11.03.2021.
Articles
On 24th of February 2021, Financial Secretary, Mr. Chan Mo Po presented his fifth Budget speech for Hong Kong. After a whole year of COVID-19 battle, total government revenue for 2021-2022 is estimated to be HKD591.1billion; and total government expenditure is estimated to be HKD727.8billion. A budget deficit of HKD257.6 billion for 2020/2021 is expected; and anticipated fiscal reserves of HKD902.7 billion by 31st of March 2021.
Unemployment rate continue to rise and has reached 7%, approximately 253 thousand of people are unemployed. Underemployment rate reached 3.8%. The Government has been putting an enormous effort to enhance Hong Kong’s competitive edge and assist Hong Kong enterprises to harbour the Greater Bay Area. Industries like innovation, technology, biotechnology, and system risk management play a pivotal role in the government’s cradle.
Apart from promoting Greater Bay Area, government introduced several relief and boosting measures for individuals and commercial sectors. For instance, issuing the HKD5,000 e-consumption vouchers, reducing the salaries tax and profits tax, encouraging family offices to set up operations, and attracting REITs to list in Hong Kong.
2021 continues to be challenging. However, we welcome the government measures to promote Hong Kong as a hub for asset & wealth management, family offices, business & legal consultation.
A week after the Budge speech, the appointment of Mr. Alejandro Nicolas Aguzin as Chief Executive of the Hong Kong Exchanges and Clearing Limited (HKEX) brings hope to the market. His extensive knowledge and experience can further sharpen the competitive edge of HKEX and Hong Kong in the global financial market. This helps government to implement the financial plans, and make the stock exchange a catalyst for connecting China with the globe, and vice versa.
We are glad to see government has put in effort to accelerate the development of digitalization. Particularly iAM Smart and Commercial Data Interchange helps business advisory enterprises minimizing the operation cost. Besides, with the government support in REITs, green finance and relevant tax measures for family offices in Hong Kong, this helps generate new capital to Hong Kong financial market.
We welcome government strengthen the strategic position of Hong Kong in the Greater Bay Area. Under ‘One Country, Two Systems”, Hong Kong serves as a hub of international mediation, legal and dispute resolution services. By taking the Greater Bay Development as an entry point, we will be a major role as a facilitator to connect the domestic circulation and international circulation. This encourages overseas enterprises to set up operations in Hong Kong to get into a market of GDP USD1679.5 billion; concurrently, enjoys the legal protection of Hong Kong as a Hong Kong company.