Submissions and Reports

The Chamber welcomes the opportunity to comment on the proposals for the latest two development areas of the Northern Metropolis blueprint – New Territories North (NTN) New Town and Ma Tso Lung. We highlight in our submission comments spanning land use and planning, financing channels, as well as infrastructural support and sustainability, and housing and liveability considerations, to facilitate the Government’s formulation of more detailed plans for these development areas. In particular, we recommend a forward-looking approach with the design of the NTN New Town – with its close proximity to Shenzhen - and seek for clarity on the design and purpose for the proposed land allocations. We also call for the setting of strategic priorities for the development of target industry clusters and enterprises within these areas.

The Chamber expresses in principle support to the HKEX’s proposals to enhance its IPO Price Discovery and Open Market Requirements framework, recognizing that this approach aligns with internationally recognized best practices for regulation, focusing solely on instances where a clear and demonstrable need for regulation is necessary. As part of our recommendations, we advocate that the requirement of enhanced disclosure in the IPO listing prospectus of a possible downward adjustment of up to 10 per cent below the indicative offer price be removed, as investors’ interests are sufficiently protected by present rules.

It is crucial to accelerate the expansion of Hong Kong’s tax treaty network to enhance our attractiveness as a preferred destination for international business operations amid evolving global tax landscapes. We are hopeful that meaningful progress can be made in the short term by actively engaging with the jurisdictions listed in the attached document. Furthermore, we highly recommend that the Government allocate additional resources to expedite the process.

The Chamber is broadly in favour of the Development Bureau’s proposed enhancements to the Buildings Ordinance (Cap. 123) (“CP”), recognizing the importance of such amendments in addressing societal concerns on building and construction safety, and maintaining Hong Kong’s competitiveness as an international city. In terms of implementation, we encourage building owners to take proactive steps in maintaining their properties, whilst advocating for the Government to offer sufficient support, to help the industry achieve compliance, and implement balanced enforcement interventions.

The Chamber has urged the Financial Secretary to adopt a multi-pronged approach to raise revenue and reduce expenditure in response to current fiscal challenges. In its submission to the Government’s 2025-26 Budget, the Chamber suggested increasing the issuance of government-backed bonds for long-term investments and imposing taxes on non-Hong Kong resident digital service suppliers. Additionally, the Chamber has called on the Government to review civil servant establishments and adjust the Public Transport Fare Concession Scheme (HK$2 Scheme) to contain the growth of expenditure.

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.