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Financial and Monetary Affairs
growth of related sectors such as professional and commercial services. High quality financial services underpin Hong Kong's position as an international business hub, helping local enterprises to seize business opportunities and attracting Mainland and overseas companies to use Hong Kong as a platform for raising funds and developing regional business.
Fund-raising Centre
The SEHK attracted 122 new listings in 2014 (including seven transfers of listing from the Growth Enterprise Market to the Main Board). Apart from Mainland and Hong Kong companies, four overseas companies (from Japan, Malaysia, Singapore and the United States) also listed on the SEHK in 2014. Newly listed companies are attracted by the market's liquidity and access to investors across Asia. The SEHK is working to accept more overseas jurisdictions as places of incorporation.
Developing an Uncertificated Securities Regime
The Securities and Futures and Companies Legislation (Uncertificated Securities Market Amendment) Bill 2014 was introduced into the Legislative Council in June to enable the introduction of an uncertificated securities market regime in Hong Kong. This will enhance the securities market's overall efficiency and competitiveness, strengthen corporate governance, improve investor protection and facilitate market development.
Asset Management and Private Wealth Management
The city's combined fund management business was valued at $16,007 billion at the end of 2013. About 72 per cent came from non-Hong Kong investors, indicating that overseas investors see Hong Kong as a preferred investment platform1. At the end of 2014, there were 2,009 unit trusts and mutual funds authorised by the Securities and Futures Commission (SFC).
To enhance the operational, regulatory and tax environment for fund managers in Hong Kong, the government has been taking forward a number of measures to further develop the business, including a proposal to allow offshore private equity funds to enjoy tax exemption, and an initiative to introduce a new open-ended investment company structure as a legal form of funds to be domiciled in Hong Kong. The government, together with the SFC, launched a three-month public consultation in March on the proposal to introduce an open-ended fund company structure in Hong Kong.
Exchange Traded Funds (ETFs)
The ETF market developed rapidly in recent years. Since the government extended the stamp duty concession to cover ETFs that track indices comprising not more than 40 per cent of Hong Kong stocks in 2010, the number of ETFs listed in Hong Kong and the average daily turnover of ETFs have increased, making Hong Kong one of the largest ETF markets in the Asia-Pacific region. The Financial Secretary announced in the 2014-15 Budget the waiver of stamp duty for
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Figures are quoted from the Fund Management Activities Survey for 2013, a survey conducted by the SFC annually to collect information and data on the general state of affairs in the local fund management industry.
This includes MPF pooled investment funds offered both as retail unit trusts and for mandatory provident fund purposes.
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