The Government today (August 2) exercised the power under the Prevention and Control of Disease (Compulsory Testing for Certain Persons) Regulation (Cap. 599J) to make a "restriction-testing declaration" (declaration) effective from 5.30pm, under which people (hereafter referred to as "persons subject to compulsory testing") within the specified "restricted area" in Tuen Mun (i.e. Tower 1, Prime View Garden, Tuen Mun, excluding the non-domestic units on G/F, see Annex.) are required to stay in their premises and undergo compulsory testing. Persons subject to compulsory testing are required to stay in their premises until all such persons identified in the "restricted area" have undergone testing and the test results are mostly ascertained. The Government aims at finishing this exercise at around 9am tomorrow (August 3). The operation may be extended depending on test results.
 
     A Government spokesman said, "Under Cap. 599J, the Government can, according to the needs of infection control, make a 'restriction-testing declaration'. Having reviewed a basket of factors, including the viral load in sewage, the information of relevant positive cases, and other circumstantial factors, and conducted a risk assessment, the Government decided to make a 'restriction-testing declaration' for the relevant area."
 
     The Government will set up temporary specimen collection stations at the "restricted area" and request persons subject to compulsory testing to undergo testing before 11.30pm today. Arrangements will be made for persons subject to compulsory testing to undergo a nucleic acid test at specimen collection stations where dedicated staff will collect samples through combined nasal and throat swabs. Persons subject to compulsory testing must stay at their place of residence until all test results are ascertained to avoid cross-infection risk. The Government will make arrangement to facilitate specimen collection for people with impaired mobility. All persons in the "restricted area" who have tested positive in the past 14 days, including positive cases identified either by nucleic acid tests recorded by the Department of Health (DH) or by rapid antigen tests that have been self-declared to the DH, are not required to undergo testing in this compulsory testing exercise.
 
     The Government spokesman said, "We understand that this exercise will cause inconvenience to the public. The Government has made arrangements to carry out testing for all persons present in the 'restricted area' as soon as possible. The aim is to strive to complete testing of all identified persons subject to compulsory testing and confirm the results, and finish the exercise at around 9am tomorrow. The Government will make a public announcement when the declaration expires officially. In the cases in which employees are unable to go to work because of the declaration, the Government hopes their employers can exercise discretion and not deduct the salaries or benefits of the employees."
 
     If staying in the "restricted area" will cause unreasonable hardship to individuals who are not residents in the area when the declaration takes effect, government officers may exercise discretion and allow that person to leave the area after considering the individual circumstances. That person must have followed the instructions to undergo testing and leave his/her personal information for contact purposes.
 
     According to the compulsory testing notice to be issued today, any persons other than those specified above who had been present at the above building for more than two hours from July 27 to August 2, 2022, even if they were not present in the "restricted area" at the time when the declaration took effect, must undergo compulsory testing on or before August 4, 2022. As a mutant strain is involved, for prudence's sake, vaccinated persons and persons who have recently been tested are also required to undergo testing. 
 
     The Government will provide food packs and necessity packs for persons subject to compulsory testing, so as to facilitate the meal arrangements and daily needs of some persons subject to compulsory testing. In addition, the Home Affairs Department has set up a hotline (Tel: 2835 1473) which starts operation at 5.30pm today for residents restricted by the declaration to make enquiries and seek assistance. The Social Welfare Department will also provide assistance to the affected persons.
 
     The Government appeals to persons subject to compulsory testing for their full co-operation by registering and undergoing testing, and waiting for the results patiently at home. The Government will strictly follow up on whether the persons concerned have complied with the compulsory testing notices and "restriction-testing declaration". Any person who fails to comply with the compulsory testing notices commits an offence and may be fined a fixed penalty of $10,000. The person would also be issued with a compulsory testing order requiring him or her to undergo testing within a specified time frame. Failure to comply with the compulsory testing order or the "restriction-testing declaration" is an offence and the offender would be liable to a fine at level 5 ($50,000) and imprisonment for six months.

The following is issued on behalf of the Hong Kong Monetary Authority: 
 
     The Monetary Authority announced today (August 2) that the countercyclical capital buffer (CCyB) ratio for Hong Kong remains unchanged at 1 per cent.
      
     "The latest economic indicators point to a stabilisation of economic activities in Hong Kong in the second quarter of 2022, but uncertainties about the global and domestic economic environment have remained high," the Monetary Authority, Mr Eddie Yue, said. "It is therefore appropriate to keep the CCyB ratio unchanged at the current level for the time being and continue to monitor the situation closely."
      
     Further details of the decision may be found in the Announcement of the CCyB to Authorized Institutions on the HKMA website.
 
Background
 
     In setting the CCyB ratio the Monetary Authority considered a series of quantitative indicators and qualitative information including an "indicative buffer guide" (which is a metric providing a guide for CCyB ratio based on the gap between the ratio of credit to GDP and its long term trend, and between the ratio of residential property prices to rentals and its long term trend). The latest indicative buffer guide, calculated based on 2022 Q1 data, signals a CCyB of 0 per cent. The projection based on all available data suggests that the indicative buffer guide would likely signal a CCyB of 0 per cent when all relevant 2022 Q2 data become available.
      
     Whilst the indicative buffer guide, as its name suggests, provides only a "guide" for CCyB decisions, the determination of the jurisdictional CCyB ratio for Hong Kong is not a mechanical exercise and, in addition to the indicative buffer guide, the Monetary Authority also reviewed a range of other reference indicators. The latest economic indicators point to a stabilisation of economic activities in Hong Kong in 2022 Q2, but uncertainties about the global and domestic economic environment have remained high. It is therefore appropriate to keep the CCyB ratio unchanged at 1 per cent for the time being and continue to monitor the situation closely.
      
     The CCyB is an integral part of the Basel III regulatory capital framework and is being implemented in parallel by Basel Committee member jurisdictions worldwide. The CCyB has been designed by the Basel Committee to increase the resilience of the banking sector in periods of excess credit growth. The banking sector can then act as a "shock absorber" in times of stress, rather than as an amplifier of risk to the broader economy.
      
     The power to implement the CCyB in Hong Kong is provided by the Banking (Capital) Rules, which enable the Monetary Authority to announce a CCyB ratio for Hong Kong. The specific CCyB requirement applicable to a given Authorized Institution (AI) is expressed as a percentage of its CET1 capital to its total risk-weighted assets. Each AI’s CCyB requirement may vary depending on the geographic mix of its private sector credit exposures and the CCyB applicable in each jurisdiction where it has such exposures.

The following is issued on behalf of the Hong Kong Monetary Authority:

     Exchange Fund Bills tender results:
 

 
*"Pro rata ratio" refers to the average percentage of allotment with respect to each tender participant's tendered amount at the "highest yield accepted" level. 
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     Hong Kong Monetary Authority tenders to be held in the week beginning August 8, 2022:
 

The following is issued on behalf of the Hospital Authority:

     The Hospital Authority today (August 2) announced information regarding patients who tested positive via admission screening or testing with patients or staff members identified as close contacts and nosocomial COVID-19 infection cases.
 
     The following are the statistics of patients who tested positive via admission screening or by testing in public hospitals with patients or staff members identified as close contacts:
 

 
     Thorough cleaning and disinfection operations have been performed in the affected areas by the hospitals. The hospitals will continue to closely monitor the health conditions of patients and staff members, and communicate with the Centre for Health Protection on the latest situation.
 
     There have been no clusters of nosocomial infection cases reported in public hospitals today.

     The Hong Kong Economic and Trade Office, Sydney (Sydney ETO) hosted a reception in Auckland, New Zealand, today (August 2) to mark the 25th anniversary of the establishment of the Hong Kong Special Administrative Region (HKSAR).

     Addressing the reception in a virtual speech, the Secretary for Commerce and Economic Development, Mr Algernon Yau, shared that with the unique advantages of "one country, two systems" and the unwavering support of the Central Government, Hong Kong has grown and prospered as Asia's leading world-class city and will actively integrate into the country's overall development, seizing the immense opportunities under the National 14th Five-Year Plan.

     "We would consolidate our competitive edge and reinforce Hong Kong's status as an international finance, transportation, trading and legal centre, and strive to fully develop our four emerging strengths – innovation and technology, aviation and intellectual property trading, as well as enhancing our position as an East-meets-West centre for international cultural exchange," Mr Yau said.

     On the long-standing relationship between Hong Kong and New Zealand, Mr Yau noted that New Zealand is the first foreign economy that Hong Kong entered into a free trade agreement with. The total merchandise trade between Hong Kong and New Zealand amounted to NZD2 billion in 2021, representing a growth of 10.7 per cent over 2020 despite the pandemic. Mr Yau added that Hong Kong looks forward to joining the Regional Comprehensive Economic Partnership Agreement to pursue further economic advancement with its members, including New Zealand.

     The Director of the Sydney ETO, Miss Trista Lim, said in her welcoming remarks that the theme of the 25th anniversary, "A New Era – Stability • Prosperity • Opportunity", captures Hong Kong's exemplary achievements and the strong confidence in a promising future, underpinned by the principle of "one country, two systems". Miss Lim looks forward to telling more good stories of Hong Kong in the years to come.

     "There will be many more exciting stories ahead of us as we continue to leverage our unique strengths, maintain an international outlook and connect ever more closely with our motherland," Miss Lim added.

     The reception was the major event of the Sydney ETO in New Zealand to celebrate the 25th anniversary of the establishment of the HKSAR. Over 130 guests from various sectors including political and business circles, media, academic and community groups as well as government representatives attended the reception. Among them were the Ambassador of the People's Republic of China to New Zealand, the Cook Islands and Niue, Dr Wang Xiaolong, and the Consul-General of the People's Republic of China in Auckland, Mr Ruan Ping. To showcase Hong Kong's popular culture, a singing performance was staged at the reception.

     For details on other celebration events of the Sydney ETO, please visit www.hketosydney.gov.hk/eng/25A/celebrationevents.html.