Hong Kong to close deals with firms from strategic sectors in months: Paul Chan

A handful of leading firms from emerging industries are expected to receive preferential policy packages and set up operations in Hong Kong within the “next couple of months”, the city’s finance chief has said, as part of efforts to attract investment.In an exclusive interview with the South China Morning Post, Financial Secretary Paul Chan Mo-po provided an update on the city’s drive to draw international and national brands and strategic enterprises to set up business in Hong Kong through dedicated preferential arrangements.“We are in close discussions with a few. We hope to conclude this as soon as possible and make the announcement. The target is in the next couple of months,” Chan said.The policy address in mid-September revealed that a cross-departmental committee, led by Chan, was reviewing applications from “strategic emerging industries”, including aerospace and new materials, taking into account factors such as how much they were investing, potential growth and economic benefits in devising the packages.Chan said his committee would assess applications on a case-by-case basis and offer concessions through potential incentives such as land grants, tax reductions and co-investments with the government.He added that the administration would help firms secure approvals from authorities, including bringing in expertise unavailable in the local market.Chan said determining the package’s reduced tax rate depended on whether the firms were from priority industries the government sought to develop, and their business plans, the number of potential local hires and their estimated contribution to the economy and the broader community.