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Update: Hong Kong chief executive announces Belt and Road organs

Xinhua, January 13, 2016 Adjust font size:

Hong Kong Chief Executive Leung Chun-ying on Wednesday announced to establish a steering committee and an office for China's Belt and Road Initiative.

Leung made the announcement when delivering a policy address for the year of 2016. It was the fourth policy address of Leung since he was sworn in on July 1, 2012.

Leung said he will chair the committee, which will be responsible for formulating strategies and polices for Hong Kong's participation in the Belt and Road Initiative.

As for the Belt and Road Office, it will co-ordinate work between government departments and other institutions, such as Trade Development Council and Hong Kong Tourism Board. It will liaise with the central ministries, provincial and municipal authorities, as well as professional bodies and community organizations in Hong Kong.

To further attract multinational and Mainland enterprises to establish corporate treasury centers in Hong Kong, the government proposes, under specified conditions, interest deductions under profits tax for corporate treasury centers, and profits tax reduction by half for specified treasury activities. For this purpose, a bill was tabled in the council last month, the chief executive said.

Driven by the Belt and Road Initiative, the Chinese mainland enterprises will expand their overseas business and there will be a greater demand for business services to lower corporate financial costs and enhance treasury risk management, Leung said, adding that Hong Kong is an ideal location to set up corporate treasury centers.

He noted that as more and more mainland enterprises seek to "go global" under the Belt and Road Initiative, Hong Kong will continue to encourage mainland enterprises to establish captive insurance companies in Hong Kong, make insurance arrangements and enhance risk management for their overseas businesses expanded under the Belt and Road Initiative.

Leung also mentioned that Hong Kong will continue to promote the offshore RMB business.

"We will further upgrade and bring into full play our functions and services as a global hub for offshore RMB business. For example, we will strengthen market infrastructure and financial platforms, enhance RMB business links with countries along the routes, and promote RMB business between Hong Kong banks, international financial institutions and enterprises.

"We will step up efforts to stage roadshows abroad to encourage overseas financial institutions and enterprises to conduct transactions on our RMB financial platform," he said.

Leung said the year of 2016 is one with important opportunities for Hong Kong since it is the outset of the Chinese mainland's 13th Five-Year Plan and Hong Kong's innovation and technology development.

Leung, in his policy address, said the special administrative region government has input numerous resources to improve local residents' livelihood due to increased tax revenues in the last year. Endit