The Hong Kong Securities and Futures Professionals Association supports reforming Hong Kong's tax incentives for corporate treasury centers and advocates for deeper alignment with policies such as cross-border fund pools with the mainland.

Regarding the reform of the tax incentive system for corporate treasury centers in Hong Kong, the President of the Hong Kong Securities and Futures Professionals Association, Chen Zhiwei, stated that the government should encourage treasury centers (CTCs) to integrate their funding allocation with the Hong Kong securities market, bond market, and fund management tools while optimizing the CTCs. For instance, CTC funds could be invested in Hong Kong dollar/Renminbi money market funds and high-rated bonds, with corresponding supportive measures. He also suggested that the Hong Kong Monetary Authority (HKMA) and the Hong Kong Inland Revenue Department further seek to deepen policy coordination with the mainland (especially the Guangdong-Hong Kong-Macao Greater Bay Area) on cross-border funding pools and bi-directional Renminbi funding pools to reduce administrative barriers to fund allocation. He pointed out that when introducing a tiered system for corporate treasury center tax incentives, a dedicated group (composed jointly of the Hong Kong Inland Revenue Department, the HKMA, and the Invest Hong Kong agency) should provide a "One-Stop Shop" service for the pre-approval of the second tier and establish an online pre-approval application platform to shorten the waiting time for review. He highlighted that under the clarified suggestion of "the minimum number of lending transactions per month" at the first tier, the association tends to support the removal of this threshold from DIPN 52 and recommends making assessments based on individual case facts and circumstances, as they believe there are significant differences in financing models across different industries. For instance, in large infrastructure, mining, or shipping industries, the transaction amounts are substantial, but the frequency is very low, making the rigid pointer of an average of four transactions per month not objective. Regarding the suggested objective conditions for pre-approval at the second tier, Chen Zhiwei believes there should be some flexibility. He recommends that the definition of "professionals" should include licensed securities/financial practitioners, recognized accountants, licensed legal personnel, and professionals with qualifications such as CFA/CTP (Certified Treasury Professional). He also suggests allowing enterprises a transition period of 6 to 12 months during initial operations to complete account opening and fund transfers. He mentioned that he supports granting pre-approval flexibly in special circumstances but recommends providing discretionary authority and considering their growth potential and contribution to Hong Kongs economic/financial ecosystem, which can demonstrate the government's sincerity and high flexibility in "attracting enterprises." He suggests that a two-year "Grace Period" should be granted for such exceptional cases, as long as enterprises commit and submit business plans, demonstrating their ability to meet the objective conditions of section 2.6 within two years to enjoy pre-approval benefits in advance.