Gov't urged to roll out further reforms to attract more investments

The government should capitalise on its strengths to attract foreign investments.

As many businesses remain cautious, the government must encourage more investment by announcing further reforms in the upcoming Policy Address, said CPA Australia.

“Hong Kong should capitalise on its strengths to continue attracting foreign investments, ensuring its sustained vitality and global competitiveness,” Cliff Ip, Divisional President of CPA Australia in Greater China, said in a press release.

Earlier this year, the government launched the new Capital Investment Entrant Scheme (CIES). To further encourage inbound investment, the CIES should include private credit within Hong Kong and investments in single-family offices and art and collectables. 

The government should also expedite the implementation of its re-domiciliation regime to further entice non-Hong Kong companies to transfer their domicile in the country. 

Furthermore, implementing an IPO Connect scheme will enable Mainland investors to participate in Hong Kong IPOs and vice versa.

As the trading volume of the Hong Kong exchange traded fund (ETF) market is lagging behind other major exchanges in the Asia-Pacific region, Ip recommends expanding the diversity of ETF products. 

Additionally, a substantial increase in companies utilising artificial intelligence (AI) should make the government consider whether Hong Kong requires its own regulations and assess if it should be risk-based or rules-based.

Lastly, to improve cyber resilience and upskill works, CPA Australia recommends that the Policy Address include support for small and medium enterprises (SMEs) to adopt AI solutions.