Insights

On October 25, John Lee Ka-chiu, Chief Executive of the Government of the Hong Kong Special Administrative Region (HKSAR), released the second The Chief Executive’s 2023 Policy Address (“The Policy Address”) during his term of office. Xiao Geng, Chairman of the Hong Kong Institute for International Finance and Member of the Chief Executive’s Policy Unit Expert Group of the Government of the HKSAR, said in an exclusive interview with the journalists from Southern Finance Omnimedia Corp. that The Policy Address proposed several measures to consolidate the status of Hong Kong as an international financial center and Hong Kong must establish itself as an international financial center complemented by the industrial advantages in the Chinese Mainland to promote high-level financial opening-up.

Consolidate Hong Kong’s status as an international financial center

Southern Finance: Among several measures to consolidate the status of Hong Kong as an international financial center proposed by The Policy Address, how do finance-related policies stand out?

Xiao Geng: The Policy Address proposed lowering the stock trade stamp duty from 0.13% to 0.1%, enhancing the liquidity and attractiveness of the Hong Kong stock market. In addition, The Policy Address also proposed a series of measures to continuously promote the development of the stock market, which can help boost capital momentum and consolidate the status of Hong Kong as an international financial center.

Southern Finance: The Policy Address re-proposed the “Capital Investment Entrant Scheme.” How will it boost the development momentum of asset and wealth management, finance, and related professional service sectors in Hong Kong?

Xiao Geng: The 2023 Policy Address reiterated the “Capital Investment Entrant Scheme” and raised the investment threshold from HK$10 million to HK$30 million. This is also one of the measures to consolidate Hong Kong's competitiveness as a financial center.

Serving the real economy with high-quality finance

Southern Finance: How to interpret several important financial signals from the central financial work conference held in Beijing from October 30 to 31?

Xiao Geng: Today’s international situation and strategic landscapes have profoundly changed. Finance is crucial to a country’s core competitiveness. It is necessary to accelerate the construction of China into a financial power, comprehensively strengthen financial supervision, improve the financial system, optimize financial services, and prevent and resolve risks.

Southern Finance: How can the Guangdong-Hong Kong-Macao Greater Bay Area promote high financial standards in the new era?

Xiao Geng: We need to establish Hong Kong as an international financial center and complement it with the industrial advantages in the Chinese Mainland, not only allowing enterprises to enjoy the institutional advantages and financial flexibility of Hong Kong as a harbor of freedom but also bestowing them with development space and resource advantages of the Chinese Mainland.

Not long ago, the Development Plan for the Shenzhen Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone was released. We can attract some large enterprises through the dual headquarters mechanism, and small and medium-sized enterprises through the “Park Pass,” such as a Hong Kong park in Hetao and its branch in Shenzhen, to combine the advantages of Hong Kong and Shenzhen, instead of only focusing on the one side.