Hong Kong chief executive announces Belt and Road organs

Hong Kong Chief Executive Leung Chun-ying on Wednesday announced to establish a steering committee and an office for China's Belt and Road Initiative.

Leung made the announcement when delivering a policy address for the year of 2016. It was the fourth policy address of Leung since he was sworn in on July 1, 2012.

Leung said the committee will be responsible for formulating strategies and polices for Hong Kong's participation in the Belt and Road Initiative, while the office will co-ordinate work between government departments and other institutions and liaise with the central ministries, provincial and municipal authorities, as well as professional bodies and community organizations in Hong Kong.

To further attract multinational and Mainland enterprises to establish corporate treasury centers in Hong Kong, the government proposes, under specified conditions, interest deductions under profits tax for corporate treasury centers, and profits tax reduction by half for specified treasury activities, Leung said.

Driven by the Belt and Road Initiative, the Chinese mainland enterprises will expand their overseas business and there will be a greater demand for business services. As more and more mainland enterprises seek to "go global" Hong Kong will continue to encourage mainland enterprises to establish captive insurance companies in Hong Kong, make insurance arrangements and enhance risk management for their overseas businesses expanded under the initiative.

Leung also mentioned that Hong Kong will continue to promote the offshore RMB business.

As for education, Leung said, to attract more students from the Belt and Road countries to study in Hong Kong, the government will increase the number of offers under the Targeted Scholarship Scheme and inject 1 billion HK dollars (about 129 million U.S. dollars) into the scholarship fund for this purpose.

Hong Kong has developed an extensive network of business connections, and is the most important Meetings, Incentive Travels, Conventions and Exhibitions (MICE) center, sourcing center and business matching center in Asia. As such, Leung said, Hong Kong may help governments and enterprises identify business partners, and serve as a major platform to promote trade and logistics under the Belt and Road Initiative.

"It attaches importance to infrastructure standards and safety to meet the requirements for sustainability and environmental protection. Hong Kong may provide support services such as project feasibility studies and risk assessment, research and development, financing and management," Leung said.

The government will allocate 200 million HK dollars to support the professional services sector in enhancing exchanges and co-operation with the Belt and Road countries and other regions outside Hong Kong, and promote related publicity activities, he said.

Leung said the year of 2016 is one with important opportunities for Hong Kong since it is the outset of the Chinese mainland's 13th Five-Year Plan and Hong Kong's innovation and technology development.

Leung, in his policy address, said the special administrative region government has input numerous resources to improve local residents' livelihood due to increased tax revenues in the last year. (1 U.S. dollar 7.75 HK dollar)