Xu Zhengyu: Hong Kong authorities suggest expanding the eligible asset categories to include virtual assets, etc

ChainCatcher news, according to a report by the Financial界, the Secretary for Financial Services and the Treasury, Xu Zhengyu, stated in the blog "财库论" that the government plans to optimize the current tax incentives provided to the asset and wealth management industry in multiple ways to further expand the market.

In terms of expanding the eligible asset categories, Xu Zhengyu mentioned that the authorities suggest broadening the eligible asset categories in line with the overall financial development strategy of the Treasury, adding carbon emission derivatives/emission allowances, insurance-linked securities, loans and private debt investments, and virtual assets, allowing for tax exemptions on the trading of such assets. On the other hand, it is proposed that anyone operating financial institution business, insurance business, or lending business in Hong Kong, who holds a beneficial interest of 10% or more in a fund, will be deemed to derive taxable profits from income earned from loans or private debt investments related to that fund. If the fund is associated with that person, any percentage of beneficial interest will apply. The next step for the Treasury is to issue a consultation document on the overall proposal, collect and analyze opinions, and then propose relevant legal amendments to implement various optimizations, adding momentum to industry development.