HK’s competitiveness fortified

February 26, 2020

(To watch the 2020-21 Budget speech with sign language interpretation, click here.)


Financial services is one of the four pillar industries of Hong Kong’s economy and in his 2020-21 Budget today, Financial Secretary Paul Chan set out a series of proposals to fortify the city's competitiveness as an international financial centre.


Mr Chan said he expected the global low interest rate environment to persist for a long time and suggested to issue inflation-linked retail bonds and Silver Bonds, totalling no less than $13 billion.


He also proposed to lower the minimum entry age for the Hong Kong Mortgage Corporation Limited Annuity Plan from 65 to 60 to facilitate early participation by those in need and to assist the elderly in turning their assets into a lifelong stable cashflow.


In addition, the corporation will launch a $1 billion pilot scheme for fixed-rate mortgages to help reduce the risks of interest rate volatility for homebuyers.


To strengthen Hong Kong’s competitiveness as an Exchange Traded Fund or ETF listing platform, Mr Chan suggested to waive the stamp duty on stock transfers paid by ETF market makers when creating and redeeming ETF units listed in Hong Kong.


The finance chief also proposed providing a tax concession for carried interest issued by private equity funds and preparing to establish a limited partnership regime to attract more of them to domicile and operate in Hong Kong.

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