    The National Security Department (NSD) of the Hong Kong Police Force arrested a 57-year-old man in Hung Hom yesterday (November 12) on suspicion of committing “knowingly publishing publications that had a seditious intention” in contravention … read more
Following is the speech by the Financial Secretary, Mr Paul Chan, at the 2024 Asia Pacific Investors Cooperation (APIC) World Pension, Social Security and Sovereign Wealth Funds Summit today (November 13):
Ana (Founder and Chief Executive Officer of APIC, Ms Ana Sharp), Ka-shi (Chairman of the Hong Kong Trustees’ Association, Ms Lau Ka-shi), Alpha (Director-General of Investment Promotion at Invest Hong Kong, Ms Alpha Lau), distinguished guests, ladies and gentlemen,
​Good morning. It is a pleasure to be here at the beautiful Hong Kong Yacht Club to join you all for the 2024 APIC World Pension, Social Security and Sovereign Wealth Funds Summit. Delighted to welcome asset owners, public and private fund managers, institutional investors, and key experts in this field from around the world to gather in Hong Kong.
Pension, social security, and sovereign wealth funds are critical components of the global financial ecosystem. Collectively, these funds manage trillions of dollars in assets, making them one of the largest sources of investment capital worldwide. They are not only investors, but also as key players in shaping market trends and driving economic growth.
Changing landscape of investment
Allow me to share a couple of observations on the changing investment landscape across the globe.
The first is the focus on sustainability. At a time when policymakers worldwide increasingly incorporate ESG (environmental, social, and governance) and net-zero commitments into their policy framework, many public funds are seeking to support and drive sustainable development goals, both at home and abroad, such as investing in clean energy, green infrastructure, and affordable housing.
The second observation is about asset allocation. While public funds normally seek more long-term returns, in the public market, alternative investments are increasingly used as a diversification means to mitigate market volatility risks, with potentially more attractive risk-adjusted returns. As countries seek to support economic development through investing in infrastructure, innovation and technology, or projects of national priorities, more opportunities for alternative investment become available.
The third observation is about shifting economic gravity and the impact of geopolitics. In recent years, emerging markets such as ASEAN (Association of Southeast Asian Nations) countries have become more popular investment destinations, given their rapid economic growth, young population, expanding middle class, and thus potential for higher returns. Meanwhile, at a time of continuing conflicts and geo-economic fragmentation, some funds from the US (United States) or even Europe have been forced to reduce their investment holdings in certain markets; meanwhile, some countries, like those in the Middle East, are diversifying their investments from the traditional US and European markets to other regions, such as Asia. The process is dynamic, complicated and ever changing.
Hong Kong’s value proposition
​In face of this rapidly changing global investment landscape, I would submit that Hong Kong is where you should allocate your assets.
In terms of international strengths, Hong Kong enjoys the unique advantages under the “one country, two systems” arrangement. Here is where you could have convenient, and at times, priority access to the vast investment opportunities of China while enjoying all the advantages of a world-class international financial centre.
That means the free flow of capital, goods, people, and talent; the common law and a judiciary that exercises powers independently; a currency pegged to the US dollar; a simple and low tax regime; and regulatory regimes and business practices that align with the best international practices. In other words, a familiar environment to do business and invest.
​”One country, two systems”, let me add, will be here in Hong Kong for the long run. It is a solemn commitment of President Xi Jinping and the country.
Every now and then, we hear misconceptions about Hong Kong. For instance, there were reports about the outflow of funds from Hong Kong.
But the facts speak for themselves. Over the years, we have weathered many ups and downs and even crises in the financial market. And we built stronger buffers. Hong Kong’s banking system, for example, has a liquidity ratio of over 180 per cent, well above the international requirement of 100 per cent; capital adequacy ratio at 21 per cent, much higher than the 8 per cent requirement. As a matter of fact, bank deposits in the city have risen by over 13 per cent, or US$250 billion, since the beginning of 2022 and until September this year.
​Despite market volatility from time to time, we see global investors gradually restoring confidence in our stock market. In particular, in the stock market rally in late September after the Central Authorities announced a package of stimulus measures, we have seen strong buying interest from American and European investors. They together constituted some 85 per cent of the buy side by value. In terms of investor categories, 90 per cent of them are long-term fund managers and investment banks.
Turning to asset and wealth management, Hong Kong is managing over US$4 trillion of assets, with over half of them sourced from outside Hong Kong and the Mainland. That figure represents some 30 per cent increase from that in 2018. Many asset and wealth management firms are expanding their operations in this city.
Investing in the future of Hong Kong
Looking ahead, the prospects of Hong Kong remain promising, as we continue to invest in the future of this city with the staunch support of the Central Authorities. And that will present valuable and rewarding investment opportunities for investors from all over the world. Let me highlight a few areas.
First, our commitment to sustainability. Hong Kong fully embraces the Paris Agreement and has developed clear action plans to achieve carbon neutrality. But our vision goes beyond this. It is our aspiration to become an international green tech and green finance centre that supports regional and global green transition. For this, we have already laid a solid foundation. As Asia’s leading green finance hub, we have on average issued over US$63 billion in green debts annually over the past three years. That accounts for more than one-third of the total amount of green bonds issued in Asia. For green tech, we are home to over 200 green tech firms that offer a wide range of innovative solutions. Many of them have already expanded their operations in overseas markets.
Our vision extends to cover sustainable infrastructure. Locally, we are fast tracking a number of large-scale infrastructure projects, including the Northern Metropolis, which will be pivotal to Hong Kong’s innovation and technology future. At the same time, we are also committed to supporting sustainable infrastructure projects in other countries, through innovative financing arrangements. For instance, over the past two years, Hong Kong arranged two batches of securitised infrastructure loans amounting to US$800 million. They support more than 50 projects in the Global South. But more than that, we also offer our expertise in the planning, construction, operation, and management of infrastructure projects. Many of our operators, like the Airport Authority and MTRC (MTR Corporation Limited), have been working with their global partners in running projects overseas.
Then, there is the Guangdong-Hong Kong-Macao Greater Bay Area (GBA). The GBA, comprising Hong Kong, Macao, and nine Mainland cities in Guangdong Province, is an affluent region with a population of 87 million, and a GDP (Gross Domestic Product) of around US$2 trillion. It is an economic powerhouse of China, home to many tech giants. With the support of the Central Authorities, Hong Kong is enhancing our synergetic collaboration with the GBA, particularly on the tech front. This vision is to turn the GBA into a region led by finance and innovation, one that combines the strengths of the San Francisco Bay Area and the New York Bay Area.
The third area to highlight is our comprehensive strategy to diversify Hong Kong’s economy and raise our competitiveness. Innovation and technology is our handle, and we will focus on four strategic areas, namely, AI (artificial intelligence) and big data analytics, biotech, fintech, as well as new materials and new energy. To expedite development of these sectors, we set up the Office for Attracting Strategic Enterprises towards the end of 2022, proactively reaching out to enterprises from the relevant fields. Together with the efforts of other government departments, we have successfully attracted over 100 innovative enterprises to Hong Kong, which together will bring us more than US$6 billion in investments and create 17 000 jobs.
Going hand in hand with our quest for strategic enterprises is our stepped-up effort in attracting talent from all over the world. Our various talent admission schemes have been highly popular. Nearly 400 000 applications have been received so far. We have approved more than 250 000 of them, with more than 160 000 people having already arrived in the city.
And a discussion on investing in Hong Kong’s future would not be complete without mentioning the Hong Kong Investment Corporation Limited, or HKIC. As “patient capital”, the HKIC has been performing the role of channelling private capital and market resources into the above-mentioned strategic industries. Unlike many other sovereign funds, the HKIC has a dual mandate of seeking a reasonable financial return, and more importantly, of enhancing Hong Kong’s competitiveness and economic vitality in the long term through strategic investment. Projects concluded by the HKIC include, among others, one using AI for drug discovery process, and another one exporting top-notch EV (electric vehicle) charging solutions to Thailand. We welcome more collaboration with the private market as we drive investments in innovation and technology that would not only generate financial returns but also create tangible benefits for the community and humanity.
And speaking of the HKIC, I am glad to report that it will also be hosting a Roundtable for International Sovereign Wealth Funds in January next year where participants could gather to share insights, and explore investment opportunities and develop partnerships. You are more than welcome to join.
​Ladies and gentlemen, I hope I have given you some good account about the investment opportunities that Hong Kong offers, and the rewarding returns that could be reaped – not only financially but also socially. I would now be happy to take your questions.
Following is a question by the Hon Jeffrey Lam and a written reply by the Secretary for Culture, Sports and Tourism, Mr Kevin Yeung, in the Legislative Council today (November 13):
Question:
There are views that with the completion of “cultural and creative parks” such as the West Kowloon Cultural District, the PMQ, The Mills, in recent years, Hong Kong has successfully shaken off its image as a “cultural desert”, and members of the public have attached increasing importance to the development of the cultural and creative industries (CCI). In addition, according to the data of the Census and Statistics Department, the value added of CCI accounted for 4.5 per cent of the Gross Domestic Product (GDP) from 2020 to 2022, indicating that CCI continues to have certain economic value despite the impact of the epidemic. In this connection, will the Government inform this Council:
(1) of the policy measures in place to promote the development of CCI in the future, and whether it has estimated the contribution of the industries to GDP and their potential economic contribution in the next five years; if so, of the details; if not, the reasons for that;
(2) as there are views that performing arts are an important component of CCI, whether the authorities will provide local performers with more room for development, including making more performance venues available, increasing art workers’ access to government subsidies and relaxing their fundraising channels, so as to promote the popularisation of arts and culture in Hong Kong;
(3) given that the soon-to-be-opened Kai Tak Sports Park will host various international events to attract a large number of tourists, whether the Government has plans to leverage this advantage to promote local arts tourism; if so, of the details; if not, the reasons for that; and
(4) whether it will consider constructing an arts park or large-scale arts and cultural facilities in the Northern Metropolis; if so, of the details; if not, the reasons for that?
Reply:
President,
The arts, cultural and creative industries (CCI) are the important parts for creating a diversified economy in Hong Kong. In 2022, the added value of CCI exceeded $120 billion, accounting for 4.5 per cent of the Gross Domestic Product. The Culture, Sports and Tourism Bureau (CSTB) actively supports the development of CCI, promoting collaboration and organic integration between Chinese and other cultures, and realising the strategic positioning of supporting Hong Kong as an East-meets-West centre for international cultural exchange with the support in the National 14th Five-Year Plan with a view to contributing to the strengthening of international communication capacity of the country.
My reply to the various parts of the question raised by the Hon Jeffrey Lam’s question is as follows:
(1) The current-term Government is fully committed to promoting the development of CCI as industries. We have completed the restructuring of the Create Hong Kong as the Cultural and Creative Industries Development Agency (CCIDA) in June 2024 as proposed by the Chief Executive in the 2023 Policy Address. The CCIDA is playing a more proactive and positive role to strengthen its support for the development of the CCI under the industry-oriented principle.
The CCIDA works vigorously to foster the creation of an ecosystem that is conducive to the development of CCI, developing CCI as a new driving force for Hong Kong’s economy, and branding Hong Kong as Asia’s creative capital. For example, the Hong Kong Fashion Design Week will be organised annually starting from 2024 as proposed by the Chief Executive in the 2023 Policy Address, with Hong Kong Fashion Fest as its brand. The core programmes of the inaugural Hong Kong Fashion Fest will take place at different locations in Hong Kong from November 20 to December 4, 2024, consolidating various fashion events to promote the development of Hong Kong’s fashion and textile design brands and to reaffirm Hong Kong’s position as a prime destination for hosting major cultural and creative events, thereby further promoting the development of the fashion design industry in Hong Kong. As a brand-new flagship event, the Hong Kong Fashion Fest aims to attract prestigious fashion brands and industry players from Hong Kong, the Mainland and abroad. We will develop the Hong Kong Fashion Fest into an annual signature event series, with a view to elevating the international profile of local fashion design. In addition, the CCIDA will continue to sponsor the Hong Kong Design Centre to organise the Design of Business Week 2024 (BODW 2024) from December 2 to 7 this year in collaboration with France as the partner country. Under the theme “Inter/Section: Design, Artistry and Innovation”, the BODW Summit will gather over 50 leaders, policymakers and entrepreneurs from all over the world to explore and exchange design knowledge and innovative thinking, and present more than 40 forums and keynote speeches. The event is expected to attract over 900 000 participants/viewership in the exchange. The CCIDA will also sponsor the organisation of a large-scale Hong Kong original art toy exhibition in Jakarta, Indonesia from November 15 to 24, 2024, and 12 exhibiting Hong Kong designers to conduct extended activities and explore local market. Apart from showcasing the Hong Kong original art toys of different generations, the exhibition will also feature cross-sectoral collaboration with Hong Kong comic artists, thereby enabling Hong Kong original art toy designers and comic artists to explore overseas markets.
With the efforts of the CCIDA, we hope that the industries will make use of their innovative spirit and introduce various kinds of new products and services so as to contribute to Hong Kong’s economic growth and job opportunities in the coming years by driving the development of other related sectors such as tourism and retail, enhancing cultural confidence and improving the sense of fulfilment of citizens. Furthermore, it plays a crucial role for solidifying Hong Kong’s position as an East-meets-West centre for international cultural exchange and telling good stories of China and Hong Kong.
(2) The Government is committed to constructing world-class cultural facilities and multicultural spaces, providing more opportunities for the arts sector to organise more local and international cultural and arts activities, and allowing more arts groups and artists to showcase their creative works.
For performance venues, the Leisure and Cultural Services Department continues to improve and expand existing facilities, including the ongoing construction of Yau Ma Tei Theatre Phase 2 as well as the facility improvement works of Sai Wan Ho Civic Centre and Tai Po Civic Centre. Moreover, the Government commenced construction of the New Territories East Cultural Centre (NTECC) in Fanling in July 2023. Upon completion, the NTECC will provide performing facilities of various scales, including two first-of-their-kind facilities in Hong Kong: a children’s theatre and two incubator rooms equipped with professional stage facilities for artists to conduct experimental creative works and nurture new productions.
The East Kowloon Cultural Centre (EKCC) has opened its spaces in phases and is undergoing internal facility installation and optimisation. It has launched the “Unbox EKCC” Trial Programmes Series at various venue facilities in preparation for full opening. The EKCC will be equipped with latest innovative stage equipment and systems, and will set up an arts technology incubator to provide a testing platform for artists and technology professionals.
The West Kowloon Cultural District (WKCD) is one of the most important cultural infrastructure projects of the Government, providing performing arts venue and open spaces for different arts and cultural activities. The Grand Theatre and Tea House Theatre of Xiqu Centre, black box theatre and various multi-purpose venue in Freespace, and Art Park, in which large-scale performances can be held, bring together renowned and rising artists and arts groups from Hong Kong, Mainland China and overseas and present performing arts programmes spanning multiple genres including xiqu, music, theatre and dance. Lyric Theatre Complex, which is currently under construction, would provide theatres of different capacities and a number of rehearsal studios upon completion, becoming a centre of excellence showcasing the best of Hong Kong and international dance and theatre.
The Government has been providing suitable support to the arts and culture sectors through different funding models and schemes, such as regular subvention to the major performing arts groups, and funding support through the Arts Capacity Development Funding Scheme (ACDFS) for cross-year arts and cultural projects/activities that are of certain scale, with a view to enhancing capacity development of promising arts groups and artists. The Hong Kong Arts Development Council is also committed to the implementation of various regular and project-based funding schemes to support small and medium sized arts groups, including the Emerging Artists Development Grant to support and nurture promising and budding arts groups and artists. Meanwhile, we also encourage arts groups and artists not to solely rely on government funding support but aim to attract paid audience and seek other funding recourses and subsidies to develop arts and culture as industry.
The Government has announced the launch of the Signature Performing Arts Programme Scheme (SPAPS) for nurturing representative and large-scale local performing arts productions for long-running performances. Each selected programme under the SPAPS will receive direct subsidy, and a matching subsidy to match with the private sponsorship raised and box income received, with a view to bringing in resources from the community to jointly contribute to the development of local performing arts, and encouraging the selected programmes to seek wider funding sources and audience support. Application details will be announced later and the SPAPS will open for applications in December.
The Government also actively encourages arts groups and organisations to expand their funding sources. The Art Development Matching Grant Scheme and the Springboard Grant of ACDFS under CSTB provides matching grant for donations and sponsorships raised by eligible arts groups/organisations, enhancing their fund raising ability as well as fostering all walks of the community to jointly take part in the development of arts and culture.
(3) Opening in the first quarter of 2025, the Kai Tak Sports Park (KTSP) is the largest sports infrastructure project ever commissioned in Hong Kong. The KTSP will provide modern and multi-purpose facilities. Among other things, the 50 000-seat Kai Tak Stadium, being equipped with a retractable roof, offering different stage positioning and seating configurations as well as adopting a flexible pitch system design, provides more options for hosting different types of large-scale cultural and entertainment events such as sports competitions, art and cultural performances and concerts. The 10 000-seat indoor sports centre (named Kai Tak Arena) is also equipped with retractable seating system and flexible configuration of the play field, allowing the hosting of various kinds of sports, culture or entertainment events.
The KTSP will provide the venues required for the development of large-scale sports events as well as cultural and arts performance, thereby creating the conditions for further promoting mega event economy. Over the past few years, the operator has proactively reached out to stakeholders from sectors including sports, arts and culture, and has showcased the advantages of KTSP’s multi-purposes facilities to over 200 local and international organisations through various channels. The CSTB will continue to work closely with the operator and various government departments to ensure the successful completion and commissioning of the KTSP and unleash the opportunities brought by this world-class hardware, with a view to boosting sports development and injecting impetus into related industries such as recreation, entertainment and tourism (including tourism in arts and culture).
(4) With new land, new communities and the advantage of close connections with the Mainland, the Northern Metropolis will provide new opportunities for the development of cultural facilities. The Government plans to construct a Cultural Complex in San Tin Technopole, including a major performance venue, a major museum, and a major library. In addition, the Government also plans to build dedicated performance venues in New Territories North New Town and Lau Fau Shan. These planned cultural facilities, together with the NTECC currently under construction in Fanling, will bring more brilliant local and international performing arts programmes to the citizens. This will help consolidate Hong Kong’s position as the East-meets-West centre for international cultural exchange. read more
Following is a question by the Hon Chan Kin-por and a written reply by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, in the Legislative Council today (November 13):
Question:
The Mandatory Provident Fund Schemes Authority (MPFA) will issue the “Payment Notice for Mandatory Provident Fund Contributions and Surcharge” (Payment Notice) to employers defaulting on Mandatory Provident Fund (MPF) contributions to recover the default contributions and a surcharge calculated at 5 per cent of the default amount. In this connection, will the Government inform this Council:
(1) of the MPFA’s recovery of default MPF contributions from employers in the past five years, including the number of Payment Notice issued, the respective number and percentage of successful recovery cases (including default contributions recovered both before and after the deadlines specified in the Payment Notice) and cases where recovery is ongoing, as well as the amounts involved;
(2) given that the MPFA will soon be able to directly track the situation of employers’ contributions when the eMPF Platform is fully operational, how the MPFA will expedite the processing of default contribution cases; and
(3) as the MPFA indicated in April 2023 that it was studying amending the legislation to improve the existing mechanism and introduce a tiered surcharge arrangement, so as to further increase the deterrent effect on employers’ defaulting on MPF contributions and to protect employees’ rights and interests, of the progress and timetable of the relevant work?
Reply:
President,
In consultation with the Mandatory Provident Fund Schemes Authority (MPFA), our reply to the three parts of the question is as follows:
(1) Figures concerning the recovery of default Mandatory Provident Fund (MPF) contributions by the MPFA in the past five financial years (FYs) are set out in the table below:
| FY | 2019-20 | 2020-21 | 2021-22 | 2022-23 | 2023-24 |
| Number of “Payment Notices for MPF Contributions and Surcharge” (PNs) issued (Note 1) |
261 100 | 304 000 | 317 500 | 346 700 | 376 300 |
| Amount successfully recovered for affected employees (Note 2) |
$158 million | $196 million | $140 million | $145 million | $155 million |
| Number of affected employees | 95 300 | 108 000 | 82 800 | 96 600 | 96 600 |
​Following is a question by the Hon ​Chan Chun-ying and a written reply by the Secretary for Culture, Sports and Tourism, Mr Kevin Yeung, in the Legislative Council today (November 13):
Question:
According to the pledge of the Hong Kong Science Museum (HKScM), the HKScM will provide at least 500 exhibits in-house at all times, of which 70 per cent will be interactive exhibits, and will keep at least 90 per cent of the interactive exhibits in working order. As pointed out in the Director of Audit’s Report No. 75 (the Report) published in 2020, while permanent exhibitions at the HKScM were generally designed by the Leisure and Cultural Services Department to last for 10 to 15 years, as of September 2020, 10 of the 15 permanent exhibitions at the HKScM had been operating for more than 15 to 29 years. In its Minute issued in 2021 in response to the Report, the Government pledged to adopt enhancement measures, while advising that the HKScM had formulated a renewal plan and timetable to update the contents of various permanent exhibitions and replace ageing interactive exhibits. In this connection, will the Government inform this Council:
(1) of the implementation situation of the HKScM’s pledge in the past three years;
(2) of the details of the renewal plan for various permanent exhibitions at the HKScM (including the quantity of exhibits, costs involved and works schedule), together with the implementation situation of the plan;
(3) whether the HKScM has put in place a regular refurbishment plan for permanent exhibitions to sustain their public appeal; if so, of the details; if not, the reasons for that; and
(4) of the attendance at the HKScM in each of the past three years, together with the ratio of local, Mainland and overseas visitors?
Reply:
President,
​Our reply to the questions raised by the Hon Chan Chun-ying is as follows:
(1) The Hong Kong Science Museum (HKScM) has been able to meet the performance pledges as stated in the question for the past three years. Details are tabulated as follows:
| Number of exhibits on average | Proportion of interactive exhibits | Proportion of interactive exhibits in working order | |
| Pledge | At least 500 | At least 70% | At least 90% |
| 2021-22 | 695 | 72.5% | 98.6% |
| 2022-23 | 620 | 75.6% | 98.9% |
| 2023-24 | 711 | 71.6% | 99.0% |
| Gallery | No. of exhibits (set/piece) |
Works period | Cost (HK$) |
| Biodiversity Gallery | 140 | 2014-16 | $10,000,000 |
| Children’s Gallery | 31 | 2016-17 | $8,300,000 |
| Earth Science Gallery | 48 | 2018-21 | $20,000,000 |
| Palaeontology Gallery | 60 | 2020-23 | $20,000,000 |
| Gallery | Renewal plan | Estimated Cost (HK$) |
| Telecommunications Gallery | Will be transformed into the Innotech Gallery in 2025 | $40,000,000 |
| Transportation Hall | Will be transformed into the Smart Living Gallery in 2025 | $36,000,000 |
| Home Technology Hall | ||
| Food Science Hall | ||
| Electricity and Magnetism Gallery | Among the original 171 exhibits, 38 have been replaced. 15 new exhibits will be added in 2025 | $20,000,000 |
| Light | ||
| Motion | ||
| Sound | ||
| Mathematics |