain Hong Kong’s competitive edge as an international air cargo hub
  • Redevelop the Air Mail Centre at HKIA to become operational by end 2027 at the earliest

 

Key economic initiatives announced in the 2021 Policy Address include:

Enhancing Hong Kong’s Status as an International Financial Centre

  • To establish a listing regime for special purpose acquisition companies in Hong Kong after consulting the market
  • Expand further the channels for the two-way flow of cross- boundary RMB funds and developing offshore RMB products and tools, including looking into specific measures to enhance demand for the issuance and trading of RMB securities and allow stocks traded via the southbound trading under Stock Connect to be denominated in RMB
  • Further attracting family offices to establish a presence in Hong Kong by considering the provision of tax concessions, thereby enhancing Hong Kong’s status as an international asset and wealth management centre
  • Support the HKEX to promote co-operation with the Guangzhou Futures Exchange in financial product development related to the areas of carbon emission trading, and assessing the feasibility of developing Hong Kong into a regional carbon trading centre, thereby strengthening Hong Kong as a regional green and sustainable finance hub
  • Promote cross-border FinTech and actively explore with the Mainland the formation of a one-stop sandbox network to facilitate financial institutions and information and technology companies from Guangdong, Hong Kong and Macao to test cross-border FinTech applications

Enhancing Hong Kong’s Status as an International Transportation Centre

  • Develop a "Smart Port" and grow high value-added logistics and maritime businesses
  • Tax concessions will be introduced to attract members of the maritime industry to establish a business presence in Hong Kong 
  • The governments of Hong Kong and Shenzhen have established the “Task Force for Hong Kong-Shenzhen Co-operation on Cross-Boundary Railway Infrastructure” to jointly develop the “GBA on the Rail”
  • The governments of Guangdong and Hong Kong are pressing ahead with the “Quota-free Scheme for Hong Kong Private Cars Travelling to Guangdong via the Hong Kong- Zhuhai-Macao Bridge

 Enhancing Hong Kong’s Status as an International Trade Centre

  • Seek to join the Regional Comprehensive Economic Partnership (RCEP) as soon as possible
  • Seek to create more favourable conditions for Hong Kong enterprises to enter the Mainland market under the framework of the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA).
  • To cope with the impact of the pandemic, the Government is implementing the Convention and Exhibition Industry Subsidy Scheme with a commitment of over $1 billion to provide impetus for the convention and exhibition industry. The Government will further extend the validity of the Scheme to the end of next year, and will enhance its implementation details to provide timely and more targeted assistance to the industry.
  • Improve SME access to bank financing through commercial data interchange

Developing into a Centre for International Legal and Dispute Resolution Services in the Asia-Pacific Region

  • Attract reputable dispute resolution institutions to set up in offices in the HK Legal Hub

Developing into an International Innovation and Technology Hub

  • Provide more land and infrastructure to further boost HK's strengths and achievements in I&T and R&D
  • Support re-industrialisation and university research

Consolidating Hong Kong’s Status as an International Aviation Hub

  • Take forward Airport City development and enhance co-operation with Zhuhai in aviation industry

Developing into an East-meets-West Centre for International Cultural Exchange

  • Develop world-class cultural facilities and a pluralistic cultural environment
  • Strengthen the connections with overseas arts and culture organisations
  • Enhance cultural exchange and co-operation with the Mainland
  • Leverage technology
  • Nurture talent

Developing into a Regional Intellectual Property Trading Centre

  • To promote the development of IP trading in Hong Kong including further promoting and developing the “original grant patent” system by building up the substantive examination capability of the Intellectual Property Department (IPD)
  • Explore with the Mainland authorities on broadening the scope of application of the Patent Co-operation Treaty to cover the “original grant patent” system, and extending other major international IP treaties to Hong Kong

Continuous Investment in Infrastructure

  • Invest HK$100 billion (US$12.8 billion) annually on infrastructure over next few years

Supporting Tourism

  • Deepen co-operation with the GBA cities, establishing the GBA tourism brand, and attracting more events and convention and exhibition activities to Hong Kong through various funding and promotion programmes


The Government of Hong Kong SAR is also committed to driving local business through a variety of initiatives. For details of government funding schemes, please visit here.

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