As one of the world’s top four international finance centres, Hong Kong is a prime location for conducting financial services business. Built on a prudent and robust financial regulatory regime with a well-educated workforce and the absence of capital control, financial services companies are given all the tools needed to succeed. The Closer Economic Partnership Arrangement (CEPA) gives Hong Kong’s financial service providers and professionals greater market access and flexibility in their Mainland expansion. On top of that, the city serves as a gateway for foreign firms seeking access to Mainland China and for Mainland enterprises looking to go global.
Hong Kong offers growth opportunities for the following sub-sectors:
- Private Banking/Wealth Management – Ideally placed to serve the growing population of high net worth individuals in Mainland China and the region. The cross-boundary wealth management connect linking Hong Kong and the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) to be established will create new business opportunities.
- Asset Management – Vast business opportunities are generated by the Shanghai-Hong Kong Stock Connect; Shenzhen-Hong Kong Stock Connect; Mainland-Hong Kong Bond Connect and the Mutual Recognition of Funds Arrangements with Mainland China, Switzerland, France, United Kingdom and Luxembourg.
- Private Equity – Private equity and venture capital funds, whether onshore or offshore, can enjoy a profits tax exemption; besides, a tax concession for carried interest issued by private equity funds operating in Hong Kong and the limited partnership fund regime will be introduced.
- Insurance – New measures announced to facilitate market expansion into GBA: capital requirements on Mainland insurers will be reduced when they cede their business to qualified Hong Kong reinsurers; removal of the operating experience requirement for Hong Kong service suppliers looking to provide insurance-loss adjusting services on Mainland China.
- Banking – The progressive growth of Renminbi (RMB) business relating to the origination and distribution of RMB investment products and trading services is fuelling new opportunities and business.
- Capital Market – Opportunities abound from initial public offerings to bond issuance, loan syndication and much more. The Belt and Road Initiative has also paved the way for several infrastructure projects generating great demand for financing services.
- Corporate Treasury Centres & Asset Financing – Tax benefits are now provided under specified conditions giving incentives for companies from different industries to establish their corporate treasury centers in Hong Kong. More opportunities on asset financing business, such as aircraft leasing, have also arisen.
InvestHK has a dedicated team to provide one-stop services to support foreign and Mainland investors to set up their family offices in Hong Kong. Please visit the dedicated website familyoffices.hk for more details.