LCQ17: The Exchange Fund’s assets managed by Hong Kong Monetary Authority

     Following is a question by the Hon Adrian Ho and a written reply by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, in the Legislative Council today (July 10):
 
Question:
 
     It is learnt that, apart from directly managing most of the Exchange Fund (EF)'s assets, the Hong Kong Monetary Authority (HKMA) has also placed part of EF's assets under the management of external fund managers. In this connection, will the Government inform this Council:
 
(1) of the respective total values of EF's assets managed by HKMA directly and those by external fund managers appointed by HKMA as well as their ratio in each of the past five years, and the latest balances of the various current portfolios;
 
(2) of the following information on the investment managers appointed by HKMA: the respective numbers of local managers and those from other countries or regions as well as their ratio, their appointment periods and yearly management fees charged, with a tabulated breakdown by name of manager; among the managers from other countries or regions, of the number of those which have established offices in Hong Kong; and
 
(3) whether HKMA has set annual minimum return rates for EF's assets managed by external fund managers so as to ensure that the managers will regard securing a higher return as their prime objective in managing the relevant assets and drawing up investment strategies; if so, of the criteria for determining those minimum return rates; if not, the reasons for that?
 
Reply:
 
President,
 
     In consultation with the Hong Kong Monetary Authority (HKMA), the consolidated reply to various parts of the question is as follows:
 
     The HKMA, in addition to managing the Exchange Fund's investments directly, has external investment managers to manage the Exchange Fund's assets including the listed equity portfolios and other specialised asset classes. The purpose of engaging external investment managers is to leverage on the best investment expertise available in the market to serve the Exchange Fund, while facilitating the Exchange Fund to draw on more diversified and complementary investment styles for sustainable returns and benefit from the market insights and investment expertise of external investment managers.
 
     In the past five years, the percentages of the Exchange Fund's assets managed by external investment managers are as follows:
 

Year Percentage of Exchange Fund's Assets Managed by External Managers
2023 29%
2022 30%
2021 29%
2020 28%
2019 29%

 
     The Exchange Fund is primarily used for regulating the exchange value of the Hong Kong dollar, and maintaining the stability of Hong Kong's monetary and financial systems with a view to maintaining Hong Kong as an international financial centre. To ensure a high level of liquidity of the Exchange Fund, and to avoid putting additional pressure in the event that the Hong Kong market is under shocks and assets need to be sold in pursuit of the above policy objectives, the Exchange Fund has been mainly holding overseas assets.
 
     The HKMA has in place a robust procedure to select and appoint investment managers. The selection process is holistic and based on a set of criteria such as the professional knowledge of the institutions concerned and the teams, their experience and investment track record, risk management and compliance record, extent of presence in Hong Kong, environmental, social and governance practices and fees, etc. Among other things, the HKMA attaches great importance to the operating situation of the investment managers in Hong Kong. For instance, their business scale and whether there have been business expansion in Hong Kong in recent years. The HKMA has gradually increased the investment exposure to investment managers whose major operations are in Hong Kong in recent years to encourage the expansion of their business in Hong Kong.
 
     At present, the HKMA employs for its open market investments about 80 investment managers, who manage funds of about HK$690 billion in total, of which about 90 per cent of the assets are managed by investment managers with offices in Hong Kong. In line with market practice, external investment managers are not appointed for a specified period of time, but the HKMA regularly reviews their investment performance and makes appropriate adjustments where necessary. All Hong Kong stock investments are managed by a local team of about 20 external investment managers with extensive investment experience. Over the past few years, the Exchange Fund has also invested in 32 local hedge funds through various channels.
 
     For private market investments, the Long-Term Growth Portfolio under the Exchange Fund currently manages investment projects of about HK$517 billion, including global private equity and overseas real estates, with a general investment period of ten years. The Long-Term Growth Portfolio mainly works with internationally renowned investment managers by appointing them as general partners under the portfolio, where over 60 per cent of them have established offices in Hong Kong. These general partners focus on investing in global or regional assets. On the other hand, the HKMA has also been supporting a number of investment managers who focus on local investments through other investment channels, and attracting other experienced investment managers to set up offices in Hong Kong.
 
     The overall management fees of the external investment managers in 2023 were approximately 0.43 per cent of their amounts under management. The fees charged by investment managers in the market are varied in general, subject to the characteristics of different assets.
 
     Nevertheless, the HKMA has well-established mechanisms in place to regularly monitor and assess the performance of external investment managers, making reference to factors such as the general market performance and that of investment managers with similar investment targets. If the performance of an external investment manager is not satisfactory, the HKMA will take appropriate actions, including request for improvement, issuing warning, allocation reduction, termination of appointment, etc.




ICAC Complaints Committee annual report tabled in LegCo

     The 2023 Annual Report of the Independent Commission Against Corruption (ICAC) Complaints Committee was tabled in the Legislative Council today (July 10). The report gives a summary of the Committee's work in 2023.

     The Committee is tasked with the responsibility of monitoring the handling of non-criminal complaints against the ICAC and its officers. The Committee takes an independent view on the ICAC's investigation findings on the complaints received, reviews the ICAC’s procedures which may lead to complaints, and makes recommendations for improvement.

     In 2023, the Committee received 19 complaints involving 47 allegations against the ICAC or its officers. Among the allegations registered in 2023, 75 per cent were related to neglect of duties by ICAC officers, 15 per cent to inadequacies of ICAC procedures, 6 per cent to abuse of power, and 4 per cent to misconduct.   

     The ICAC submits investigation reports to the Committee after conducting full investigations on complaint cases, while assessment reports are submitted for complaints which do not warrant a full investigation. During 2023, the Committee considered the investigation reports of 16 complaint cases including 15 cases received in 2023 and one case received in 2021 for which the related investigation was completed in 2023. These complaints contained a total of 37 allegations in which one allegation involving one ICAC officer was found to be substantiated. In this year, the Committee also considered and endorsed eight assessment reports. Preliminary assessment showed that the eight cases were irrational complaints and repeated complaints previously disposed of through the Committee, and the Committee agreed that no further investigative actions should be taken.

     The ICAC has carefully examined the investigation reports and strengthened training programmes for frontline officers to enhance their professionalism and vigilance in discharging their duties. In particular, officers were advised to act professionally when handling enquiries from members of the public and treat them with courtesy and respect.

     The annual report of the Committee is available on the Administration Wing's website (www.admwing.gov.hk/eng/links/icac.htm) and also at the ICAC's regional offices.




LCQ9: Integrated development of urban greening and urban farming

     Following is a question by the Hon Steven Ho and a written reply by the Secretary for Environment and Ecology, Mr Tse Chin-wan, in the Legislative Council today (July 10):
 
Question:
 
     The Blueprint for the Sustainable Development of Agriculture and Fisheries (Blueprint) has proposed to introduce urban farming elements into the planning stage of New Development Areas (NDAs). It is learnt that many cities both within and outside the country have integrated urban greening with urban farming. For example, the Sports Park in Jinnan District, Tianjin City uses idle green space to cultivate more than 300 plant species, including herbs, rice, fruits and vegetables. Regarding the integrated development of urban greening and urban farming, will the Government inform this Council:
 
(1) of the current respective areas of urban green space in various districts; the average total expenditure on the management and maintenance of such space in each of the past three years and a breakdown of such expenditure;
 
(2) of the respective areas of planned green space in projects currently under planning or construction in NDAs and various districts (e.g. ‍the Global Innovation Centre of the University of Hong Kong and the Government Chinese Medicines Testing Institute), as well as the total expenditure earmarked for greening and a breakdown of such expenditure; and
 
(3) as the Blueprint has proposed the establishment of a Modernised Techno-Agricultural Park led by an agricultural organisation within part of Agri-Park Phase 2, and it has been reported that the authorities also plan to entrust the fishermen with the management of the fish ponds of the proposed Sam Po Shue Wetland Conservation Park to maintain the conservation and production functions concurrently, and there are views that this is sufficient proof of the feasibility of the Government's collaboration with the industry, whether the authorities will draw reference from the mode of green space management in other cities to enhance the functions of urban green space in NDAs; whether the authorities will explore the possibility of allocating some green space to farmers or agricultural bodies for management to promote agricultural production, reduce the maintenance costs of greening, and enhance the economic benefits of green space; if it will, of the details; if not, the reasons for that?
 
Reply:
 
President,
 
     The Government has all along attached great importance to the development of local agriculture and fisheries industries, and published in end-2023 the Blueprint for the Sustainable Development of Agriculture and Fisheries, formulated hand in hand with the industries. The Blueprint sets out specific measures on various areas of development, including promoting diversification of industries and strengthening the functions of trade organisations. To take forward the relevant work, the Government is actively assisting the industry in developing urban farming so that local agriculture can move towards sustainable development in the midst of urban development. Meanwhile, the Government will also foster the development of trade organisations, strengthen their functions, and provide opportunities for them to participate in project management and joint promotion of policies.
 
     Having co-ordinated information provided by the Development Bureau, we provide our reply to the question raised by the Hon Steven Ho on the integrated development of urban greening and urban farming as follows:
 
(1) "Green space" may refer to areas zoned "Green Belt" in statutory zoning plans (which covers a land area of around 17 000 hectares), and land of other zonings that are vegetated (including different categories of land and facilities, such as parks, gardens, as well as landscaped areas along roads or within public and private developments). Information on the greening area on different categories of land is not readily available. For example, there are over 1 600 parks and gardens under the management of Leisure and Cultural Services Department (LCSD), while the area of land with which the LCSD provides horticultural maintenance service is around 1 300 hectares. Since the "green space" mentioned in the question includes both government land and private land, and that managing and maintaining government land and facilities are part and parcel of the regular duties of various departments, which are discharged with their overall resources, the relevant management and maintenance expenditure is not readily available.
 
(2) Not only will urban greening beautify the environment, but also help moderate temperature and improve air quality, rendering Hong Kong a more liveable city.

     In terms of urban planning, greening-related planning guidelines have been stipulated under the Hong Kong Planning Standards and Guidelines, including the overall target of attaining 30 per cent green coverage for public housing developments. Besides, in order to develop a green and liveable Northern Metropolis, when planning New Development Areas (NDAs), the Government has adopted a higher standard of 3.5 square metres per person (as compared to 2.5 square metres per person in the past) when reserving land for open space.
 
     As for public works projects, apart from the implementation of the Greening Master Plans, these projects are also required to incorporate greening elements in planning and development stages. For example, new government building projects should include greening measures on 20 per cent to 30 per cent of the site area (including roof greening and vertical greening), new at-grade road projects should allow for space for quality greening and landscape works and soft landscape provisions should be integrated in the highway structure projects to enhance street landscape.
 
     To encourage private development projects to include greening elements, for projects with site area of 1 000 square metres or more, if there is at least 20 per cent to 30 per cent site coverage of greenery for the project and that other requirements are met, gross floor area concessions for certain facilities and equipment can be granted.
 
(3) The overall concept of urban farming is to integrate commercial agriculture into the city. Not only can this produce high quality and fresh agricultural produce with reduced carbon footprints to the public, but also provide green landscapes and modernised farming experience to the communities while expanding the capacity and increasing the output, thereby improving the quality and liveability of urban life.
 
     To promote the development of urban farming, the Government has sought consent from the Town Planning Board for amending the Definition of Terms used in statutory plan for "Open Space" to include "urban farm", so as to allow the setting up of urban farms to be operated on a commercial basis in "Open Space" areas (such as parks and outdoor public open space in urban areas and NDAs), thereby making good use of precious land resources and contributing to the integrated development of commercial agriculture and urban areas.
 
     Moreover, the Agriculture, Fisheries and Conservation Department (AFCD) is working with relevant organisations to explore setting urban farming as one of the indicators of green buildings, such as incorporating into the assessment scheme of the Building Environment Assessment Method Plus, so as to encourage business enterprises to integrate elements of urban farming when planning property development projects, blending commercial farming into urban life.
 
     Regarding the collaboration with the trade, the AFCD has launched a pilot project on modernised urban farming in Ma On Shan Sai Sha Road Garden, where part of the site will be made available for the trade to set up and operate a modernised crop farm, with technical support being provided. The project is expected to commence operation in the fourth quarter of 2024. To promote the concept of "harvest-to-sale", the Government will also set up modernised hydroponic farms-cum-stalls on suitable rooftops of government buildings and public markets, including the Tin Shui Wai Public Market under construction and the Kwu Tung North Public Market, for operation by the trade upon application.
 
     We will continue to launch pilot projects on modernised urban farming at other suitable locations, and will make good use of urban spaces in Northern Metropolis and other NDAs, with a view to developing urban farming through a multi-pronged approach. With the experience gained in implementing the pilot projects, we will explore the possibility of allocating green space to agricultural organisations for management in due course.




LCQ12: Motorcycle parking spaces in Tsuen Wan and Kwai Tsing districts

     Following is a question by the Hon Joephy Chan and a written reply by the Secretary for Transport and Logistics, Mr Lam Sai-hung, in the Legislative Council today (July 10):

Question: 

     Some residents in Tsuen Wan and Kwai Tsing districts have relayed that there are quite a number of hillside housing estates in the two districts, and travelling by motorcycle is more convenient for them. However, motorcycle parking spaces in the two districts have long been in shortage, and the emergence of the food delivery and courier industries in recent years has aggravated the situation. Besides, in reply to a question raised by a Member of this Council on February 28 this year, the Government indicated that there were a total of 1 355 on-street motorcycle parking spaces in the two districts last year, with their utilisation rates reaching 100 per cent in all of the past three years. In this connection, will the Government inform this Council:

(1) of the number of summonses issued by the Police for illegal parking of motorcycles in each of the two districts in each of the past three years;

(2) of the current numbers and fees of motorcycle parking spaces in various car parks in the public housing estates under the Hong Kong Housing Authority in the two districts (including car parks managed by private organisations such as Link Real Estate Investment Trust);

(3) whether the Transport Department will show in the "HKeMobility" mobile application the remaining number of motorcycle parking spaces available in public and private car parks, so that drivers can choose suitable locations for parking;

(4) as it is learnt that there is a greater demand for motorcycle parking spaces in hillside housing estates in the two districts (e.g. Cheung Shan Estate, Shek Wai Kok Estate, Lei Muk Shue Estate, Tai Wo Hau Estate, Kwai Chung Estate, Kwai Shing West Estate, Kwai Shing East Estate, Cheung Ching Estate and Cheung Hong Estate), whether the authorities will provide additional motorcycle parking spaces in the aforesaid housing estates and increase the proportion of motorcycle parking spaces in future development projects; if so, of the details; if not, the reasons for that;

(5) whether the authorities will consider opening up car parks in government properties during night-time and/or non-office hours for motorcycle parking; if so, of the timetable and number of parking spaces to be made available; if not, the reasons for that; and

(6) as there are views that the prolonged occupation of quite a number of motorcycle parking spaces by "dead vehicles" (i.e. unclaimed vehicles) has forestalled their use by drivers with genuine need, of the measures put in place by the Police and other government departments to step up efforts to tackle the situation?

Reply: 

President,

     It is the Government's transport policy to centre on public transport with railway as the backbone. Hong Kong enjoys a well-developed public transport network, and the Government encourages the public to make good use of the public transport services as far as possible, so as to prevent too many private cars (PCs) and motorcycles, which have a smaller passenger carrying capacity, from aggravating the burden on road traffic. Nevertheless, the Government understands that some members of the public choose to commute by PCs or motorcycles for various reasons. Hence, the Government has been actively pursuing a host of short-term and medium-to-long-term measures to suitably increase the supply of parking spaces where circumstances permit, which include the following measures for motorcycles:

(a) Utilising the spaces underneath flyovers for designation as motorcycle parking spaces;

(b) Opening up more motorcycle parking spaces at government buildings for public use during non-office hours;

(c) Continuing to provide additional on-street parking spaces for motorcycles at suitable locations while ensuring that traffic flow, road safety and the loading/unloading activities of vehicles would not be compromised;

(d) Providing more motorcycle parking spaces for public use in suitable "Government, Institution or Community" facilities and public open space projects in accordance with the principle of "single site, multiple use"; and 

(e) Providing motorcycle parking spaces in development projects in accordance with the parking standards under the Hong Kong Planning Standards and Guidelines (HKPSG).

     As regards the Member's question, having consulted the Housing Bureau (HB), Transport Department (TD), Hong Kong Police Force (the Police) and Government Property Agency (GPA), a consolidated reply is provided as follows:

(1) The numbers of fixed penalty notices (FPNs) issued by the Police against illegal parking of motorcycles under the Fixed Penalty (Traffic Contraventions) Ordinance (Cap. 237) over the past three years are tabulated below: 
 

Year 2021 2022 2023
Numbers of FPNs issued against illegal parking of motorcycles 171 633 199 734 191 817

     The Police does not maintain the above traffic enforcement statistics on a district basis. 

(2) As at end March 2024, there are 22 car parks in the estates/courts/shopping centres/factory estates under the Housing Authority in Tsuen Wan and Kwai Tsing districts, providing a total of about 820 motorcycle parking spaces. Among them, the monthly charges of open and covered motorcycle parking spaces are $480 and $630 respectively, while a flat rate of $5 per hour is charged for hourly parking. A breakdown of number of motorcycle parking spaces by car parks is provided in Annex.

(3) Currently, drivers can use the "HKeMobility" mobile application to check the real-time parking vacancy information for various types of vehicles provided by participating operators of car parks (including public and private car parks). Users can select motorcycles in the types of vehicles under the layer icon to display the relevant information on the map.

(4) Roads at hillside housing estates in Tsuen Wan and Kwai Tsing districts are mostly dual two-lane carriageways and sidewalks are also generally narrower, making the provision of additional on-street parking spaces more difficult. Nevertheless, the TD has been proactively identifying suitable locations in these two districts for the provision of additional on-street motorcycle parking spaces. For example, in recent years, 15 additional parking spaces have been provided on Lei Shu Road near Fung Shue House of Lei Muk Shue Estate while five parking spaces have been provided at Kwai Shing Circuit near Luen Yuet House of Kwai Luen Estate. In the coming year, the TD will also provide additional on-street motorcycle parking spaces in various places, including on Kwai Hau Street near Shing Kwok House of Kwai Shing East Estate, Kwai Luen Road near Block 8 of Kwai Shing West Estate, Tai Wo Hau Road near On Kwai House of Kwai Fuk Court, and Ching Hong Road near Cheung Hong Estate (Phase 4) Car Park.

     The TD has been continuously reviewing the current standards for motorcycle parking spaces in residential developments under the HKPSG. The HKPSG sets out different parking standards for subsidised housing and private housing respectively based on the number of flats, and that appropriate amendments have been made having regard to factors such as the socio-economic situation and parking demand. Noting that the number of motorcycles has increased in recent years, which is probably due to the upsurge of demands for meal delivery and courier services in a short time during the epidemic, the TD will keep in view whether the situation will persist after the epidemic subsided, and timely review the standards of motorcycle parking provision under the HKPSG.

(5) Parking spaces in the car parks of government joint-user general office buildings (JUBs) are primarily for use by vehicles of the user departments of the JUBs or vehicles related to official purpose. Nevertheless, in order to optimise the use of land resources, the Government has opened up more parking spaces at government buildings for public use during non-office hours with a view to increasing the supply of motorcycle parking spaces. The Government will lease out the parking spaces (including those for motorcycles) to contractors for operating as fee-paying public car parks during non-office hours (normally at night-time of weekdays, and on Saturdays, Sundays and public holidays).

     There are currently nine car parks at the JUBs or other types of government properties providing a total of 147 motorcycle parking spaces for public use. Some of the parking spaces are open during non-working hours, while the remaining ones are open all day long. The parking spaces are located across Hong Kong Island, Kowloon and the New Territories.

(6) The Government has been highly concerned about the problem of abandoned vehicles. The Police handles vehicles that pose immediate danger to road users or cause traffic obstruction, whereas abandoned vehicles on unleased or unallocated government land other than public roads are dealt with by the Lands Department (LandsD). Abandoned vehicles that do not pose immediate danger to road users or cause obstruction on public roads and rear lanes are handled according to the modus operandi of inter-departmental joint operations. District Offices are responsible for co-ordinating and organising the inter-departmental joint clearance operations. The TD would, under the power delegated by the LandsD, affix notices on abandoned vehicles at the above-mentioned locations. If the vehicles concerned remain unattended upon the expiry of the notice period, the Highways Department would be responsible for towing away the abandoned vehicles to the storage pounds managed by the LandsD for further actions.

     From 2021 to the first quarter of 2024, District Offices have co-ordinated over 440 inter-departmental joint operations, removing about 3 100 abandoned vehicles, of which over 90 per cent are motorcycles. The departments concerned will proactively organise joint operations on a continuous basis, with a view to handling the situation of abandoned vehicles in a timely manner.

     In order to tackle abandoned vehicles at source, the Government is planning to make legislative amendment to tighten the requirements for vehicle registration and licensing, with a view to compelling registered owners to fulfil their obligation to properly dispose of the vehicles registered under their names that they no longer wish to keep. The proposed legislation will require registered owners of vehicles unlicensed for two years to renew the vehicle licence within a specified period, or cancel the vehicle registration with the TD after the vehicle has been scrapped/permanently despatched out of Hong Kong, or obtain an exemption from the TD by application in case of special needs; otherwise, the vehicle owners will commit an offence. The Government plans to submit the legislative amendment proposal within this year.




LCQ20: Introduction of China-made plug-in hybrid electric vehicles

     Following is a question by the Hon Lai Tung-kwok and a written reply by the Secretary for Transport and Logistics, Mr Lam Sai-hung, in the Legislative Council today (July 10):
 
Question:

     There are views that, given the excellent performance of China-made plug-‍in hybrid electric vehicles (EVs), with a recently launched model boasting extremely low fuel consumption and remarkably long travel range, coupled with the fact that the supply of EV charging facilities in Hong Kong remains insufficient in the short term, Hong Kong should more proactively introduce as early as possible different types of China-made new energy vehicles into the market in addition to pure battery EVs, so as to meet the demand that will still exist before the cessation of new registration of fuel-‍propelled and hybrid private cars by 2035. In this connection, will the Government inform this Council:

(1) of the following information in respect of the Transport Department's processing of applications for Type Approval of vehicles in each of the past three years: (i) the number of vehicle models applying for Type Approval, (ii) the number of Type-Approved vehicle models, and (iii) the average time taken for conducting Type Approval of vehicle models, with a breakdown by vehicle type (classified by fuel used, including but not limited to pure battery EVs and plug-in hybrid EVs) and place of origin of vehicle;

(2) of the staff establishment and strength of various ranks of the Type Approval Section under the Transport Department in each of the past three years; and

(3) whether it has considered providing tax incentives for first registration of motor vehicles to promote the introduction of high performance China-made plug-in hybrid EVs; if so, of the details; if not, the reasons for that?

Reply:
 
President,
 
     In consultation with the Environment and Ecology Bureau (EEB) and the Transport Department (TD), my consolidated reply to questions raised by Hon Lai is as follows:
 
(1) The TD has always been approving vehicles in accordance with the requirements of the Road Traffic Ordinance (Cap. 374) and its subsidiary legislation. The purpose of vehicle type approval is to assess the technical specification, design and construction of a sample vehicle of the same make and model, in order to facilitate the authorised dealer or distributor in importing and selling new mass-produced vehicles for first registration. Upon completion of documentary vetting and examination of a sample vehicle by the TD, the TD will issue a type approval certificate to confirm that such vehicle model is in compliance with the statutory requirements. The TD has been accepting submissions of Guobiao (GB) from the trade to substantiate that vehicles or their components comply with the objective vehicle construction standards stipulated in the legislation. In addition to GB, the TD also accepts other standards, including those of the United Nations Economic Commission for Europe.
 
     The TD has been regularly reviewing and amending existing legislation and guidelines with reference to different national or regional standards to cope with the latest development of the automotive market. For example, with a view to supporting the introduction of different new energy vehicles, the TD issued guidelines on Vehicle Construction Approval Requirements for Electric Vehicles in 2010 to elaborate in detail the technical and safety requirements for electric vehicles (EVs) in Hong Kong. Meanwhile, GB safety requirements for EVs and electric motorcycles have also been included in the guidelines. The latest version was released in May 2023, providing further guidance and specifications on the technical and safety requirements for EVs and facilitating the vehicle trades in providing relevant information on EVs to simplify applications for EV approval. The TD also updated the annex to the above guidelines in June of this year with a view to accepting applications for vehicle type approval of EVs with battery swapping technology.
      
     The TD will continue to maintain close communication with the trade and listen to the trade's views, update technical guidelines and streamline the approval process in a timely manner to facilitate the introduction of more vehicle models by the trade, while ensuring that these vehicles meet the relevant technical requirements.
      
     At present, the approval time for vehicles using different fuel types (including EVs, plug-in hybrid vehicles, fossil fuel vehicles and non-plug-in hybrid vehicles) is similar, taking generally 90 days for approval, including the time required for local authorised dealers to submit supplementary information to the TD and arranging examination of sample vehicles. The number of applications for vehicle type approval and corresponding approvals are as follows:
 
Number of vehicle models passing type approval (by fuel type of vehicles)

  Electric vehicle Plug-in hybrid vehicle Fossil fuel and
non-plug-in hybrid vehicle
2021 145 (167*) 1 (1*) 725 (955*)
2022 122 (163*) 24 (27*) 555(660*)
2023 164 (239*) 10 (15*) 515 (603*)
2024
(Up to May 31, 2024)
6 (93**) 0 (8**) 91 (239**)

Note:
(*) Number of vehicle models applying for type approval
(**) Number of vehicle models applying for type approval, some of the type approval work is still in progress
 
Number of vehicle models passing type approval (by region of vehicle brands)

  Mainland China Asia
(other than China)
Europe America
2021 55 (81*) 204 (245*) 572 (747*) 40 (50*)
2022 61 (77*) 252 (298*) 362 (446*) 26 (29*)
2023 83 (133*) 174 (195*) 415 (506*) 17 (23*)
2024
(Up to May 31, 2024)
10 (63**) 48 (87**) 39 (189**) 0 (1**)

Note:
(*) Number of vehicle models applying for type approval
(**)Number of vehicle models applying for type approval, some of the type approval work is still in progress
 
(2) There is a type approval section under the TD which is responsible for vehicle type approval works.  The establishment of the team includes one Engineer, one Senior Motor Vehicle Examiner, two Motor Vehicle Examiner I and two Motor Vehicle Examiner II. The above establishment has not changed in the past three years, and the strength has remained approximately the same.
 
     The TD has been streamlining the vehicle approval process to cope with the increasing workload of type approval applications. The TD issued new guidelines on the batch processing mechanism to the trade in December 2022, facilitating the trade in introducing EVs in batches and simplifying the approval application process for the same EV model. At the same time, the TD continues to hold a number of briefing sessions for the trade and issue corresponding guidelines to assist the trade in submitting complete vehicle technical information, so as to reduce the time for clarification on documents and thereby speeding up the progress of the overall vehicle type approval work. The TD will continue to maintain close communication with the trade and review the vehicle examination process and manpower arrangement to achieve better cost-effectiveness.
 
(3) Exhaust gas emission from vehicles is the primary source of roadside air pollution in Hong Kong and accounts for about 20 per cent of the carbon emission of the territory. Conversion to EVs can improve roadside air quality and help strive towards carbon neutrality. As for private cars (PCs), hybrid PCs (including plug-in hybrid PCs) are not propelled solely by electric power and still have air pollutant and carbon emission. In comparison, pure EVs do not emit any exhaust gas and are more effective in improving roadside air quality in a high-density environment in Hong Kong. The supply of pure electric PC models on the market is increasing. Currently, about 70 per cent of the newly registered PCs are pure EVs. The Government has also set out the target to cease new registration of fuel-propelled and hybrid PCs in 2035 or earlier. Hence, we do not have plan to separately provide first registration tax concession for hybrid PCs which still have exhaust gas emission. On the other hand, to support the popularisation of EVs, the 2023 Policy Address has set out the target to increase the total number of public and private parking spaces with charging infrastructure in Hong Kong to about 200 000 by mid-2027.