HK to increase co-op with emerging markets

HONG KONG, Feb. 25 (Chinese media) -- Hong Kong would

further develop and increase financial cooperation with emerging markets to

consolidate Hong Kong's position as an international financial center, Hong

Kong's top financial official said here Wednesday.

"Particular measures are needed to improve Hong Kong

as a platform for the growing area of Islamic finance," said John Tsang,

financial secretary of the Hong Kong Special Administrative Region, when

delivering the 2009-2010 budget speech at the Legislative Council.

Since the structure of most Islamic financial

products involved the sale and re-purchase of assets, such transactions might

entail tax liabilities in Hong Kong, he said.

"Therefore, we plan to submit to the Legislative

Council in 2009-10 a proposal to create a level playing field for Islamic

financial products vis-a-vis conventional ones," he said.

The proposal would include making changes to or

clarifications of the arrangements for stamp duty, profits tax and property tax,

he added.