Carrie Lam unveils new measures to reinforce Hong Kong's financial strengths

HONG KONG -- Chief Executive of China's Hong Kong Special Administrative Region Carrie Lam unveiled Wednesday an array of new measures to reinforce Hong Kong's status as a global financial hub, including improving the listing regime of the stock market and facilitating the cross-boundary flow of renminbi.

"Despite unprecedented challenges in the past two years, our financial system has remained stable and business has been vibrant," Lam said when delivering the 2021 policy address at a Legislative Council meeting.

The HKSAR government will support Hong Kong Exchanges and Clearing Limited in enhancing the listing regime and establishing one for special purpose acquisition companies, Lam said.

Efforts will be made to expand the channels for the two-way flow of cross-boundary renminbi funds and developing offshore renminbi products and tools, Lam said, citing measures to improve the demand for issuance and trading of renminbi securities and to allow stocks traded via the southbound trading under Stock Connect to be denominated in renminbi.

Hong Kong will further attract family offices to establish a presence here by considering the provision of tax concessions, Lam said.

The HKSAR government will support the HKEX in promoting cooperation with the Guangzhou Futures Exchange in financial product development related to carbon emission trading, Lam said, expecting a stronger role of Hong Kong as a regional green and sustainable finance hub.

Hong Kong will also explore with the mainland the formation of a one-stop sandbox network to facilitate financial institutions and information and technology companies from Guangdong, Hong Kong and Macao to test cross-border fintech applications, she added.

The 2021 policy address, the fifth of its kind since Lam took office in 2017, focuses on bolstering Hong Kong's economy, tackling an entrenched housing shortage and prompting Hong Kong to better integrate into the national development.