The "Budget" will expand the Hong Kong Stock Exchange's comprehensive fund platform this year to cover fund sales payment and settlement

The Financial Secretary, Paul Chan, announced a new fiscal budget, stating that the Hong Kong Stock Exchange (00388.HK) will expand the functions of its comprehensive fund platform this year to include payment and settlement processes for fund sales, aiming to enhance market efficiency and reduce transaction costs.

He also mentioned that the number of single family offices established in Hong Kong has exceeded 3,300. To further attract family offices and funds to settle in Hong Kong, the authorities will optimize the tax system, including broadening the definition of "fund" to cover specific single investor funds, listing digital assets, precious metals, and certain commodities as eligible investments for tax relief. A draft amendment to the regulations will be submitted in the first half of this year, with plans to take effect in the 2025/26 tax year.

To promote innovation in the bond market, the Hong Kong government will continue to regularly issue tokenized bonds, and the Monetary Authority will encourage more digital bonds to be issued in Hong Kong through the "Digital Bond Subsidy Scheme." The Securities and Futures Commission and the Monetary Authority are actively implementing the "Fixed Income and Currency Market Development Roadmap" announced last year, which includes promoting primary market issuance, enhancing secondary market liquidity, and expanding offshore RMB business. An electronic bond trading platform will be launched in the second half of the year. Paul Chan expects this to further consolidate Hong Kong's position as a global fixed income and currency center