ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintSite TitleTitle ChevronIcon Twitter
Politics

Japan to offer express lane for funds leaving Hong Kong

Tokyo looks to lure talent from Asian financial hub in wake of unrest

A mam walks through Hong Kong's Central financial district: The Japanese government has created new rules expediting the transfer of investment funds from Hong Kong in the event of unrest.   © Reuters

TOKYO -- Japan has set up a system to accept investment funds that run into problems in Hong Kong due to civil unrest, as it tries to lure global talent from Asia's financial hub.

The Financial Services Agency will waive the regular registration process, allowing funds to relocate temporarily. The new system allow funds to be transferred from Hong Kong to Japan in as little as three days if large demonstrations in the territory make their management difficult.

The FSA in July amended a Cabinet Office Ordinance related to the Financial Instruments and Exchange Law, creating an exception that enables overseas investment funds and securities operators to operate in Japan temporarily. The standard process requires overseas investment funds to register as financial instruments and it takes about six months to complete.

If approved by the FSA commissioner, overseas investment funds will be able to operate in Japan for up to three months. If there is no prospect of resuming operations in their original location, an extension will be granted. The approval process is expected to take as little as three days.

While Japan imposes a 15% tax on earnings from investments, Hong Kong and Singapore do not impose tax. Singapore, like Hong Kong, is a major Asian financial center.

Wide use of English in the city-state is another lure for global financial talent. Some professionals in the financial sector have already begun moving to Singapore from Hong Kong.

Japan is also rushing to create a system to accept skilled workers from Hong Kong. The ruling Liberal Democratic Party's Special Committee on Foreign Workers is discussing specific measures, such as preferential tax treatment.

Due to restrictions on entry in the wake of the novel coronavirus pandemic, it is currently difficult for foreign nationals to enter Japan from Hong Kong. The government has begun negotiations to reopen to international business travel.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends July 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media