Offshore funds tax exemption woos investors: HK official

Hong Kong Secretary for Financial Services & the Treasury Frederick Ma has expressed the hope that the Revenue (Profits Tax Exemption for Offshore Funds) Bill, which helps attract more overseas investors to Hong Kong, will be endorsed in this year's first quarter.

Speaking on a radio talk show on Wednesday, Ma said Hong Kong moved to eighth place in the world with a total market capitalization of over 8.18 trillion HK dollars (105.5 billion U.S. dollars), according to a government press release.

Noting the local stock market's operation is mature with sufficient legislative support, Ma expected more Chinese mainland enterprises will seek a listing in Hong Kong.

He said the proposal to exempt offshore funds from tax in respect of trading profits derived from qualifying securities transactions carried out here will boost Hong Kong's status as an international financial center.

A financial-services forum will be held in March to explore opportunities in collaboration with the Pan-Pearl River Delta Region and to encourage the use of Hong Kong's fund-raising and investment services.

This forum will create a "win-win" situation for Hong Kong and the Chinese mainland, Ma said.

He pointed to the introduction of more investment products in recent years, but said investors do not have sufficient understanding of them. He called on investors to get to know more about the products they planned to invest in and think twice before making any investment decisions.

Source: Xinhua