Xu Zhengyu: The cross-border senior care market has huge potential for development, and Hong Kong's vision needs to be more broad.

Recently, Paul Chan, the Financial Secretary of Hong Kong, stated that according to the figures released by the Hong Kong Census and Statistics Department, by 2024, about 537,200 permanent residents of Hong Kong, aged 65 and above, will have spent at least half of their time in Guangdong Province. This indicates a huge potential for development in the silver hair market. Chan pointed out that in order to help the insurance industry seize this opportunity and meet the needs of the elderly, the Insurance Authority of Hong Kong has been actively encouraging the industry to launch innovative products that combine high-quality elderly care services in the Greater Bay Area. They have also been promoting the establishment of large groups from mainland China with expertise in combining insurance and elderly care services in Hong Kong, hoping that industry representatives can continue to collaborate with relevant institutions. He further emphasized that in order to achieve the goal of seizing insurance opportunities comprehensively, Hong Kong needs to broaden its perspective. The density of insurance in Hong Kong is already the second highest in the world and the highest in Asia, with six of the top ten global insurance companies operating in Hong Kong. Therefore, Hong Kong is a stable business location for any enterprise, including the insurance industry. In recent years, with the development of international taxation and regulation, the compliance burden for many offshore registered companies has increased. In response to this trend, the Hong Kong government proposed amendments to the Legislative Council to address the insurance industry's demand for companies to return to Hong Kong for registration. Last week, the proposal was successfully passed by the Legislative Council, meeting the demands of the industry and providing specific indicators for the government's response. With the establishment of the company registration system on May 23, companies established outside Hong Kong will be able to retain their corporate identity and transfer their registration back to Hong Kong. This arrangement will ensure the continuity of their business while benefiting from Hong Kong's open and efficient corporate governance system, simple tax system, and international professional services, making it easier for these companies to enter the dynamic economies of China and Asia. Chan also encouraged insurance companies established outside Hong Kong, especially experts and professionals, to make good use of this mechanism to re-register in Hong Kong if their main business is in Hong Kong. This will help them overcome unfavorable factors in their overseas business environments and utilize the advantages of Hong Kong's corporate governance system, rule of law, tax system, and professional services to the fullest.