1989 - 2019 30 years in business Friday, 19th April 2019

HK Report Released On Enhancing The SAR’s Appeal

Dear Clients, 


Hong Kong’s Financial Services Development Council ( FSDC) has released a report setting

Our recommendations on policies, including tax measures, to help Hong Kong capitalize on

The increasing number of Chinese enterprises looking to invest, and expand overseas.


Introducing the report,” Chinese Enterprises Going Global” Opportunities and Hong Kong’s

Policy Responses “FSDC Chairman Laura M Cha said: as the leading international financial

And business centre in china, Hong Kong is poised to benefit by being the key facilitator for

Chinese Enterprises” Going Global Process” Hong Kong must consolidate its role as the» super

Connector” to help Chinese enterprises in expanding to the relevant markets covered by the

“going global” initiative.



It points out that Hong Kong has been a popular platform for Chinese enterprises expanding

Overseas, acting as a conduct for over half of the Mainland’s outbound foreign direct investments.

The number of Chinese companies setting up operations in Hong Kong has been rising and reached

957 by the end of last year.


Noting the concessionary measures available in China’s newly approved free trade zones, the report

Says that Hong Kong should seek to maintain its position as the “business hub of choice for enterprises

With overseas aspirations by strengthening its core advantages.


The FSDC report sets out several recommendations, including that the Government should sign more new

Double taxation agreements ( DTA’s) especially with those Jurisdictions of key importance for Chinese

Investors, such as Russia and India.


To help private equity funds, it suggests that the Government should expedite approval of a proposal to

Expand the profits tax exemption for offshore funds to include transactions in private companies that are

Incorporated or registered outside Hong Kong and which do not hold Hong Kong property or carry out

Business in Hong Kong. In addition, the Government should push forward the introduction of the open

Ended investment company structure to attract more traditional funds to be based in Hong Kong, it says.


It also recommends that the Government quickly clarify the requirements for the profits tax deduction,

Which can be used against interest expenses, for corporate treasury activities.


Should you require any further clarification, Please do not hesitate to contact us at: info@cardwell-capital.com


Kind Regards

Cardwell Advisory Desk


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