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FS continues visit to Santiago, Chile (with photos)
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     The Financial Secretary, Mr John C Tsang, continued his visit to Santiago today (December 3, Santiago time), meeting with various Chilean finance officials in the morning.

     Mr Tsang first called on the Deputy Governor of Central Bank of Chile, Mr Manuel Marfan, who gave a briefing for the Hong Kong business delegation on the state of the Chilean economy.

     This was followed by a bilateral meeting between Mr Tsang and his Chilean counterpart, Mr Felipe Larrain. Both sides agreed that it was now time for the two Governments to initiate discussions on a Free Trade Agreement that would be to the mutual benefit of both Chile and Hong Kong.

     At Mr Tsang's invitation, Mr Larrain said he would start planning for a "Chile Day" to be held in Hong Kong during which a large delegation of Chilean businessmen would come to Hong Kong to explore business opportunities there.

     The Financial Secretary then had a meeting with the Chilean Undersecretary of Foreign Affairs, Mr Fernando Schmidt, during which a return letter was received from the Chilean side, confirming an arrangement on the avoidance of double taxation on shipping income between Hong Kong and Chile.

     Under the arrangement, ship operators resident in Hong Kong are now exempt from income tax on shipping income that is taxable in Chile.  Similarly, ship operators resident in Chile are exempt from profits tax on shipping income that is taxable in Hong Kong.

     Later, at a luncheon with the Santiago business community hosted by Standard Chartered Bank, Mr Tsang informed his audience that Hong Kong enjoys a reputation not only as an international banking centre, but also as China's most important centre for global finance.

     "What sets Hong Kong apart in Asia is the convergence of the unique 'China advantages' and 'global advantages'," said Mr Tsang. With low taxes and an open economy, Hong Kong is the preferred platform to carry out both China-related activities globally, and also global operations in the Greater China market.

     "These competitive advantages support our asset management business, offshore Renminbi functions and capital formation activities.  They also attract and anchor capital and talent from around the world, including Chile."

     He encouraged Chile's resources sector to consider the potential of a Hong Kong listing, saying that that Chilean firms listing in Hong Kong can take advantage of Hong Kong's market liquidity, attractive valuations and access to investors in Mainland China.

     Mr Tsang and the high-level Hong Kong business delegation will visit vineyards tomorrow (December 4, Santiago time) before winding up the Chile visit from December 1 to 4.

     Mr Tsang will fly to Brasilia on December 5, starting the Brazil visit, which lasts until December 8.

Ends/Saturday, December 4, 2010
Issued at HKT 09:00

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