Following is a keynote speech by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, at a lunch seminar themed "Connecting Wealth, Empowering Legacies: Hong Kong – The Premier Global Hub for Family Offices" held in Jakarta, Indonesia, yesterday (December 12):
 
Mr Sun (Country Manager of Bank of China (Hong Kong) Limited Jakarta Branch, Mr Sun Shangbin), Mr Chan (Vice President of Indonesia Chamber of Commerce in Hong Kong, Mr Brian Chan), distinguished guests, ladies and gentlemen,
 
     Good afternoon. I am pleased to join you all at the lunch seminar today and share with you the Hong Kong Government's strategies to augment our position as a family office hub, and what we have to offer to achieve your families' aspirations.
 
Overview
 
     The global growth of family offices is evident, with Asia emerging as both a source of family offices and a destination of their investments. In this connection, Hong Kong is best poised to offer a global investment platform to capture these business opportunities. We are the third in the world, after New York and London, in the latest Global Financial Centres Index. We are also the world's freest economy, with free flow of capital, goods, information and people. On asset and wealth management, we are Asia's leading hub managing US$4 trillion in terms of worth of assets last year. Net fund inflows into Hong Kong has reached US$50 billion, representing a substantial rise by over 3.4 times year on year. The industry also estimates that Hong Kong will surpass Switzerland to become the world's largest cross-border wealth management centre in the next few years.
 
     Currently in Hong Kong, we have the highest number of ultra-high-net-worth individuals of any Asian city. We are home to some 2 700 single family offices, and we will further our efforts in attracting more, bringing in increasing volume of capital, talent and business opportunities, and of course from Indonesia as well. And today, I know I am right before your lunch, so I will try to make my speech as short as possible and, at the same time, I want to make it as memorable as possible. In such a way, I would like to share with you four Ts in terms of what Hong Kong can offer to give you a clearer understanding of Hong Kong as a global investment centre and also family office hub.
 
Ties with Mainland and global capital markets
 
     First of all, the first T is about our ties with the Mainland and also the global capital markets. We are in strong ties with the Mainland, enabling Hong Kong to be the only city where both the global and China advantages converge. Hong Kong's core advantage, our "one country, two systems" principle, is the very bedrock of our continuing success, empowering us to be a "super connector" and "super value-adder" in the high-quality opening up of the Mainland's financial markets, and providing you and your family offices with unparalleled investment opportunities.
 
     This year marks the 10th anniversary of mutual access between the Mainland and Hong Kong capital markets, a shining beacon of the unparalleled connectivity that we enjoy. Over the decade, a variety of programmes, from Stock Connect and Bond Connect to Swap Connect, have been introduced one after another, with gratifying results. The average daily Northbound turnover of Stock Connect, which means international money going through Hong Kong into the Mainland capital markets, for example, has surged from less than RMB6 billion when it was launched in 2014, that is 10 years ago, to an average of more than RMB136 billion as of October this year – an increase of 23 times.
 
     What's more, Hong Kong has long been the largest offshore Renminbi hub in the world. As of October this year, we hold more than 1.1 trillion in Renminbi deposits and process about 80 per cent of the global offshore Renminbi payments.
 
Tax environment
 
     Moving on to the next T, which is about tax, I am sure all of you are very concerned. The favourable tax environment in Hong Kong is that we have a very simple and also a very low tax regime. We have no sales taxes, no value-added taxes, no capital gains taxes, no estate duties, no taxes on dividends or interest earned, and also no withholding taxes on investments. That is a lot of no tax, ladies and gentlemen. Of course sometimes I am just wondering how I got paid with such low taxes. But anyway, it is what it is now and what is going to be going forward.
 
     Currently, we offer profits tax exemption for single family offices managed in Hong Kong. With a view to attracting more family offices to Hong Kong, we will further enhance our tax exemption regime for single family offices, and we have just launched an industry consultation on the proposed enhancements. Among others, we are looking into expanding the types of eligible transactions to cover emission derivatives or emission allowances, carbon credits, insurance-linked securities, loans and private credit investments, virtual assets, etc, in our tax exemption regime for family offices.
 
Talent
 
     The third T that I would like to cover is about talent. Apart from tax incentives, the third T, which is talent, demonstrates our strong emphasis on attracting and nurturing talent. For talent and asset owners wishing to reside and pursue development in Hong Kong, our New Capital Investment Entrant Scheme launched in March this year has received around 700 applications, potentially bringing in capital of over HK$21 billion. We have recently enhanced the Scheme by allowing investments in eligible residential properties apart from commercial properties. In addition, investments made through an eligible private company wholly owned by an applicant will also be allowed with effect from March 1 next year and be considered as eligible assets.
 
     On nurturing talent, last year, we established the Hong Kong Academy for Wealth Legacy. It offers next-generation wealth owners and private wealth-management professionals knowledge sharing, talent development and, most importantly, networking opportunities via workshops, conferences and related events. What we seek to do is to provide a programme on succession planning and impact investment for our second and also third generations of the family offices.
 
Tailored initiatives for family offices
 
     The final T is about tailored initiatives for family offices, which involve collaboration and services for our family offices. Various financial mega events are held throughout the year in Hong Kong, and the Wealth for Good in Hong Kong Summit is our annual signature event bringing together influential decision-makers from global family offices to explore themes capturing critical priorities faced by family offices including wealth preservation and succession. Please stay tuned for the details of the third edition to be held next March, following which there will also be Art Basel and many investment related events, which you are most welcome to join.
 
     Building on the above-mentioned success, we have recently announced the establishment of a strategic collaboration with Bloomberg to enhance our appeal to family offices worldwide. The partnership with Bloomberg, focusing on community building, technology support and philanthropic collaboration, is designed to complement our family office initiatives.
 
     Invest Hong Kong's dedicated family office team, let me add, will continue to provide one-stop services to family offices interested in establishing a presence in Hong Kong. To date, the team has received more than 900 enquiries from interested family offices around the world. And they are standing by to help with your family office needs. You are most welcome to contact the team through the Hong Kong Economic and Trade Office in Jakarta if you are looking to set foot in Hong Kong.
 
Closing
 
     Ladies and gentlemen, as you can see, we are committed to bolstering the development of the family office sector and creating a conducive environment for investors like you. I invite you to join us, to take advantage of the far-reaching opportunities Hong Kong can offer your families, your family businesses and also your other members, for today and also for tomorrow. Thank you.

    

     The Secretary for Financial Services and the Treasury, Mr Christopher Hui, concluded his visit to Jakarta, Indonesia, today (December 13) with a meeting with the Chairman of the Board of Commissioners of the Financial Services Authority of Indonesia. He attended a lunch seminar yesterday (December 12) to promote Hong Kong's advantages as a leading family office hub, met with financial officials and stakeholders in the banking and fintech sectors, and called on the Chinese Ambassador to Indonesia.
 
     Mr Hui met the Chairman of the Board of Commissioners of the Financial Services Authority of Indonesia, Mr Mahendra Siregar, this morning to share insights on boosting the development of virtual assets and other new financial products. Mr Hui also took the opportunity to introduce to him a training programme targeting senior executives from the Association of Southeast Asian Nations (ASEAN) countries to be piloted by the Financial Services Development Council of Hong Kong in partnership with the Hong Kong Securities and Investment Institute in early 2025. Senior executives from Indonesia will be among the first batch of participants to be invited to join the programme to gain a deeper understanding of Hong Kong's value propositions as an international financial centre through expert-led sessions and visits to key public sector stakeholders.
 
     A key event yesterday was a lunch seminar themed "Connecting Wealth, Empowering Legacies: Hong Kong – The Premier Global Hub for Family Offices" co-organised by the Hong Kong Economic and Trade Office in Jakarta, the Indonesia Chamber of Commerce in Hong Kong and the Bank of China (Hong Kong) Limited Jakarta Branch. In his keynote speech at the lunch seminar, Mr Hui highlighted Hong Kong's strategy to augment the city's position as a family office hub with the prospect of becoming the world's largest cross-boundary wealth management centre in the next few years as predicted by the industry.
 
     He shared with participants the four Ts that Hong Kong offers, namely Hong Kong's strong "ties" with the Mainland and global capital markets as a "super connector" and "super value-adder" to provide unparalleled investment opportunities; its favourable "tax" environment with a simple and low tax system offering profit tax exemption for single family offices managed in Hong Kong; strong emphasis on attracting and nurturing "talent" including the recent enhancement to the New Capital Investment Entrant Scheme and the establishment of the Hong Kong Academy for Wealth Legacy last year; as well as "tailored" events, collaborations and services for family offices, including mega financial events like the annual Wealth for Good in Hong Kong Summit, which will hold its third edition next March, bringing together family offices, asset owners and family office service providers from around the world to make it an exclusive and highly anticipated global event for family offices.
 
     Mr Hui also assured the participants that Hong Kong is ready to support family offices and investors including ultra-high-net-worth individuals to come to Hong Kong. The dedicated team from Invest Hong Kong called FamilyOfficeHK, will continue to provide one-stop services to family offices establishing a presence in Hong Kong. The Hong Kong Family Office Nexus, a strategic collaboration with Bloomberg L. P., is also in place to offer support to the family office sector on community building, knowledge sharing, technology support and philanthropic collaboration.
 
     Mr Hui yesterday also met a number of officials and industry stakeholders in the financial sector, including Vice Minister of Finance of Indonesia Dr Anggito Abimanyu. Mr Hui shared views with Dr Abimanyu on the future financial development outlook of Indonesia and Hong Kong, and discussed opportunities to foster closer financial collaboration between the two places.
 
     Moreover, Mr Hui had a meeting with representatives of the Indonesia Fintech Association to exchange views on the latest developments in fintech and financial innovation. He invited Indonesian fintech companies to visit Hong Kong to feel the thriving energy of the local fintech ecosystem and grasp opportunities of mutually beneficial collaboration. Mr Hui also called on the Chinese Ambassador to Indonesia, Mr Wang Lutong, and met with the Country Manager of the Bank of China (Hong Kong) Limited Jakarta Branch, Mr Sun Shangbin.
 
     Mr Hui will return to Hong Kong this afternoon.

              

     Hong Kong Customs on December 4 detected a suspected smuggling case involving a speedboat in the vicinity of Lau Fau Shan, Yuen Long. A batch of suspected smuggled goods, with an estimated market value of about $6.9 million, was seized.

     During the small hours on that day, Customs conducted an anti-smuggling operation in Lau Fau Shan and spotted a speedboat heading towards the waterfront. Later, several suspicious persons gathered at the waterfront were seen transferring a batch of goods from a metal hut onto a nearby sampan and were about to sail towards the said speedboat. They were suspected of engaging in smuggling activities.

     Customs officers immediately took action, and the above-mentioned persons swiftly jumped onto the sampan and speedboat, and fled to Mainland waters. 

     Afterwards, Customs officers discovered inside the metal hut three plastic jerry cans with altered structures, filled with suspected smuggled electronic components and electronic devices. 

     During the operation, around 8 100 pieces of new electronic components and around 90 used mobile phones, with a total estimated market value of about $6.9 million, were seized.

     An investigation is ongoing.

     Customs will continue to take stringent enforcement actions against cross-boundary smuggling activities through risk assessment and intelligence analysis.

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

     Members of the public may report any suspected smuggling activities to Customs' 24-hour hotline 182 8080 or its dedicated crime-reporting email account (crimereport@customs.gov.hk) or online form (eform.cefs.gov.hk/form/ced002).

    

     The Government today (December 13) announced that Professor John Chai Yat-chiu has been reappointed as the Chairman and Professor Kenneth Leung Mei-yee as the Deputy Chairman of the Advisory Council on the Environment (ACE) for two years from January 1, 2025, to December 31, 2026.

     Four new members have been appointed to the ACE. They are Mr Cheung Chi-wah, Ms Grace Kwok May-han, Professor Qiu Jianwen and Mr Jonathan Wu Sheung-kai.

     The Secretary for Environment and Ecology, Mr Tse Chin-wan, said, "I warmly welcome the reappointment of Professor Chai and Professor Leung as the Chairman and the Deputy Chairman respectively of the ACE as well as the appointment of the four new members to the Council. I am looking forward to the continued support of the ACE to the development of environmental protection and conservation policies.

     "I thank the outgoing members, namely Ms Carmen Chan Ka-mun, Dr Sylvia Chan May-kuen, Ms Christina Tang Pik-han, Professor Dan Tsang Chiu-wa and Dr Wong Kwok-yan, for their valuable advice and contributions to the ACE in the past years."

     The appointments are published in the Gazette today. Information on the composition and the work of the Council is available at: www.eeb.gov.hk/en/boards_committees/advisory_council/maincontent.html.
 
     The full membership of the new term of the ACE is as follows:

Chairman:
* Professor John Chai Yat-chiu

Deputy Chairman:
* Professor Kenneth Leung Mei-yee

Members:
Mr Cheung Chi-wah
* Ms Ada Fung Yin-suen
* Mr Eric Ho King-fung
* Ms Linda Ho Wai-ping
* Mr Alex Kwan King-fai
Ms Grace Kwok May-han
* Dr Theresa Kwong Fuk-ning
* Professor Alexis Lau Kai-hon
* Professor Dennis Leung Yiu-cheong
* Mr Simon Ng Ka-wing
* Mr Daryl Ng Win-kong
Professor Qiu Jianwen
* Mr Albert Su Yau-on
* Professor Wong Kam-bo
Mr Jonathan Wu Sheung-kai
* Dr Raymond Yau Man-hung
* Dr William Yu Yuen-ping
 
* Serving members

     The Department of Health (DH) today (December 13) announced that the Shek Wu Hui Elderly Health Centre (SWH EHC) will be relocated to the eighth floor of the North District Community Health Centre Building, 3 Wai Wo Street, Sheung Shui, with effect from December 16 (next Monday) to continue to provide services for the elderly. The reprovisioned centre will be named the North District Elderly Health Centre. Service hours are from 8.30am to 1pm and 2pm to 5.30pm on Mondays to Fridays (except Saturday, Sunday and general public holidays).

     The reprovisioned elderly health centre will provide a more spacious and comfortable environment that is convenient for wheelchair users and will help enhance the overall service standard. Clients who have made appointments at the SWH EHC will receive phone or SMS reminders reminding them to receive services at the new location. 

     There are currently 18 Elderly Health Centres in Hong Kong providing primary healthcare services to the elderly aged 65 and above on a membership basis. Services including health risk assessment, health education, counselling and curative treatment are provided from a family medicine perspective using a multidisciplinary team approach.

     For more information on the DH's Elderly Health Service, please visit its website.