Small and Medium Enterprises (SMEs) Resources

[...]regional CTCs become more common when a group expands geographically.5 Hong Kong Corporate Treasury Center Tax Regime Interest Deduction Rules The new interest deduction rules apply to a corporation carrying on in Hong Kong an intra-group financing business.6 The corporation, regardless of whether the corporation is a qualifying CTC (see discussion below) or carrying on other businesses in addition to an intra-group financing business, can claim tax deduction for interest expenses paid to a non-Hong Kong associated corporation7 when the following requirements are met (see Figure 1): 1. satisfying the general deduction rule where the interest expenses on money borrowed from the non-Hong Kong associated corporation are incurred in the production of chargeable profits,8 and 2. satisfying all of the following specific conditions9: a. "Ordinary course of business": the money is borrowed from a non-Hong Kong associated corporation (lender) in the ordinary course of the intra-group financing...

There is a missing piece in the puzzle of social development in post-1997 Hong Kong: regional and national integration. For a long time it was envisaged that while Hong Kong would remain relatively secluded from the mainland, it could seize the opportunities, evidenced in the massive relocation of manufacturing plants to the Pearl River Delta since the mid-1980s, presented by China's economic reform. However, before long, with the deepening of China's market reform and its emergence as a new economic power, Hong Kong was caught unprepared for its integration into the motherland. Growing tensions between mainlanders and Hong Kong people have already received considerable media attention. But what has somehow escaped people's attention is that the expected opening of new opportunities for Hong Kong people on the mainland has not fully materialised. In this paper, we shall look at Hong Kong's current status in realising the expected opportunities to be created in the process of China's economic...

PurposeGrowth enterprise market (GEM) in Hong Kong is acknowledged as one of the world’s most successful examples of small and medium enterprise (SME) stock market. The purpose of this paper is to examine the evolving efficiency and dual long memory in the GEM. This paper also explores the joint impacts of thin trading, structural breaks and inflation on the dual long memory.Design/methodology/approachState-space GARCH-M model, Kalman filter estimation, factor-adjustment techniques and fractionally integrated models: ARFIMA–FIGARCH, ARFIMA–FIAPARCH and ARFIMA–HYGARCH are adopted for the empirical analysis.

Hong Kong's greater economic integration with China has continued to underpin its service-oriented economy following the manufacturing sectors' hollowing out since the 1990s. Hong Kong is an important transit hub for China's external trade, especially for the Pearl River Delta Region. China's deregulation of mainland visitors to Hong Kong under the Individual Visit Scheme since 2003 has contributed to Hong Kong's bulging trade surplus in travel. Nonetheless, the tremendous business opportunities from China's financial reform won't unseat the US and the UK as Hong Kong's top trade partners in financial services. Overall, Hong Kong's service economy will continue to prosper in the near term with China's continuous granting of special treatment. In the long run, strengthening Hong Kong's bridging role between mainland China and the global market will be crucial for the viability of its services.