Submissions and Reports

The Chamber supports the proposed enhancements to the preferential tax regimes for the asset and wealth industry. These enhancements are crucial for maintaining Hong Kong’s competitiveness as a global financial hub. We believe, however, that there is still room for further refinements to the proposed measures. We suggest, among others, expanding the definition of qualified assets and applying these enhancements on a retrospective basis.

The Chamber expresses general support for the HKEX’s proposals to expand its paperless listing regime, thereby elevating Hong Kong’s regulatory framework for listed companies to align with global sustainability objectives. Taking note of the current market landscape, we nevertheless advocate for the incorporation of a degree of flexibility into the regime, with consideration of the practicability of some of the digitalisation proposals, such as that related to corporate communications, payments and web accessibility. Such an approach would facilitate a balanced addressing of the needs of listed issuers, securities holders and investors.

The Chamber is generally supportive of the Government’s latest proposed enhancements to the Copyright Ordinance (Cap 528) to keep pace with the rapidly developing global artificial intelligence innovation trajectory. Such proposals would be beneficial to advancing Hong Kong’s position as a leading hub for innovation, intellectual property trading, and cultural exchange. To sustain a vibrant business landscape in the area of AI, we believe that a clear, proactive, and balanced legal framework would be beneficial.

We also put forward our views on two key issues raised in the consultation - the issue of copyright protection for AI-generated original works and the introduction of a new exemption for the use of copyrighted works in computational data analysis and processing - and note that there is a divergence of views on the concept of originality and the rights of copyright owners and users which we suggest would merit consideration in the course of implementing the revised law.

The Chamber has called on the Chief Executive to assist businesses, especially small and medium enterprises, in navigating the challenging environment. Additionally, on behalf of members, the Chamber has put forward recommendations to raise Hong Kong’s competitiveness in key industries and accelerate the transformation into a sustainable city.

The Chamber acknowledges the HKEX’s efforts to enhance the corporate governance of listed issuers to strengthen Hong Kong’s competitiveness as a leading financial hub, as well as align to with international practices. Notwithstanding the forgoing, we put forward the recommendation that many of the proposed new rules – including that related to board governance effectiveness and independence - would merit further assessment on their necessity, as well as potential benefits and drawbacks of implementing them in the local context, in light of their potential impact on the general business community. In making such a suggestion, the Chamber draws from the principles of the globally recognized regulatory impact analysis approach, which considers the need for the identification of concrete issues that require tackling when implementing new regulatory initiatives.

The Chamber largely agrees with the Security Bureau’s proposed introduction of a new legislation to enhance the protection of the critical computer systems of critical infrastructure, acknowledging the significance of safeguarding the cybersecurity of the city’s essential services in upholding Hong Kong's stability and status as a global financial centre. At the same time, the Chamber recommends that consideration be given to putting in place a new regulatory regime that is proportional and balanced, principle and risk-based based, and aligned with international-standards - to facilitate business compliance and stakeholder trust - and which keeps pace with advancements in innovation and technology. We also seek further clarity on the regulatory scope and targets which would help provide certainty to local and international market participants.

The Chamber recognizes the objectives of present industry-led efforts to develop a Voluntary Code of Conduct for ESG ratings and data products providers (the Code), and regards this form of regulatory intervention as a proportionate measure, to foster the growth of a transparent and trusted market for the sector, and to facilitate companies due diligence in light of increasing sustainable investment awareness.
In relation to the design and implementation of the proposed Code, we suggest amongst others, that consideration be given to incorporating suitable flexibility and interoperability to facilitate voluntary adoption by the wider business community, in the light of potential resource and real data provision challenges.

The Chamber generally supports the Government’s proposals to transform Lau Fau Shan into a tech hub and eco-tourism hotspot, in line with its blueprint for the development of the Northern Metropolis. We recognize that such efforts would benefit businesses, particularly the tech sector, through creating opportunities for cross-border corporate synergies and development alongside Qianhai and Nanshan in Shenzhen.
At the same time, we highlight several conceptual and practical issues relating to these proposals, which we suggest that the Government take into consideration when taking forward the megaproject.

The Chambers continues to express support for the Government’s efforts in developing a robust market for VA development in Hong Kong, thereby recommending that the development of the proposed licensing regime for over-the-counter VA trading services strikes a balance between facilitating the continued demand for VA trading opportunities amidst the rapidly evolving digital landscape, against the need to safeguard investor interests and preserve market integrity.
In its response, the Chamber also puts forward suggestions on the execution of the legislative proposals, in such aspects as the scope of services which would be permitted under the new licensing regime as well as the proposed supervisory scope.