Wide-ranging measures to boost HK’s role in Bay Area
The 2019-20 Budget has proposed a wide range of measures relating to the Guangdong-Hong Kong-Macao Greater Bay Area — focusing on financial services, innovation and technology, as well as aviation.
Financial Secretary Paul Chan Mopo mentioned “Greater Bay Area” 18 times when delivering the current administration’s second financial budget in the Legislative Council on Wednesday. He stressed that it was a golden opportunity for Hong Kong to explore new directions.
The special administrative region was positioned as an international financial, transport and trade center, as well as an international aviation hub, according to the outline development plan for the Bay Area unveiled last week.
In line with the blueprint, Chan said in his speech Hong Kong will explore the expansion of channels for two-way flow of cross-boundary renminbi funds to strengthen the city’s role as a global offshore renminbi business hub.
Mutual access with the Chinese mainland will also be actively promoted. Chan said the Bond Connect could be extended to cover southbound trading.
Discussing innovation and technology, he said the Hong Kong-Shenzhen Innovation and Technology Park located at the Lok Ma Chau Loop will become a base for I&T development in Hong Kong. About HK$20 billion ($2.5 billion) was set aside in the last fiscal year for the first stage of the construction work, which is now in progress.
A government source said the park will be built as an international I&T center for the Bay Area, as it could use Hong Kong’s lab resources and national scientific project funds.
In addition, the government will continue to offer profits tax breaks to aircraft-leasing businesses to attract more companies and enhance its competitiveness in aviation business. With the Hong Kong-Zhuhai-Macao Bridge nearby, Lantau Island has become a “double gateway” connecting the world and cities in the Bay Area.
Local aircraft-leasing companies are now in discussions with airline companies from the Chinese mainland, South Korea, Chile, Indonesia and Qatar, revealed a government source.
Agnes Wong, tax partner at PwC Hong Kong, said financial services and I&T and aviation sectors have long been Hong Kong’s traditional strengths. She said the SAR government, in trying to improve these industries, would not only serve the needs of the 11-city Bay Area, but also help the city’s long-term development.
The government plans to allocate HK$111 million to set up a Bay Area development office. Of the amount, HK$28 million will be used for hiring 19 staff, such as press officers, for the office.
According to a government source, the funding submission will be put to the LegCo’s panel on commerce and industry on March 19. She said they were confident they could win approval and get appropriation before the summer recess. Personnel for the office will be confirmed in April.