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     Following is the speech by the Financial Secretary, Mr Paul Chan, at the Accounting and Financial Reporting Council Regional Regulatory Forum 2024 today (December 2):
 
Vice Minister Guo Tingting (Vice Minister of the Ministry of Finance), Kelvin (Chairman of the Accounting and Financial Reporting Council, Dr Kelvin Wong), Sir David (Special Advisor of the International Valuation Standards Council and first Chairman of the International Accounting Standards Board, Sir David Tweedie), distinguished guests, ladies and gentlemen.
 
     Good morning. Im delighted to be here, among friends and colleagues, for the opening of the Regional Regulatory Forum of the Accounting and Financial Reporting Council, the AFRC – the first regional event it has hosted since it became an independent regulatory body of the accounting profession.
 
     I’d also love to extend a warm welcome to many of you from abroad for this inaugural gathering of accountants, regulators, business and industry leaders, investors, academics and other stakeholders.
 
     The theme of today’s forum, “Transforming Regulation, Governance and Development for a Resilient and Sustainable Future”, smartly distils the Hong Kong SAR (Special Administrative Region) Government’s proposition for the regulation and development of our financial markets in general and the accounting profession in particular.
 
Hong Kong’s approach to financial regulation
 
     As a small, open and externally oriented economy, Hong Kong is a “super connector” and “super value-adder”, bridging China and the rest of the world.
 
     This role is delicate, given the volatility of today’s global financial markets amid the rising economic and geopolitical challenges. 
 
     But as an international financial centre that has weathered trials and tribulations, Hong Kong is well equipped to fulfil this role.
 
     We have unique advantages. The first, of course, is the institutional strengths under the “one country, two systems” principle. On the one hand, we enjoy convenient, and at times priority, access to the Mainland market. On the other, we maintain the character that defines us as an international city. That includes the common law system, respect for the rule of law, and a judiciary that exercises powers independently; the free flow of capital, goods, information and talent; a simple and low tax regime; business and professional standards aligning with the best international standards; and extensive international connections. The list goes on.
 
     The “one country, two systems” arrangement is not for expediency.  It is designed to advance the interests of Hong Kong and our country in the long term.  It is here to stay.  President Xi Jinping has reiterated this on multiple occasions.
 
     These institutional strengths underpin our second advantage: connectivity. Hong Kong is the prime springboard for businesses and capital from around the world seeking convenient access to the thriving opportunities in China, the world’s second-largest economy. The Connect Schemes are doing just that. It provides international investors with access, via Hong Kong, to the capital markets of the Mainland, across areas from stocks, bonds, to ETFs (exchange-traded funds) and REITS (real estate investment trusts) and derivatives, and vice versa for Mainland investors.
 
     Our ability to connect is supported by our people, too. We have top-notch financial and other professionals that possess expertise, experience and global networks. 
 
     Above all, Hong Kong has become what it is because international investors and businesses have confidence in us. Despite what many may have read or heard about Hong Kong every now and then, facts and figures show that Hong Kong continues to shine. 
 
     Recently, we reclaimed the third position in the global financial centres ranking. We rank fifth in global competitiveness according to the IMD of Switzerland. Local bank deposits have grown by more than 11 per cent, or about US$220 billion, from the beginning of 2023 to September this year. The number of foreign companies in Hong Kong is also rising.
 
     This confidence is vested in the stability and integrity of our financial system. This leads to our third advantage: our commitment to robust, balanced financial regulation. 
 
     Our philosophy is this: regulation and development complement each another. Regulation is not an end in itself, but the means to promote sustainable development and create long-term benefits for all. This philosophy is at the core of our regulatory regimes across different areas of our financial services sector, from banking to securities, and of course, the accounting sector as well.
 
Accounting regulation and development in Hong Kong
 
     The global regulatory landscape for the accounting and audit profession has been evolving.  Many jurisdictions have established independent oversight systems for their accounting sectors, and are continually reviewing and enhancing their regimes. While the progress of reform may vary, a common trend is to move away from self-regulation towards one by independent regulatory bodies. 
 
     Hong Kong is of no exception. In October 2022, we took a major step by re-organising the Financial Reporting Council to become the AFRC, to rationalise our accounting sector’s regulation and development.
 
     Like many of our financial regulators, the AFRC has a dual mandate: ensuring high-quality financial reporting, while facilitating and supporting the development of the accounting sector.
 
     Over the past two years, the Government, the AFRC and the sector’s statutory professional body, the Hong Kong Institute of Certified Public Accountants, HKICPA, have been working together to do just that, through standards setting, proper inspections, investigation and disciplinary actions, among other initiatives.
 
     Cross-border collaboration is essential to this process, particularly given the strong presence of Mainland and international companies in Hong Kong.
 
     Thanks to the unwavering support of the Ministry of Finance of our country, the AFRC is able to access and inspect audit working papers in both Hong Kong and the Mainland. The Council continues to participate in joint inspections with the Central Authorities and the PCAOB (Public Company Accounting Oversight Board) of the United States with regard to entities listed on the US Stock Exchanges.
 
     Separately, the AFRC is also dedicated to nurturing talent and providing professional development support.  I’m pleased to note that last year, over 11 000 professionals and stakeholders were engaged in the AFRC’s policy research and other engagements.
 
     Hong Kong embraces talent with open arms through various talent admission schemes, accountants included, of course.
 
     And last year, the HKICPA renewed its membership recognition arrangements with five chartered accountancy bodies of the Global Accounting Alliance, making it easier for overseas professionals to build their careers in Hong Kong.
 
Looking ahead
 
     Ladies and gentlemen, looking ahead, two major global trends are reshaping the accounting profession.
 
     First, climate change and sustainability. As the world pursues carbon neutrality and net-zero transition in combating climate change, expectations are growing for companies worldwide to report such information by adhering to a set of internationally recognised sustainability reporting standards. That naturally also demands a robust sustainability assurance process that can verify the accuracy and integrity of reported information. In other words, the role of auditors is evolving to cover not just traditional financial metrics but also ESG (environmental, social and government) elements, which are crucial for informed investment decisions.
 
     In this regard, Hong Kong is on track to be among the first jurisdictions globally to align our local sustainability disclosure requirements with international standards set by the International Sustainability Standards Board. 
 
     For instance, new climate-related disclosure requirements, based on international standards, have been integrated into the Listing Rules of the Hong Kong Stock Exchange. They will take effect beginning in 2025 in a phased manner. Separately, the HKICPA in October completed a consultation on the financial reporting standards on sustainability disclosures.
 
     Hong Kong will develop a pragmatic regulatory framework on sustainability assurance, taking into account the latest international developments.
 
     Second, technological change. Artificial intelligence, for instance, impacts everything, including skilled jobs like those in accounting. While automation may save costs and raise efficiency and reliability, it also raises issues such as cybersecurity, data privacy, and skill gaps among accounting professionals. These challenges call for attention to whether our regulatory framework can keep pace with technological advancement, and whether we can provide accounting professionals with adequate training and support so that they can continue to fulfil their duties competently. 
 
     There is much work ahead, requiring collaboration both locally and globally. This makes today’s Forum all the more meaningful. It is a valuable opportunity to learn and share insight and wisdom on the future of the accounting profession and its regulation.
 
     For that, my thanks to the AFRC, and to each and every one of you here. I wish you all a rewarding Forum and the best of business, and health, in the coming years. And please make time to discover Hong Kong, Asia’s world city. Thank you very much.

    

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 (December 2) that … read more

     â€‹Invest Hong Kong announced today (December 2) that the renowned Japanese unagi (eel) specialty restaurant, Unagi Yondaime Kikukawa, has officially opened its first store in Causeway Bay. The restaurant aims to leverage Hong Kong as part of its Asia expansion plan to promote Japanese culinary culture. 
      
     Associate Director-General of Investment Promotion Mr Arnold Lau said, “We are delighted that Unagi Yondaime Kikukawa has chosen Hong Kong as its East Asia regional headquarters. This highlights Hong Kong’s appeal as a global gourmet hub and its strategic advantage as a key platform connecting international markets. I wish them every success in Hong Kong and Asia.”
      
     The Chief Executive Officer of Passion Geeks, which operates Unagi Yondaime Kikukawa in Japan, Mr Shoogo Abe, said, “We aspire to promote our rich Japanese food culture to the world, and Hong Kong offers the perfect platform to realise this goal.  Therefore, we have chosen Hong Kong as our East Asia regional headquarters to fulfil our vision.”
      
     He continued, “We have high expectations for our Hong Kong operations. In the near future, we plan to open two additional stores in the city and develop a new brand focused on casual unagi cuisine.”
      
     Established in 1932, Unagi Yondaime Kikukawa boasts a rich history in eel wholesaling and cuisine. The chain gained fame for its signature dish of freshly grilled eel, perfectly paired with rice and a signature sauce. The brand has opened locations in Taiwan, Thailand, South Korea, and other regions, with its Hong Kong office serving as the regional headquarters for East Asia.
      
     For more information about Unagi Yondaime Kikukawa, please visit www.yondaimekikukawa.com/.
      
     To get a copy of the photo, please visit www.flickr.com/photos/investhk/albums/72177720322236377/.

    

     Hongkong Post announced today (December 2) that a set of special stamps and associated philatelic products on the theme of “Hong Kong Palace Museum II” will be released for sale on December 17 (Tuesday).
      
     Opened in 2022, the Hong Kong Palace Museum presents the finest treasures from the Palace Museum and other important cultural institutions around the world with new curatorial approaches. Following the release of the “Hong Kong Palace Museum” special stamps in 2022, Hongkong Post will issue a set of six stamps, two stamp sheetlets and associated philatelic products on the theme of “Hong Kong Palace Museum II”. Featuring more of the precious arts and cultural collections from the Palace Museum, including “Cloisonné enamel elephant with vase”, “Cloisonné enamel hotpot with flowers”, “Gold stupa with inlays”, “Painted enamel ewer with flowers and figures in cartouches”, “Gold double-gourd-shaped hanging with auspicious characters”, “Jade incense burner in the form of luduan”, “Clock with gilding and painted enamels” and “Gold ‘Son of Heaven’ seal with double-headed dragon”, these stamps demonstrate the profound achievements of Chinese civilisation, and promote the study and appreciation of Chinese arts and culture by members of the public.
      
     Official first day covers for “Hong Kong Palace Museum II” will be on sale at all post offices and Hongkong Post’s online shopping mall ShopThruPost (shopthrupost.hongkongpost.hk) from tomorrow (December 3). This set of special stamps and associated philatelic products will be on sale at all post offices and ShopThruPost from December 17, while postage prepaid picture cards (air mail), collector pack and serviced first day covers affixed with the special stamps will be available at philatelic offices only.
      
     A hand-back date-stamping service will be provided on December 17 at all post offices for official first day covers/souvenir covers/privately made covers bearing the first day of issue indication and a local address.
      
     Information about this set of special stamps and associated philatelic products is available on the Hongkong Post Stamps website (stamps.hongkongpost.hk).

              

     Following are the opening remarks by the Secretary for Justice, Mr Paul Lam, SC, at The Hague Academy of International Law’s Advanced Course in Hong Kong – 2nd Edition today (December 2):
 
Professor Jean-Marc (Secretary-General of The Hague Academy of International Law, Professor Jean-Marc Thouvenin), Teresa (Founder Member and Co-Chairman of the Asia Academy of International Law, Ms Teresa Cheng), distinguished guests, ladies and gentlemen,
 
     Good morning. Firstly, I would like to welcome all of you to the second edition of The Hague Academy of International Law’s Advanced Course in Hong Kong, co-organised by The Hague Academy of International Law and the Asian Academy of International Law (AAIL), and supported by the Hong Kong International Legal Talents Training Academy of the Department of Justice of Hong Kong (DoJ). A heartfelt welcome to all of you, especially to those who have travelled all the way to join us here in Hong Kong. It is truly a privilege for us to host The Hague Academy’s advanced course in Hong Kong for the second consecutive year.
 
     The 1st Edition of this course on Current Trends on International Commercial and Investment Dispute Settlement held last year was a tremendous success. The positive feedback we received highlighted not only the high quality of the content and speakers but also its overall effectiveness in achieving the learning outcomes. The success of the inaugural edition has set a very strong precedent, and we are eager to build on that foundation. I must express my sincere appreciation to Secretary-General Professor Jean-Marc Thouvenin and the Curatorium of The Hague Academy, and for their continuous collaboration with us to bring this significant project to fruition.
 
     This year, the second edition focuses on the recognition and enforcement of foreign judgments in civil and commercial matters, which is a critical area under private international law. Nowadays, cross-border transactions have increased at an unprecedented pace, driven by globalisation, technological advancements – especially the growth of e-commerce – and evolving regulatory frameworks. As a result, the number of cross-border disputes has also risen and the question for recognition and enforcement of foreign judgment has become increasingly critical. It is therefore essential for policy makers, as well as the legal professionals, to grasp a deep understanding of the relevant private international law principles, as well as the specific mechanisms available for recognising and enforcing foreign judgments. 
 
     Against such a background, this course would focus on the recognition and enforcement of foreign judgments. We are very honoured to have a distinguished lineup of speakers who are top experts in this field. I am sure their insights, experiences, and practical knowledge could be readily taken away and applied in your own legal practices. I encourage you all to engage actively in discussions, ask a lot of questions, and share the perspective from the jurisdiction where you are coming from. This course is not only about learning from our esteemed speakers, but also about fostering a collaborative environment where we can all benefit from each other’s experiences. I hope that by the end of the course, you will all depart with a greater appreciation and understanding of the various topics in this area.
 
Hong Kong’s participation in the 2019 Judgments Convention
 
     The HCCH (Hague Conference on Private International Law) 2019 Judgments Convention, which entered into force on September 1, 2023, represents a significant advancement in private international law. The HKSAR (Hong Kong Special Administrative Region) is most privileged to have contributed to its deliberations. Since 1998, representatives of the HKSAR, as part of the Chinese delegation, had actively participated in the Hague Conference’s Judgment Project which gave birth not only to the Judgments Convention, but also the Choice of Court Agreements Convention in 2005. We participated actively in the discussions and the drafting of these two Conventions, sharing our views and comments from a common law perspective. And with the strong support of the Central People’s Government, the Informal Working Group II on Common Courts, and Group IV on declarations with respect to judgments pertaining to governments were held in Hong Kong in February 2019, contributing to the successful conclusion of the Judgments Convention in July 2019.
 
     Besides, two months after its conclusion, Hong Kong hosted the first global conference on the Judgements Convention in September 2019. More than 200 participants from 18 jurisdictions were addressed by distinguished experts, including practising and academic lawyers, judges and officials from Asia, Europe and Latin America who had participated in the negotiation of the ground-breaking new convention. In September 2023, the HCCH also chose to hold its Asia Pacific Week in Hong Kong, celebrating its 130th Anniversary, and also, more importantly, marking the entry into force of the Judgments Convention on September 1, 2023.
 
     The Judgments Convention facilitates the effective international circulation of judgments in civil and commercial matters by providing legal certainty and predictability. The Judgments Convention therefore builds an enabling environment for multilateral trade, investment, and movement of people.
 
Hong Kong’s distinct advantages under “one country, two systems” – REJ Arrangement with Mainland China
 
     Such achievement of the Judgements Convention echoes the long standing policy and commitment of Hong Kong to maintaining a robust legal environment that supports cross-border trade and commerce under our unique status as enshrined by the “one country, two systems” principle.
 
     Under the “one country, two systems” principle, Hong Kong is the only common law jurisdiction in China. Article 2 of the Basic Law provides that the HKSAR enjoys independent judicial power, including the power of final adjudication. At the same time, judgments made by the Mainland courts would not automatically be enforceable in Hong Kong and vice versa. Therefore, there is a need to build a bridge between the two different legal systems of the Mainland and Hong Kong in relation to mutual recognition and enforcement of judgments.
 
     Therefore, the Judgments Convention, which seeks to bridge common law and civil law systems around the globe, provided invaluable reference to the arrangement between Hong Kong and the Mainland on reciprocal enforcement of judgments in civil and commercial matters. Modelled on the advanced draft of the Judgments Convention, and sharing substantially similar objectives, the Arrangement on Reciprocal Recognition and Enforcement of Judgments in Civil and Commercial Matters by the Courts of the Mainland and of the Hong Kong Special Administrative Region (REJ Arrangement) took effect in January 2019 in both Hong Kong and the Mainland. In fact, our REJ Arrangement even goes beyond the Judgments Convention by not only covering a wide range of judgments on civil and commercial disputes, but also expressly includes judgments in respect of certain types of disputes over intellectual property (IP) rights, for instance, judgments on contractual disputes involving IP rights, and tortious claims for infringement of certain IP rights. 

     The approach in relation to the coverage of judgments on IP-related disputes adopted in the REJ Arrangement reflects the commonly recognised territoriality principle applicable to IP rights on the one hand, and the practical needs and circumstances of Hong Kong and the Mainland on the other. This major breakthrough makes Hong Kong the first jurisdiction to have an arrangement with the Mainland on reciprocal recognition and enforcement of judgments with such a wide coverage, reflecting Hong Kong’s unique advantage of “one country, two systems”. This distinct position makes Hong Kong an increasingly attractive destination for intellectual property trading, as well as a centre for international legal and dispute resolution services, as highlighted in the National 14th Five-Year Plan.
 
Hong Kong International Legal Talents Training Academy
 
     Apart from our policy initiative in strengthening Hong Kong as a centre for international legal and dispute resolution services, it is also our policy initiative to develop Hong Kong as a capacity-building hub in the region and beyond. The Hong Kong International Legal Talents Training Academy, as mentioned in our Chief Executive’s Policy Address in 2023 and 2024, has officially been launched last month during the Hong Kong Legal Week. I am particularly pleased today as this advanced course is in fact the very first training programme supported by the Academy.  

     The Academy seeks to capitalise on Hong Kong’s unique strengths and advantages made possible by the “one country, two systems” principle as the only bilingual common law system using both English and Chinese, with international characteristics, which always enjoy a high reputation around the world. It will serve as a capacity-building, as well as knowledge and experience-sharing, platform for legal professionals in Hong Kong, the Mainland and other jurisdictions, in particular those along the Belt and Road.
 
     In the future, the Academy will regularly organise different practical legal courses, seminars and international exchange activities, etc, in order to promote legal talent exchanges along the Belt and Road, and provide foreign-related legal talent training for our country. In addition to regular courses, the Academy will also offer tailor-made programmes designed to meet the specific needs of participants. I very much welcome all of you to come to Hong Kong to participate in other events and activities organised by the Academy. We also welcome collaborative opportunities with different jurisdictions and organisations. 
 
Conclusion
 
     Ladies and gentlemen, I hope this advanced course will provide a valuable platform for both our speakers and participants to share and exchange their expertise and insights. I am sure you will take full advantage of the opportunities available during this course. Hong Kong, as a vibrant legal hub in the region equipped with a robust common law system, could serve as a bridge between different legal systems, making it an ideal setting for this important dialogue. I also urge you to explore what Hong Kong has to offer, not just in terms of its legal infrastructure, but also its rich cultural diversity and dynamic business environment.
 
     In closing, I would like to reiterate my gratitude to The Hague Academy, the AAIL and each of you for your participation. I wish you all a very fruitful and enlightening week here in Hong Kong. Thank you very much.