Mongolian President leads Business Mission to HK, MOU signed

Mongolian President Tsakhiagiin Elbegdorj addressed an audience of approximately 200 businesspeople at a Hong Kong luncheon that was organised by the Hong Kong Trade Development Council (HKTDC).

The president went to Hong Kong in order to promote emerging opportunities in the resource-rich country. A Mongolian mission of more than 100 senior businesspeople and government officials was led by him.

In his speech, Tsakhiagiin Elbegdorj outlined the latest developments in Mongolia. Along with mining, he welcomed Hong Kong companies to explore opportunities in financial services, infrastructure and tourism.

Following the luncheon, the HKTDC and the Mongolian National Chamber of Commerce and Industry signed a Memorandum of Understanding designed to strengthen economic and trade links between Mongolia and Hong Kong. On the same occasion, InvestHK signed an MOU with Invest Mongolia to boost investment between the two economies.

Filed under: Business and Economy, HK as a Financial Centre, International Business Environment, News and politics

HK may introduce government sukuk bill in 1st quarter 2014

Hong Kong may present a bill to lawmakers in the 1st quarter of 2014 that would allow the government to raise funds via Islamic bonds. This was reflected in a discussion paper from Hong Kong’s Legislative Council.

The plans are related to increasing competition among financial centres for Islamic finance business, centred in southeast Asia and the Middle East.

The discussion paper will be reviewed by the Legislative Council in the beginning of December.

The bill would allow the AAA-rated government to issue sukuk under its existing government bond programme, which has so far issued HK$ 107.5 billion (USD 13.9 billion), of which HK$ 90 billion was outstanding as of November 15.

The paper calls for legislative amendments to allow the use of special purpose vehicles, which are investment certificates that follow religious guidelines such as bans on interest and gambling.

The idea of a Hong Kong sukuk dates back to 2008, when the territory’s airport authority considered selling a sukuk of up to $1 billion, but no sale has taken place so far.

Filed under: HK as a Financial Centre, Offshore services

HK reviews Trust Reforms

At the recent Hong Kong Trustees’ Association Conference 2013, the Secretary for Financial Services and the Treasury, Professor K C Chan, in his speech confirmed that the Government of Hong Kong is keen to promote the jurisdiction as a global trust services center.

Chan said that the trust industry is “an indispensable pillar that cements our standing as a premier international asset management center.” It provides a wide range of services and products, including individual wealth and estate planning, as well as corporate trust services, such as trust administration and acting as a custodian. In addition, financial structures and products have been developed that utilize trusts, such as pension funds, real estate investment trusts and hedge funds.

He cited the many advantages that have set Hong Kong apart as a premier trust administration center. For example, its proximity to the Mainland means that the industry can offer its services to ultra-high-net-worth Chinese individuals who are seeking ways to manage their assets, as well as looking to preserve wealth and family businesses for passing on to future generations.

Chan noted that the Government’s goal is developing Hong Kong “as the most competitive and dynamic wealth management business center in Asia,” and that, with the setting up of the Private Wealth Management Association in September this year, “it is of vital importance that our regulations are up to date in order to take on new opportunities.”

The Government launched a trust law reform exercise in 2008 to modernize the Trustee Ordinance and the Perpetuities and Accumulations Ordinance, the 2 main pieces of legislation in Hong Kong’s trust law regime. The exercise was brought to completion with the passage of the Trust Law (Amendment) Ordinance 2013 in July 2013.

Filed under: HK as a Financial Centre, Offshore Legislation

HSBC publishes Global Expat Survey

HSBC, one of the world’s largest banking and financial services organisations serving some 55 million customers, has published what it describes as its “biggest and most insightful survey” of expats around the world, bringing together global data from 7,004 respondents on aspects of life abroad ranging from earning hotspots through to quality of life, and presenting country reports for locations that include Hong Kong.

The study, entitled Expat Explorer 2013, is HSBC’s 6th annual survey, and includes an interactive tool that allows cross-country comparisons of quantitative data relating to economics, the expat experience, and raising children abroad.

According to the study’s league tables, Hong Kong in 19th country for expat experience, while Thailand is the top country. As to locations for raising expat children, the list is topped by Germany and Singapore, and Hong Kong takes the 11th position, followed by the Uk with the 19th.

Hong Kong was praised by respondents of the survey for its childcare, with 54% judging that schools are better in the territory than in their home countries and 71% believing that Hong Kong is safer for children.

Hong Kong is also associated with lower taxes for 61% of respondents (against a global average of 27%) and many reported higher salaries (50% against a global average of 41%) and increased personal security (60% compared to a global average of 40%).

Filed under: International Business Environment