Submissions and Reports

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.

The Chamber strongly advocates for greater collaboration with the international community in enhancing tax transparency and combating tax evasion amid the growing digitalisation of the economy. With the imminent implementation of the GloBE rules and the complexity they entail, we urge the Government to provide comprehensive guidance on all facets of the new rules to assist businesses in their compliance efforts.

The Chamber firmly believes in the critical importance of expanding Hong Kong’s tax treaty network and has put forward a number of suggested jurisdictions in response to an invitation from the Financial Services and the Treasury Bureau. We hold high hopes that substantive progress can be achieved in the near term by actively engaging the jurisdictions. Additionally, we highly recommend that the Government allocate additional resources to expedite the process.

The Chamber fully supports the Government’s proposed implementation of the Basic Law Article 23 Legislation, which is a welcomed step in the right direction for Hong Kong as it seeks to fulfill its constitutional duty and safeguard national security under the principle of “one country, two systems”. Whilst Hong Kong’s economic and social prosperity, as well as competitiveness as an international business hub rests upon such developments, sufficient clarity on the legal provisions and solid education and support from the Government for businesses and the public should also be considered to facilitate awareness and consensus building for the new legislation.

The Chamber is largely supportive of the Government’s latest proposals to further promote paperless corporate communications amongst Hong Kong's businesses to meet sustainability and efficiency objectives, which is also timely to facilitate further digital transformation within both the public and private sphere.

At the same time, we recommend that a more detailed consultation of industry stakeholders on the legislative proposals, prior to their taking effect, would be beneficial to addressing potential uncertainties associated with these proposals, thereby meeting business needs whilst protecting investor interests.

In its latest recommendations for the upcoming Budget, the Chamber has urged the Financial Secretary Paul Chan to implement short-term relief measures to alleviate the economic pressures faced by the public during these challenging times. The Chamber suggested that the government, among other measures, expand bond issues for additional cash inflows and impose a tax on non-Hong Kong resident digital service suppliers to generate more revenue.

The Chamber is generally supportive of the Government’s proposals to strengthen the energy efficiency of buildings and minimize Hong Kong’s carbon footprint through amending the Buildings Energy Efficiency Ordinance (Cap.610) (BEEO). At the same time, as this initiative would entail the expansion of the nature and scope of buildings which would be included under the BEEO, we recommend that consideration could be given by the Government to assessing the necessity and practicality of the proposed measures, as well as further consulting industry stakeholders on the implications of related amendments, so as to strike the right balance between meeting carbon neutrality goals and business needs.

The Chamber welcomes the revision of "Code of Practice - Safety and Health at Work in Confined Spaces". The Labour Department’s suggested revision of the Code of Practice is a major step in the direction of Vision Zero, as advocated by The International Social Security Association.

The Chamber welcomes the HKEX’s proposals to enhance the GEM Listing regime in light of the recent significant decline of listings. We nevertheless suggest that greater strides should be taken to attract GEM’s main intended beneficiaries – growth and small and medium sized companies (SMEs), who are crucial contributors to Hong Kong’s economy and prosperity as an international financial city – so as to facilitate the success of such reforms. Recommendations on how to achieve such objectives, comprising cost reduction and relaxing financial eligibility requirements for GEM listing, reducing the profit requirement for entry to the Main Board, as well as enhanced promotion and outreach, are also outlined in the response.