Hong Kong to surpass Switzerland by 2027: Hui
The Secretary for Financial Services and the Treasury, Christopher Hui, said Hong Kong will surpass Switzerland to become the world's largest wealth management hub by 2027. Hui said Hong Kong’s appeal in attracting foreign investments has been growing. He also said the SAR will continue to improve service quality, noting that the government’s proposals to simplify the process of changing the place of incorporation to Hong Kong will attract overseas companies to establish or expand their businesses in the city. On July 3, the government published new legislative proposals for a regulatory framework that makes it easier for overseas companies to re-domicile in Hong Kong. These proposals include relaxing the requirement for financial statement submission and extending the de-registration period from 60 to 120 days. During an interview with RTHK on the second anniversary of the current government term, Hui said Hong Kong's attractiveness to foreign businesses would persist with its low tax rates and relaxed compliance requirements. “In overseas jurisdictions, there have been more requirements for companies to register a place of incorporation. These requirements primarily focus on compliance, such as the need for local economic activities and specific operations. Some companies might enjoy lower compliance requirements or even lower tax rates in these places in the past,” he added. “With the introduction of a global minimum tax rate and the rising compliance requirements, these incentives are dwindling. So, this has become a driving factor that encourages them to return to Hong Kong.” Hui stopped short on predicting the number of companies that would re-domicile to Hong Kong, but stressed a need to establish a suitable platform and framework in advance.