普华永道中国

As the exclusive Knowledge Partner and co-organiser of #TVB Green Summit 2024, PwC is committed to exploring cross-border green and #sustainable opportunities in the #GreaterBayArea (#GBA) and low-carbon economic transformation with actions.   At the panel “Exploring cross-border green & sustainable opportunities in the GBA”, Loretta Fong, PwC China Sustainability Deputy Leader, also the moderator, set the scene, saying that Hong Kong is a global financial hub for many international investors who attach great importance about the #ESG performance of listed companies. According to PwC’s recent global investors survey, three-quarters of respondents expressed that how companies manage sustainability-related risks and opportunities is an important factor in their investment decision-making. Besides, consumers also feel changes in lifestyle brought by climate risks. Sustainable consumption has become a global focus: over 40% of global consumers are willing to pay a 10% premium for products and services that incorporate ESG values. ESG performance is highly perceived by international investors and consumers when it comes to incorporating sustainability elements in formulating their corporate development strategies. PwC Hong Kong ESG Services Partner Cyrus Cheung shed light at the same panel with a positive spin that Hong Kong has achieved a very high degree of integration with international ESG standards as an international financial centre, and Hong Kong listed companies are in line with international standards in terms of data collection, information disclosure, and standard setting, which facilitates international investors and clients to understand and compare with other regions in the world. With reference to over 3 million SMEs in the GBA, 65% of them have brought the ESG concept to life, including the use of clean energy, product design improvement, and renewable resources utilisation. They target to reduce costs through ESG applications, and explore business opportunities related to green products. With more and more enterprises in the GBA issuing green bonds through the Hong Kong platform, Hong Kong can leverage its advantage as a super connector to deepen cooperation with mainland enterprises, and promote sustainable development together. #PwC #PwCHK #TVBGreenSummit2024 Loretta Fong Cyrus Cheung Cecilia Yau Andy Law

On 5 July 2024, the Inland Revenue Department (IRD) released further guidance on the foreign-sourced income exemption (#FSIE) regime by expanding the list of related FAQs and illustrative examples on its website. The IRD also uploaded an FAQ on the tax treatment of interest income derived by a fund, a family-owned investment holding vehicle or its special purpose entity from foreign debt instruments, including tax implications under the FSIE regime. Find out more about our observations: https://lnkd.in/gj_2GnjX #PwC #PwCHK #Tax #ForeignSourcedIncome

On 5 July 2024, the Court of Appeal (CoA) handed down its judgement in John Wiley & Sons UK2 LLP and another v. The Collector of Stamp Revenue, overturning the District Court’s decision. The CoA determined that a member’s share or interest in a UK limited liability partnership is not issued share capital. Consequently, the appellants were ineligible for the stamp duty relief on an intra-group transfer of shares in a Hong Kong company. Find out more about our observations: https://lnkd.in/gpnKvwCG #PwC #PwCHK #Tax #StampDuty

On 3 July 2024, Hong Kong’s Financial Services and the Treasury Bureau (FSTB) released consultation conclusion on the proposed company re-domiciliation regime. The conclusion was published after receiving feedback on the consultation paper regarding the design of the regime and related legislative amendments issued in 2023. The FSTB is committed to introducing the amendment bill as early as practicable. Find out more about our observations: https://lnkd.in/g69VrsRA   #PwC #PwCHK #Tax #Taxation #ReDomiciliation

Banks and securities firms are facing increasing challenges in maintaining a robust Model Risk Management (MRM) framework due to the growing complexity and number of models to be maintained, which could potentially lead to adverse outcome or financial loss. PwC Hong Kong recently hosted a roundtable and invited representatives from the banking and capital market industry to exchange their experiences and challenges in implementing MRM frameworks. In the roundtable, Albert Lo highlighted that since Hong Kong regulators have yet to introduce consolidated MRM regulations, financial institutions (FIs) must take the self-initiative to establish a sound governance framework to monitor ongoing model risks. Considering local regulatory model requirements as well as global regulatory references, Jeff Lee, CFA, FRM introduced how FIs could better position themselves in MRM frameworks by sharing PwC’s perspective on key components of a comprehensive MRM framework and common pitfalls observed. Additionally, with the growing application of Artificial Intelligence (AI) models, Karen Wong further highlighted that extra attention is required for AI model risk, as this is one of the top emerging risks that should be integrated into the traditional MRM framework. Echoing with the ‘Fintech 2025’ strategy unveiled by the Hong Kong Monetary Authority (HKMA), PwC also introduced an in-house developed model management tool that serves as an all-in-one platform to support functions from model inventory management to model lifecycle monitoring. It demonstrates how the technology solution can empower a more effective MRM frameworks with proper audit trails and robust documentation and reporting. James Tam shared that this discussion was the first session of PwC model risk roundtables series, which aims to extend the conversation on how Generative AI (GenAI) should be managed within the existing MRM framework. Meanwhile, banks and securities firms should stay vigilant on the risk and governance aspects and adapt to the latest regulatory developments which are emerging and evolving fast. Check out our recent thought leadership on MRM in Hong Kong: https://lnkd.in/gXwjTPht   #PwC #PwCHK #FinancialServices #BankingandCapitalMarkets #ModelRiskManagement #PwCModelManagementTool

On 3 July 2024, the Securities and Futures Commission (SFC) issued a circular to licensed corporations (LCs) on financial resource management and Financial Resource Rules (#FRR) compliance. The SFC identified various examples of undesirable financial practices that may result in abrupt deficiencies in excess liquid capital and breaches of liquid capital requirement under the FRR. In this joint publication produced by Tiang & Partners and #PwCHK, we summarise the SFC’s expectations in respect of the governance, management oversight, and other internal control standards of LCs for monitoring the adequacy of financial resources and compliance with the Securities and Futures (Financial Resources) Rules. Check out: https://lnkd.in/gprFQPb5 #FiancialResourceManagement #compliance Ivan Cheung Gaven Cheong Esther Lee

#PillarTwo legislation has broad implications across all aspects of #tax, including M&A tax. Hear from Clara Tsui, China M&A Tax Partner, as she shares insights and suggestions on Pillar Two considerations for M&A transactions and provides expert suggestions.   Explore our other insights about private equity: https://lnkd.in/gddnj5uc   #PwC #PwCChina #MnA

In PwC’s new market snapshot, ‘Unleashing the power of Generative AI (GenAI) to reshape Hong Kong’s banking sector’, we explore the importance of taking a strategic approach and embedding #GenAI across the existing business model in place, to ensure tangible and quantifiable benefits are realised. Our snapshot also looks at how the regulatory landscape is evolving in Hong Kong, and how #banks have a critical role to play in building #trust and ensuring a robust regulatory framework for GenAI usage. Read more: https://lnkd.in/gP5nFAuD   #PwC #PwCHK #AI #banking #regulation #governance #GenerativeAI James Tam Pradip Madhanagopal Chris Mo James Lee Wilson WY Chow Chun Yin (CY) Cheung

Following the 2008 global financial crisis and recent economic events, there has been a heightened focus on global resolution reforms to ensure that respective resolution planning frameworks are sufficiently robust to maintain financial stability. As the Hong Kong Monetary Authority (HKMA) continues to develop its resolution regime, authorised institutions (AIs) in Hong Kong are expected to have adequate resolution planning in place to address potential impediments to resolvability. At PwC Hong Kong’s recent roundtable on resolution planning in Hong Kong, our Advisory Partners, Philip Chan and Jeff Lee, CFA, FRM, along with bank representatives, discussed the evolving landscape, shedding light on current challenges and future expectations. As AIs navigate the complexities of Hong Kong’s resolution regime, it is evident that sound operational and financial capabilities, along with comprehensive data management information systems, will be instrumental in preparing AIs to better position themselves for future implementation expectations and enhance their resolvability. Swipe through to learn more about the insights shared during the roundtable discussion. #PwC #PwCHK #FinancialServices #Banks #ResolutionPlanning #Compliance Jaimie Lau Circle KU Josephine Lung

As we wrap up our 2024 Rural School Volunteer Programme, we are filled with pride and gratitude for the incredible impact made by our #PwCChina volunteers. Hailing from various cities and bringing professional expertise, our team visited eight middle schools in Jiangxi Province, igniting the spark of ambition in the hearts of young students. Our volunteers shared personal career experiences and life stories, offering a unique window into the professional world. This exchange of ideas and experiences is invaluable, inspiring students to thoughtfully consider and plan for their own bright futures. In collaboration with our NGO partner, Tomoroe, we have developed a series of thematic courses designed to empower students with essential life skills. From ‘Building Confidence’ to ‘Managing Emotions’ and ‘Understanding Income’, our volunteers have been at the forefront of delivering these lessons, equipping students with the tools they need to navigate their educational and professional journeys with confidence. Find out more about our community investments in children and youth: https://lnkd.in/guFUjYiB #CorporateSustainability #TogetherWeSolve