Tag Archives: China

     Following is a question by Dr the Hon Wendy Hong and a written reply by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, in the Legislative Council today (January 10):

Question:

     The Financial Secretary announced in the 2022-2023 Budget the legislation for a rental enforcement moratorium. In this regard, the Temporary Protection Measures for Business Tenants (COVID-19 Pandemic) Ordinance (Cap. 644) commenced operation on May 1, 2022 upon its gazettal. During the three-month “protection period” (i.e. from May 1, 2022 to July 31, 2022), Cap. 644 caused a deferral of certain actions (including terminating the tenancy) that landlords might take in respect of their tenants’ failure to pay rent. In this connection, will the Government inform this Council:

(1) of the number of cases in which the landlords concerned have filed claims in court against business tenants to recover the rent in arrears since the end of the aforesaid protection period;

(2) of the number of business tenants who have ceased their businesses, gone into liquidation or had their tenancies terminated since the end of the aforesaid protection period due to the filing of claims in court by the landlords concerned against them to recover the rent in arrears but they are unable to repay the arrears; and

(3) whether it has examined the benefits and drawbacks of the rental enforcement moratorium for various stakeholders in society?

Reply:

President,

     My reply to various parts of Dr the Hon Wendy Hong’s question is as follows.

     The outbreak of the fifth wave of the coronavirus disease 2019 (COVID-19) epidemic took place around the Chinese New Year in 2022, with unprecedented severity and magnitude. As such, the Government tightened the social distancing measures with a view to ensuring public health and life safety. At that time, many enterprises, in particular small and medium enterprises (SMEs), were facing significant operation and liquidity problems, and rental payment constituted a substantial part of their operating expenses. In this light, the Financial Secretary announced a legislative proposal in the 2022-2023 Budget to impose a moratorium to prohibit landlords from terminating the tenancy, suspending the provision of services, or taking other related legal actions against their business tenants of specified sectors for failing to settle rent on schedule under a protection period of three months (i.e. from May 1, 2022 to July 31, 2022). The Temporary Protection Measures for Business Tenants (COVID-19 Pandemic) Ordinance (Cap. 644) (the Ordinance) had come into effect on May 1, 2022. The Ordinance is intended to provide business tenants of affected sectors with a breathing space, so that they would not be forced out of business by legal or other recovery actions taken by their landlords for failing to pay rent on time, while giving landlords and tenants an opportunity to work out a mutually agreeable rental arrangement in the interim through negotiation.

     According to the Ordinance, within the protection period or on the commencement date of the tenancy (if the tenancy commences during the protection period), if the tenants of premises used wholly or primarily as specified premises (Note 1) has failed to pay rent in compliance with the tenancy, the relevant landlord would be barred from taking, or continuing to take, certain rental enforcement actions (Note 2) (or the action is to be stayed if such action has already commenced but is yet to be completed) during the protection period for outstanding rent. Upon the expiry of the protection period, landlords may recover the accrued rent in arrears from their tenants, while tenants should also pay the outstanding rent according to the tenancy.

     According to the records of the Rating and Valuation Department, since May 1, 2022 (i.e. when the Ordinance took effect), prosecution action was taken against one case in which the landlord was suspected of taking rental enforcement actions during the protection period, and the landlord had pleaded guilty in the court. Furthermore, information has indicated that the number of applications for winding-up petitions of companies in Hong Kong, with an average of 46 cases per month (as at December 2023), has not shown any rapid increase from August 2022 till now.

     The temporary protection measures was implemented under the then exceptional circumstances, with an aim to prevent large-scale closures of SMEs which would result in loss of jobs, especially for those of the lower paid strata who had been hardest hit by the epidemic. At the time of introducing the said temporary protection measures, it was anticipated that around 130 000 SMEs could be benefited from the measures. We believe that the measures have helped to improve job security and stabilise the Hong Kong economy. In fact, some other overseas jurisdictions had also rolled out measures of similar nature in the midst of extremely serious epidemic situation.

Notes:

1. According to the Ordinance, such premises include the scheduled premises as set out in section 2 of the Prevention and Control of Disease (Requirements and Directions) (Business and Premises) Regulation (Cap. 599F) (excluding cruise ships and supermarkets), catering business premises, child care centre, kindergarten, private primary day school and private secondary day school, retail shop, tutorial school, premises where hobby classes are provided and premises where a range of businesses, such as travel agents, cruise ships, employment agencies and laundry trade, is carried on, etc.

2. According to the Ordinance, the rental enforcement actions include, amongst others, deducting rent from the deposit held by the landlord, exercising a right of re-entry or forfeiture, bringing an action in court against the tenant, and presenting a bankruptcy petition or a winding-up petition against the tenant, etc. read more

     The Hong Kong Film Archive (HKFA) of the Leisure and Cultural Services Department launched the “All About Films – Filmmakers’ Oral History Online” video series today (January 10). Through consolidating and uploading onto the HKFA’s YouTube channel the excerpts of interview videos with filmmakers under the “Oral History Project”, the series aims to let the public better understand the development of the local film industry in various stages. The first series involves D & B Films Company (D & B), an influential film enterprise in Hong Kong in the 1980-1990s.
 
     The first series consists of five episodes. The theme of the first episode of the series is “The Beginning of D & B”. The episode is about 19 minutes long, covering D & B’s establishment, distinctive qualities, achievements, transformation and more. Founders John Sham and Sammo Hung recount the establishment of the company with another founder, Dickson Poon, in the video. Renowned actors and filmmakers such as Stanley Kwan, Yuen Wo-ping, Manfred Wong, Cecilia Yip and Sylvia Chang also talk about the distinctive qualities and achievements of D & B. The video features other interviewees including publicity manager Shu Kei, producer Chan Koon-chung, executive director Stephen Shin and director Gordon Chan who reminisce about the company’s management under the three founders and the transformation of this trail-blazing film company over the years. The upcoming videos to be released later will introduce the administration, publicity, creative production and actors of D & B. The related videos were previously shown at the “More Brilliance, Still Different – The D & B Story Redux” exhibition from July 2022 to February 2023. The partner organisation for the exhibition was Fortune Star Media Limited.
 
　　Members of the public can visit the HKFA’s YouTube channel (https://www.youtube.com/playlist?list=PLtrDGi4HWzYKWZeuMCVQjLTdzEJFcVtXl) to watch the first episode. The remaining videos will also be available within this month.  
 
     The HKFA is dedicated to the acquisition and preservation of Hong Kong’s film heritage. The “Oral History Project”, launched in 1994, has been one of the most significant ongoing projects to research the history of Hong Kong cinema’s development from all perspectives through extensive interviews with a talented cast of film veterans. The interviews focus on topics such as filmmakers, the development of film companies, and various other aspects of the film industry, some of these interviews have been compiled and published in the “Oral History Series” and other HKFA thematic publications. Excerpts of some video interviews were also featured in exhibitions curated by the HKFA.  read more

     Following is a question by the Hon Chan Hak-kan and a written reply by the Secretary for Environment and Ecology, Mr Tse Chin-wan, in the Legislative Council today (January 10):
 
Question:
 
     On promoting the popularisation of electric vehicles (EVs), will the Government inform this Council:
 
(1) given that the “One-for-One Replacement” Scheme for EVs will expire on March 31 this year, whether the Government will extend the Scheme to continue with the promotion of the popularisation of EVs; if so, of the details; if not, whether it has assessed the impact to be made on the entire EV industry chain after the Scheme comes to an end;
 
(2) given that according to the information from the Government Logistics Department, as at the end of January last year, only 7.1 per cent of the saloon cars in the establishment of the government fleet were EVs, and among the vehicles (excluding specialised vehicles) purchased by various government departments in 2022, the number of EVs only accounted for about 14.9 per cent, which was far lower than the proportion of electric private cars in newly registered private cars in Hong Kong in the first eight months of last year (64.3 per cent), whether the Government will set an example by requesting various government departments to purchase EVs when purchasing new saloon cars; if so, of the target proportion; if not, the reasons for that;
 
(3) as the Chief Executive has indicated in the 2023 Policy Address that tenders will be invited in the first quarter of this year for the conversion of two vacant petrol-filling station sites to quick charging stations, whether the Government has assessed the public demand for such kind of charging stations; if so, of the details;
 
(4) as the Government has indicated in the Hong Kong Roadmap on Popularisation of Electric Vehicles that it will identify sites for the establishment of a territory-wide quick charging network, whether the Government will consider setting up restaurants or supermarkets, etc. in places where quick charging stations are proposed to be built, so that EV owners can wait for the completion of charging in the charging stations; if so, of the details; if not, the reasons for that;
 
(5) as there are views pointing out that EV charging facilities in car parks which are managed by the MTR Corporation Limited (MTRCL) and provide park-and-ride services are grossly inadequate, whether the Government will promote the installation of more EV chargers by MTRCL in such car parks; if so, of the details; if not, the reasons for that;
 
(6) given that the Government conducted a pilot scheme in four government open car parks in 2017 to test the reliability of outdoor EV chargers, of the relevant outcome; whether the Government will learn from the relevant experience and install quick charging facilities at on-street parking spaces; if so, of the details; if not, the reasons for that; and
 
(7) whether measures are in place to assist in the development of the EV battery recycling industry; if so, of the details; if not, the reasons for that?
 
Reply:
 
President,
 
     Developing green transport is vital to Hong Kong in achieving carbon neutrality by 2050. The Government announced the Hong Kong Roadmap on Popularisation of Electric Vehicles (the EV Roadmap) in March 2021, setting the target to cease new registration of fuel-propelled and hybrid private cars (PCs) in 2035 or earlier.
 
     The Government is committed to promote green transport. With the percentage of electric private cars (e-PCs) in newly registered PCs in Hong Kong soared from 6.3 per cent in 2019 to 64.1 per cent in November 2023, associated charging facilities have become indispensable. As mentioned in the Chief Executive’s 2023 Policy Address, the Government strives to expand the network of electric vehicle (EV) charging facilities and aims to increase the total number of public and private parking spaces with charging infrastructure to about 200 000 by mid-2027.
 
     In consultation with the Financial Services and the Treasury Bureau, I provide the reply to the question raised by the Hon Chan Hak-kan as follows:
 
(1) The “One-for-One Replacement” Scheme (the Scheme) has been effective in increasing the number of e-PCs on the premise of not increasing the total number of PCs. From the launch of the Scheme to November 2023, nearly 60 700 old PCs were scrapped and replaced by new e-PCs under the Scheme, accounting for 97 per cent of the 62 400 new e-PCs or so. Meanwhile, the number of registered e-PCs recorded a growth of over 600 per cent while the total number of registered PCs only grew by less than 7 per cent, indicating that the Scheme did not lead to a significant increase in the total number of registered PCs. The current first registration tax concession arrangement for EVs, including the Scheme, will expire on March 31, 2024. The Government is reviewing the Scheme and will announce the latest arrangement in due course.
 
(2) The Environmental Protection Department (EPD) updated the green procurement practice for government vehicles in July 2021, setting out the use of EVs as the standard when procuring or replacing government private cars with five seats or less, unless circumstances such as operational needs that render the use of EVs infeasible. The Government has been following the green procurement practice in procuring EVs, having regard to the operational needs of the policy bureaux and departments as well as the actual market situation.
 
     Statistics of the Government Logistics Department showed that 55 (about 63.2 per cent) of the 87 government private cars with five seats or less (including both new and replacement vehicles) procured by the Government in 2023 were EVs. According to the information from the departments concerned, the main reason for not switching to EVs is that current models of e-PCs available on the market are unable to meet the actual operational needs, such as long hours of outdoor operations. 
 
     The Government will continue to follow the above green procurement practice when determining the number of EVs to be procured, taking into account the operational needs of the policy bureaux and departments as well as the actual market situation, including the latest development and supply of EVs.
 
(3) The EV Roadmap put forward the introduction of different charging arrangements for different types of EVs and the progressive marketisation of charging services to promote the sustainable development of EVs in the long run. Specifically, e-PCs should be mainly charged at home, work place or frequently visited places while parking, whereas public charging facilities mainly serve ad-hoc top-up charging needs. As regards electric commercial vehicles (e-CVs) with relatively long operation hours and high mileage, apart from the charging facilities at their parking places, quick charging facilities are also needed for topping up their batteries in daily operation.
 
     The Policy Address announced that tenders will be invited in the first quarter of 2024 for the conversion of two vacant petrol filling station sites in East Kowloon and New Territories East into quick charging stations (QCSs). With power of charger no less than 100 kilowatts, which is at least ten times higher of that of medium chargers, chargers at QCS can meet different charging needs of EVs, especially those of e-CVs (such as taxis and public light buses) for quick top-ups.
 
(4) Due to the limited area of QCSs, the Government will not require the operators to provide eateries or supermarkets within QCSs. As the advancement in charging technologies will further reduce charging time, there should be a diminishing need of drivers/passengers for such facilities as eateries when waiting for the completion of charging. Nevertheless, the Government will, at the initial stage, consider relaxing the land lease conditions for QCSs to allow operators to extend the area of convenience store thereat for providing car-related products and refreshments to drivers/passengers during EV charging.
 
(5)  According to the information from the MTR Corporation Limited (MTRCL), 18 EV charging facilities have been installed in total at four of its car parks participating in the Park and Ride Scheme. It also plans to provide over 200 additional EV charging facilities at its car parks before 2025. The Government will continue to liaise with the MTRCL, encouraging the MTRCL to provide more EV chargers at its car parks. With the progressive marketisation of EV charging services at government car parks, we believe that more public and private organisations, such as the MTRCL, will enhance the charging services at their car parks or become charging service providers to develop EV charging networks.
 
(6) In earlier years, the EPD conducted a pilot scheme at four government open car parks with the installation of a total of 11 outdoor medium chargers to test their performances. The results showed that the chargers functioned well in outdoor environment, and could be used at open car parks. However, having considered the relevant factors including power supply and space constraints, possible impact on nearby traffic, and the parking needs of other drivers, the Government has no plans to install charging facilities near existing public metered parking spaces.
 
     The Government will ensure that there will be sufficient charging facilities to meet the growing demand for EV charging. It is the Government’s policy that e-PC owners should mainly charge their cars at home, work place or frequently visited places while parking. To this end, the Government has introduced a number of initiatives, including the EV-charging at Home Subsidy Scheme and granting gross floor area concessions, to substantially increase the provision of EV charging infrastructure in car parks of existing housing estates and newly built buildings. About 37 800 EV charging infrastructure have been equipped so far across the city under these two initiatives. Meanwhile, the Government has been accelerating the marketisation of EV charging services. For instance, charged EV charging services have been progressively introduced at government car parks since end-2023 to drive the participation of the private sector in providing more charging facilities for EV drivers, with a view to increasing the number of public and private parking spaces with charging infrastructure to about 200 000 by mid-2027, a target as set out in the Policy Address.
 
(7) The Government will introduce a bill in 2024 to establish a common legislative framework applicable to different products for the Producer Responsibility Schemes (PRSs) and formulate relevant subsidiary legislation. The PRSs for five types of products, including retired EV batteries, will be implemented gradually starting from 2025. These PRSs allow stakeholders in the supply chain to share the responsibilities for the collection, recycling, handling and disposal of waste products. Retired EV batteries that properly and effectively enter into the recycling chain can facilitate the development of second-life applications, thereby turning waste into resources, thus promoting the development of the circular economy.
 
     To facilitate the development of the battery recycling industry, the EPD has invited tender for a piece of land in EcoPark to develop a recycling facility for retired EV batteries, and the tender invitation was closed in November 2023. The relevant tender proposals are currently under evaluation. read more

     The Government today (January 10) announced the appointments of two new non-official members to the Human Resources Planning Commission (HRPC), Mr Kenneth Chan Yin and Mr Lui Ho-yin, for a term from January 15 to December … read more

     Following is a question by the Hon Chan Yung and a written reply by the Secretary for Constitutional and Mainland Affairs, Mr Erick Tsang, in the Legislative Council today (January 10):
 
Question:
 
     To further enhance publicity and promotion as well as the support for Hong Kong residents and enterprises in the Mainland cities of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), the Hong Kong Economic and Trade Office in Guangdong has set up the Guangdong-Hong Kong-Macao Greater Bay Area Development Promotion Centre (the Promotion Centre) to further strengthen co-operation with the Hong Kong Trade Development Council, InvestHK and relevant organisations and institutions in the Mainland, provide GBA-related information and enquiries services, and render appropriate assistance to Hong Kong residents and enterprises when needed. In this connection, will the Government inform this Council:
 
(1) of the number of exchanges and promotional activities organised by the Promotion Centre for Hong Kong residents and enterprises in Mainland cities since its establishment (with a tabulated breakdown by the nature of activities (e.g. providing enquiries services, organising seminars and study missions)) and the specific details of such activities;
 
(2) of the number of requests for assistance received by the Promotion Centre from Hong Kong residents and enterprises since its establishment; and
 
(3) whether the Promotion Centre will continue to follow up the operating conditions of Hong Kong enterprises participating in the exchanges and promotional activities, and establish a method to quantify the effectiveness of such activities; if so, of the details; if not, the reasons for that?
 
Reply:
 
President,
 
     The Hong Kong Special Administrative Region (HKSAR) Government has all along attached great importance to the development of the Guangdong-Hong Kong-Macao Greater Bay Area (Greater Bay Area), and has introduced a number of policy measures in various areas to support Hong Kong residents and enterprises to pursue development in the Mainland cities of the Greater Bay Area, as well as to assist Mainland cities of the Greater Bay Area in tapping into international markets, thereby fully leveraging Hong Kong’s dual roles in “going global and attracting foreign investment”. The development of the Greater Bay Area is the best entry point for Hong Kong to better integrate into overall national development. The HKSAR Government will proactively take forward the high-quality development of the Greater Bay Area based on the spirit of achieving mutual benefits and facilitating reciprocal development. 
      
     Our reply to the Hon Chan Yung’s question is as follows:
      
     The Guangdong-Hong Kong Macao Greater Bay Area Development Promotion Centre (Promotion Centre) established under the Hong Kong Economic and Trade Office in Guangdong officially came into operation in April 2023 to further enhance the publicity and promotional efforts of the HKSAR Government in the Mainland cities of the Greater Bay Area, as well as to provide support for Hong Kong residents and enterprises there. During its initial stage of operation, the Promotion Centre visited the Greater Bay Area Offices as well as relevant government departments of Guangdong Province and the nine Mainland cities of the Greater Bay Area to establish close and cordial working relations, and conducted visits to Hong Kong-Macao Youth Innovation and Entrepreneurial Bases in the Mainland cities of the Greater Bay Area to learn about the operation of the bases and the preferential policies and measures provided to Hong Kong young people.
      
     Through strengthening strategic co-operation with the Hong Kong Trade Development Council (HKTDC) and relevant organisations and institutions in the Mainland, and through providing practical information and enquiry services on the Greater Bay Area, as well as organising different types of activities including seminars and study missions, etc, the Promotion Centre promotes the opportunities brought about by Greater Bay Area development for Hong Kong residents and enterprises interested in pursuing development in the Mainland cities of the Greater Bay Area. The Promotion Centre also seeks to better understand the needs of Hong Kong residents and enterprises and strives to provide them with practical assistance. At the same time, the Promotion Centre, through different forms of exchanges and promotional activities, encourages Mainland talents and enterprises to leverage Hong Kong’s unique advantages under the principle of “one country, two systems”, to explore more development opportunities in Hong Kong and to “go global”, thereby creating even greater room for development.
      
     Specifically, the Promotion Centre organised and participated in different activities on Greater Bay Area development, including jointly organising the “GoGBA Greater Bay Area Development Day” seminar with the Greater Bay Area Development Office and the HKTDC (Guangzhou) in April 2023, during which successful entrepreneurs and start-ups shared their experiences and exchanged views with participants on how to capitalise on the huge opportunities arising from Greater Bay Area development.  In May 2023, the Promotion Centre staged an exhibition at the SmartHK “Promotion of High-quality Development • Hong Kong Forum” co-hosted by the HKTDC and the Guangdong Provincial Department of Commerce to showcase Hong Kong’s important roles and unique strengths in Greater Bay Area development. It also co-organised with the HKTDC a sharing session of “Promotion of High-quality Development • Hong Kong Forum Smart+Start-up Pitching Event”. In August and October 2023, the Promotion Centre co-organised seminars with relevant government departments and organisations in Guangzhou and Huizhou respectively to introduce to representatives of enterprises as well as young people and start-up enterprises the environment for investment and entrepreneurship, taxation and talent policies, etc, of relevant Mainland cities and Hong Kong, as well as to arrange for Hong Kong entrepreneurs in the Mainland to share their personal experiences. These activities assisted enterprises, young people and start-ups from Guangdong and Hong Kong to better understand the development trends and latest policies of the Greater Bay Area, so as to grasp the business opportunities and expand their business networks.
      
     In addition, the Promotion Centre arranged and facilitated various Hong Kong organisations and groups to conduct visits to the Mainland cities of the Greater Bay Area, particularly in making arrangement for delegates to meet with representatives from local governments and enterprises, and introducing to delegates opportunities brought about by Greater Bay Area development, as well as helping delegates to expand and strengthen their networks, etc. In August 2023, the Promotion Centre arranged for the Hong Kong delegation of the “Synergise GBA” of the HKTDC to attend a networking dinner with the Council for the Promotion of Guangdong-Hong Kong-Macao Co-operation. In October of the same year, the Promotion Centre collaborated again with the HKTDC and served as a strategic partner of another trade mission of the HKTDC to Guangzhou, introducing to delegates the development trends and latest policies on Greater Bay Area development. In early December 2023, the Promotion Centre assisted the Belt and Road Office of the Commerce and Economic Development Bureau to make arrangements for the business delegation of enterprises of Belt and Road countries operating in Hong Kong to visit Guangzhou and Shenzhen, so as to enhance the delegates’ understanding of the huge business opportunities in the Greater Bay Area.
      
     Categorised by nature of activities, the numbers of exchanges and promotional activities like seminars or symposiums etc, studies or visits organised or participated by the Promotion Centre as well as enquiry services provided, from April to December 2023, are as follows:
     

Nature of activities	April to December 2023 (Number)
Exchanges and promotional activities such as seminars or symposiums organised and participated	45
Studies or visits conducted	38
Enquiry services provided as well as meetings and exchanges with visiting organisations/personnel	25

 
     During the period from April to December 2023, the Promotion Centre received a total of 52 enquiries and requests for assistance from Hong Kong residents and enterprises, including issues about setting up businesses in the Mainland and taxation matters. Based on the nature of enquiries and requests for assistance, the Promotion Centre has rendered appropriate assistance, including providing relevant information or making suitable referrals and follow-up.
      
     Looking ahead, the Promotion Centre will continue to build on its good foundation of work and maintain close contact with Hong Kong residents and enterprises in the Mainland cities of the Greater Bay Area, as well as Mainland government agencies and related bodies. At the same time, the Promotion Centre will strive to understand, through various channels, the development situation and needs of Hong Kong residents and enterprises in the Mainland as well as the latest policies and facilitation measures of the Mainland cities of the Greater Bay Area. It will, through various kinds of meetings, exchanges and promotional activities, provide practical information and appropriate support to Hong Kong residents and enterprises and assist them in making the best use of the opportunities brought about by Greater Bay Area development. read more