![](/storage/Image/2016/Hong-Kong-still-has-advantages-over-Shanghai-for-CTCs.jpg)
Hong Kong still offers some advantages over Shanghai for companies seeking to set up corporate treasury centres (CTC) in Asia. The advantages come in the form of tax incentives, legal and banking infrastructure as well as availability of talented personnel.
The liberalization of the renminbi is however providing more options that can strengthen both cities for CTCs, according to views expressed by senior corporate treasurers during The Asset 2nd Asia Treasury & Trade Summit, a gathering of corporate treasurers, held at the Four Seasons Hotel, Hong Kong.
“For overseas investment, Hong Kong still has advantages compared to Shanghai in terms of legal system, banking infrastructure and talent available here,” says Allen Leung, treasurer, COFCO.
Francis Ho, senior director, group treasury & project finance, CLP Holdings says the further liberalization of the renminbi in more free trade zones in China, particularly Shanghai, will provide more options that will benefit companies.
“It’s more about history of the treasury centre we choose. Tax concessions will provide a strong incentive to the companies. For companies in need of setting up CTC, Hong Kong provides a good option,” Ho says.
For the some, corporates tax benefits are a key part of the decision when setting a CTC.
Kenneth Ng, director and corporate treasurer at DFS Group says: “We take into consideration of the tax benefit in Hong Kong when deciding where we put our treasury function.”