Financial News
Written by: Zhang Weilun
2020-07-28 14:53
Last update date: 2020-07-28 14:53The Hong Kong version of the National Security Law has been formally implemented. Although many financial regulatory authorities in Hong Kong have pointed out that the status of Hong Kong’s international financial center will not remain unchanged after the implementation of the law, the United States has countered with the "Hong Kong Autonomy Act" and Hong Kong has become a Sino-US wrestling heart. Under the uncertain political and economic outlook, Hong Kong's status as an international financial center may be affected. At the same time, Japan, Australia and countries in the region intend to introduce preferential measures to attract banks and asset management institutions that are suspicious of the Hong Kong version of the National Security Law. However, financial experts believe that Singapore will be considered even if the institutions shift their positions.
"Reuters" quoted experts as pointing out that even if Hong Kong's financial institutions want to partially relocate, the high tax rates and costs, bloated bureaucracy and cultural differences of the countries in the region pose huge challenges; the similarity between Singapore and Hong Kong gives the former an advantage, but There is no active fight.
Many financial institutions around the world have their Asian headquarters in Hong Kong. However, since the implementation of the Hong Kong version of the National Security Law, many companies have reassessed their business in Hong Kong. Other countries in the region hope to profit from this doubt. For example, the Japanese government has previously included attracting outstanding human resources to establish a global financial center as part of its economic policy roadmap. The ruling party proposed a draft, including providing visa preferential treatment and streamlining investment management licenses. Approval.
Busan, South Korea, is providing tax-reduction and rent-free offices to financial companies. The Taiwan Financial Regulatory Commission also advocates its democratic system, epidemic prevention and soft power such as government governance effectiveness to attract foreign investment.
Singapore is closest to Hong Kong on many levels. (Profile picture)
High corporate tax rates in Japan and Australia
However, the report also quoted experts pointing out that Japan’s taxation, bureaucracy, high labor costs, and English fluency have made it difficult for financial institutions to use Tokyo as a regional financial center. At the same time, Hong Kong’s 16.5% corporate tax rate is only about half that of Japan and Australia. .
The report also pointed out that Hong Kong's international lifestyle is one of the attractions. Language and cultural difficulties, coupled with the lack of adequate financial infrastructure, have made the efforts of South Korea and Taiwan fail.
The report quoted experts pointing out that Singapore might benefit most because the local corporate tax rate is 17%, the business environment is friendly, and it is already a financial center, as well as population and economic types. Singapore is the closest to Hong Kong.
Hong Kong version of the National Security Law