Tag Archives: China

     The launching ceremony of Art March 2024 was held at the Hong Kong Museum of Art today (February 22), highlighting a series of mega arts and cultural events that will take place in Hong Kong and introducing the brand “Art March 2024”. The launching ceremony was officiated by the Secretary for Culture, Sports and Tourism, Mr Kevin Yeung; the Director of Leisure and Cultural Services, Mr Vincent Liu; representative of the Mega Arts and Cultural Events Committee Ms Yolanda Ng, and the representatives of organisers of the events.
      
     Mr Yeung said, “Every March in Hong Kong, art lovers and visitors enjoy the many international and local arts and cultural events converged in the city. My bureau, the Culture, Sports and Tourism Bureau (CSTB), has been pulling together the hard efforts of the arts and cultural sectors to enrich the ambience of mega arts and cultural events in Hong Kong. And this year for the first time, we launch “Art March” as a brand to promote multiple events organised, funded, or supported by the Government. We hope that everyone could enjoy an unforgettable experience immersed in the artistic vibe of Hong Kong during March every year.”
      
     The extensive coverage of activities in Art March 2024 ranges from arts and culture, pop, as well as TV and film. Various happenings including art exhibitions, film events, a cultural summit and a fashion show welcome all walks of life. Apart from the well-received events in the past, the new event brands which are to be held in Hong Kong for the first time will make the city’s vibrant cultural landscape more colourful.
      
     Mr Yeung said that the Government’s another aim is to manifest the economic benefits of the mega arts and cultural events to the fullest. Tourism-related industries, such as hotels, retail and catering, were encouraged to join hands with the arts and cultural sectors in polishing the brand of “Art March” to provide citizens and visitors with an enriched artistic journey.
      
     A TV Announcement in the Public Interest themed “Art March” will begin airing today. The CSTB will also arrange free ice cream distribution, tram rides and Star Ferry rides at different times in March to promote “Art March” and its programmes. Details will be announced in stages in March.
      
     The activities of Art March 2024 are detailed on the website of the CSTB (www.cstb.gov.hk/en/policies/culture/art-march.html).

    

Attention TV and radio duty announcers:             Please broadcast the following special announcement as soon as possible, and repeat it at suitable intervals:      … read more

     The Census and Statistics Department (C&SD) released today (February 22) the Consumer Price Index (CPI) figures for January 2024. According to the Composite CPI, overall consumer prices rose by 1.7% in January 2024 over the same month a year earlier, smaller than the corresponding increase (2.4%) in December 2023. Netting out the effects of all Government’s one-off relief measures, the year-on-year rate of increase in the Composite CPI (i.e. the underlying inflation rate) in January 2024 was 0.8%, also smaller than that in December 2023 (1.4%). The smaller increase in January 2024 was mainly due to the fact that the Lunar New Year fell in January last year, which resulted in a high base of comparison, in particular food prices.  

     On a seasonally adjusted basis, the average monthly rate of change in the Composite CPI for the 3-month period ending January 2024 was 0.0%, and that for the 3-month period ending December 2023 was 0.4%. Netting out the effects of all Government’s one-off relief measures, the corresponding rates of change were 0.0% and 0.1%.   

     Analysed by sub-index, the year-on-year rates of increase in the CPI(A), CPI(B) and CPI(C) were 2.0%, 1.6% and 1.5% respectively in January 2024, as compared to 2.7%, 2.2% and 2.3% respectively in December 2023. Netting out the effects of all Government’s one-off relief measures, the year-on-year rates of increase in the CPI(A), CPI(B) and CPI(C) were 0.5%, 0.8% and 1.0% respectively in January 2024, as compared to 1.1%, 1.4% and 1.8% respectively in December 2023.   

     On a seasonally adjusted basis, for the 3-month period ending January 2024, the average monthly rates of change in the CPI(A), CPI(B) and CPI(C) were -0.1%, 0.0% and 0.0% respectively. The corresponding rates of change for the 3-month period ending December 2023 were 0.5%, 0.3% and 0.3% respectively. Netting out the effects of all Government’s one-off relief measures, the average monthly rates of change in the seasonally adjusted CPI(A), CPI(B) and CPI(C) for the 3-month period ending January 2024 were -0.1%, 0.0% and 0.0% respectively, and the corresponding rates of change for the 3-month period ending December 2023 were 0.0%, 0.1% and 0.1% respectively.   

     Amongst the various components of the Composite CPI, year-on-year increases in prices were recorded in January 2024 for alcoholic drinks and tobacco (19.5%), clothing and footwear (3.5%), meals out and takeaway food (3.1%), housing (2.9%), miscellaneous services (2.2%), miscellaneous goods (1.9%), and transport (1.8%).   

     On the other hand, year-on-year decreases in the components of the Composite CPI were recorded in January 2024 for electricity, gas and water (-7.6%), basic food (-2.3%), and durable goods (-1.4%).   

     For the 3 months ending January 2024, the Composite CPI rose by 2.2% over a year earlier, while the CPI(A), CPI(B) and CPI(C) rose by 2.6%, 2.1% and 2.0% respectively. The corresponding increases after netting out the effects of all Government’s one-off relief measures were 1.3%, 1.0%, 1.3% and 1.6% respectively.   

     For the 12 months ending January 2024, the Composite CPI was on average 2.0% higher than that in the preceding 12-month period. The respective increases in the CPI(A), CPI(B) and CPI(C) were 2.2%, 1.9% and 2.0% respectively. The corresponding increases after netting out the effects of all Government’s one-off relief measures were 1.6%, 1.6%, 1.5% and 1.7% respectively.   

Commentary

     A Government spokesman said the underlying consumer price inflation moderated visibly in January, partly due to the base effect stemming from the different timing of the Lunar New Year. It would thus be more meaningful to examine the figures for January and February combined, when available, to assess the underlying inflation situation. Among the major components, prices of basic food fell from a year earlier given the high base of comparison, and those of energy-related items declined further. Prices of meals out and takeaway food, and clothing and footwear saw relatively fast increases. Price pressures on other major components remained broadly in check.

     Looking ahead, overall inflation should remain moderate in the near term. Domestic costs may face some upward pressures as the Hong Kong economy continues to grow. Meanwhile, external price pressures should continue to ease. The Government will continue to monitor the situation.

Further information

     The CPIs and year-on-year rates of change at section level for January 2024 are shown in Table 1. The time series on the year-on-year rates of change in the CPIs before and after netting out the effects of all Government’s one-off relief measures are shown in Table 2. For discerning the latest trend in consumer prices, it is also useful to look at the changes in the seasonally adjusted CPIs. The time series on the average monthly rates of change during the latest 3 months for the seasonally adjusted CPIs are shown in Table 3. The rates of change in the original and the seasonally adjusted Composite CPI and the underlying inflation rate are presented graphically in Chart 1.

     More detailed statistics are given in the “Monthly Report on the Consumer Price Index”. Users can browse and download this publication at the website of the C&SD (www.censtatd.gov.hk/en/EIndexbySubject.html?pcode=B1060001&scode=270).

     For enquiries about the CPIs, please contact the Consumer Price Index Section of the C&SD (Tel: 3903 7374 or email: cpi@censtatd.gov.hk).
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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 February 2, 2024)
 
Report on Currency Board Operations (October 18 – December 29, 2023)
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     The Currency Board Sub-Committee (Sub-Committee) noted that the Hong Kong dollar (HKD) traded within a range of 7.7906 – 7.8269 against the US dollar (USD) during the review period. The HKD exchange rate strengthened in November, mainly driven by buying flows on firmer HKD interest rates and net buying flows through the Southbound Stock Connect. HKD interbank rates continued to track the USD rates while also being affected by local supply and demand. The Convertibility Undertakings were not triggered and the Aggregate Balance was stable at around HK$45 billion. No abnormality was noted in the usage of the Discount Window. Overall, the HKD exchange and interbank markets continued to trade in a smooth and orderly manner. 
      
     The Sub-Committee noted that the Monetary Base increased to HK$1,895.86 billion at the end of the review period. 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 review period is at Annex.

Monitoring of Risks and Vulnerabilities
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     The Sub-Committee noted that market expectations of early interest rate cuts in 2024 had been bolstered by recent signs of cooling global growth and inflation, which underpinned rallies in major bond and equity markets in late 2023. However, there was a risk that financial markets might have discounted the “high for longer” scenario too soon given that services inflation in major advanced economies was still supported by tight labour markets that could render core inflation stickier than expected.  Meanwhile, global commercial real estate (CRE) markets could face sustained headwinds, heaping pressure on banks with significant CRE exposures.
      
     The Sub-Committee noted that economic recovery continued in Mainland China in Q4 2023, but the near-term economic outlook continued to face challenges. In response, the authorities strengthened fiscal policy support to bolster infrastructure investment, and vowed to satisfy the reasonable financing needs of property developers regardless of their ownerships. As for the Asia Pacific region, while foreign exchange depreciation and capital outflow pressures subsided in late 2023 along with the rising rate cut expectations in the US, headwinds such as weak external demand would continue to weigh on regional economies. Meanwhile, the rising non-bank financial intermediation (NBFI) in the region was worth close monitoring given the data gaps and opacity of the NBFI market.
      
     The Sub-Committee noted that in Hong Kong, economic activities recovered steadily through the end of 2023 on the back of the continued revival of inbound tourism and consumption demand. Looking ahead, these two segments were expected to support the economy in 2024, but the growth outlook was subject to increased external uncertainties relating to the US policy rate path, dimmer global economic prospects, the recovery pace of the global tech cycle and the evolving geopolitical tensions. While the Government’s relaxations of demand-side management measures in late October 2023 had bolstered housing market sentiment somewhat, the housing market as well as the commercial property market remained soft amid the high interest rate environment. read more

     The effective exchange rate index for the Hong Kong dollar on Thursday, February 22, 2024 is 104.9 (down 0.1 against yesterday’s index). read more