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.

     Following is a question by the Hon Chan Hak-kan and a written reply by the Secretary for Transport and Logistics, Mr Lam Sai-hung, in the Legislative Council today (November 6):
 
Question:
 
     According to government information, there were about 1.38 million inbound visitors during the National Day Golden Week this year, with the Lok Ma Chau Spur Line (LMC SL) Control Point being the boundary control point (BCP) used by the majority of Mainland visitors during the period. There are views pointing out that the BCP has become one of the most frequently used BCPs for the public and visitors, with an average number of inbound and outbound visitors comparable to that of the Lo Wu Control Point, and the MTR East Rail Line (ERL), which is connected to these two BCPs, is often overcrowded with passengers during the holiday. In this connection, will the Government inform this Council:
 
(1) given that at present, the service hours of the Lo Wu Control Point are from 6.30am to 12.00 midnight, while those of the LMC SL Control Point are from 6.30am to 10.30pm, whether the Government will, in the light of visitors' demand, discuss with the relevant Mainland authorities the extension of service hours of the LMC SL Control Point; if so, of the details; if not, the reasons for that;
 
(2) as it is learnt that the current ratio of train frequency to MTR Lo Wu Station and to MTR Lok Ma Chau Station is 2:1, whether the Government will discuss with the MTR Corporation Limited to increase the ratio of train frequency to 1:1, so as to better meet the needs of passengers; if so, of the details; if not, the reasons for that;
 
(3) whether the Government has compiled statistics on the patronage and occupancy rate of ERL during the peak hours (i.e. from 8am to 10am and from 5pm to 7pm) during the National Day Golden Week this year, and whether there was any overloading situation; if it has compiled such statistics, of the details;
 
(4) whether it will consider further enhancing the cross-boundary coach services to divert visitors on days with a higher number of visitors, including bus services plying between the LMC SL Control Point and districts such as Tsim Sha Tsui, Wan Chai and Central; if so, of the details; if not, the reasons for that; and
 
(5) whether the Government has plans to construct new cross-boundary railways to connect the Man Kam To BCP, the Heung Yuen Wai BCP and the new Huanggang Port after redevelopment, etc., so as to increase the carrying capacity of the traffic to and from the land BCPs as soon as possible; if so, of the timetable, and the measures in place to expedite the implementation of the relevant plans?
 
Reply:
 
President,
 
     With the commissioning of the East Rail Line (ERL) cross-harbour extension in 2022, passengers can travel directly from the Lok Ma Chau Spur Line Control Point to various districts in the New Territories East, Kowloon and even on Hong Kong Island by using the convenient, fast and efficient railway service. Having consulted the Security Bureau, the Transport Department (TD), and the MTR Corporation Limited (MTRCL), the reply to the question raised by the Hon Chan Hak-kan is as follows:
 
(1) The Hong Kong Special Administrative Region (HKSAR) Government has been closely monitoring the demand for clearance services at various land boundary control points (BCPs). On the basis of the 24-hour passenger clearance services currently provided in Lok Ma Chau/Huanggang Control Point and Hong Kong-Zhuhai-Macao Bridge Hong Kong Port, the HKSAR Government will liaise with the Mainland authorities on extending the operating hours of the passenger clearance service at respective BCPs as and when necessary to further facilitate the flow of people between the two sides.
 
(2) The MTRCL reviews and adjusts the frequency of trains, including those of the ERL to/from Lo Wu Station and to/from Lok Ma Chau Station from time to time, in the light of the changes in passenger demand. To cope with the passenger demand for railway service to/from the Lok Ma Chau Spur Line Control Point, the MTRCL enhanced the ERL train service for two times in March and August this year respectively, by increasing the train frequencies to/from Lok Ma Chau Station during various periods on weekdays, weekends and/or public holidays. Regarding the distribution of passengers of the ERL, as the overall patronage of trains to/from Lo Wu Station is still higher than that of Lok Ma Chau Station, overall speaking, the frequency of trains travelling to/from Lo Wu Station is higher than that to/from Lok Ma Chau Station. The TD will continue to maintain close liaison with the MTRCL to review and adjust the ERL train service in a timely manner, having regard to the travel pattern and demand of passengers.
 
(3) To facilitate the travel of the public and visitors on the National Day, the days before and after that as well as during the Chung Yeung Festival long weekend, the MTRCL enhanced the train service of eight railway lines, including the ERL, between September 28 and October 13, 2024 with a total of about 950 train trips added. In particular, the ERL ran more frequent train trips to/from Lo Wu Station or Lok Ma Chau Station in the mornings and evenings. From the National Day Golden Week to Chung Yeung Festival, the weekday patronage was about 70 100 and loading was about 83 per cent for the critical link of the ERL (Tai Wai to Kowloon Tong) from 8am to 10am; for the critical link (Kowloon Tong to Tai Wai) from 5pm to 7pm, the patronage was about 65 600 and the loading was about 83 per cent. As for weekends or public holidays, during which passengers travel at relatively scattered times unlike on weekdays, the loading was about 70 per cent during the peak hours for critical links, and under 70 per cent for the majority of the rest of the day. According to the MTRCL's observations, despite having a higher passenger flow on the National Day (October 1) and Chung Yeung Festival (October 11), the overall operation of the ERL was largely smooth and orderly. On the whole, train service of the ERL was able to meet passenger needs between the National Day Golden Week and Chung Yeung Festival.
 
(4) The Lok Ma Chau Spur Line Control Point is a rail-based BCP. Passengers travel to and from the BCP mainly by the ERL of the MTR. During festive periods, the MTRCL will maintain close liaison with relevant departments at the BCP to flexibly adjust the ERL train service in a timely manner according to the situation at the BCP. Additional staff will also be deployed to the busier stations to facilitate passenger flow and assist passengers.
 
     To facilitate travel for those in the New Territories West, the Lok Ma Chau Spur Line Control Point is also connected by KMB Route No. B1 to/from Yuen Long and Tin Shui Wai, providing services at a minimum frequency of eight-minute intervals during hours with high demand. In practice, during periods of particularly strong passenger demand such as weekends and public holidays, the KMB will flexibly enhance the service to operate more departures than scheduled. Apart from KMB Route No. B1, Green Minibus Route No. 75 also provides supplementary transport service between Lok Ma Chau Spur Line Control Point and Yuen Long.
 
     As for cross-boundary coach services, the current short-haul cross-boundary coach services through the Lok Ma Chau/Huanggang Control Point provide services for travellers to travel to/from various destinations, including Mong Kok, Yau Ma Tei, Tsim Sha Tsui, Kwun Tong, Wan Chai (via Central), Tsuen Wan, the Disneyland. The TD has worked with relevant operators to draw up plans ahead of each peak cross-boundary travel period, including issuing ad-hoc quotas and arranging stand-by coaches when necessary, with a view to facilitating the operators' arrangement for additional trips having regard to the actual situation.
 
(5) The Government is pressing ahead with cross-boundary railway projects to further promote close collaboration between Hong Kong and the Mainland, thereby assisting Hong Kong in seizing the opportunities and advantages arising from the development of the Greater Bay Area and the Northern Metropolis. The Hong Kong-Shenzhen Western Rail Link (Hung Shui Kiu – Qianhai) (HSWRL) and the Northern Link (NOL) Spur Line projects provide direct cross-boundary railway connection to the Shenzhen Bay Port and the new Huanggang Port from the New Territories Northwest and New Territories Central respectively, thus providing additional commuting options for residents and visitors travelling to/from the Greater Bay Area. Meanwhile, residents and visitors can also travel to Man Kam To Port and Heung Yuen Wai Port by the proposed NOL Eastern Extension and Northeast New Territories Line. After the commissioning of the relevant railway lines, the number of land-based BCPs covered by railways in the Northern Metropolis will substantially increase from two at present (i.e. Lo Wu and Lok Ma Chau) to six, which is expected to effectively divert residents and tourists to different BCPs, and promote cross-boundary integration between Hong Kong and Shenzhen.
 
     The HKSAR Government will continue to take forward the two cross-boundary railway projects, namely the HSWRL and the NOL Spur Line, through the Task Force for Hong Kong-Shenzhen Co-operation on Cross-Boundary Railway Infrastructure. We are working to reach consensus with the Shenzhen authorities on the implementation arrangement of the NOL Spur Line within this year for the MTRCL to commence the detailed planning and design of the project early next year. Meanwhile, we are preparing for the next stage of implementation of the proposed NOL Eastern Extension and Northeast New Territories Line, including formulating the implementation approaches, financial arrangements, etc. The layout and commissioning target of the projects were holistically outlined in the Hong Kong Major Transport Infrastructure Development Blueprint promulgated at the end of last year. We will consider different implementation arrangements and explore various innovative engineering technologies based on the construction and operation details of each new railway project with a view to enhancing the cost-effectiveness and expediting the delivery of new railway projects.