by Peter Wong, Consulting Director, PwC Hong Kong and Member of the HKMA/TMA Working Group of Corporate Treasury Development
On 9 September 2016, the Hong Kong Government Inland Revenue Department (IRD) announced the detailed rules of the new Corporate Treasury Centre (CTC) Policy in the form of Practice Notes (PN) . This is a very positive and important step towards establishing Hong Kong as a corporate treasury hub and an official recognition of the importance of professional treasury management.
Hong Kong is the number one offshore RMB centre in the world, depositing over 70% of China’s offshore currency. The city is the most vibrant international financial centre in Asia with a broad and deep capital and treasury market offered to global investors around the world, including China itself.
Since 2014, offshore direct investment (ODI) has exceeded foreign direct investment (FDI) into China. Under the 13th Five Year Plan, many SOEs embarked on a progressive reform plan to develop into world class MNCs and as a result, many Chinese MNCs are now in the Fortune Global 500 and the number is set to grow.