Hong Kong Proposes Enhancements to MPF and Corporate Finance Regulations

Hong Kong's Financial Secretary, Paul Chan, has announced proposed improvements to the Mandatory Provident Fund (MPF) system aimed at protecting employee rights and increasing investment flexibility for trustees and service providers. According to RTHK, the MPF Authority plans to consult stakeholders this year, with the government set to submit amendment bills. The first phase of the MPF 'Full Portability' scheme, implemented this year, covers employees who joined after May last year. The government intends to expand this scheme to include employees who joined earlier, with legislative amendments expected in the first half of next year. Chan also mentioned that next month, the government will release consultation results and specific measures to strengthen regulations on money lenders, addressing excessive borrowing and enhancing citizen protection. The budget proposal aims to enhance Hong Kong's role as a major corporate treasury center, boosting the appeal of the 'bring in, go out' platform. Mid-year, authorities will announce a series of optimization measures, including additional tax incentives and flexibility for corporate treasury centers and affiliated companies, as well as the introduction of a pre-approval mechanism. Since the implementation of the company re-domiciliation system last year, 22 cases have been approved, with around 20 applications currently being processed. Chan emphasized the need for increased external promotion to attract more businesses to Hong Kong. He also suggested relaxing stamp duty exemption criteria for intra-group asset transfers, expanding the scope of eligible associated corporate entities to facilitate internal corporate restructuring. Legislative amendments will be submitted within the year, applicable to documents signed from today. Additionally, Chan stated that the government will explore providing tax incentives for qualified institutions conducting gold trading and settlement in Hong Kong. Efforts will be made to assist the industry in establishing associations to pool resources, enhance promotion, expand connections with domestic and international industry players, and develop training frameworks.