In its latest budget for 2020/2021, the HKSAR Government seeks to stabilise the economy by nurturing closer ties with the Greater Bay Area, thereby boosting innovation and technology throughout China.
“Hong Kong is positioned in the Greater Bay Area not only as an international financial, transportation and trade centre and an international aviation hub, but also as a global offshore Renminbi business hub and an international asset management centre and risk-management centre,” said HKSAR Financial Secretary Paul Chan.
Given Hong Kong’s existing assets, as well as strong potential for the wealth-management sector, the updated budgeting plan will establish new fund structures (including legislation on creating limited partnership regimes) and tax concessions to lure more private equity funds to the city. Greater financial interest in Hong Kong would attract capital, talent and expertise for many business entities, technology companies and start-ups – which would subsequently raise demand for professional services and related service industries such as conferences and exhibitions, hotels and tourism.
As research and development (R&D) is integral for innovation and technology, the new budget also introduces tax deductions and subsidies for R&D enterprises through the Innovation and Technology Fund. Technology companies with R&D projects in Hong Kong will also receive extended support from the government’s Public Sector Trial Scheme.
For a deeper look at Hong Kong’s new budget and how it can benefit your business, click here.