PwC urges Hong Kong to adopt three-pronged approach for financial resilience

The strategy focuses on recouping capital, enhancing enterprise and talent attraction, and embracing opportunities in the digital economy.

PwC recommends a strategic three-pronged approach to bolster Hong Kong's global competitiveness and financial resilience.

These strategies focus on recouping capital, enhancing enterprise and talent attraction, and embracing opportunities in the digital economy.

To recoup capital, PwC suggests improving liquidity and competitiveness in the capital market through targeted measures.

These measures include establishing alternative funding platforms for SMEs, extending HKEX trading hours, implementing the Primary Equity Connect for IPOs, waiving the buy-side stamp duty, and providing tax neutrality for securitisation.

In addition, diversifying the investor base by boosting ties with regions such as the Middle East and Southeast Asia will enhance relationship capital and attract new investment options.

To enhance enterprise and talent attraction, PwC recommends that the government implement strategic initiatives to facilitate the integration of businesses into the local ecosystem, introduce regional headquarters tax incentives, and strengthen the tax treaty network.

In addition to these measures, the firm said that creating an ecosystem for ultra-high-net-worth (UHNW) families and single-family offices (SFOs) would be impactful.

Lastly, to embrace the digital economy, PwC said that Hong Kong should focus on the development of robust digital assets and virtual asset platforms and the reinforcement of the digital economy infrastructure.