Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Hong Kong plans new tax reforms to lure PE funds  Join our daily free Newsletter

MENAFN - Khaleej Times - 16/01/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Khaleej Times) Hong Hong is mulling the introduction of profit tax exemption for offshore funds as part of a series of bold tax reforms being initiated to reinforce its position as Asia's largest financial hub, a top government official revealed on Wednesday at the opening of 4th Asia Private Equity Forum



Financial Secretary John C. Tsang said the extension of profit tax exemption for private equity funds registered outside the city would help attract more private equity funds to domicile in Hong Kong, currently ranked among the top three financial centres in the world



"We are working on the legislative proposals to provide a clear and certain tax environment for the industry. We hope to see the exemption implemented in good time," Tsang said



He pointed out that over the past decade, the total size of assets under management in Hong Kong has risen from about 400 billion (all in US dollars) in 2003 to 1.6 trillion in 2012. Over 60 per cent of the assets are sourced from overseas investors. There are more than 370 private equity firms in Hong Kong with capital under management of about 100 billion as of September 2013, the finance secretary said



He said the specially administered region's stock market, the second largest in Asia with market capitalisation of over 3 trillion, has listed more than 1,500 companies



Hong Kong is also an international banking centre with over 260 banking institutions from 35 different jurisdictions. Assets held by banks exceeded 2 trillion at the end of last year, Tsang said



Reaffirming Hong Kong's commitment to the internationalisation of the Renminbi (RMB), Tsang said the city would expand its role



"In the year ahead, we shall continue to play a leading role in promoting offshore business using the Mainland currency, the Renminbi," he added



He said Hong Kong's thriving commercialism and open economy made it a natural offshore hub for trading the currency. "With our city's free flow of capital, effective rule of law and robust regulatory environment, Hong Kong is a fertile testing ground for the internationalisation of the Renminbi.



Hong Kong is also planning another legislative proposal to help pave the way for the introduction of the open-ended investment company, the OEIC, as a vehicle for setting up investment funds in Hong Kong, Tsang said as he stressed the importance of creative capital for Hong Kong and Asia in powering world growth



The city also introduced two important legislative amendments in 2013 that will further develop it as a platform for international finance, he said. These include modernising the Trust Law to strengthen the competitiveness of its trust services industry and attract settlers to set up trusts in Hong Kong. The other amendment was on tax laws to give Islamic bonds, or sukuk, equal tax treatment to conventional bonds



"We plan to introduce further legislative amendments to enable the issuance of sukuk under the Government Bond Programme. This will help develop Hong Kong's bond market and expand our platform for Islamic finance," said Tsang



"Going forward, financial market developments in Asia will be driven by three key factors: first, rapid wealth creation in this region and demand for high-quality financial services; second, the increase in portfolio allocation into Asia by global investors; and the third trend is the financial liberalisation of the Mainland, including the wider use of the renminbi as an international reserve currency," said Tsang



Hong Kong is a key stakeholder in each one of these three trends, he added. "The government and our regulators also work hard to strengthen Hong Kong's competitive edge in an increasingly competitive environment.



"With a community of innovative and ambitious entrepreneurs on one side and a population of internationally travelled, wealthy tycoons on the other, Hong Kong could be a powder keg of a techonomy waiting to explode," he said quoting a Forbes magazine report ranking Hong Kong as the Number One "Top Tech Capital to Watch"



For Asia to power global growth, Tsang said, "we also need to harness the power of innovation in Hong Kong and in our region. Venture capitalists and equity fund managers have the experience to identify the best ideas as well as the skills and resources to manage the development of these ideas from drawing board to reality"

 


Khaleej Times




  MENA News Headlines
 Mar 3 2015 - Cruise liner traffic bound for Abu Dhabi to grow 25 percentMENAFN
(MENAFN) An increase of 25 percent in cruise liners calling at Zayed Port will help to lift the number of cruise tourists by 50 percent this season, The National reported.This season above 94 vessels ...

 Mar 3 2015 - UAE non-oil business growth declines in FebruaryMENAFN
(MENAFN) Business activity growth in the UAE non-oil private sector decreased to a five-month low in February but remained strong and above the average for 2014, a corporate survey showed, The ...

 Mar 3 2015 - Kuwait Fund grants USD23.8m to irrigation project in Lao RepublicMENAFN
(MENAFN) Kuwait Fund for Arab Economic Development (KFAED) has signed a loan agreement in the city of Vientiane with the Democratic Republic of Lao, whereby the Kuwait Fund will offer the government ...

 Mar 3 2015 - Bahrain to launch USD22b development projectsMENAFN
(MENAFN) The government of Bahrain will be carrying out giant development projects with a value exceeding USD22 billion, Minister of Information said, KUNA reported.Bahrain is continuing with its ...

 Mar 3 2015 - KFAED finances USD13.47m loan to BelizeMENAFN
(MENAFN) Kuwait Fund for Arab Economic Development (KFAED) provided a USD 13.47 million loan to Belize to help in a road restoration project, a statement by the fund showed, KUNA reported.The ...

 Mar 3 2015 - FDI in Qatar posts USD30.65bMENAFN
(MENAFN) Foreign direct investments (FDI) inflow to Qatar registered USD30.65 billion at the end of 2012, a 1.2 percent growth from a year ago. Though the FDI has targeted various economic activities ...

 Mar 3 2015 - Oman's Raeco to invest USD395.75m for power expansionsMENAFN
(MENAFN) A total of USD395.75 million will be invested by Rural Areas Electricity Company (Raeco) in the next three years to raise the power generation capacity, transmission lines and distribution ...

 Mar 3 2015 - Kuwait Investment to cut US investmentMENAFN
(MENAFN) The Kuwait Investment Office (KIO), the London branch office of sovereign wealth fund Kuwait Investment Authority, is gradually reducing its overweight stance on US assets after keeping that ...

 Mar 3 2015 - Oman's NDC hits sales revenue of USD60.47m in 2014MENAFN
(MENAFN) National Detergent Co. (NDC), one of the leading FMCG companies in the sultanate, has posted total sales revenue of USD60.47 million for full-year 2014, compared with USD56.13 million a year ...

 Mar 3 2015 - 100 per cent rise in FDI expected this yearKhaleej Times
(MENAFN - Khaleej Times) Egypt expects 100 per cent increase in foreign direct investment, or FDI, during the current fiscal year compared to last year, Investment Minister Ashraf Salman said on ...

more...


 






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help