business · Crhk

HKICPA Proposes Northern Metropolis Accounting Hub in 5-Year Plan Submission

Crhk · 2 SOURCESabout 3 hours ago4 MIN

Summary

The Hong Kong Institute of Certified Public Accountants (HKICPA) has unveiled a comprehensive set of seven major recommendations for the government's first-ever five-year plan, with the flagship proposal being the establishment of a Hong Kong Accounting Park in the Northern Metropolis . The recommendations span tax policy reforms, sustainable finance development, talent cultivation, and AI integration to reinforce Hong Kong's status as an international financial centre. The institute, which represents over 47,000 accountants in the city, submitted its formal response to align with the nation's 15th Five-Year Plan development blueprint .

Key Points

The HKICPA proposed creating a Hong Kong Accounting Park in the Northern Metropolis, forming a strategic corridor with Shenzhen's Futian Accounting Services Demonstration Industrial Park to focus on high-value cross-border services, accounting technology labs, and a regulatory technology sandbox .
On tax policy, the institute recommended introducing tax incentives for investors funding Northern Metropolis start-ups, allowing them to offset losses against other profits, and offering reduced tax rates for workers in the area . The HKICPA also urged the government to negotiate with mainland authorities to delay the 20% tax on cross-border trust and insurance gains until investors actually exit or surrender policies .
For talent development, the HKICPA proposed incorporating valuers into the accounting qualification system, launching professional certificate programmes, and establishing cross-border internship opportunities . Stephen Law Cheuk-kin, HKICPA president and private-equity investor, emphasised that long-term start-up investments often incur losses before profitability, necessitating supportive tax structures .
Regarding stock market reforms, the institute called for simplifying and shortening listing approval processes, creating green channels for red-chip and H-share enterprises, and improving the Growth Enterprise Market . The HKICPA also backed the enterprise "going global" professional support platform and Belt and Road professional services action plan .
On AI, the institute clarified that artificial intelligence would not replace accountants but would handle repetitive tasks, freeing professionals for high-value analysis . HKICPA president Law stated that accountants with AI skills would be more competitive in the market, noting that the industry faces talent shortages and rising compliance costs .
The accounting sector benefited from Hong Kong's strong H1 economic growth of 5.1%, driven by AI-driven export momentum and robust overseas demand for financial and commercial services . HKICPA has over 47,000 members, with approximately 70% working in non-accounting firms, and maintains more than 12,000 student members .
Arthur Lee Kin, HKICPA chief executive and registrar, highlighted the importance of CEPA service trade liberalisation and removing mainland market access restrictions to support the profession's expansion .

Why It Matters

These recommendations come as Hong Kong prepares to unveil its five-year plan in September, aligning the city's development priorities with the nation's 2026-2030 blueprint . The proposals could significantly reshape Hong Kong's economic landscape by attracting cross-border financial services to the Northern Metropolis, addressing the accounting profession's talent gap, and modernising the stock market to compete more effectively with regional rivals. The timing is critical as the city seeks to maintain its competitive edge amid increasing regional competition and technological disruption in the financial services sector .