Hong Kong’s Chief Executive Announces Plans for Enhancing Islamic Finance Accessibility

In an ambitious drive to broaden the reach of Hong Kong’s financial markets, Chief Executive John Lee outlined plans on Wednesday to create a more welcoming environment for Islamic finance. The announcement was made during his engagement with the Indonesian business community in Jakarta.

Lee underscored the strides Hong Kong has made over the past decade toward becoming an attractive hub for sukuk issuance. He highlighted the legislative amendments designed to provide a tax structure for sukuk comparable to conventional bonds. “Our efforts aim to diversify our financial market, particularly embracing Islamic finance. We have fostered a platform conducive for sukuk issuance, which is a testament to our commitment,” Lee stated.

Beyond sukuk issued under the Government Bond Programme, Hong Kong’s repertoire of Islamic financial products and services extends to sukuk issued by foreign entities and listed on the Hong Kong Stock Exchange, Islamic funds, and Islamic banking windows.

Emphasizing the city’s open-market ethos, Lee added, “We extend a warm invitation to investors, corporations, and talented individuals to leverage Hong Kong as a gateway for broadening their international prospects.”

The Chief Executive, currently on a week-long regional tour, held a significant meeting with Indonesian President Joko Widodo and signed 15 memorandums of understanding (MoUs). These agreements span a diverse array of areas, including green finance, maritime services, meteorology, aerospace, and sustainable finance. The actions mark a concerted effort to strengthen the bond with the Association of Southeast Asian Nations (ASEAN) countries.

About the dynamic development of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), Lee expressed a keen interest in greater ASEAN engagement. “We are keen to invite Indonesia, and our ASEAN counterparts, to join us in fueling the dynamic development of the GBA,” he said.

Lee lauded the enduring “close and long-standing ties in trade and investment” between Hong Kong and Indonesia at a press briefing. He expressed Hong Kong’s determination to bolster cooperation with Indonesia across multiple domains, including trade, investment, finance, innovation and technology, and even culture and tourism.