Hello. I'm Mike, a lawyer living in Hong Kong.
How about " 2020 Policy Address?"
It's a long document, 88 pages, so it's not easy, but you might want to read it from the headings titles that interest you.
The following is an overview of what you need to know, including some background information.
Has "one country, two systems" collapsed?
It is a system under which Hong Kong has a high degree of autonomy, with no change to its political system for 50 years after the return of China. However, there is a considerable gap between our understanding and that of the Chinese.
We interpreted and expected this system to mean that Hong Kong would be treated as a free and open city by China as it was before the handover, and that the government would eventually be democratised. So when demonstrations and disputes for democracy were suppressed by the government and the democratic movement was completely suppressed, we lamented the collapse of the one country, two systems system.
From China's point of view, one country and two systems are different. Hong Kong is one of China's administrative regions, so Hong Kong's autonomy (two systems) is based on the premise that it is part of China (one country ). For Hong Kong, which was not a democracy even before the return, a democratic movement is a movement to "change the political system", and for China it is equivalent to a revolution to overthrow "one country", so naturally it is suppressed. To protect the two systems of "one country". Now there is political stability (from China's point of view) and the correct one country, two systems is working.
CHINA IS TRYING TO CREATE A BIG INTERNATIONAL FINANCIAL AND BUSINESS HUB CALLED GBA, WHICH WILL CONNECT THE CHINESE ECONOMY WITH THE GLOBAL ECONOMY. TO ACHIEVE THIS, HONG KONG NEEDS TO BE GIVEN THE PRIVILEGE OF BEING AN INTERNATIONAL FINANCIAL CENTRE, WHILE AT THE SAME TIME FUNCTIONING UNDER THE SAME POLITICAL SYSTEM AS CHINA, AS PART OF MAINLAND CHINA, IN A COOPERATIVE AND COMPLEMENTARY RELATIONSHIP WITH OTHER CHINESE CITIES.
WHAT IS THE GBA INITIATIVE?
The GBA is a bay area consisting of nine municipalities in Hong Kong, Macau, and Guangdong Province. The GBA concept is to make this area a major economic and business hub on par with New York, San Francisco, and Tokyo. The idea is to bring togetherHong Kong, Macau, Shenzhen, and Guangzhou, which have already developed independently of each other , and to develop them into a large economic zone by creating a chemical reaction involving the surrounding areas. Within the GBA, there will be freedom of movement, registration and licensing of banking and securities businesses, approval and licensing of new drugs, research and development, fund management, investment, education, medical care, welfare, housing, employment, and all sorts of other things will be eliminated, making it like a single administrative region. It will be like a single administrative region. On the other hand, Hong Kong is open to the world, and Chinese cities are open to mainland China, so this will be the hub connecting China to the world. The Chinese government will provide generous human, material, and institutional support, and the area will surely achieve remarkable development in the near future.
Science parks also play an important role in this process. The proximity of Hong Kong and Shenzhen will make this an I&T Co-operation Zone and a base for startups to develop their businesses in the GBA.
A system called " Wealth Management Connect Scheme " has already been launched in GBA. This system will allow mainland Chinese investors to trade offshore and foreign investors to invest in China through the GBA's financial institutions.
THE GBA CONCEPT CANNOT BE LEFT OUT WHEN TALKING ABOUT THE FUTURE OF HONG KONG.
In addition, the Policy Address details a number of individual Hong Kong policies in various areas. I enjoy all of them, but here are two of interest.
iAM Smart
When I had the coronary vaccine in Hong Kong earlier this year, I was told by the guide to "download this. I thought it was an electronic version of my vaccine certificate, but it was much more than that. I thought it was an electronic version of the vaccine certificate, but it was much more than that. In Hong Kong, most administrative procedures can be done online, but this app is a one-stop shop that takes you to the websites for online procedures such as tax returns, driver's license renewals and so on. In addition, you can access your personal records such as hospital visits, medication and any other personal records, not to mention your coronary negative certificate, making it easier for you to complete administrative procedures and use government agencies. It seems that the decision was made to introduce this last year and it was actually introduced this year.
Carried Interest
If you are not in the fund business, you may not be interested in this at all, but there are a number of steps that are being taken to make Hong Kong a more viable hub for PE funds. At the end of last year, the government announced that it would introduce tax incentives on the carried interest of PE funds managed in Hong Kong. Carried interest exempt from tax In fact, this year it became This is a very big deal for PE fund managers and a huge incentive to manage PE funds in Hong Kong. Prior to this, in August last year, the LPF (Limited Partnership Fund) regime was introduced in Hong Kong. Until then, funds were set up in Cayman and other places and managed in Hong Kong, but now they can be completed in Hong Kong. This alone is a great incentive, but the tax treatment of carried interest was still an issue. This has now been clearly resolved and kindly applied retrospectively to the previous year. Fund managers are flocking to Hong Kong.
The Policy Addresses range from immediate implementation to plans for the next 10 or 20 years. Thanks to the undemocratic nature of the government, the ones that are implemented are implemented very quickly, and the long-term plans are not changed by the government, so we can have confidence in their effectiveness.
See you next time.
