Financial Services and the Treasury Bureau (FSTB)

【Hong Kong and Rwanda Sign Comprehensive Double Taxation Agreement (CDTA)】 Today, the Secretary for Financial Services and the Treasury, Mr Christopher Hui, signed a Comprehensive Double Taxation Agreement (CDTA) with Rwanda’s Minister of Finance and Economic Planning, Mr Yusuf Murangwa, marking another milestone in deepening Hong Kong’s cooperation with Belt and Road economies. Mr Hui said, “Rwanda is a participant in the Belt and Road Initiative. The CDTA demonstrates Hong Kong’s continuous efforts in deepening co-operation with Belt and Road economies, and is also a significant milestone in promoting the financial, economic and trade connections between Hong Kong and Rwanda. This is the 54th CDTA that Hong Kong has concluded and is also the third one this year. The HKSAR Government will continue to expand Hong Kong’s CDTA network to enhance our attractiveness as a business and investment hub, and consolidate the city’s status as an international financial and trade centre.” The CDTA sets out the allocation of taxing rights between both jurisdictions, enabling investors to better assess their potential tax liabilities from cross-border economic activities and enjoy avoidance of double taxation. This fosters bilateral trade and investment, strengthening Hong Kong’s role as an international financial and trade hub. Rwanda’s withholding tax rates for Hong Kong residents on dividends, interest, royalties and fees for technical services, currently at up to 15 per cent, will be reduced to 7.5 per cent to 10 per cent. #HongKongRwandaCDTA #CDTA #BeltAndRoad #FinancialServicesAndTreasuryBureau

【Launch of The Family Office Playbook and 1st Anniversary of the Hong Kong Family Office Nexus】 Secretary for Financial Services and the Treasury, Mr Christopher Hui, is delighted to announce the launch of The Family Office Playbook and to celebrate the first anniversary of the Hong Kong Family Office Nexus, a partnership between the Financial Services and the Treasury Bureau and Bloomberg. The Family Office Playbook provides a comprehensive roadmap for family offices, covering strategy formulation, regulatory navigation, and investment management etc., showcasing Hong Kong’s strengths as a global wealth management hub. Over the past year, the Nexus’ digital knowledge hub has recorded over 4,000 views, and Invest Hong Kong has successfully assisted more than 200 family offices to establish or expand in Hong Kong, achieving our targets ahead of schedule. Please download The Family Office Playbook (https://lnkd.in/gdv2qy_r) and visit the Hong Kong Family Office Nexus digital knowledge hub. Join us in shaping Hong Kong as a global centre for wealth legacy. #HongKongFamilyOfficeNexus #TheFamilyOfficePlaybook #FamilyOffice #WealthManagement #Bloomberg

The Secretary for Financial Services and the Treasury, Mr Christopher Hui, visited the Warsaw Stock Exchange and met with Polish officials and business sector in Warsaw before concluding his visit to Poland.   He visited the Warsaw Stock Exchange (GPW) and met with its Chief Executive Officer, Mr Tomasz Bardziłowski, as well as other management. Secretary Hui anticipated more connections could be established with the GPW to increase the diversity of both stock markets, including real-world asset tokenisation which the GPW is interested in.   Later at a meeting with the Undersecretary of State in the Ministry of Economic Development and Technology, Mr Michał Baranowski, Secretary Hui introduced to him the stellar performance of Hong Kong in wealth management and equity market, as well as new initiatives aiming to drive financial development, such as building an international gold trading market which will comprise a Government-led central clearing system for gold.   He then met with the Undersecretary of State in the Ministry of Finance (MoF) of Poland, Mr Jarosław Neneman, and other relevant officials, to request the removal of Hong Kong from Poland’s "list of jurisdictions with harmful tax practice" (the List). The Polish MoF responded and will positively consider removing Hong Kong from the List.   Secretary Hui has also proposed to start negotiations on a Comprehensive Avoidance of Double Taxation Agreement (CDTA) between Hong Kong and Poland as soon as practicable. Both sides see that a CDTA could be conducive to bilateral trade activities, bringing substantial mutual benefits.   In the afternoon, he had a meeting with the Undersecretary of State in the Ministry of Foreign Affairs, Mr Wojciech Zajączkowski. Secretary Hui told him that Hong Kong has maintained its ranking of third place globally, with the rating gaps with first place (New York) and second place (London) narrowed to two points and one point respectively in the Global Financial Centres Index (GFCI) 38 Report published the same day.   Secretary Hui joined a business luncheon organised by the China Construction Bank to meet with management of various renowned Mainland enterprises which had set up a presence in Europe. He assured Hong Kong is determined to position itself as a platform for "bringing in and going global" to support Mainland enterprises in seeking overseas expansion.   He also met with the Minister Counsellor of the Chinese Embassy in Poland, Ms Li Danhong, to update her on Hong Kong's financial landscape.   Before concluding his visit in Poland, Secretary Hui went for a visit to Sanhua AWECO Polish Appliance to meet with their management team and tour its Tychy plant. He had a deep discussion with them to learn more about the challenges of Mainland companies encountered during overseas expansion, and elaborated to them the various initiatives Hong Kong will launch and the professional services available to assist Mainland companies to go global through Hong Kong.

Hong Kong maintained third place globally and the first place in Asia Pacific in the Global Financial Centres Index (GFCI) 38 Report published today by Z/Yen from the United Kingdom and the China Development Institute from Shenzhen. Hong Kong's overall rating increased by four points to 764, narrowing the gaps in rating with second place and first place to one point and two points respectively.   Secretary for Financial Services and the Treasury, Mr. Christopher Hui, said, "The report once again recognises Hong Kong's leading status and comprehensive strengths as an international financial centre. We have taken the opportunity to promote further measures for market development. The Chief Executive's 2025 Policy Address has announced a series of policy measures to further strengthen Hong Kong's financial system, for example reform measures for the stock, bond and currency markets. The Government will also expedite the development of new growth areas, including building an international gold trading market and creating a commodity trading ecosystem. These measures will further enhance Hong Kong's unique positioning in the current global political and economic landscape, strengthening our status as an international financial centre."   In the report, Hong Kong's ranking in fintech offering leapt from fourth place to first in the world. This reflects that the Government's multi-pronged policies, combined with close collaboration with the industry, have made the success of Hong Kong's fintech development clearly evident. Hong Kong also ranked among the top in assessments by practitioners in various financial industry sectors, with "banking", "investment management", "insurance" and "finance" remaining top three in the world. In addition, Hong Kong's rankings in the areas of "business environment", "infrastructure" and "reputational and general" rose further to the first globally, while ranking second and third in "human capital" and "financial sector development" respectively.

The Secretary for Financial Services and the Treasury, Mr Christopher Hui, met with the Deputy Prime Minister and Minister of Finance of Slovenia, Mr Klemen Boštjančič, again in the morning of yesterday. He also connected with the Ministry’s senior officials responsible for tax revenue management, before proceeding to Poland for the second leg of his European visit. He said at the meeting that the visit was very fruitful, especially about the news that the Slovenian Government and National Assembly are deliberating on the decision to prioritise the Comprehensive Avoidance of Double Taxation Agreement (CDTA) negotiations with Hong Kong.   Both the Hong Kong Special Administrative Region and Slovenian governments are keen to pursue a CDTA early to reduce unnecessary tax obstacles for encouraging bilateral trade and investment. The signing of the CDTA will foster closer economic ties between Hong Kong and Slovenia and Secretary Hui believes that it will be welcomed by the business communities in both places.   In the afternoon, Secretary Hui started his itinerary in Warsaw, Poland where he visited Lenovo Technology and had a meeting with its General Manager at Lenovo Poland, Mr Wojciech Zaskorski, and other senior members from the business sector to learn more about the macroeconomic situation of Poland, its digitalisation journey, and needs of Mainland companies in expanding business overseas.   At the meeting, Secretary Hui stated that Hong Kong is striving to becoming a perfect platform to support Mainland companies going global. A Task Force on Supporting Mainland Enterprises in Going Global will be set up to encourage Mainland enterprises to utilise Hong Kong in expanding their businesses overseas.   Secretary Hui reiterated that Hong Kong has an extensive pool of professionals to serve Mainland companies on their journey towards global market expansion. Using the accounting sector as an example, he said that the Hong Kong Institute of Certified Public Accountants has compiled the List of accounting firms helping Mainland enterprises go global to help Mainland companies to tackle the challenges of venturing abroad. As at mid-August, the list includes 83 Hong Kong accounting firms which are ready to provide professional accounting services to Mainland companies with needs of going global.

The Secretary for Financial Services and the Treasury, Mr Christopher Hui, attended a high-level roundtable conference with European ministers of finance and financial experts from different regions yesterday in Ljubljana, Slovenia.   The high-level conference themed “Unlocking Growth: The Future of Slovenian and European Capital Markets” was hosted by the Ministry of Finance of Slovenia, gathering ministers of finance from Croatia, Estonia and Slovenia, the European Commissioner for Financial Services and the Savings and Investment Union, as well as many more financial leaders and experts to share insights in driving a more promising future of the European capital markets.   As one of the panellists at the panel discussion titled “Global Practices in Capital Markets”, Secretary Hui said that Hong Kong is strategically located as a premier gateway to connect the traditional markets and emerging markets across the world, matching the needs of both sides. Aside from being one of the top three international financial centres in the world, Hong Kong enjoys the merits brought by the real-world economy and keen investment demand in the Chinese Mainland, turning the city into an enticing pool for global investment.   In the afternoon, Mr Hui joined a business event organised by the Gospodarska Zbornica Slovenije (GZS) which is the largest chamber of commerce and industry in Slovenia. The Slovenian-Chinese Business Council under GZS aims to strengthen co-operation and business relations between the two countries and help Slovenian companies access the Chinese market.   Mr Hui told the audience that there is never a better time than now to capitalise on the advantages of Hong Kong as the perfect platform to enter into the Asian and Chinese markets. With a world-renowned and robust regulatory regime, Hong Kong’s financial markets offer the most stable and predictable environment that aligned with international practice for investors. The world-class professional services available in Hong Kong can support enterprises to go far.   The GZS will be leading a business delegation to visit Hong Kong and the Chinese Mainland this early November and over 50 companies have enrolled. Mr Hui said that it would definitely be a good occasion for Slovenian companies to see for themselves the vast opportunities there and hopefully would come up with some collaboration.

The Secretary for Financial Services and the Treasury, Mr Christopher Hui, commenced his duty visit to Slovenia and Poland, arriving the first stop Ljubljana (capital of Slovenia) yesterday. Secretary Hui is going to Slovenia on the invitation of the Deputy Prime Minister and Minister of Finance of the Republic of Slovenia, Mr Klemen Boštjančič, to attend a high-level event which will gather members of the European Commission, as well as ministers of finance or senior financial officials from various countries and financial experts. He will also join a panel discussion at the event. Earlier in June this year, Secretary Hui proposed to Deputy Prime Minister and Minister of Finance Boštjančič that both sides should attach importance in reaching a Comprehensive Avoidance of Double Taxation Agreement (CDTA) so that our business communities would be able to reap the tremendous benefits as soon as possible. With a CDTA in place, the business communities and residents of the two places will better understand the potential tax liabilities from cross-border investments, and enjoy avoidance of double taxation. This will be conducive to creating a more favourable and attractive business environment for investors to establish or expand their businesses. With the commitment of both sides, the first round of CDTA negotiations should be possible in the near future. On the same day, Secretary Hui also met with Mr Mohammed bin Abdullah Elkuwaiz, Chairman of the Capital Market Authority (CMA) of Saudi Arabia, to introduce the comprehensive advantages of Hong Kong’s financial market. He proposed enhanced cooperation with Saudi Arabia, aligning with its goal to develop its capital market into one of the world’s most significant financial markets. Secretary Hui also visited Charge d’Affaires of the Chinese Embassy in Slovenia, Mr Zhao Binghui. They discussed the latest trends and opportunities for Mainland Chinese companies expanding overseas and how Hong Kong can leverage its unique role to serve these needs effectively.

【Portugal to remove Hong Kong from "Tax Blacklist" from next year】   I visited Portugal in June last year to promote financial co-operation and explain Hong Kong's fair and transparent tax system to the Portuguese government, striving to have Hong Kong removed from its "tax blacklist". I am delighted to share that these earlier efforts have achieved tangible results. We welcome the announcement by the Portuguese Government that Hong Kong will be removed from Portugal's "list of countries, territories and regions subject to a clearly more favourable tax regime" with effect from January 1, 2026.   The announcement eliminates unnecessary tax obstacles for Hong Kong investors, allowing them to explore business opportunities in Portugal under a fairer business environment. Key benefits include: 1. investors will no longer be subject to higher rates of withholding taxes and real estate taxes in Portugal; Saving in real estate tax can be as high as 7.2%;  2. investors will enjoy tax exemptions on certain capital gains by non-residents, saving can be as high as 28%; and 3. transactions between Hong Kong and Portugal will no longer be subject to tighter transfer pricing rules.   This achievement was due to the close collaboration between the business sector and the Financial Services and the Treasury Bureau, jointly providing a well-reasoned explanation to the Portuguese government, effectively telling Hong Kong's "tax story". We will continue to support international tax co-operation, maintain close communication with overseas tax jurisdictions and expand our tax treaty network, with a view to reinforcing Hong Kong's position as a leading international business and investment hub.   Secretary for Financial Services and the Treasury Christopher Hui

【Target accomplished! Over 200 family offices set up or expanded business in Hong Kong】   The Financial Services and the Treasury Bureau and the Invest Hong Kong have achieved the milestone of facilitating 200 family offices to set up operations or expand their business in Hong Kong, attaining the goal set in the 2022 Policy Address ahead of schedule. The latest additions further consolidate the city’s standing as Asia’s leading cross-border private wealth management centre and hub for global family offices.   The 2022 Policy Address set a target of facilitating no less than 200 family offices to set up operations or expand their business in Hong Kong by the end of 2025. In March 2023, the Financial Services and the Treasury Bureau published a policy statement and outlined eight policy measures, including offering tax concessions, introducing the New Capital Investment Entrant Scheme (New CIES), and establishing the Hong Kong Academy for Wealth Legacy. These measures aim to curate a conducive and competitive environment for the businesses of family offices. Since 2022, more than 200 family offices have established or expanded their presence in Hong Kong with support from the InvestHK. The reported figure has not covered family offices that have established themselves independently or through support from the city’s professional services network. In other words, the actual scale of Hong Kong's development as a family office hub is even more substantial.   Secretary for Financial Services and the Treasury, Mr Christopher Hui, said, “Upon the active promotion and policy support by the Government in fostering a stable and predictable environment conducive to development over the past two years or so, family offices are now an important component of Hong Kong's financial industry. Hong Kong is a place where favourable conditions for family offices converge, ranging from world-class professional services and a high-quality, livable lifestyle to strong advantages for the development of sectors such as green investments, art and philanthropy. All these contribute to a diverse and well-rounded ecosystem for family offices. The fact that InvestHK surpassing the milestone of attracting 200 family offices ahead of schedule is a testament to this city’s strong competitive advantage in private wealth and asset management. We will continue to refine our policy measures, such as further enhancing the preferential tax regimes for funds, single family offices and carried interest, to keep up the growth momentum of the family office sector.”

【More Captive Insurers Join the Effort to Expand Hong Kong’s Risk Management Market】 In his latest Secretary’s blog, Secretary Christopher Hui shared updates on the development of captive insurance business in Hong Kong. He noted that following the establishment of Wayfoong (Asia) Limited, a wholly-owned subsidiary of HSBC Group, as a captive insurer in Hong Kong this May, the Insurance Authority (IA) has just announced the formal authorisation of SAIC Motor Insurance Limited, a captive insurer under SAIC Motor Corporation Limited, to commence operations in Hong Kong. This brings the total number of captive insurers operating in Hong Kong to six, with two newly established in 2025 alone. This continued growth reflects the strong and sustained demand for setting up captive insurers in Hong Kong, and underscores the growing confidence in the city’s status as an international risk management centre. Secretary Hui emphasised that to attract more multinational insurance groups and captive insurance institutions to establish a presence in Hong Kong, the HKSAR Government and the IA have been actively working to strengthen Hong Kong’s position as a global risk management hub, providing large international corporations with comprehensive insurance solutions to support the development of global risk management strategies. In recent years, the Government has launched a range of favourable measures, including a 50% profits tax concession for captive insurance business, enhancing Hong Kong’s competitiveness over other Asian markets. The IA has also introduced regulatory facilitation measures for captive insurers, such as: -             Simplified capital requirements -             Exemption from the appointment of a certified actuary -             Exemption from the requirement to maintain assets in Hong Kong -              These initiatives strike a balance between maintaining international regulatory standards and creating an attractive operating environment for captive insurers. Moreover, Hong Kong benefits from a highly skilled talent pool across insurance, legal, actuarial, and risk management professions. Coupled with a mature financial ecosystem, these strengths enable captive insurers to effectively manage group-wide risks across global operations. Read the full blog article: https://lnkd.in/g5UwXs9w