Tag Archives: China

International Financial Centre

129. A highly efficient financial market accelerates the development of the real economy by effectively matching capital with the needs of industry. The financial industry is one of the pillars of Hong Kong’s economy. Hong Kong as an international financial centre is also our country’s international financial centre, having an edge in “quantity” and “quality” that enables various financial areas to thrive.

Offshore Renminbi Business Hub

130. Our country is the world’s second-largest economy. The proportion of RMB as a global currency for international trade, investment and financing, cross-border payment and reserves is increasing continuously, as the Mainland develops closer economic ties with other regions. Market demand for RMB is becoming keener than ever.

131. As the world’s largest offshore RMB business hub, Hong Kong processes about 75 per cent of global offshore RMB settlement. We also have the world’s largest offshore RMB liquidity pool, at over RMB 1 trillion. To capitalise on this enormous opportunity, we will press ahead with the development of an offshore RMB ecosystem to promote the internationalisation of the RMB in a steady and prudent manner.

132. We are taking forward relevant work on various fronts. It includes making continuous efforts to deepen mutual-market access schemes that facilitate RMB cross-boundary investment and two-way fund flows to enhance offshore RMB liquidity. It also includes encouraging financial institutions to provide more offshore RMB products and risk-management tools, and carrying out RMB financing in Hong Kong. We will also develop the Central Moneymarkets Unit (CMU) into Asia’s major international central securities depository platform. It will provide better support for RMB businesses such as cross-border clearing, settlement and custodian services etc.

Mutual Market Access

133. Mutual-market access between financial markets in the Mainland and Hong Kong has been expanding in scope and capacity. Bond Connect, the Cross-boundary Wealth Management Connect Scheme, ETFs in Stock Connect and Swap Connect are among the many opportunities that have been implemented, one after another, in recent years. The initiatives provide more asset allocation and risk-management options for Mainland and international investors.

134. This year, HKEX will host the 10th Anniversary of Mutual Access Forum to share our experience with the industry and explore how best to inject new impetus into the regime. We will stage a series of roadshows in the Mainland to promote mutual market access further.

135. We are now in discussion with Mainland authorities over the introduction of block trading, the inclusion of RMB counters under the Southbound Trading of Stock Connect, and the expansion of the mutual-market access regime to cover REITs, bringing in more enterprises and capital to the Hong Kong market.

Asset and Wealth Management Centre

136. Hong Kong is an international asset and wealth management centre, with assets under management amounting to more than HK$30 trillion. It is also Asia’s largest hedge-fund centre and the second-largest centre for private equity management after the Mainland. Currently, there are more than 250 open-ended fund companies and 780 limited partnership funds registered in Hong Kong.

137. To drive market development, the Government will extend the Grant Scheme for Open-ended Fund Companies and Real Estate Investment Trusts for three years, and set up a task force to discuss with the industry measures for further developing the asset and wealth management industry.

138. Attracting global family offices and asset owners to Hong Kong will help bring in more capital and drive ancillary economic activities. We have implemented a number of measures, including providing tax concessions for qualifying transactions of family-owned investment holding vehicles managed by single family offices in Hong Kong, and streamlining the suitability assessment when dealing with sophisticated professional investors.

139. The new Capital Investment Entrant Scheme (new CIES) will soon invite applications. Eligible investors who invest HK$27 million or more in qualifying assets and place HK$3 million into a new CIES Investment Portfolio may apply to reside in and pursue development in Hong Kong. The new CIES will help strengthen our advantages in developing the asset and wealth management industry and related professional service sectors in Hong Kong, while supporting the I&T sector’s development.

140. We are setting the stage for the second Wealth for Good in Hong Kong Summit in end-March in a bid to showcase Hong Kong’s unique advantages to global family offices and asset owners. In addition, we will further enhance the preferential tax regimes for related funds, single family offices and carried interest, including reviewing the scope of the tax concession regimes, increasing the types of qualifying transactions and enhancing flexibility in handling incidental transactions, all to attract more funds and family offices with potential to establish a presence in Hong Kong.

Securities Market

141. We are keen to foster the development of the securities market into one with greater depth, breadth and vibrancy, thereby consolidating and enhancing market competitiveness. I have explained this in detail in paragraphs 45 to 48.

Bond Market

142. As a long-standing leader in bond issuance in Asia, Hong Kong has ranked first in the region for seven consecutive years in terms of the volume of international bond issuance. In the last Budget, I proposed to expand the scope of the Government Green Bond Programme to cover sustainable finance projects and take forward the Infrastructure Bond Scheme to raise capital for infrastructure projects, thereby facilitating the early completion of projects for the good of the economy and people’s livelihood. We will set a borrowing ceiling of a total of $500 billion for these two programmes to allow more flexibility in quota re-allocation. The sums borrowed will be credited to the Capital Works Reserve Fund for investment in projects which are conducive to long-term development. These two programmes will gradually replace the existing Government Bond Programme.

143. In 2024-25, we will issue $120 billion worth of bond, of which $70 billion will be retail tranche that includes $50 billion worth of Silver Bond, and $20 billion worth of green bonds and infrastructure bonds to achieve financial inclusiveness and enhance a “sense of participation” in infrastructure and sustainable development among the public.

Deepen Financial Co-operation in the GBA

144. The Cross-boundary Wealth Management Connect (WMC) Scheme in the GBA has seen continuous and steady development. “WMC 2.0” was officially launched earlier this week, introducing such enhancement measures as increasing the individual investor quota to RMB 3 million and lowering the threshold for participating in the Southbound Scheme.

145. To help enterprises secure financing in the GBA more easily, the HKMA and Mainland regulatory authorities will continue to build a collaborative framework on cross-boundary credit referencing. Through such collaboration, the banks of both places, upon consent from corporate customers, will be allowed to access the credit data of relevant corporations, so that credit assessment can be conducted in a more secure and efficient manner.

Specialty Insurance Market

146. As an international risk-management centre, Hong Kong provides diversified risk-management channels, including professional insurance services. We have been making dedicated efforts to invite Mainland and overseas enterprises to establish captive insurers in Hong Kong, enhancing their corporate risk-management capabilities. We are also promoting the development of insurance-linked securities (ILS) by establishing a dedicated regulatory regime and launching a pilot grant scheme. To date, we have facilitated the issuance of four catastrophe bonds in Hong Kong, one of which marked the inaugural listing of its type of ILS. We will continue to attract more issuing institutes to Hong Kong, while nurturing talent and propelling the industry’s development.

Create Strong Impetus for Growth in the Financial Services Industry

147. To bolster the competitiveness and advantages of the financial services industry in Hong Kong, the Government will earmark $100 million to promote the sustainable development of financial services. This includes green and sustainable finance, fintech, asset and wealth management, headquarters business, and risk management etc.

International Trade Centre

148. The international trade landscape is in a constant state of flux. In recent times, Hong Kong’s total exports have seen their share of the Europe and US markets decline, while our exports to developing countries such as those in ASEAN and the Middle East is on the rise. At the same time, Mainland manufacturing enterprises are increasingly using production capabilities both at home and abroad as multinational supply chains for manufacturing products to be exported to overseas markets. Hong Kong is equipped to seize the opportunities arising from these changes.

Multinational Supply Chain Management

149. In line with the trend of Mainland manufacturing enterprises extending their production supply chains abroad, our goal is to develop Hong Kong into a multinational supply chain management centre. As a premier financial and commercial centre in the region, Hong Kong has the capacity to offer full-fledged and comprehensive professional support services to enterprises to meet their overseas business needs. These services are of utmost importance to enterprises seeking to go global, particularly those with less overseas experience.

150. Consulting services: The Hong Kong Trade Development Council (HKTDC) has been providing various services through different schemes covering business operations, production and supply chain solutions, market information and other consulting services. All this helps to support Mainland enterprises based in Hong Kong to establish a foothold in the Belt and Road (B&R) Initiative countries.

151. Trade financing: Mainland enterprises with operations in Hong Kong can also utilise various services provided by the Hong Kong Export Credit Insurance Corporation, including export credit insurance, surveys on buyers, and sharing of market updates to meet their business operation needs. The Commercial Data Interchange launched earlier by the HKMA and its Project mBridge allow enterprises to apply trade financing and cross-border settlement services at a lower cost and with higher efficiency.

152. Corporate training: Hong Kong’s business sector possesses rich knowledge and profound experience in managing multinational supply chains as well as handling compliance, labour protection, environmental protection and other requirements of overseas markets. We will facilitate collaboration between different organisations and industry stakeholders to provide environmental, social and corporate governance (ESG) training etc. to Mainland enterprises seeking to expand their reach to overseas markets. This will help them build goodwill with business partners and expand their markets.

153. In order to enhance our work on this front, Commerce and Economic Development Bureau, in coordination with “Team Hong Kong” organisations, will work together to study relevant details, including the establishment of a trade single window to provide one-stop services for enterprises. Invest Hong Kong will also step up efforts to attract Mainland manufacturing enterprises to set up offices in Hong Kong, to serve as headquarters for managing their offshore trading.

Explore Markets

154. The Government has been expanding Hong Kong’s economic and trade network overseas, to help the business sector explore emerging markets.

155. To strengthen our economic and trade relations with the Middle East, the Government is conducting negotiations with Saudi Arabia on an Investment Promotion and Protection Agreement (IPPA) and considering establishing an Economic and Trade Office (ETO) in Riyadh, Saudi Arabia. Two consultant offices will also be set up in Turkey and Egypt this year to bring in foreign capital and enterprises. Meanwhile, Hong Kong has concluded the IPPA negotiations with Bahrain and will soon sign a Comprehensive Double Taxation Agreement with it.

156. ASEAN is another priority strategic partner with whom we seek to enhance our engagement. The Government is considering establishing an ETO in Kuala Lumpur, Malaysia. As for other markets, we are negotiating a Free Trade Agreement with Peru and an IPPA with Bangladesh. Furthermore, the HKTDC will set up two consultant offices along the B&R to enhance trade promotion in emerging countries.

Belt and Road

157. The B&R Initiative promulgated by our country has entered its second golden decade. Hong Kong will continue to give full play to its role as a functional platform for the B&R. To this end, we will actively participate in and contribute to fostering high-quality development, especially in green development as well as innovation and technology.

158. Apart from continuing to host the annual Belt and Road Summit in September, a new Belt and Road Festival will be launched. The festival will promote collaboration with B&R countries in a wide range of areas including trade and investment, technology, arts and culture and talent exchange. Hong Kong will also host the Conference of Belt and Road Initiative Tax Administration Cooperation Forum, which will be attended by representatives of the governments, international organisations, academic institutions and strategic enterprises of B&R regions. It will provide a platform for attendees to establish connections and exchange ideas, thereby promoting tax administration co-operation and capacity building. Besides, more outbound missions will be organised, including visits to the Mainland for enterprises of B&R countries which are operating in Hong Kong to explore business opportunities.

Regional Intellectual Property Trading Centre

159. The effective protection and efficient transaction of IP is important to promote industries such as R&D, cultural and creative industries, design services, and brand licensing industries in Hong Kong. In fact, for the past three years, the Intellectual Property Department (IPD) granted an average of more than 10 000 standard patent registrations each year, which is a clear indication of the enormous potential of the IP trading market in Hong Kong.

160. The Government will introduce into the Legislative Council (LegCo) in the first half of 2024 a proposal to amend the Inland Revenue Ordinance with a view to implementing the “patent box” tax incentive, which will reduce substantially the tax rate for profits derived from qualifying IP to five per cent. This incentive aims to encourage enterprises to devote more resources to R&D and conduct commercialisation transactions making use of patents and other IP protections.

Participate in Dedicated Programme of World Intellectual Property Organisation (WIPO)

161. We are planning for the establishment of a WIPO Technology and Innovation Support Centre (TISC) in Hong Kong to enable our integration into the country’s TISC network. The TISC will focus on providing specialised services such as patent search and analysis for the protection of scientific research results and enhanced support to the I&T sector, while promoting IP trading at the same time. The TISC also helps nurture local I&T talent well versed in patent knowledge. In this regard, I have set aside $45 million to support the Hong Kong Productivity Council in establishing and operating the TISC. It is anticipated that the TISC will commence operation by 2025 the earliest.

(To be continued.) read more

     Following is a question by Professor the Hon Lau Chi-pang and a written reply by the Secretary for Transport and Logistics, Mr Lam Sai-hung, in the Legislative Council today (February 28):

Question: 

     There are views that Hong Kong’s conventional traffic light control system and its ancillary facilities are lagging behind, and fail to allocate green signal time flexibly according to actual pedestrian and vehicular flows, causing unnecessary delays to road users. In this connection, will the Government inform this Council:

(1) as the Transport Department (TD) proposed in July last year to install at about 50 road junctions a real-time adaptive traffic signal system (RTATSS), which would, through the use of artificial intelligence, analyze images and data of real-time vehicular and pedestrian flows collected by sensors to allocate signal time at road junctions, whether TD will consider implementing RTATSS across the territory; if so, of the specific plan and timetable; if not, the reasons for that;

(2) as it has been reported that the Government commenced a trial of a new type of “pedestrian traffic light countdown device” in Tung Chung in December last year, but there are views that such type of traffic light timers have not been made available to drivers after a prolonged period of time, whether the Government will consider introducing on a full scale traffic lights with countdown devices for drivers; if so, of the specific plan and timetable; if not, the reasons for that and the relevant considerations;

(3) as it has been reported that about 12 000 pedestrian crossings in Hong Kong have been installed with units of the Electronic Audible Traffic Signals system, commonly known as “yellow boxes”, but members of the public generally do not understand their functions and the ways of using them, or they ignore such units, resulting in their effectiveness being minimal, whether the Government will plan to step up efforts in publicizing the yellow boxes to members of the public, for example, by displaying signs or instructions for use near traffic lights; if so, of the specific plan; if not, the reasons for that; and

(4) as it is learnt that in the past, a number of District Councils (DCs) put forward to the Government their views on the traffic light waiting time in their districts with specific data, of the Government’s specific plan to work with various DCs, so as to improve the traffic light waiting time in various districts?

Reply:

President,

     Having consulted the Transport Department (TD) in respect of traffic signal control system, my reply to various parts of the question raised by Professor the Hon Lau Chi-pang is as follows:

(1) The TD completed the real-time adaptive traffic signal system (RTATSS) pilot project at five selected independent signalised junctions in 2021. Taking into account the experience gained, the Government has consulted the Legislative Council (LegCo) Panel on Transport in July 2023 and plans to seek funding approval from the LegCo Finance Committee this year for installing sensors and ancillary equipment for implementing the RTATSS at about 50 suitable independent signalised junctions, with a view to promoting smart traffic management.

     Furthermore, the TD began the installation and further trial of the RTATSS at eight linked signalised junctions at Tung Chung Town Centre in 2022, which is expected to complete in mid-2024. The TD will consider further extending the RTATSS to other suitable linked signalised junctions in due course. When developing new development areas, the TD will also liaise with relevant government departments to implement the RTATSS at suitable signalised junctions.

(2) The TD has installed a new type of pedestrian traffic light countdown device at the signalised junction of Tat Tung Road/Mei Tung Street in Tung Chung, with the countdown starting to display when the “Green man” light is on, such that pedestrians can gauge the total green time remained and cross the junction. The new type of pedestrian traffic light countdown device has started operating and testing since mid-December 2023. The TD has engaged a local university to conduct survey and study on the impact of the device on pedestrian crossing behavior. The trial is targeted for completion in mid-2024.

     As for the “vehicular traffic light countdown device” for motorists, there is still no general consensus worldwide on its benefits. We note that motorists’ responses to the remaining green time displayed on the device could be very different. Some drivers might decide to slow down and stop when noticing the green time is coming to an end whilst some might choose to rush through the junction, thus increasing the risk of head-rear collision. In view of road safety, the “vehicular traffic light countdown device” is not implemented in Hong Kong. The TD will continue to closely monitor the development and effectiveness of the relevant device.

(3) The TD currently installs a device commonly called “yellow box” at pedestrian crossings. The device is a component of the electronic pedestrian crossing device. There are two types of these vibrating units: the first type has a “palm” symbol and a “Please wait” display with a pedestrian crossing button function. When a pedestrian touches the pedestrian crossing button, a visual and audible acknowledgement signals will be displayed and emitted by the device respectively, and turn the pedestrian crossing signal to green as soon as possible. The second type, which has words and figure of “Aids for Visually Impaired Persons” printed on it, consists of a vibrating unit at the bottom. It helps the visually impaired persons cross the road by means of different vibrating patterns indicating pedestrian signals. This type of vibrating unit does not have a pedestrian crossing button but denotes the status of pedestrian traffic signals. 

     On publicity, the TD pastes a label (as shown in the photo at Annex) on the traffic signal poles installed with a pedestrian crossing button, reminding pedestrians to press the button to cross the road.

(4) Signal time plans are devised to co-ordinate vehicles and pedestrians from different directions to pass through the junctions safely and orderly. Signal time plans should balance the needs of vehicles and pedestrians from various directions, reducing unnecessary delays. Generally, signal time plans are devised with regard to characteristics of individual junctions as well as historical traffic and pedestrian flows during different periods (e.g. morning/evening peak and non-peak hours) and different days (e.g. weekdays and weekends). Moreover, through the area traffic control system, the TD monitors the traffic conditions and operation of traffic signals in various regions in real-time, and makes adjustments as and when necessary in response to emergency situations. 

     The TD takes into account feedback from road users and stakeholders (including District Councils) for reviewing and adjusting the traffic signal time as appropriate. The TD will continue to keep close contact with the District Councils in this regard. Meanwhile, the TD will further enhance the efficiency of traffic signal control systems with new technologies, including the implementation of the RTATSS. read more

     Following is a question by the Hon Yung Hoi-yan and a written reply by the Secretary for Transport and Logistics, Mr Lam Sai-hung, in the Legislative Council today (February 28):

Question:

     Many motorists have relayed that the shortage of parking spaces in various districts had caused them inconvenience when going out. In this connection, will the Government inform this Council:

(1) of (i) the ratio of private car (PC) and motorcycle parking spaces to the relevant licensed vehicles, (ii) the number of PC and motorcycle parking spaces available in public car parks in each of the 18 districts across the territory as well as their usage, (iii) the number of on-street PC parking spaces with parking meters in each of the 18 ‍districts across the territory as well as their usage, (iv) the number of on-street motorcycle parking spaces with parking meters in each of the 18 districts across the territory as well as their usage, (v) the number of prosecutions instituted against illegal parking in each of the 18 districts across the territory, and (vi) the ratio of parking spaces for village housing to standard New Territories Exempted Houses, in each of the past three years;

(2) given that according to the parking standards of the Planning Department, up to one car parking space can be provided for each standard New Territories Exempted House with a size not exceeding 65 square metres, yet some rural residents have relayed that the provision of parking spaces in rural residential areas has long been insufficient, and no additional parking spaces can be provided for some adjacent village houses as they do not meet the relevant parking standards, of the Government’s plans to provide additional parking spaces in rural residential areas, and whether it will review and make timely adjustments to the relevant standards so as to meet the needs of the residents; if so, of the details; if not, the reasons for that;

(3) as it has been reported that the shortage of parking spaces has undermined motorists’ desire to go out, adversely affecting the Government’s promotion of the night-time economy, of the Government’s plan to facilitate parking by members of the public, including whether consideration will be given to providing more temporary parking spaces in designated areas and during specified periods; if so, of the details; if not, the reasons for that; and

(4) as some members of the public have relayed that they had been prosecuted for occasionally stopping their vehicles outside the “Where not to stop” areas designated by the Transport Department or in the “No stopping” zones during non-restriction time, and such enforcement actions had left them at a loss, how the Government can ensure that law enforcement officers can pinpoint specifically the contravention of legal requirements by the relevant vehicles when instituting prosecutions against illegal parking, and whether it will consider leveraging technology to assist law enforcement, with a view to improving the accuracy of prosecutions; if so, of the details; if not, the reasons for that?

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 avoid aggravating the burden on road traffic resulting from excessive private cars (PCs) and motorcycles.  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 but are not limited to the following measures:
 
(a) Utilising spaces underneath flyovers for designation of parking spaces;
 
(b) Opening up more parking spaces at government buildings for public use during non-office hours;
 
(c) Providing additional on-street parking spaces at suitable locations while ensuring that traffic flow, road safety and the loading/unloading activities of other road users would not be compromised;
 
(d) Providing more 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”.  Subject to the results of technical feasibility assessments and the progress of seeking required approvals for the projects under planning, as well as the construction progress of the approved projects, it is expected that about 20 suitable development projects will be completed by batches to provide additional parking spaces starting from 2024-25;
 
(e) Taking forward automated parking system projects in newly-built government carparks and short-term tenancy carparks, so as to increase parking density and make parking more convenient for the public; and

(f) Revising the parking facilities standard for PCs in the Hong Kong Planning Standards and Guidelines (HKPSG) in 2021, which provides more parking spaces in private and subsidised housing development projects.

     As regards the Member’s question, in consultation with the Transport Department (TD), the Hong Kong Police Force (HKPF), the Lands Department (LandsD) and the Government Property Agency (GPA), a consolidated reply is as follows:

(1) For the period between 2021 and 2023, (i) the ratio of the number of parking spaces of PCs and motorcycles to the number of licensed PCs and motorcycles; and for the 18 districts, in respect of (ii) the number and utilisation of PC and motorcycle parking spaces in public carparks, (iii) the number and utilisation of metered parking spaces for PCs, and (iv) the number and utilisation of on‑street motorcycle parking spaces, please refer to Annex I to IV respectively.

     The HKPF handles statistics on fixed penalty notices (FPNs) issued against illegal parking and other traffic offences by Police Region. Therefore, the prosecution figures by 18 District Council districts is not available. From 2021 to 2023, the figures of FPNs issued against illegal parking by the HKPF by Police Region are tabulated in Annex V. For the ratio of parking spaces in village housing to the number of New Territories Exempted Houses, the LandsD does not maintain the relevant statistics.

(2) Under the prevailing HKPSG, each standard New Territories Exempted House (65 square metres) is allowed to provide up to one private car parking space, which in general should be in communal parking area within the village environs. Moreover, if any village wishes to provide additional parking facilities, it may lodge an application to the Town Planning Board for a planning permission under section 16 of the Town Planning Ordinance (Cap. 131) for the provision of a temporary car park on a rural site for villagers’ use.

(3) Hong Kong has a well-developed public transport network. As the locations for activities associated with night-time economy are accessible by public transport, we encourage members of the public to make good use of the public transport services to travel to those locations as far as possible. For those who need to travel by car, they may consider using on-street parking spaces or car parks nearby, including car parks of government office buildings which are opened to the public during non-office hours (e.g. nighttime). Members of the public may also gain the latest information on special traffic arrangements and parking vacancy on the TD’s website (www.td.gov.hk) or via the “HKeMobility” mobile application.

(4) Road safety is one of the HKPF’s operational priorities, and changing the irresponsible behaviour of road users (such as obstruction to traffic or illegal stopping at restricted zone which may cause inconvenience or even hazard to other road users) is also among the HKPF’s Selected Traffic Enforcement Priorities. The HKPF aims to raise the law-abiding awareness of commuters and combat improper traffic obstruction behaviour through publicity, education and enforcement. 

     The HKPF has clear guidelines, training and supervision on the enforcement procedures of traffic offences to ensure that frontline officers comply with operational needs and statutory requirements when taking enforcement actions. The HKPF will also review and update the relevant procedures and guidelines from time to time to meet the actual needs.

     The HKPF has been working closely with relevant departments, adopting new technological solutions for traffic enforcement to enhance the efficiency of frontline officer in combating illegal parking and obstruction-related moving offences. For instance, to raise the enforcement effectiveness and strengthen the deterrent effect, the HKPF has launched in phases the “e-Ticketing Scheme” across the territory since March 2020. Frontline enforcement officers are now able to access or input information of illegally parked vehicles via their mobile devices, take photos of non-compliance as evidence and instantly print out FPNs in order to reduce human errors in issuing handwritten FPNs. Besides, the HKPF has launched the first WeChat mini-programme for online reporting of traffic offences – “Project PROVE – Public Reporting Offences with Video Evidence”, since April 2023. Members of the public can report non-emergency traffic related offences, including dangerous driving, careless driving, failing to comply with traffic signals, traffic signs and road markings, etc. by uploading relevant video clips to “Project PROVE”. The HKPF will examine each report, and if prima facie evidence is established, it will follow up and investigate the case, or even take enforcement action.

     The HKPF will continue to explore the use of more new technologies with relevant departments to enhance the effectiveness of enforcement against offences relating to illegal parking and traffic obstruction. read more

International Innovation and Technology Centre

105. I&T is a key engine driving our economy and society towards high-quality development. The Hong Kong Innovation and Technology Development Blueprint, promulgated in 2022, formulates strategic plans and clear roadmaps for Hong Kong’s I&T development over the next five to ten years, leading Hong Kong steadily towards its vision of becoming an international I&T centre.

106. The Government has committed substantial resources to building a vibrant I&T ecosystem by focusing on enhancing I&T infrastructure, research capacity, talent, etc. The Hong Kong Science Park and Cyberport are I&T flagships and incubators for the city. As at end-2023, the number of tenants of these two flagships, together with past and current incubatees, amounted to some 4 500, an increase of more than 60 per cent over the past five years. Among them, 16 have been listed, nine have become unicorns, and a total of some $130 billion has been raised while more than 1 700 local and non-local awards have been won.

Artificial Intelligence

107. Artificial Intelligence (AI), as an important driver of a new round of technological and industrial transformation, is also the key to propelling the development of digital economy in Hong Kong.

108. Cyberport is expediting the establishment of an AI Supercomputing Centre to meet the demand of research institutes and the industry for computing power. The first phase facility is expected to start operating within this year at the earliest. By early 2026 at the soonest, the computing power of the supercomputing facility is expected to reach 3 000 petaFLOPS. The scale of such power is equivalent to the capacity of processing nearly 10 billion images in one hour.

109. We will allocate $3 billion to Cyberport for the launch of a three-year AI Subsidy Scheme to support local universities, research institutes and enterprises to leverage the Centre’s computing power and achieve scientific breakthroughs. The subsidy will also be used to strengthen the cyber security and data protection of the Centre, and launch promotional and educational activities, etc, to encourage Mainland and overseas AI experts, enterprises and R&D projects to come to Hong Kong.

R&D of Microelectronics

110. With an increasing demand for semiconductors worldwide, the scale of related industries is expected to grow continuously and exceed US$1 trillion by 2030.

111. To capture a market with such huge potential, and dovetail with the national strategy for technological development, the Government is fostering R&D of microelectronics. We will establish the Hong Kong Microelectronics Research and Development Institute (HKMSRDI) this year. It will spearhead and facilitate research collaboration on the third-generation semiconductors among universities, R&D centres and the industry, and to realise R&D outcomes by making use of the comprehensive manufacturing industry chain in the Greater Bay Area (GBA).

Life and Health Technology

112. With solid basic research capabilities in life and health technology, Hong Kong is home to world-class experts, top-notch medical schools, R&D centres and laboratories. We are well-equipped to develop into an international life and health technology centre.

Set up Life and Health Technology Research Institutes

113. In the previous Budget, I earmarked $10 billion to promote the development of life and health technology. Of this, $6 billion will be used to provide subsidies for local universities to collaborate with Mainland and overseas organisations to set up life and health technology research institutes. The purpose is to facilitate relevant R&D activities and transformation of R&D outcomes, and to attract leading I&T talent and research teams around the world to Hong Kong.

Strengthen Clinical Trial Platform

114. The Government will set up the Greater Bay Area International Clinical Trial Institute in the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone this year. It will provide one-stop support to attract more local, Mainland and overseas pharmaceutical and medical device enterprises to conduct clinical trials in Hong Kong. We will also actively seek support from the National Medical Products Administration for record filing, so that such data can be used by these enterprises when applying for marketing authorisation of their products in the Mainland.

Establish “Primary Evaluation”

115. The new mechanism for registering New Drugs (“1+” mechanism) came into effect on 1 November 2023. This allows for new drugs for life threatening or severely debilitating diseases to be registered in Hong Kong with the submission of only one certificate of pharmaceutical product issued by reference drug regulatory authorities, subject to the fulfilment of specific requirements. The Department of Health has approved two new drugs for registration under this mechanism, bringing new hope of treatment to patients.

116. The “1+” mechanism is an important step in progressing towards a “primary evaluation” approach. This approach enables us to directly approve applications for registration of drugs and medical devices locally based on clinical data, without relying on other drug regulatory authorities.

117. The Government is committed to establishing the Hong Kong Centre for Medical Products Regulation (CMPR). The preparatory office will be set up in the first half of this year to study the restructuring and strengthening of the current regulatory and approval regimes for drugs, medical devices and medical technologies. The objective is to establish a standalone statutory body that is internationally recognised, so as to accelerate clinical application of new drugs and medical devices. It will also drive the development of emerging industries engaging in the R&D and testing of drugs and medical devices.

New Industrialisation Development

118. Driven by information, new industrialisation leverages advanced technologies such as AI, data analytics and new materials to support enterprises in moving towards smart production and develop emerging industries with high value-adding potential and economic efficiency.

119. We will launch a $10 billion New Industrialisation Acceleration Scheme (NIAS) this year. Enterprises engaging in life and health technology, AI and data science, advanced manufacturing and new energy technology will each be provided with funding support of up to $200 million on a matching basis of one (Government): two (enterprise). Applicant enterprises shall invest no less than $200 million in Hong Kong.

120. Apart from the above funding support on a matching basis, enterprises participating in the NIAS may receive subsidies to engage research talent under the Research Talent Hub. They may also, on a pilot basis, engage a small number of non-local technical personnel under the Technology Talent Admission Scheme to expedite the set-up and operation of advanced manufacturing facilities in Hong Kong.

121. It is anticipated that the NIAS will attract 50 to 100 enterprises engaging in relevant industries to invest no less than $20 billion in Hong Kong.

Hong Kong-Shenzhen Innovation and Technology Park

122. Hong Kong-Shenzhen Innovation and Technology Park (HSITP) in the Lok Ma Chau Loop (the Loop) enables Hong Kong to play an active part in GBA development, better integrate into overall national development and forge closer connections overseas. While the first batch of buildings in the HSITP will commence operation progressively by the end of this year, various tasks such as attracting enterprises, investment and talent are underway. We will continue to support the development of the HSITP, and are drafting the White Paper on the Development of the HSITP in the Loop targeting to be announced this year.

InnoLife Healthtech Hub

123. We will set up the InnoLife Healthtech Hub in the HSITP to attract top-notch research teams and talent from around the world, with a focus on life and health disciplines, to conduct research. This will be conducive to the development of international I&T centre in the Loop and the GBA. We will allocate $2 billion from the $10 billion earmarked to support the InnoHK research clusters to establish presence in the Loop. We will also allocate $200 million to provide assistance to start-ups engaging in life and health technology in the form of incubation and acceleration programmes, etc.

Nurturing Start-ups

124. In the Global Startup Ecosystem Report 2023, Hong Kong ranked second in the world and first in Asia in the Emerging Startup Ecosystems category. The number of start-ups rose to nearly 4 300 last year, about a fourfold increase compared to 2014. Over the same period, the number of people employed by related start-ups increased by about seven times to over 16 000.

125. Since its inception, the Corporate Venture Fund under the Hong Kong Science and Technology Parks Corporation (HKSTPC) has invested a total of nearly $400 million in 31 start-ups and attracted private investment of about $12.6 billion. The HKSTPC will soon launch the Co-acceleration Programme to pool the efforts of the I&T industry and provide value-added support services to I&T start-ups with high potential and to nurture them as regional or global enterprises.

R&D and Transformation in I&T

Frontier Technology Research Infrastructure Support Scheme

126. We will launch a Frontier Technology Research Infrastructure Support Scheme to assist the eight University Grants Committee (UGC)-funded universities, on a matching basis, in procuring facilities and conducting research projects which cover various fields such as AI, quantum information, integrated circuit, clinical medicine and health, and gene and biotechnology. To this end, we will allocate $3 billion from the sum earmarked in the past.

Strengthen Support for Technology Transfer

127. To enable universities to strengthen technology transfer and marketing services, we will provide subsidies of no more than $16 million to the Technology Transfer Office of each of the eight UGC-funded universities from 2024-25 onwards.

Enhancing I&T Infrastructure

128. Batch 1 of Stage 2 of the Science Park Expansion Programme, which will provide a gross floor area (GFA) of about 13 000 square metres mainly for wet laboratories, is expected to be completed in the first quarter of next year. The Cyberport 5 expansion project, which will provide a GFA of about 66 000 square metres for co-working spaces and offices, etc, is expected to be completed by the end of next year at the earliest. Together with the I&T sites in the Loop to be put into use progressively, there will be more room for the local I&T ecosystem to prosper.

(To be continued.) read more

     Following is a question by Dr the Hon Tik Chi-yuen and a written reply by the Secretary for Education, Dr Choi Yuk-lin, in the Legislative Council today (February 28):
    
Question:
 
     It has been reported that following the announcement made by the school sponsoring body (SSB) of Rosaryhill Secondary School in September last year that the school would cease operation after two school years, the SSB announced in December last year that the school would cease operation earlier in the coming school year, with its students transferring to Yu Chun Keung Memorial College No. 2. Regarding the arrangements for students of subsidised schools ceasing operation, will the Government inform this Council:
 
(1) of the number of SSBs of subsidised schools giving up their school operating rights of their own accord, other than those with under-‍enrolment, in the past five years;
 
(2) as it is learnt that most subsidised schools will make proper arrangements for students to graduate smoothly from their original schools before ceasing operation, but the SSB of Rosaryhill Secondary School, which is a subsidised school, has reportedly planned to give up its school operating right starting from the coming school year, making it impossible for students of the school to graduate from their original school, how the Government ensures that SSBs of subsidised schools will make every effort to enable a smooth transition for the relevant students to continue their studies in another school after their schools cease operation;
 
(3) as it has been reported that Rosaryhill Secondary School had conducted two parents’ opinion surveys on the transitional arrangements for students, and some parents pointed out that as the school conducted a second survey with revised options and selection criteria when the outcome of the first survey fell short of expectation, they considered that the relevant surveys were “fake consultations”, whether the Government knows the relevant details; whether it has monitored the conduct of parents’ opinion surveys by the school and other subsidised schools, and how it ensures the integrity of their practices; and
 
(4) as it has been reported that the SSB of Rosaryhill Secondary School has decided to adopt a vote by simple majority instead of a vote by the number of parents at least half the total number of the relevant students for a given proposal in requesting that all students be transferred to Yu Chun Keung Memorial College No. 2 in the coming school year, whether the Government has reviewed if subsidised schools have such a power, and how it safeguards the interests of the affected students and parents?
 
Reply:
 
President,
 
     Our reply to the question raised by Dr the Hon Tik Chi-yuen is as follows:
 
(1) In the past five school years, three school sponsoring bodies (SSBs) decided and announced to cease operation of an aided school each under their sponsorship. In addition, there is another SSB which decided to hand over four aided schools under its sponsorship to another SSB for continued operation.
 
(2), (3) and (4) For any SSB wishing to cease operation of its sponsored school, it should submit a detailed proposal to the Education Bureau (EDB) setting out clearly the timeline, operation mode during the transitional period and other relevant details. The EDB will urge SSBs to accord top priority to the interests of students and ensure the impact of the school’s cessation arrangements on students is minimal. During the process of cessation, the EDB will closely monitor the situation and maintain communication with the SSBs and schools, so that timely assistance can be offered if the schools encounter difficulties in making related arrangements.
 
     SSBs may make different cessation arrangements according to schools’ circumstances. Generally speaking, schools will first stop admitting Secondary One (S1) or Primary One students, and arrange for current students at upper secondary or upper primary levels to study in their original school until graduation. Some SSBs will also take into consideration the situation where the overall number of students is too small and there is a wastage of school staff in one or two years prior to the cessation. Since the corresponding adjustment of resources will make it difficult to provide a broad and balanced learning environment and is not conducive to the social development of students, the SSBs will try their best to arrange for their students to transfer to other schools as soon as possible. For example, some primary schools will arrange for their students to transfer to other schools to continue their studies at upper primary levels, and some secondary schools will arrange for their students to participate in the Central Placement upon their completion of Secondary Three and proceed to Secondary Four in other public sector schools.
 
     As regards the case of Rosaryhill Secondary School (RSS), in September 2023, its SSB informed the EDB and relevant stakeholders of its decision to cease operation of three schools (namely RSS, Rosaryhill School and Rosaryhill Kindergarten) under its sponsorship due to various factors such as the structural decline in the student population in Hong Kong and the financial situation of the SSB. Noting the decision of the SSB, the EDB has been repeatedly reminding the SSB and the related schools to maintain close liaison and good communication with the stakeholders (including parents, alumni and school staff), consider feasible options to support students and school staff in a pragmatic manner, as well as pay attention to the emotions of students so that appropriate counselling and support can be provided as necessary.
 
     We understand that the SSB has established a Transition Committee (the Committee) to deliberate on appropriate support to the students and school staff of the RSS and explore different feasible plans. Members of the Committee include the SSB’s representatives, the principal, and teacher, parent and alumni representatives of the school. In the course of deliberation, the SSB and school have approached another SSB, conducted briefing sessions and opinion surveys for parents, and maintained communication with school staff, students and parents.
 
     We note that after considering relevant factors (including the survey results), the Committee has endorsed the option of supporting all S1 to Secondary Five students to transfer to another secondary school in the 2024/25 school year. The SSB and school met with teachers and parents separately in late January this year to introduce the transitional arrangements.
 
     The EDB has all along been monitoring the development of the incident while maintaining communication with the SSB and schools. We have liaised and met with the stakeholders for many times, which include discussing the transitional arrangements with representatives of RSS, the other secondary school and their SSBs, as well as making co-ordination for students, school staff and parents to work out plans for appropriate assistance and support. We note that the two schools are actively deepening and progressively implementing the relevant arrangements to effect a smooth transition for teachers and students with a view to helping them familiarise with and adapt to the new environment. The EDB will continue to render support on the transitional arrangements. We will also provide advice and assistance to parents and students in need. If necessary, they may approach Regional Education Offices of the EDB for enquiries on vacant school places in the district. read more