FSDC releases report on aircraft leasing and financing
7 Jul 2017
The Financial Services Development Council (FSDC) today (July 7) released a report entitled “Recommendations for Developing Hong Kong as an Aircraft Leasing and Financing Hub”.
The recent passage of a legislative measure for a concessionary profits tax regime for qualifying aircraft lessors and aircraft leasing manager has created enormous potential for Hong Kong to develop into a competitive international aircraft leasing and financing hub.
The Chairman of the FSDC, Mrs Laura M Cha, said, “The aviation industry in the Asia-Pacific region, in particular China, is growing rapidly. Hong Kong should capitalise on the rapidly increasing demand for aircraft financing services globally, and leverage its strengths with those of the Mainland aircraft leasing industry in order to capture the growing business opportunities in the region.”
Against this favourable background, the report proposes various recommendations for the Hong Kong Government and the financial industry to consider, including (i) expanding the tax treaty network, in particular with countries with high aircraft growth rates; (ii) enhancing the protection of creditors and lessors through participation in relevant international convention; (iii) revisiting waivers under the Listing Rules for listed aircraft lessors; (iv) enabling the listing of aircraft securitisation products in the form of investment trusts; (v) facilitating the development of more efficient aircraft financing tools; and (vi) nurturing professional talents in aircraft financing.