Mr Cliff Ip, Divisional President of CPA Australia 2024 in Greater China

In the submission^[2], CPA Australia proposes several policy measures that focus on five major themes, reinforcing Hong Kong's role as an international financial hub, developing the city into an international innovation and technology (I&T) centre, promoting environmental, social and governance (ESG) measures, developing, attracting and retaining talent, and boosting the domestic economy.

Mr Cliff Ip, Divisional President of CPA Australia in Greater China 2024, said, "As an international financial hub, Hong Kong should capitalise on its strengths to continue attracting foreign investment, ensuring its sustained vitality and global competitiveness."

Earlier this year, the government launched the new Capital Investment Entrant Scheme (CIES) to support the local economy. Mr Ip said "To further encourage inbound investment, we recommend the range of permissible assets under the CIES be expanded to include private credit within Hong Kong, and investments in single-family offices and art and collectables. This should boost the city's position as one of the world's top art trading centres."

The Hong Kong Government should continue its efforts to boost economic ties with overseas countries to attract enterprises and investment, CPA Australia says.

To encourage more inbound investment, Mr Ip added "We would like to see the government expedite the implementation of its re-domiciliation regime and offer more financial incentives to further entice non-Hong Kong companies to transfer their domicile to Hong Kong."

The recent temporary modifications to 18C listings and Special Purpose Acquisition Company (SPAC) requirements demonstrate that a proactive approach to market developments is possible, however, it should be formalised. We would like to see the establishment of a listing rules flexibility mechanism on the GEM Board that allows for dynamic adjustments to listing requirements.

We urge the government to implement an IPO Connect scheme to enable Mainland investors to participate in Hong Kong IPOs and Hong Kong investors to subscribe to mainland IPOs.

The trading volume of the Hong Kong exchange traded fund (ETF) market is lagging behind other major exchanges in the Asia-Pacific region.

Mr Ip added: "To enhance ETF trading activities, we recommend expanding the diversity of ETF products. Additionally, the government should also consider providing more information to help the public better understand complex concepts such as digital assets ETFs."

To position Hong Kong as a leading hub for Web 3 and virtual assets, CPA Australia is encouraging the government to consider integrating the development and regulatory oversight of such technologies under the Task Force on Promoting Web 3 Development, rather than the current dispersed regulatory approach.

CPA Australia's recent annual Business Technology Report 2024 reveals a substantial increase in the number of companies utilising artificial intelligence (AI). To further develop Hong Kong into an international I&T centre, the government should consider whether Hong Kong requires its own regulations governing the safe use of AI, and if so, whether they should be risk-based or rules-based.

We recommend that the Policy Address include measures to support small and medium enterprises (SMEs) to adopt AI solutions, scale-up their technology faster, improve their cyber resilience and upskill the digital skills of workers.

In addition, CPA Australia recommends the government:

• consider establishing a Vulnerability Disclosure Programme (VDP) to encourage responsible reporting of suspected vulnerabilities or weaknesses in critical government IT services or systems
• encourage businesses to develop their own VDP to manage and incentivise vulnerability reports
• encourage more businesses to implement two-step verification (2SV) as an extra layer of protection for online transactions.

https://www.cpaaustralia.com.au/^[3]https://www.linkedin.com/school/cpaaustralia/^[4]

Hashtag: #CPAAustralia

The issuer is solely responsible for the content of this announcement.

References

1. ^{^} Media OutReach Newswire (www.media-outreach.com)
2. ^{^} submission (www.cpaaustralia.com.au)
3. ^{^} https://www.cpaaustralia.com.au/ (www.cpaaustralia.com.au)
4. ^{^} https://www.linkedin.com/school/cpaaustralia/ (www.linkedin.com)