SFC launches Govt welfare scheme for property tycoons
10 May 2021
Are you a property tycoon, feeling hard up, not knowing where the next HK$8m is coming from? Fear not, the Hong Kong Government is here to help. One of Financial Secretary Paul Chan Mo Po's cockamamie schemes cooked up in his latest budget is to subsidize the costs of converting your properties into a Real Estate Investment Trust (REIT). Today the SFC, which has been lumbered with the task of implementing the plan, announced details of the HK$8m subsidy (not more than 70% of costs, but these will surely exceed the implied $11.43m of costs to grab the whole amount).
Smaller tycoons need not apply, because the REIT must be worth at least HK$1.5bn (US$192m). Below that, you are too poor to qualify for Government help - although you can list a company with a HK$500m market cap on the Main Board or HK$150m on the second (GEM) board of the Stock Exchange. But apparently, in its central-planning wisdom, the Government has decided that you should choose a REIT structure for larger listings and is tilting the playing field accordingly.
Your taxes at work.
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