2016年CRI Hong Kong reinforces role as hub for corporate treasury centres

 

"We hope to reinforce Hong Kong's role as a springboard. With our new policies and their related services, we can better exert Hong Kong's role as China's financial and capital raising market to help Chinese businesses as they enter overseas markets."

Francis Ho, associate Director-General of Invest Hong Kong.

This is the Hong Kong government department responible for direct investment into Hong Kong.

Invest Hong Kong is now actively¹ attempting to court more mainland companies into the city by promoting its recently-launched tax breaks for companies which set up a Corporate² Treasury³ Center.

A CTC is the equivilant of an in-house bank for multinational⁴ corporations, acting⁵ as a central conduit to accept and transfer funds among a company's divisions and groups.

Under a new program launched in June, companies which set up a corporate treasury center in Hong Kong will see their profit taxes cut from 16.5 to 8.25 percent, and will also qualify for additional tax deductions⁶.

Francis Ho with Invest Hong Kong says they believe many mainland companies stand to benefit from using Hong Kong as their financial hub as they begin investing in other countries.

"Firstly for companies, they are able to utilize⁷ the financial platform of Hong Kong, because there are more financial products available here, and it is also easier for them to bring down their costs when it comes to raising capital. Secondly⁸, by centralizing the management of their overseas currency in Hong Kong, these companies will be better able to use the knowledge of Hong Kong's financial professionals. Together with the tax benefits, I believe Hong Kong is an attractive move for mainland companies."

The China General Nuclear Power Corporation became one of the early-adopters of using Hong Kong as the home of its corporate treasury center, setting up Huasheng Investment in 2010.

Huasheng's General Manager Lu Gang explains the reason.

"Currently all the capital from our overseas subsidiaries is pooled through our Hong Kong platform, which allows us to optimize⁹ our financial movement when one of our subsidiaries needs cash. At the same time, being a corporate citizen in Hong Kong not only brings us a 50% reduction in our profit taxes, but it also allows us more tax deductions on the interest we pay on our loans we provide to our subsidiaries."

Li Nan with Standard Chartered Bank in Hong Kong says the maturity¹⁰ of the banking¹¹ sector¹² in Hong Kong compared to the mainland when it comes to foreign markets is also a major benefit for mainland companies.

"The Hong Kong financial market responds very quickly to tax, interest rate and foreign currency price movements. And when there are restrictions¹³ on the outflow of RMB on the mainland, companies registered in Hong Kong will still be able to raise money to pay their overseas debt obligations on-time."

Statistics from China's Ministry¹⁴ of Commerce show nearly 35-hundred mainland companies registered in Hong Kong last year.

That's a 12-fold increase from the number of listings just 10-years ago.

For CRI, I'm Zhao Jianfu.

1 actively   

adv.积极地，勤奋地

参考例句：

• During this period all the students were actively participating.在这节课中所有的学生都积极参加。
• We are actively intervening to settle a quarrel.我们正在积极调解争执。

2 corporate   

adj.共同的，全体的；公司的，企业的

参考例句：

• This is our corporate responsibility.这是我们共同的责任。
• His corporate's life will be as short as a rabbit's tail.他的公司的寿命是兔子尾巴长不了。

3 treasury   

n.宝库；国库，金库；文库

参考例句：

• The Treasury was opposed in principle to the proposals.财政部原则上反对这些提案。
• This book is a treasury of useful information.这本书是有价值的信息宝库。

4 multinational   

adj.多国的，多种国籍的；n.多国籍公司，跨国公司

参考例句：

• The firm was taken over by a multinational consulting firm.这家公司被一个跨国咨询公司收购。
• He analyzed the relationship between multinational corporations and under-developed countries.他分析了跨国公司和不发达国家之间的关系。

5 acting   

n.演戏，行为，假装；adj.代理的，临时的，演出用的

参考例句：

• Ignore her,she's just acting.别理她，她只是假装的。
• During the seventies,her acting career was in eclipse.在七十年代，她的表演生涯黯然失色。

6 deductions   

扣除( deduction的名词复数 )； 结论； 扣除的量； 推演

参考例句：

• Many of the older officers trusted agents sightings more than cryptanalysts'deductions. 许多年纪比较大的军官往往相信特务的发现，而不怎么相信密码分析员的推断。
• You know how you rush at things,jump to conclusions without proper deductions. 你知道你处理问题是多么仓促，毫无合适的演绎就仓促下结论。

7 utilize   

vt.使用，利用

参考例句：

• The cook will utilize the leftover ham bone to make soup.厨师要用吃剩的猪腿骨做汤。
• You must utilize all available resources.你必须利用一切可以得到的资源。

8 secondly   

adv.第二，其次

参考例句：

• Secondly,use your own head and present your point of view.第二，动脑筋提出自己的见解。
• Secondly it is necessary to define the applied load.其次，需要确定所作用的载荷。

9 optimize   

v.使优化 [=optimise]

参考例句：

• We should optimize the composition of the Standing Committees.优化人大常委会组成人员的结构。
• We should optimize our import mix and focus on bringing in advanced technology and key equipment.优化进口结构，着重引进先进技术和关键设备。

10 maturity   

n.成熟；完成；(支票、债券等)到期

参考例句：

• These plants ought to reach maturity after five years.这些植物五年后就该长成了。
• This is the period at which the body attains maturity.这是身体发育成熟的时期。

11 banking   

n.银行业，银行学，金融业

参考例句：

• John is launching his son on a career in banking.约翰打算让儿子在银行界谋一个新职位。
• He possesses an extensive knowledge of banking.他具有广博的银行业务知识。

12 sector   

n.部门，部分；防御地段，防区；扇形

参考例句：

• The export sector will aid the economic recovery. 出口产业将促进经济复苏。
• The enemy have attacked the British sector.敌人已进攻英国防区。

13 restrictions   

约束( restriction的名词复数 )； 管制； 制约因素； 带限制性的条件（或规则）

参考例句：

• I found the restrictions irksome. 我对那些限制感到很烦。
• a snaggle of restrictions 杂乱无章的种种限制

14 ministry   

n.(政府的)部；牧师

参考例句：

• They sent a deputation to the ministry to complain.他们派了一个代表团到部里投诉。
• We probed the Air Ministry statements.我们调查了空军部的记录。