Strengthening Economic Ties: Hong Kong’s Strategic Engagement with the Middle East (2/2)
In our last week’s article, we saw that Hong Kong is a place in need of talents where the business of family office is expanding and where diversification and collaborative opportunities are rising. This week we will focus on the role of accountants in Hong Kong’s economic development and the green finance and fintech integration for corporates.
Inward Re-Domiciliation Regime
To attract more foreign companies to Hong Kong, the government has been working on establishing an inward re-domiciliation regime. This regime aims to provide certainty on profits tax obligations for companies that choose to transfer their domicile to Hong Kong. Hui noted that Hong Kong’s status as a robust financial and commercial center, combined with its low taxation and competent professionals, makes it an attractive destination for businesses seeking to grow and access Mainland China’s markets.
The Role of Accountants in Hong Kong’s Economic Development
Hui highlighted the crucial role that accountants play in Hong Kong’s economic development. He likened accountants to musicians who understand the notes on a score, emphasizing that their expertise is needed across industries to make informed investment and business decisions. Hui stressed the importance of growing the accounting profession and ensuring that it remains relevant in an increasingly complex global business environment. The Hong Kong Institute of CPAs (HKICPA) is seen as a key partner in this effort, providing valuable input on policy development and helping to strengthen Hong Kong’s reputation as a trusted financial center.
Green Finance and Fintech Integration
Sustainable and green finance is becoming increasingly significant in Hong Kong’s financial services agenda. The integration of green finance and fintech, known as green fintech, plays a vital role in supporting transition finance, which is essential for decarbonization efforts. Hui highlighted the importance of assurance certification in green finance, noting that accountants play a critical role in ensuring that green projects meet the necessary standards. The government sees HKICPA as a key stakeholder in developing a roadmap for green disclosures and promoting Hong Kong’s green agenda globally.
Conclusion
Hong Kong’s strategic engagement with the Middle East and its efforts to attract family offices, regulate the virtual asset industry, and promote green finance are all part of a broader vision to enhance its position as a global financial hub. Christopher Hui’s leadership in these areas reflects Hong Kong’s commitment to maintaining its relevance in an evolving global landscape. As Hong Kong continues to build on its strengths, it will play an increasingly important role in shaping the future of global finance and investment.
If you have any interest of seize these opportunities and create your business in Hong Kong, please feel free to contact us.
References
- Hong Kong’s second digital green bond issuance: February 7, 2024: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2024/02/20240207-6/
