The “Three Steps” of Asian Private Equity Center
As early as August last year, the SAR government began to vigorously promote the development of the private equity industry by starting with policies. The Hong Kong Special Administrative Region officially implemented a new bill to allow private equity funds to be established and operated in the Hong Kong Special Administrative Region, using the commonly used limited partnership . Fund system. Prior to this, limited partnership funds established in the Hong Kong SAR had to meet stricter and outdated requirements in terms of capital investment and profit distribution. Therefore, most of the private equity funds operating in the HKSAR are actually offshore funds set up in other overseas locations, because the OECD requires the asset management industry to pay taxes in its location, and the passage of the new bill just allows the HKSAR to seize Opportunity to transfer funds from offshore to onshore. In just eight months, it has attracted more than 200 fund registrations, and to date, it has attracted more than 360 fund registrations in Hong Kong. At the same time, in May this year, the Legislative Council of the Hong Kong Special Administrative Region passed the Taxation (Amendment). The (Tax Incentives with Interest) Bill 2021 (the “Bill”), which further promotes Hong Kong’s development as a private equity hub, will exempt profits tax and salaries tax by qualified private equity fundsThe interest-bearing interest distributed, that is, the underlying stock that is related to the performance of the investment. The third is to establish a statutory relocation framework. The foreign capital mechanism, that is, the establishment of more convenient, feasible and clear systems and measures to attract more overseas capital into the Hong Kong Special Administrative Region. According to the Bureau of Finance and the Treasury, the current AUM of the Hong Kong Special Administrative Region is US$173 billion, making it the second largest private equity fund market in my country n Asia (in terms of AUM), second only to mainland China. There are nearly 600 companies in the private equity fund ecosystem. Xu Zhengyu I believe that with the “three-step” strategy to further strengthen the overall supporting measures of the Hong Kong Special Administrative Region, the private equity fund ecosystem will be further expanded and new opportunities will be injected into the asset and wealth management industry. Growth drivers, while promoting the development of the private equity industry, expanding ties with the mainland also said that demand for renminbi products from international investors will continue to increase, and funds will continue to flow into renminbi assets. The Finance Bureau will also actively discuss with the mainland to expand the two-way flow channels of cross-border RMB funds and expand the connectivity of the two financial markets. At the end of last year, the Shanghai Hong Kong Stock Exchange and the Shenzhen Hong Kong Stock Exchange had expanded the scope of the southern line trading target to no Biotech companies with revenue or profit in Hong Kong. In February this year, the scope of transactions was further expanded to include mainland technology innovation listed companies. Ion Board 376 said that it will continue to expand the investment scope of MPF in the future, including mainland government and policy bank bonds.
In order to enrich the MPF’s investment options, the Treasury will also study and increase the demand for issuance and trading of RMB securities in Hong Kong’s offshore market. At present, the average daily trading volume of the Shanghai-Shenzhen-Hong Kong Stock Exchange has reached HK$47 billion, accounting for more than 12% of the trading volume of Hong Kong stocks, and the potential demand is huge. Arrangements to allow Hong Kong stocks to trade in renminbi to the South will be carefully studied and discussed. Mainland authorities
Plans to issue 175.5 billion yuan of green bonds
The outline of the 14th Five-Year Plan proposes to promote a comprehensive green transformation of the society and economy, and the Hong Kong SAR is also accelerating the layout of the green financial market. He said that he will seize the opportunity to establish green financial linkages from three aspects: optimizing supervision, developing the market and cultivating talents.
In terms of optimizing supervision, the Financial Services Bureau will strengthen the reporting framework of environmental, social and governance (ESG) listed companies, promote fund managers to consider climate risks, make appropriate disclosures, and encourage more institutions in Guangdong, Hong Kong and Macau to access the Hong Kong capital market Green investment, financing and certification to support the development of green businesses.
Over the five-year period from 2021 to 2022, the Hong Kong Special Administrative Region will reissue green bonds totalling approximately HK$175.5 billion under the government’s green bond programme. At the same time, in order to expand the investor base, the SAR government also plans to issue green retail bonds to individual investors in the current international financial institutions in the New Year.
In May this year, the Hong Kong Special Administrative Region launched the “Green Sustainable Financial Assistance Scheme” to fund bond issuance fees and external assessment services for eligible bond issuers and borrowers. Xu Zhengyu According to disclosures, as of October 22, 33 applications had been received. Approved or expected to be approved.
Xu Zhengyu Meanwhile, the Green and Sustainable Finance Inter-Institution Steering Group has established a carbon market working group to assess the feasibility of developing the Hong Kong Special Administrative Region into a regional carbon trading centre. HKEX will also cooperate with Guangzhou Futures Exchange to develop financial products related to carbon emissions trading.
In terms of talent introduction, the professional field of “environment, society and governance” has been added to the talent list of the Hong Kong Special Administrative Region, hoping to attract more professionals to work in Hong Kong and develop green finance.