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

(Approved for Issue by the Exchange Fund Advisory Committee on November 29)
 
Report on Currency Board Operations (June 26 – October 11, 2019)
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     The Sub-Committee noted that the Hong Kong dollar (HKD) exchange rate traded within a range of 7.7886 – 7.8465 against the US dollar (USD) during the review period. The HKD strengthened in late June and early July, mainly driven by the funding demands arising from sizable initial public offering activities, dividend payouts by listed companies in Hong Kong and half-year closing. The HKD eased gradually after the half-year end as these factors faded, before strengthening moderately again in mid-September amid tightening of liquidity. During the review period, the longer-dated HKD interbank interest rates were relatively stable, while the shorter-dated rates broadly declined. Overall, the HKD exchange and interbank markets continued to trade in a smooth and orderly manner.
      
     The Sub-Committee noted that the Aggregate Balance was little changed at around HK$54.4 billion, while the Monetary Base increased slightly to HK$1,653.8 billion at the end of the review period.
      
     The Sub-Committee further noted that, in accordance with the Currency Board principles, all changes in the Monetary Base had been fully matched by changes in foreign reserves.
      
     The Report on Currency Board Operations for the period under review is at Annex.
 
Monitoring of Risks and Vulnerabilities
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     The Sub-Committee noted that in the US, the ebb and flow of US-China trade disputes continued to pose uncertainties to the global economy, while the monetary policy outlook remained fluid as the Federal Reserve weighed still-solid economic momentum and firming inflation against downside risks.
      
     The Sub-Committee noted that in Europe, lingering trade and political uncertainty would likely continue to weigh on the region’s economic outlook. The chronically weak inflation outlook had led the European Central Bank into more unconventional monetary easing.
      
     The Sub-Committee noted that in Mainland China, growth outlook appeared to gravitate towards the lower end of the Government target range, which had led to a number of policy responses on both the monetary and fiscal fronts. 
      
     The Sub-Committee noted that in Hong Kong, the economy faced downside risks amid external headwinds and recent social incidents domestically. The labour market had been solid although it could face more challenges ahead, while the housing market had shown some early signs of softening over the past several months.
      
The Impact of Future Initial Public Offerings (IPOs) on Hong Kong Interbank Offered Rates (HIBORs)
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     The Sub-Committee noted a study which used textual analysis to assess the impact of future IPOs on medium-term interest rates. The study provided empirical support that news on future IPOs had an impact on medium-term HIBORs and shed light on market participants’ evolving liquidity management practices. read more

     The Education Bureau (EDB) today (December 3) said that Hong Kong students as a whole performed well in the Programme for International Student Assessment (PISA) 2018, maintaining their achievements in the previous assessment.
 
     PISA is organised by the Organisation for Economic Co-operation and Development (OECD) and conducted every three years with a view to assessing the mother tongue reading, mathematical and scientific literacy of 15-year-old students.
 
     A spokesman for the EDB said, “Among the 79 countries/economies participating in the study, Hong Kong’s 15-year-old students ranked fourth in both mother tongue reading and mathematical literacy, and ninth in scientific literacy. Their performance in these three areas was significantly higher than the international level. The achievements can be attributed to the efforts of schools and teachers, as well as the support of various stakeholders in providing quality education.
 
     “It is also encouraging that Hong Kong students’ socio-economic status seems to have less effect on their performance as compared with other participating countries/economies. In general, the education system of Hong Kong has done well in providing an education opportunity with high quality and equity for all students on the whole, which in turn facilitates social mobility.”
 
     In mother tongue reading literacy, Hong Kong ranked fourth. Although Hong Kong’s ranking dropped slightly from second in PISA 2015 and its score dropped marginally from 527 to 524, the score was still significantly above the OECD average of 487. The results reveal that Hong Kong students are able to sustain their good performance. To further enhance the reading interests and abilities of students, the EDB will continue its efforts in the promotion of “Reading to Learn”, one of the four key tasks implemented under the curriculum reform. The EDB will also continue to strengthen the support for schools, including the provision of a recurrent grant to facilitate schools to further promote reading starting from the 2018/19 school year, implementing the new “Reading across the Curriculum” initiative, the reform of the Chinese Language Curriculum introduced in recent years, as well as continuous programmes/training for teachers’ professional development and the learning and teaching resources on reading to help teachers (including teacher-librarians) employ appropriate reading strategies and organise reading activities.
 
     In mathematical literacy, Hong Kong’s ranking dropped slightly from second in PISA 2015 to fourth, but its score increased from 548 to 551, which was significantly above the OECD average of 489. The design of the EDB’s Mathematics Curriculum enables teachers to provide students with learning opportunities to apply their mathematical knowledge in real-life situations, to nurture their positive attitudes in the learning of mathematics and to appreciate the subtleties of mathematics. With the progressive implementation of the renewed “Mathematics Education Key Learning Area Curriculum Guide (Primary 1 – Secondary 6) (2017)”, which emphasises constructing mathematical knowledge in different strands and developing critical thinking skills, logical thinking skills and creativity through the “inquiry and investigation” approach, the EDB believes that the performance of Hong Kong students in mathematical literacy will remain outstanding in the years to come.
 
     In scientific literacy, Hong Kong kept its number nine ranking, while its score dropped slightly from 523 to 517, which was still much higher than the OECD average of 489. The relevant data indicate that Hong Kong students have maintained high standards in science internationally. Over the past few years, the EDB has introduced various measures to strengthen science education. The renewed “Science Education Key Learning Area Curriculum Guide (Primary 1 – Secondary 6) (2017)” puts emphasis on developing scientific literacy of students and encourages teachers to provide students with a variety of learning experiences including hands-on and minds-on learning activities. Through collaborating with others in experimental activities, scientific investigations and project learning, students enhance their understanding of science knowledge and develop science process skills. Students also develop an understanding of the interrelationship between science, technology, society and environment. As well, the Government has attached great importance to the promotion of science, technology, engineering and mathematics (STEM) education in recent years to equip students with necessary knowledge and skills, including science literacy, as well as values and attitudes in response to the challenges in the 21st century. The EDB will continue to strengthen the support measures to schools, including the provision of professional development programmes, so as to have a sustainable impact on student learning in science/STEM areas.
 
     “Our education, which is geared towards facilitating students’ learning, provides a broad spectrum of knowledge and nurtures high-level thinking, generic skills and positive values to achieve whole-person development. Our primary concern in curriculum design and delivery is the interest of students and their learning outcomes. We shall draw reference from, among others, the findings of international studies to understand the strengths and weaknesses of our students so as to enhance their learning. Our focus is therefore not on the international ranking of our students’ performance but rather on conducting regular reviews for the purpose of providing high quality education,” the spokesman added.
 
     Background information and key statistics of PISA 2018 are at the Annex. read more

     The Secretary for Innovation and Technology, Mr Nicholas W Yang, and Vice Minister of Science and Technology Professor Huang Wei co-chaired the 14th meeting of the Mainland/Hong Kong Science and Technology Co-operation Committee held in Shenzhen today (December 3).
      
     Mr Yang said at the meeting that this year saw tremendous breakthroughs in the development and exchange of scientific research between Hong Kong and the Mainland. Since late 2018, the Ministry of Science and Technology (MOST), the Department of Science and Technology of Guangdong Province, and the Science, Technology and Innovation Commission of Shenzhen Municipality have opened their research and development (R&D) programmes to designated universities and scientific research institutions in Hong Kong for application. Funds have been approved for local universities to conduct various R&D projects or set up laboratory. Some of the approved funds have been successfully remitted across the boundary. In April this year, MOST and the Innovation and Technology Commission (ITC) of the Government of the Hong Kong Special Administrative Region (HKSAR) also launched the Mainland-Hong Kong Joint Funding Scheme to encourage scientific research co-operation between Hong Kong and different Mainland provinces. In addition, after close liaison between the HKSAR Government and MOST, the Central Government announced, after the third plenary meeting of the Leading Group for the Development of the Guangdong-Hong Kong-Macao Greater Bay Area held last month, that education institutions, hospitals and branches on the Mainland established by Hong Kong’s universities and scientific research institutions, upon meeting specific requirements, would be allowed to lodge applications for exporting human genetic resources to Hong Kong independently under a trial scheme.
      
     Looking ahead, Mr Yang stressed that Hong Kong would continue to enhance its scientific research development and exchanges with the Mainland, promote Guangdong/Hong Kong and Shenzhen/Hong Kong technology co-operation, and implement more measures to facilitate the free flow of key elements of scientific research. The HKSAR Government would also actively promote local innovation and technology development, including pressing ahead with the establishment of two InnoHK research clusters at the Hong Kong Science Park and spearheading the development of the Lok Ma Chau Loop into the Hong Kong-Shenzhen Innovation and Technology Park.
      
     Mainland members attending the meeting included representatives from MOST, the Hong Kong and Macao Affairs Office of the State Council, the Liaison Office of the Central People’s Government in the HKSAR, the Chinese Academy of Sciences, the National Natural Science Foundation of China, the China Association for Science and Technology, the Shenzhen Municipal People’s Government, the Department of Science and Technology of Guangdong Province and the Guangzhou Municipal Science and Technology Bureau.
      
     The Hong Kong delegation comprised representatives from the Innovation and Technology Bureau, the ITC, the Office of the Government Chief Information Officer, the Research Grants Council, the City University of Hong Kong, the Hong Kong Baptist University, the Chinese University of Hong Kong, the Hong Kong Polytechnic University, the Hong Kong University of Science and Technology, the University of Hong Kong, the Hong Kong Science and Technology Parks Corporation, Hong Kong Cyberport Management Company Limited, the Hong Kong Productivity Council, the Hong Kong Applied Science and Technology Research Institute, the Hong Kong Automotive Platforms and Application Systems R&D Centre, the Logistics and Supply Chain MultiTech R&D Centre, the Hong Kong Research Institute of Textiles and Apparel, and Nano and Advanced Materials Institute Limited. read more

     A driver was sentenced to six months’ imprisonment today (December 3) at Fanling Magistrates’ Courts for using a school bus carrying cross-boundary students to smuggle gold, in contravention of the Import and Export Ordinance (IEO). This is the first gold smuggling case involving a cross-boundary school bus detected by Hong Kong Customs.

     Customs officers intercepted an incoming school bus carrying cross-boundary students at Man Kam To Control Point on July 28, 2017. Twelve gold bars weighing about 12 kilograms with an estimated market value of about $4.2 million were found concealed inside an altered structure near the front door of the bus. The 59-year-old male driver was then arrested.

     Smuggling is a serious offence. Under the IEO, any person found guilty of importing or exporting unmanifested cargo is liable to a maximum fine of $2 million and imprisonment for seven years.

     Members of the public may report any suspected smuggling activities to Customs’ 24-hour hotline 2545 6182 or its dedicated crime-reporting email account (crimereport@customs.gov.hk). read more

     Special traffic arrangements will be implemented in Happy Valley tomorrow (December 4). The arrangements will come into effect one and a half hours before the start of the first race and will last until the crowds have dispersed after the race meeting.

A. Traffic arrangements before the commencement of the first race

1. Road closure

     Southbound Wong Nai Chung Road between Queen’s Road East and the up-ramp outside Hong Kong Jockey Club (HKJC) will be closed except for vehicles heading for Aberdeen Tunnel.

2. Traffic diversions

– Southbound Wong Nai Chung Road between Village Road and the up-ramp outside HKJC will be re-routed one way northbound;
– Traffic along eastbound Queen’s Road East heading for Wan Chai and Happy Valley will be diverted to turn left to Morrison Hill Road;
– Traffic along southbound Morrison Hill Road heading for Happy Valley will be diverted via Sports Road and Wong Nai Chung Road;
– Traffic along Queen’s Road East cannot turn right to Wong Nai Chung Road except for vehicles heading to Aberdeen Tunnel;
– Traffic from Cross Harbour Tunnel heading for Queen’s Road East will be diverted via the down-ramp leading from southbound Canal Road flyover to Morrison Hill Road to turn right at the junction of Wong Nai Chung Road and Queen’s Road East; and
– Traffic from Cross Harbour Tunnel heading for Happy Valley or Racecourse will be diverted via the down-ramp leading from southbound Canal Road flyover to Canal Road East, southbound Morrison Hill Road, Sports Road and Wong Nai Chung Road.

B. Traffic arrangements before the conclusion of race meeting

1. Road closure

     The following roads will be closed from about 35 minutes before the start of the last race:

– The up-ramp on Wong Nai Chung Road outside HKJC leading to Aberdeen Tunnel;
– Southbound Wong Nai Chung Road between Queen’s Road East and the up-ramp leading to Aberdeen Tunnel;
– Southbound Wong Nai Chung Road between Village Road and the Public Stands of HKJC;
– Westbound Leighton Road between Wong Nai Chung Road and Canal Road East; and
– Southbound Morrison Hill Road between Leighton Road and Queen’s Road East.

     In addition, southbound Wong Nai Chung Road between the up-ramp leading to Aberdeen Tunnel and the Public Stands of HKJC will be closed from about 10 minutes before the start of the last race.

2. Traffic diversions

     The following traffic diversions will be implemented from about 35 minutes before the start of the last race:

– Eastbound Queen’s Road East at its junction with Morrison Hill Road will be reduced to one-lane traffic heading for northbound Canal Road flyover;
– Traffic from Cross Harbour Tunnel heading for Wan Chai will be diverted via the down-ramp leading from southbound Canal Road flyover to Canal Road East, U-turn slip road beneath Canal Road flyover, Canal Road West and Hennessy Road;
– Traffic from Cross Harbour Tunnel heading for Happy Valley will be diverted via the down-ramp leading from southbound Canal Road flyover to Canal Road East, eastbound Leighton Road and Wong Nai Chung Road;
– Traffic along southbound Morrison Hill Road will be diverted to turn left to eastbound Leighton Road;
– Traffic along southbound Morrison Hill Road heading for Happy Valley will be diverted via eastbound Leighton Road and Wong Nai Chung Road; and
– Traffic along westbound Leighton Road will be diverted to Wong Nai Chung Road.

C. Learner drivers prohibition

     Learner drivers will be prohibited to turn left from Caroline Hill Road to Leighton Road between one and a half hours before the start of the first race and one hour after the last race. In addition, learner drivers will be prohibited from accessing the following roads within the above period of time:

– Shan Kwong Road between Yik Yam Street and Wong Nai Chung Road;
– Village Road between its upper and lower junctions with Shan Kwong Road;
– Percival Street between Hennessy Road and Leighton Road;
– Canal Road East; and
– The service road leading from Gloucester Road to Canal Road flyover.

D. Suspension of parking spaces

     Parking spaces on southbound Wong Nai Chung Road between Sports Road and Blue Pool Road will be suspended from 11am to 7pm during day racing, from 4.30pm to 11.59pm during evening racing, and from 5pm to 11.59pm during night racing.

     Any vehicles found illegally parked within the precincts of the above affected areas will be towed away without prior notice.

     Actual implementation of road closure and traffic diversion will be made by the Police at the time depending on traffic conditions in the areas. Motorists should exercise tolerance and patience, and follow the instructions of Police on site. read more