in 15 years, Hong Kong may lose its role as a super coordinator for mainland Chinese enterprises wishing to go international, the head of a state-owned financial services firm said.
China Everbright Ltd. (00165.HK) chief executive Chen Shuang said the city has to change certain tax policies, rules and regulations to make itself more competitive, the Hong Kong Economic Journal reported Monday.
Chen led the writing of a report on mainland opportunities for the Financial Services Development Council, an advisory body to the Hong Kong government.
The report makes 16 recommendations, including nine that envisage market reforms by the mainland authorities.
One existing hindrance is that mainland enterprises are not allowed to obtain funding overseas using their mainland assets as collateral, Chen said.
Another problem is that the Hong Kong government taxes asset management firms registered in the city but not overseas, he said.
Free trade zones set up by the central government and rivals in the region such as Singapore could soon outrun Hong Kong, Chen warned.
He said the city can maintain its bargaining power in certain areas if fewer internal disputes arise in future.
Translation by Vey Wong
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