Hong Kong's Financial Services Paraded In France
by Mary Swire, Lowtax.net, Hong Kong
09 December, 2014
In remarks at a seminar in Paris, Hong Kong's Secretary for Financial Services and the Treasury, K C Chan, stressed Hong Kong's appeal for asset and money managers, particular given the developing tax benefits being provided to investors.
He noted that, "French business is already very well-acquainted with Hong Kong's strengths as an Asian base of operations," employing 30,000 people in the city and generating about EUR8bn in revenue each year. It helps, he said, that the double taxation agreement between France and Hong Kong has been in place for around three years.
He welcomed the fact that France and Hong Kong are also close partners in growing the offshore renminbi (RMB) market. French investors are able to participate in a variety of funds, including exchange-traded funds (ETF), while ways are also being created for offshore RMB holders to access onshore equity and bond markets.
Chan also confirmed that the Hong Kong Government already provides a competitive tax and regulatory framework to help the city's asset management industry.
In addition, it is in the process of introducing an open-ended fund company as a vehicle to attract more funds to Hong Kong, and is planning to support the private equity industry through a profit tax exemption on transactions by private companies incorporated or registered outside Hong Kong, and those that neither hold properties in Hong Kong nor carry out business there. A stamp duty waiver is also planned for all trading in ETFs.
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