Financial executives in New York gathered at the Hong Kong Economic and Trade Office, New York (HKETONY) on Sep 28, to learn about the new opportunities in Hong Kong on asset and wealth management, ESG and fintech at the “Hong Kong as International Financial Center, Trends and Opportunities” seminar. The seminar was jointly organized by the HKETONY, Financial Services Development Council (FSDC), Invest Hong Kong and Hong Kong Association of New York (HKANY). In her opening remarks, HKETONY Director Candy Nip highlighted how Hong Kong still stands as a major international financial center. Addressing the audience in a video, Secretary for Financial Services and the Treasury Christopher Hui highlighted the significant role of Hong Kong thriving as the gateway between mainland China and the rest of the world, thus offering abundant business opportunities. Attending the seminar in person, FSDC Executive Director Dr King Au gave an update on the latest development in Hong Kong and the opportunities posed by the Greater Bay Area development. He also gave insights on how the US financial services sector could leverage the city’s unique advantages to tap into this vast market.  

The Inland Revenue (Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting) Order was gazetted on Sep 30, enabling Hong Kong to implement the Base Erosion and Profit Shifting (BEPS) package promulgated by the Organisation for Economic Co-operation and Development (OECD). BEPS refers to tax avoidance strategies of multinational enterprises in exploiting the gaps and mismatches in tax rules to artificially shift profits to low or no-tax locations where there is little or no economic activity. The relevant tax treaty-related measures include preventing the abuse of comprehensive avoidance of double taxation agreements/arrangements and improving the relevant dispute resolution mechanism. As of Sep 16, 99 jurisdictions, including Hong Kong, have joined the multilateral instrument. The multilateral instrument’s provisions will take effect in Hong Kong after completion of the domestic legislative procedures.

What are the business opportunities in Hong Kong and Southeast Asia? How do Hong Kong and the Greater Bay Area serve as your bridge to doing business in ASEAN-e-commerce, trade and supply chain, manufacturing and FinTech? Take part in the hybrid event “Coupling of Hong Kong/Greater Bay Area and ASEAN” in Atlanta on Oct 26 to find out more about the opportunities available. 

Learn more on how LawTech is supporting the growth of cross-border transactions and helping business resolve disputes at the “From Alternative Dispute Resolution to Online Dispute Resolution” online webinar on Oct 27 morning (9:00am -10:00am EDT). Join the Chief Executive Officer of eBRAM International Online Dispute Resolution Centre Emmanuelle Ta and Partner of Duane Morris Christopher Healy as they share their insights. The webinar is jointly organized by eBRAM, HKANY and HKETONY.

The value of total retail sales in August, provisionally estimated at US$3.6 billion, edged down by 0.1% year-on-year. After netting out the effect of price changes over the same period, the provisional estimate of the volume of total retail sales for the month fell 2.9% year-on-year. Looking ahead, the moderating local COVID-19 epidemic situation, improving labor market conditions and phase two of the Consumption Voucher Scheme will continue to support consumption sentiment and demand in the near term, but the increasingly tight financial conditions will pose constraints.

Hong Kong recorded a US$23.4 billion deficit for the first five months of the current financial year. Expenditure for the period was US$40.9 billion and revenue was US$14.8 billion. The deficit was recorded after taking into account the proceeds of US$2.56 billion received from the issuance of green bonds. The deficit was mainly due to some major types of revenue including salaries and profits taxes are mostly received towards the end of a financial year. Fiscal reserves stood at US$99.2 billion at the end of August.