â€‹Following is a question by the Hon Mrs Regina Ip and a written reply by the Secretary for Culture, Sports and Tourism, Mr Kevin Yeung, in the Legislative Council today (November 6):
 
Question:

     To promote the development of Hong Kong as the East‑meets‑West centre for international cultural exchange, and to drive the city into an international cultural metropolis and a destination for tourists worldwide, the Government set up the Mega Arts and Cultural Events Fund (Mega ACE Fund) in April last year to attract and support large-scale arts and cultural events to be held in Hong Kong by providing funding support to the organizers of such events. In this connection, will the Government inform this Council:

(1) of the following information since the establishment of the Mega ACE Fund (set out by year): (i) the number of grants and the amount of funding granted, (ii) the remaining balance of the funding, (iii) the number of applications received, and (iv) the number of events funded, the amount of funding received and the actual costs incurred for each event;

(2) whether the Government has assessed the economic benefits brought to Hong Kong (including the number of inbound tourists attracted to Hong Kong, the amount of spending induced and the economic value generated) by the mega events funded by the Mega ACE Fund that were already held; if so, of the details; if not, the reasons for that, and whether it will conduct such assessment;

(3) given that in its progress report submitted to this Council in April this year on the motion on "Promoting the in-depth integration of culture, sports and tourism to revitalize the tourism industry", the Government indicated that it would set corresponding key performance indicators for each of the funded mega events and activities, of the progress of such work;

(4) given that the Secretary for Culture, Sports and Tourism indicated in 2022 that the Government's initial plan was to allocate about $60 ‍million from the Arts and Sport Development Fund to fund around four events through the Mega ACE Fund each year, and as shown in the information provided by the Government in its reply to a question raised by a Member of this Council on the Estimates of Expenditure for the financial year of 2024-2025, the respective number of events funded by the Government through the Mega ACE Fund in 2023 and 2024 has both exceeded four, of the reasons for the number of events funded in each of these two years exceeding the expected number, and whether the amount of the funding for each year has exceeded $60 million; if so, of the mechanism through which the Government reports to this Council in this regard; and

(5) as there are views that the Mega Arts and Cultural Events Committee (Mega ACE Committee), currently responsible for vetting and approving the Mega ACE Fund applications, may draw reference from the composition of the committees for vetting and approving other funding applications in the past and include civil servants as members, whether the Government will consider appointing civil servants as ex-officio members of the Mega ACE Committee, so as to enhance the coordination of the events funded by the Mega ACE Fund; if so, of the implementation timetable; if not, the reasons for that?

Reply:

President,

     Our reply to the question raised by the Hon Mrs Regina Ip is as follows:

(1) and (4) The 2022 Policy Address announced the setting up of the Mega Arts and Cultural Events (ACE) Fund to provide incentives for organisers of large-scale arts and cultural events so as to attract and support international and mega arts and cultural events to be staged in Hong Kong, with a view to further developing Hong Kong into an arts and cultural hub.
 
     The Government officially set up the Mega ACE Fund in April 2023. At the early planning stage, our initial plan was to allocate about $60 million from the arts portion of the Arts and Sports Development Fund to fund at least four events each year, which was budgetary in nature. The Government was pleased to note that many large-scale events have applied for the Mega ACE Fund since its launch, and the Fund has supported a number of mega events to be held in Hong Kong after the pandemic, which is in line with the Government's objective of setting up the Mega ACE Fund.
 
     In 2022, 2023 and 2024, we received two, 25 and 44 applications respectively. As of October 2024, 17 applications have been approved.

     Details of the 17 approved projects are as follows:
 

＊Actual grant amount to be finalised upon the submission of audited report by the grantee after the event.

     The purpose of requesting the organisers of the approved projects to submit audited account report upon completion of their projects is to ensure that the grant provided by the Mega ACE Fund is fully and properly applied to the approved budget items.  As far as we understand, these projects may also incur costs that are covered by other sources of income, which the organisers are not required to report these items in their reports to us. Therefore, we do not maintain the information on the overall actual cost incurred for each project.

(2) and (3) The Mega ACE Fund was established when the community was recovering from the pandemic. The number and variety of activities were crucial for the construction of a vibrant ecosystem of large-scale arts and cultural events, thus the Culture, Sports and Tourism Bureau (CSTB) has been actively introducing arts and cultural events with different orientations and genres through the Mega ACE Fund. At present, we will request the organiser of each approved project to set suitable Key Performance Indicators (KPIs) accordingly. The KPIs concerned will form part of the funding agreement, so that the effectiveness of the project will be monitored. According to the requirements of the Mega ACE Fund, grantees must follow the provisions of the funding agreement to carry out the proposals and fulfill the related obligations. They must also submit an event report after the completion of the event and will only receive the remaining grant amount upon the acceptance of the report.

     Regarding the approved projects stated in our reply to parts (1) and (4) above, 15 projects were completed, attracting an attendance of over 4.76 million in total. The response has been positive and exceeded the targets, bringing a positive impact on the arts and cultural ecology of Hong Kong. For instance, ComplexCon Hong Kong 2024 attracted over 32 000 participants, among them 55 per cent were tourists, whereas Art Basel Hong Kong 2024 brought together 242 galleries from across 40 countries and territories, which attracted around 80 400 participants, of which half of them were visitors. Having said that, as different activities have different target audiences, it is inevitable that some activities will perform better in attracting tourists, and we should not adopt a broad-brush approach in assessing the effectiveness of the activities.
 
     Apart from some quantifiable indicators such as the number of participants, these projects supported by the Mega ACE fund also bring unquantifiable values to the arts and cultural landscape of Hong Kong. A series of events covering a wide range of arts genres make arts more accessible to the public and tourists, encourage them to appreciate arts and arouse their interest, gradually creating a rich artistic atmosphere within the community. In addition, these projects are in line with the Government's direction of promoting the development of arts and culture industries in Hong Kong, including fostering international cultural exchange with the Mainland and overseas countries, offering platforms for young and emerging artists to showcase their work, and contributing to the development of the industries, etc. For example, Art Central 2024 provided a platform for local young artists to create large-scale art installation, while the sculpture exhibition "A Path to Glory – Jin Yong's Centennial Memorial • The World of Wuxia" will tour in the Mainland and overseas, exporting Hong Kong's local characteristics and Chinese culture. In the long run, the Mega ACE Fund plays an important role in promoting the diversified development of Hong Kong's arts and culture ecosystem.
 
     The positioning of the Mega ACE Fund is mainly to support the development of Hong Kong's arts, culture and creative industries. As the Mega ACE Fund has been fully operated for around a year and a half, we have not yet specifically assessed the economic benefits brought by the Mega ACE events for the time being. Taking into consideration the latest developments in Hong Kong's arts and culture sector and ecology, the CSTB has reviewed the operation and funding mode of the Mega ACE Fund based on the experience gained after setting up the Fund and consulted the Mega ACE Committee and relevant stakeholders.

(5) The Mega ACE Committee is an advisory body of the Government, responsible for advising the Government on the strategies to attract mega arts and cultural events to be held in Hong Kong as well as the operation of the Mega ACE Fund, and assessing applications under the fund for the Government's approval. The Committee comprises leaders from the arts and cultural and other sectors. The CSTB provides secretariat service for the Committee, including communication with the applicants and grantees. In the course of processing the applications, the secretariat will also seek comments from relevant government bureaux or departments for the Committee's reference.
 
     The Mega ACE Committee is responsible for assessing the applications and making recommendations to the CSTB while the Government will take into account the recommendations of the Committee and consider the applications from different perspectives before making a final decision. The current mechanism leverages on the advice from leaders and the role of Government officials in the vetting process.
      
     Having said that, when arranging the appointment for the next term of the Committee, the CSTB will actively consider the recommendation for appointing ex-officio member so as to enhance the coordination work of mega arts and cultural events.

     Following is a question by the Hon Rock Chen and a written reply by the Acting Secretary for Financial Services and the Treasury, Mr Joseph Chan, in the Legislative Council today (November 6):
 
Question:
 
     The Third Plenary Session of the 20th Central Committee of the Communist Party of China, convened in July this year, adopted a resolution to, among others, consolidate and enhance Hong Kong's status as an international financial centre. Meanwhile, the 2024 Policy Address has proposed to build an international gold trading market and develop world-class gold storage facilities, while exploring with the Mainland authorities the inclusion of gold-related products in the mutual market access programme. There are views that facilitating financial flows among Hong Kong, the Guangdong-Hong Kong-Macao Greater Bay Area and the international market can consolidate Hong Kong's status as an international financial centre. In this connection, will the Government inform this Council:
 
(1) whether it has any specific plans to take forward the mutual market access regime with the Mainland to include gold products, and to consider conducting offshore Renminbi-denominated gold trading; if so, of the timetable and trading implementation rules, and whether it will study the related arrangements jointly with the National Financial Regulatory Administration and other relevant Central ministries;
 
(2) whether it has plans to promote cross-industry collaborative mechanisms in the related work, thereby facilitating co-operation among the Hong Kong Exchanges and Clearing Limited, financial institutions, insurance companies, logistics companies, gold storage companies and traders; and
 
(3) how it will promote the gold trading market in Hong Kong, particularly in attracting international and Mainland investors; whether it has plans to enhance ties with suppliers in the Middle East and the Southeast Asian region through organising international conventions or exhibitions?
 
Reply:
 
President,
 
     Our consolidated reply to the three parts of the question is as follows:
 
     The Third Plenary Session of the 20th Central Committee of the Communist Party of China (CPC Central Committee) adopted the Resolution of the CPC Central Committee on Further Deepening Reform Comprehensively to Advance Chinese Modernization. The Resolution calls on Hong Kong to fully harness the institutional strengths of "one country, two systems" while consolidating and enhancing its status as an international financial, shipping and trade centre.
 
     In the Policy Address this year, the Chief Executive has emphasised the need to explore new growth areas. Building an international gold trading centre is a new growth point for Hong Kong to consolidate and enhance its status as an international financial centre. Gold serves as a crucial anchor in the precious metals category, possessing multiple attributes as a commodity, a reserve asset, and an investment product. Under increasing global political and economic uncertainties, gold is one of the key hedging tools. With the geopolitical environment becoming more complex and some regional situations remaining unclear, it is expected that global demand for gold will remain substantial. Many investors would like to store physical gold in different geographical locations, which presents opportunities for Hong Kong to develop the gold market.
 
     Financial trading of gold generally refers to investors on the basis of needs making use of standard or tailored contracts to buy and sell physical gold or related spot or futures financial products (e.g. funds, forwards, swaps and futures). Experiences of overseas trading show that commodity markets, including those specialising in financial trading of gold, have their own characteristics. It takes time to build up trading and the ecosystem. While Hong Kong has the potential for both on- and off-exchange transactions, the relevant development requires detailed planning and a gradual and orderly progression.
 
     As the first step, the Government will focus on the development of world-class gold storage facilities, thereby attracting more investors and users from different economies, including the Middle East and Southeast Asia, to store gold in Hong Kong. Based on increased storage, we expect to scale up associated support services in insurance, testing and certification, logistics, etc, while in parallel expanding related transactions including collateral, loan and hedging, hence creating a comprehensive ecosystem in a progressive manner. This will drive all-round multi-currency trading, clearing and delivery, as well as the development of the regulatory system (covering transactions using offshore Renminbi), thereby establishing a holistic gold trading centre with an industry chain. We will also as appropriate explore with the Mainland institutions (including financial regulators) mutual access with the Mainland financial market.
 
     In the proactive development of gold trading in Hong Kong, the wisdom, contributions and concerted efforts of different sectors involved are needed. The Financial Services and the Treasury Bureau will set up a working group within this year to formulate plans on enhancing the trading and regulatory mechanisms of the market. Issues to be looked into will cover gold supply and demand, product development, application of standards, clearing mechanism, logistics and storage, testing and certification, talent training, cross-boundary collaboration, etc. We are considering the composition of the working group, which will encompass industry professionals, the Hong Kong Exchanges and Clearing Limited, Chinese Gold and Silver Exchange, financial institutions, etc. We will also communicate and liaise with the Mainland exchanges concerned. When discussing specific issues, the working group will invite the participation of relevant industry practitioners (e.g. those from the insurance and logistics sectors). The working group will also explore conducting promotion activities in the Mainland and globally to attract Mainland and international investors and users to store gold and conduct trading, clearing and delivery in Hong Kong.

     The Secretary for Innovation, Technology and Industry, Professor Sun Dong, arrived in Ottawa to continue his visit to Canada on November 5 (Ottawa time).

     Professor Sun attended the Seminar on Life Science and Global Health, themed "Innovation · Inclusion · Impact" and organised by the Hong Kong-Canada Business Association (Ottawa Chapter) and Invest Hong Kong, at the Parliament Building. In his keynote speech, Professor Sun said while Canada has long been recognised as a powerhouse in the field of life and health science, Hong Kong is also emerging as an international innovation and technology (I&T) centre. The Hong Kong Special Administrative Government strives to support the development of life and health technology as one of the technology industries with an edge and of strategic importance.

     Professor Sun outlined a number of significant advantages that Hong Kong enjoys in developing life and health technology. Hong Kong's flagship research and development initiative, InnoHK, has built collaboration with more than 30 world-renowned universities and research institutes from 12 economies, including Canada, and set up a total of 29 research laboratories with 16 of them focusing on healthcare-related technologies. A $6 billion subsidy programme to support local universities to set up life and health technology research institutes and a $3 billion Frontier Technology Research Support Scheme to accelerate cross-disciplinary researches are in place.

     "Adequate sites and sophisticated infrastructure are equally important for long-term I&T development. We will set up the InnoLife Healthtech Hub in the Hetao Hong Kong Park (the Loop) to attract top-notch research teams and talent from around the world. We will allocate another HK$2 billion to support the InnoHK research clusters to establish presence in the Loop, and HK$200 million to support start-ups in the Loop engaging in life and health technology in the form of incubation and acceleration programmes." Professor Sun added that new I&T land will be available in San Tin Technopole to support I&T industry development, creating synergy with the nearby Shenzhen I&T Zone.

     Professor Sun continued that having the distinctive advantages of enjoying strong support of the motherland and being closely connected to the world under "one country, two systems", Hong Kong is the best platform to connect I&T talent and companies from the Mainland and around the world. He strongly believes that apart from life and health technology, there is a lot of room for bilateral collaboration between Hong Kong and Canada in fields such as green technology, renewable energy, environmental protection and sustainability.

     Professor Sun also met with Canada-Hong Kong Parliamentary Friendship Group Member and Senator of Canada, Mr Woo Yuen-pau; the Group Chair and Member of Parliament of Canada, Mr Greg McLean; and Member of Parliament of Canada Mr Chandra Arya, at the Parliament Building. They had a brief exchange of views on areas of common interest, such as enhancing further collaboration on science, innovation and research between Hong Kong and Canada, as well as people and cultural exchanges between the two places.

     Professor Sun also called on the Chinese Ambassador to Canada, Mr Wang Di, to brief him on the progress of building Hong Kong into an international I&T centre, as well as the city's continuous efforts in integrating into national I&T development. Professor Sun said that Hong Kong spares no effort in developing new quality productive forces tailored to local conditions, including optimising the strategy and institutional set-up for the development of new industrialisation, and increasing investment for I&T industries.

     Professor Sun will proceed to visit Waterloo on November 6 (Toronto time).

          

     The Leisure and Cultural Services Department will present free music programme "Busking Go Round 2024" at Kwai Tsing Theatre, Yuen Long Theatre and Sha Tin Town Hall from 2.30pm to 5.15pm on November 9, 16 and 17 respectively. Young music enthusiasts will deliver vibrant and distinctive music performances. In addition to reinterpreting an array of popular songs, some performers will also present their original works, demonstrating different musical charm and bringing a refreshing experience to audiences.
 
     Each performance will be presented by three different singers or music groups with details as follows:
 

 
     For more information, please visit the following webpages of the venues:

Kwai Tsing Theatre: www.lcsd.gov.hk/en/ktt/programmes/buskinggoround2024.html
Yuen Long Theatre: www.lcsd.gov.hk/en/ylt/programmehighlights/buskinggoround2024.html
Sha Tin Town Hall: www.lcsd.gov.hk/en/stth/programmes/buskinggoround2024.html

                  

Attention duty announcers, radio and TV stations:

     The fire danger situation today (November 6) is red and fire risk is extreme. The countryside is extremely vulnerable to fire. If you are planning to spend the day in the countryside, please take pre-cooked food for a picnic and take all measures to prevent hill fires. The penalty for lighting fires illegally in the countryside is $25,000 and a year's imprisonment.