HK seeks to boost cooperation with Shanghai under the Belt and Road Initiative

InvestHK welcomes investment in artificial intelligence and robotics, financial technology, healthcare for the aging, and smart cities.
Ti Gong

The Director-General of InvestHK, Stephen Phillips, speaks at a seminar in Shanghai as he introduced new tax regimes in Hong Kong to promote investment between the two cities.

Hong Kong aims to enhance cooperation with Shanghai to serve the treasury needs and overseas expansion of Chinese mainland companies under the Belt and Road Initiative, the head of Hong Kong's investment promotion agency told Shanghai Daily today.

“Within the recent half year Hong Kong has offered Shanghai companies really exciting opportunities as they continued on their own internationalization,” said Stephen Phillips, director-general of InvestHK. “Hong Kong has so many ingredients that can help Shanghai companies go all around the world.”

He added that Hong Kong promotes its lower tax rates and open market to attract mainland investment. Hong Kong in October halved the profit tax rate for the first HK$2 million (US$256,000) generated by a small and medium sized company to 8.25 percent.

The government has also cut the tax for aircraft leasing companies in July and its legislative body is expected to review a regime to offer tax incentives for research and development activities in Hong Kong next year.

“Hong Kong has distinct competitive edges including our geographical location, a vibrant business environment, a robust legal system, intellectual property protection, and deep, world-class financial and professional services,” said Phillips. “Hong Kong is now home to over 8,200 overseas and mainland firms. More and more companies, engaging in cross-border commerce, set up their corporate treasury centers right here in Hong Kong.”

He said that inbound investment is especially welcomed in four key industries — artificial intelligence and robotics, financial technology, healthcare for the aging, and smart cities.

Hong Kong last week signed an agreement with China's top economic planner, the National Development and Reform Commission, to advance the city's participation in and contribution to the B&R initiative.

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