Tax haven Liechtenstein opens consulate in Hong Kong to boost ties
European tax haven wants to boost its presence in Asia as region's economic power grows
The Principality of Liechtenstein opened a consular office in Hong Kong last week as it seeks to boost business ties with the city and the mainland.
The European state owes much of its wealth and status as an international financial centre to its long history as a tax haven. Net inflows of new money into Liechtenstein last year totalled 13.2 billion Swiss francs (HK$108 billion), according to an official Liechtenstein website. The nation's banks managed client assets worth 184 billion francs at the end of 2012.
"The opening of the Liechtenstein Honorary Consulate in Hong Kong is a very special event for Liechtenstein. In the past there was no representation in Asia," said Liechtenstein foreign minister Aurelia Frick. The state also opened an honorary consulate in Singapore last week.
"The development of a number of Asian economies including Hong Kong and China has been impressive during the last decades, and the region is becoming more important for Liechtenstein. The Liechtenstein government has therefore decided to strengthen the presence of Liechtenstein in the region," said Frick.
"The Hong Kong Consulate will enhance both economic and cultural co-operation between Hong Kong, China, and Liechtenstein. Hong Kong and Chinese clients are of great importance to the Liechtenstein Financial Centre, and their significance is underscored by various agreements between Liechtenstein and Hong Kong, such as a double taxation agreement reached in 2010."
The two biggest Liechtenstein banks, LGT Bank and VPBank, have operations in Asia, Frick noted. LGT has offices in Singapore and Hong Kong and employs 250 people. The firms focus on private banking and asset management. VPBank has a subsidiary in Singapore.