Hong Kong 5-year plan should have Northern Metropolis tax breaks, listing reforms: HKICPA

The Hong Kong Institute of Certified Public Accountants (HKICPA) has urged the government to include Northern Metropolis tax incentives and stock-exchange listing reforms in Hong Kong’s first five-year plan. Stephen Law Cheuk-kin, the HKICPA’s president and a private-equity investor, said the organisation’s submission proposed incentives for investors financing start-ups based in the Northern Metropolis. Many such companies require long-term investment and may incur losses before becoming profitable, he said. The HKICPA therefore wants investors to be able to offset losses from these investments against their other profits. The Northern Metropolis project aims to transform 30,000 hectares (74,132 acres) near the mainland Chinese border into a technological and economic hub. Law also said the government could offer lower tax rates to people working in the area. For investors, the proposals could affect the cost and risk of backing early-stage companies and support capital deployment in the planned development. Their impact would depend on government adoption and implementation. The HKICPA also called for improvements to the stock exchange’s listing regime, arguing that this would further cement Hong Kong’s role in international finance. It urged the government to lobby mainland Chinese authorities over tax treatment affecting cross-border trusts and insurance policies. The industry body represents 47,000 accountants in Hong Kong. Its recommendations precede the city’s unveiling of its first-ever five-year plan in September, which will align Hong Kong’s priorities with China’s 2026-2030 development blueprint. Tax treatment, listing access and cross-border financial rules can influence where companies raise capital, establish operations and manage investment risks.