The Lands Department today (November 7) posted land resumption notices in accordance with section 4 of the Lands Resumption Ordinance (Chapter 124) to resume land at Kim Shin Lane/Fuk Wa Street in Cheung Sha Wan for the implementation of an urban renewal project.
      
     The project was included in the Urban Renewal Authority's Business Plan for 2021-22, and its implementation will help improve the overall living environment of the area. The project site, with a gross area of about 7 452 square metres, will be redeveloped for residential use with retail/commercial facilities, as well as underground ancillary parking and loading/unloading facilities. The project will also provide an open space of about 750 sq m fronting onto Cheung Wah Street, while Kim Shin Lane within the site will be permanently closed.
 
     A total of 836 private property interests at the project site will be resumed by the Government. The affected interests will revert to the Government on the expiration of three months from the date of affixing the land resumption notices (i.e. February 8, 2025).  
      
     Apart from statutory compensation, eligible owners of domestic properties will also be offered an ex-gratia home purchase allowance or a supplementary allowance as appropriate. Eligible domestic tenants will be offered rehousing or an ex-gratia allowance.

     Eligible commercial property occupiers, including owners and tenants, may opt for an ex-gratia allowance in lieu of the right to claim statutory compensation for business and related losses.

     If statutory claims made by the affected owners and tenants of both domestic and commercial properties under the Lands Resumption Ordinance cannot be settled by agreement, the owners and tenants may apply to the Lands Tribunal for adjudication. Professional fees reasonably incurred by the claimants in making such claims may be reimbursed by the Government.
      

     Following is the speech by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, at the 41st session of the Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting (ISAR) organised by the United Nations Conference on Trade and Development (UNCTAD) in Geneva on November 6 (Geneva time):
 
Secretary-General Rebeca (Secretary-General of the UNCTAD, Ms Rebeca Grynspan), Director Li (Director of the Division on Investment and Enterprise, UNCTAD, Ms Nan Li Collins), distinguished guests, ladies and gentlemen,
 
     Good morning. It is my great pleasure to join you at the 41st session of ISAR organised by the UNCTAD. The topic of this high-level panel, "Sustainability reporting frameworks and standards: from interoperability to full harmonization", is timely and highly significant, as accurate, consistent and relevant information about sustainability-related matters has become increasingly important for informed decision-making, risk assessment, transparency, and innovation in sustainable financing.
 
     Hong Kong, China, as a premier sustainable finance hub channelling international capital to sustainable purposes, fully acknowledges the importance of sustainability disclosure. We have the vision and determination to develop a comprehensive sustainability disclosure ecosystem in Hong Kong, China to equip our enterprises with the communication in a common international language on sustainability issues in order to maintain competitiveness in the global supply chains, attract capital towards environmentally responsible projects, and contribute to worldwide efforts in building a sustainable future.
 
Hong Kong's commitment to aligning with ISSB Standards
 
     The International Sustainability Standards Board (ISSB) published in June last year its first set of International Financial Reporting Standards (IFRS) – Sustainability Disclosure Standards (ISSB Standards) as the global baseline for entities around the globe to prepare comparable, consistent and reliable climate and sustainability-related information, and make sustainability disclosures focusing on the needs of investors and the financial markets.
 
     Our commitment to aligning Hong Kong's sustainability reporting standards with the ISSB Standards is clear. Since the ISSB Standards were published, the Chief Executive of the Hong Kong Special Administrative Region (HKSAR) announced in his Policy Address in October last year the policy measure that the HKSAR Government would work with financial regulators and stakeholders to develop a roadmap on the appropriate adoption of the ISSB Standards to align with international standards. In the 2024-25 Budget released in February this year, our Financial Secretary announced that the Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC) would formulate a roadmap and vision statement to assist companies and financial institutions in sustainability reporting and the analysis of relevant data, elucidating our vision of promoting green and sustainable finance.
 
Progress and actions taken
 
     We have been taking proactive actions over the past year in advancing towards our goal adopting an ecosystem approach. In practice, we have set up a dedicated working group, which is co-led by the FSTB and the SFC, with members comprising financial regulators, the Hong Kong Exchanges and Clearing Limited (HKEX) and the Hong Kong Institute of Certified Public Accountants (HKICPA), to formulate the roadmap.
 
     With the contribution from working group members, we published the vision statement in March this year, setting out the vision and approach of the HKSAR Government and financial regulators in developing a comprehensive ecosystem for sustainability disclosure in Hong Kong, and our aim to be among the first jurisdictions to align the local sustainability disclosure requirements with the ISSB Standards.
 
     As an interim step to enable listed companies to adopt the local sustainability disclosure standards for sustainable reporting in future, the HKEX published conclusions to its consultation on the enhancement of climate-related disclosures under its ESG (environmental, social and governance) Framework in April this year and introduced new climate-related disclosures requirements for implementation under a phased approach, having regard to the size of the company and nature of the disclosure, specifically Scopes 1, 2 and 3 of the Green House Gas (GHG) Emission and non-GHG disclosure requirements, from 2025 onwards. This has rendered Hong Kong one of the first jurisdictions to have announced new climate-related reporting requirements for listed companies that are based on the IFRS S2.
 
     Assuming the role of the local sustainability reporting standard setter in Hong Kong, the HKICPA, in collaboration with Working Group members, has conducted extensive outreach and stakeholder engagement, including completion of a technical feasibility study in June this year on the application of the ISSB Standards in Hong Kong, China. With the feedback gathered, the HKICPA has developed Exposure Drafts for Hong Kong's sustainability reporting standards (Hong Kong Standards) in full alignment with the ISSB Standards and just completed a six-week public consultation a few weeks ago. The Hong Kong Standards are intended for cross-sectoral observance, including listed companies and regulated financial institutions, such as banks, fund managers, insurance companies, and Mandatory Provident Fund (MPF) trustees. As set out in our vision statement, a phased implementation approach will be adopted, with application of the Hong Kong Standards prioritised for listed companies and regulated financial institutions. The HKICPA is currently considering the consultation feedback received with a view to issuing the final Hong Kong Standards by the end of this year with an effective date of August 1, 2025.
               
Roadmap on full adoption of the ISSB Standards in Hong Kong
 
     In addition to the above progress made, we are working at full steam on finalising the roadmap. As announced by our Chief Executive in his Policy Address last month, we will launch the roadmap on the full adoption of the ISSB Standards in Hong Kong this year. The roadmap will provide a transparent and well-defined pathway on sustainability reporting for businesses in Hong Kong, as well as sufficient time for making preparations for the pragmatic implementation of the Hong Kong Standards. Apart from sustainability reporting which I have already covered, the roadmap will also comprise three other key areas, namely sustainability assurance, data and technology, and capacity building, which are essential building blocks of a comprehensive ecosystem to support implementation of the Hong Kong Standards. Let me share with you our development directions and the measures that are already in place.
 
Sustainability assurance
 
     We recognise that assurance helps build credibility and reliability of reported sustainability-related information. The HKSAR Government and financial regulators will promote sustainability assurance to enable credible implementation of sustainability disclosure in Hong Kong. Local sustainability-related assurance and ethics standards will be developed, taking account of the latest global developments including relevant discussions at the International Auditing and Assurance Standards Board and International Ethics Standards Board for Accountants. The Accounting and Financial Reporting Council (AFRC) will be involved in driving the development of sustainability assurance in Hong Kong. The AFRC will host its inaugural Regional Regulatory Forum in early December, where regulators in Asia and beyond will discuss, among other things, the implications of sustainability reporting for the industry.
 
Data and technology
 
     We understand that the availability of relevant data is considered by some stakeholders as one of the challenges for sustainability reporting. We will continue with our efforts in facilitating better sustainability disclosures and enhancing the quality of data through promoting the use of technology-driven solutions, which will enhance efficiency and reduce cost for preparers and users of sustainability-related disclosures, as well as enable comparability and interoperability of disclosures across sectors and markets. To this end, we have already rolled out a number of innovative measures to improve data availability and support data collection and reporting. For example:
 
(i) We launched in as early as 2022 a climate and environmental risk questionnaire for non-listed companies and small and medium enterprises to assist their sustainability reporting processes and raise their sustainability visibility to lenders, investors and supply chain clients. It also enables financial institutions' collection and assessment of company-level data for risk assessment and relevant business decisions. We further rolled out this year a digital version of the questionnaire to facilitate reporting and support broader consent-based data sharing between corporates and financial institutions.
 
(ii) In collaboration with the Hong Kong University of Science and Technology, we launched a publicly accessible greenhouse gas emissions calculation and estimation tools this year to aid sustainability reporting by corporates and financial institutions in Hong Kong, help companies manage their environmental footprint and encourage market participants to improve sustainable business practices.
 
     Looking forward, we will continue to promote the development and use of green and sustainable financial technology solutions. As supporting measures, we published the Prototype Hong Kong Green Fintech Map last March to provide one-stop information on the current status of our more than 50 green fintech companies in Hong Kong and related services. Subsequently in June, we launched a brand new Green and Sustainable Fintech Proof-of-Concept Funding Support Scheme to provide early-stage funding to support technology companies or research institutes conducting green fintech activities to collaborate with local enterprises to co-develop new projects in the market that seek to address the industry pain points. One of the key areas covered in the Scheme is ESG Disclosure, Compliance & Regulatory Reporting. Recognising the tremendous potential AI (artificial intelligence) has in assessing climate risk, formulating sustainability goals and incorporating them in the decision-making process, we issued last Monday the Policy Statement on Responsible Application of Artificial Intelligence in Financial Market with a view to facilitating and enabling responsible AI adoption in the financial services industry at large, among firms of all sizes.
 
Capacity building
 
     Last but not least, we are keen to enhance capacity building to support the industry and companies in their sustainability disclosure journey. In particular, financial regulators, the HKEX and the HKICPA, have been organising various seminars and engagement activities as well as publishing publicity and training materials on sustainability-related topics since 2021. We will continue to promote alignment with the ISSB Standards and support capacity building efforts locally, regionally and internationally through organising various engagement activities, publishing training materials on sustainability-related topics; providing training programmes, etc, to nurture trained sustainable finance professionals covering preparers, reporting and assurance professionals, and sustainability-related service providers. We have in our talent list experienced financial professionals in ESG to bring in overseas experts to settle in Hong Kong to enrich ours domestically. The HKSAR Government will also continue to support industry capacity building through the Pilot Green and Sustainable Finance Capacity Building Support Scheme launched in 2022.
 
Closing remarks
 
     To some, the global demand for sustainability disclosure may be posing obligations on enterprises. To me, just as clearly stated in the title of our vision statement "Turning Obligations into Opportunities", I believe we can turn these obligations into opportunities to propel our development of green and sustainable finance to new heights and, equally importantly, contribute to the global efforts in promoting a sustainable future. We are exerting our efforts to build an ecosystem through getting the three "Ps" right, namely the right Policy steer with commitment, the right Pull Factors with incentives and the right People with expertise.
 
     The HKSAR Government will continue to collaborate with financial regulators and stakeholders to proactively develop Hong Kong's sustainability disclosure ecosystem. I would also encourage all of you to stay tuned to the launch of our roadmap soon. Thank you.
 
 

    

     The Secretary for Financial Services and the Treasury, Mr Christopher Hui, continued his visit to Switzerland. He attended the 41st session of the Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting (ISAR) organised by the United Nations Conference on Trade and Development (UNCTAD) in Geneva on November 6 (Geneva time) to elaborate on Hong Kong's efforts in building a comprehensive ecosystem for sustainability disclosure through getting the right policy steer with commitment, the right pull factors with incentives and the right people with expertise.
 
     On the topic of the session "Sustainability reporting frameworks and standards: from interoperability to full harmonization", Mr Hui said it is timely and highly significant because Hong Kong, as a premier finance hub channelling international capital to sustainable purposes, fully acknowledges the importance of sustainability disclosure. He added that Hong Kong's aim is to be among the first jurisdictions to align the local sustainability disclosure requirements with the International Financial Reporting Standards – Sustainability Disclosure Standards (ISSB Standards).
 
     "Our commitment to aligning our sustainability reporting standards with the ISSB Standards is clear.
 
     "The Hong Kong Special Administrative Region (SAR) Government has been working with financial regulators and stakeholders to develop a roadmap on the full adoption of the ISSB Standards in Hong Kong," Mr Hui said.
 
     Mr Hui noted that the roadmap will be launched this year to provide a transparent and well-defined pathway on sustainability reporting for businesses in Hong Kong, as well as sufficient time for making preparations.
 
     "The roadmap will also comprise three other key areas, namely sustainability assurance, data and technology, and capacity building," Mr Hui said. 
 
     Local sustainability-related assurance and ethics standards will be developed to enable credible implementation of sustainability disclosure in Hong Kong. Supporting capacity building efforts locally, regionally and internationally through providing training programmes, publishing sustainability-related training materials, etc, could help nurture trained sustainable finance professionals.
 
     In addition, promoting the use of technology-driven solutions could facilitate better sustainability disclosures and enhance the quality of data. Mr Hui particularly noted that the Hong Kong SAR Government issued last week the Policy Statement on Responsible Application of Artificial Intelligence in Financial Market, with a view to facilitating and enabling responsible AI (artificial intelligence) adoption in the financial services industry at large, among firms of all sizes.
 
     On the sidelines of the ISAR session, Mr Hui met with the Vice-Chair of the International Sustainability Standards Board, Ms Sue Lloyd. They exchanged views on how to develop sustainability reporting standards for cross-sectoral observance, including listed companies and regulated financial institutions.
 
     On November 6, Mr Hui also met with the Deputy Director-General of the World Trade Organization, Mr Jean-Marie Paugam. They discussed, among others, issues about enhancement of quality assessment of government tenders by promoting environmental, social and governance (ESG) in tender exercises, and the fight against climate change by means of facilitating green and sustainable finance. He also met with the Director of the Geneva Financial Center (GFC), Mr Edouard Cuendet. The GFC is the umbrella association for the financial sector in Geneva. Both sides explored collaboration opportunities during the meeting. 
 
     Mr Hui also paid a courtesy call on Minister-Counsellor of the Permanent Mission of the People's Republic of China to the United Nations Office at Geneva and other international organizations in Switzerland Ms Liang Hong, to update her on the latest situation of Hong Kong.
 
     On November 5 in Zurich, Mr Hui met with the Deputy Chief Executive Officer, Head of Private Banking and Asset Management of the Swiss Bankers Association, Mr August Benz, to discuss topics of mutual concern, including ways to tap into the immense opportunities from family office business, as well as the importance of maintaining stable financial centres amid uncertain times.
 
     Mr Hui had a meeting with the Founder and Chairman of the Board of Trustees of the World Economic Forum, Professor Klaus Schwab, in Geneva. Professor Schwab expressed strong interest in the resilience and sustainability of Hong Kong's financial market. Mr Hui briefed Professor Schwab that Hong Kong is driving the high quality development in financial services to enhance the city's competitiveness in the international arena.    
 
     At the meeting in Geneva with the UNCTAD led by their Director of the Division on Investment and Enterprise, Ms Nan Li Collins, Mr Hui shared insights on the escalating standards for ESG and the increasing awareness around sustainable investment among Hong Kong's enterprises.
 
     On the same day, Mr Hui had a dinner gathering with the Romandie Chapter of the Swiss-Chinese Chamber of Commerce (SCCC). During the dinner, Mr Hui updated SCCC's members from wealth and asset management, risk management and legal sectors on Hong Kong's financial services landscape and its strategic outlook as a vital gateway to Mainland China, especially the Guangdong-Hong Kong-Macao Greater Bay Area.
 
     On November 7 (Bern time), Mr Hui will meet with Swiss financial officials and top management of the International Institute for Management Development.

                    

Attention TV/radio announcers:

Please broadcast the following as soon as possible:

     Here is an item of interest to swimmers.

     The Leisure and Cultural Services Department announced today (November 7) that due to big waves, red flags have been hoisted at Stanley Main Beach and Big Wave Bay Beach in Southern District, Hong Kong Island; and Silverstrand Beach and Clear Water Bay Second Beach in Sai Kung District. Beachgoers are advised not to swim at these beaches.

     Following is the video speech by the Financial Secretary, Mr Paul Chan, at the Insurance Summit 2024 today (November 7):

Allan (Mr Allan Yu, Chairman of the Insurance Training Board, the Vocational Training Council), ladies and gentlemen, 

     Good morning. Welcome to the Insurance Summit 2024. Let me first extend my heartfelt thanks to the Vocational Training Council's Insurance Training Board and PEAK, the Institute of Professional Education and Knowledge, for organising this year's eighth edition of the Summit. I'm pleased to have the opportunity to speak with you about insurance, a long-standing pillar of the Hong Kong economy and community.
     
Hong Kong as an insurance hub

     Hong Kong is an international financial centre. Our strategic location, advanced infrastructure, and concentration of global financial institutions and talent offer the perfect environment for the insurance industry to prosper.

     Indeed, Hong Kong is a major insurance hub, boasting the highest concentration of insurance companies and insurance density in Asia. We also have the world's highest insurance penetration rate. The industry employs some 130 000 professionals. All these figures highlight the deep integration of insurance in our economy and society.

     Hong Kong's insurance sector is growing steadily following the pandemic. In the first half of 2024, gross premiums in Hong Kong rose by over 5 per cent, exceeding $310 billion. 

     The future of our insurance industry looks promising, especially with the growing affluence of the Greater Bay Area (GBA) and the increasing demand for high-quality insurance and investment products. As such, we are supporting the industry to better capture these cross-boundary business opportunities, including the establishment of after-sales service centres in Nansha and Qianhai, to facilitate policy management and service for policy holders living in the GBA. 

A global risk management centre

     Looking ahead, it is our vision to strengthen Hong Kong as a global risk management centre. I'm delighted to share a number of initiatives we have been pursuing actively over the past few years.  

     First, providing innovative tools to manage the risks associated with climate change. As natural hazards increasingly impact various parts of the world, there is a growing need for insurance products that offer protection against such disasters. Since 2021, we have introduced catastrophe bonds, which are insurance-linked securities designed to share natural disaster risks with investors, while providing them with attractive returns. To date, five catastrophe bonds have been issued in Hong Kong, covering events from earthquakes to storms, with a total value exceeding US$700 million. Two of these bonds are listed on the Hong Kong Stock Exchange.

     Second, driving fintech innovation in insurance. Fintech is transforming the industry. New practices such as virtual onboarding and digital distribution models have streamlined operations, enhanced customer experiences, and lowered costs. This transformation will ultimately make insurance services more accessible to the public and more comprehensive in covering areas left out by traditional insurers.

     In fact, our Insurance Authority adopts a pro-innovation approach. For example, back in 2017, they initiated the Insurtech Sandbox, allowing companies to test innovative technologies and receive regulatory feedback before launching their solutions in the market.  

     So far, Hong Kong has four licensed digital insurance companies. Some of them are making their mark on the global stage as well. The founder of one of those companies recently joined my delegation to Saudi Arabia, where they signed two deals, attracting interest and investments from Middle Eastern partners. 

     Ladies and gentlemen, in the Chief Executive's recent Policy Address, more measures have been introduced to advance the development of the insurance sector. They include improvements to our risk-based capital regime, which will enrich insurance companies' choice of asset allocation for better risk diversification, including investment in infrastructure; and continuing to encourage large companies, including state-owned enterprises from the Mainland, to establish their captive insurers in Hong Kong.  

Insurance talent

     For our efforts to succeed, talent is essential. Our programme to enhance talent training for the insurance sector has provided over 580 internship positions and 15 000 training-course opportunities since 2016. I am pleased to note that the Vocational Training Council has been our valuable partner in ensuring a continuous flow of talent in the insurance sector. For that, I am grateful.
 
     All in all, I am confident that we have what we need to rise high as a leading global risk management centre – long down the rapidly changing world and the boundless opportunities it presents.

     I wish you all a rewarding Summit and the best of business and health in the years ahead. Thank you very much.