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Hong Kong Poised to Surpass Switzerland As Largest Wealth Management Hub by 2027

Animation-Comic-Game Hong Kong (ACGHK)

Hong Kong is on track to surpass Switzerland as the world’s largest wealth management hub by 2027, according to the city’s Secretary for Financial Services and the Treasury, Christopher Hui.

Hui cited Hong Kong’s growing appeal in attracting foreign investments, noting that the government is working to simplify the process for overseas companies to establish or expand their businesses in the city.

“Hong Kong’s attractiveness to foreign businesses would persist with its low tax rates and relaxed compliance requirements,” Hui said in an interview with RTHK on the second anniversary of the current government term.

The remarks come as the Hong Kong government recently published new legislative proposals to create a regulatory framework that makes it easier for overseas companies to re-domicile in the city. The proposals include relaxing requirements for financial statement submission and extending the de-registration period from 60 to 120 days.

Hui explained that the global shift towards a minimum corporate tax rate and rising compliance requirements in other jurisdictions are driving factors that encourage companies to return to Hong Kong.

“In overseas jurisdictions, there have been more requirements for companies to register a place of incorporation. These requirements primarily focus on compliance, such as the need for local economic activities and specific operations,” Hui said. “Some companies might enjoy lower compliance requirements or even lower tax rates in these places in the past, but with the introduction of a global minimum tax rate and the rising compliance requirements, these incentives are dwindling.”

While Hui stopped short of predicting the exact number of companies that would re-domicile to Hong Kong, he stressed the need to establish a suitable platform and framework in advance to accommodate the anticipated influx of foreign businesses.

The Secretary’s comments underscore Hong Kong’s ambition to cement its status as a leading global financial center, even as the city navigates a challenging geopolitical landscape and the lingering effects of the COVID-19 pandemic.