Tag Archives: China

     The Immigration Department (ImmD) mounted a series of territory-wide anti-illegal worker operations codenamed “Greenlane”, “Twilight” and a joint operation with the Hong Kong Police Force codenamed “Windsand” for three consecutive days from November 7 to yesterday (November 9). A total of six suspected illegal workers and two suspected employers were arrested.

     During the anti-illegal worker operations, ImmD Task Force officers raided 13 target locations including industrial buildings, residential buildings, restaurants and a shopping mall. Five suspected illegal workers and two suspected employers were arrested. The arrested suspected illegal workers comprised three men and two women, aged 29 to 53. Among them, one woman was a holder of a recognisance form, which prohibits her from taking any employment. In addition, one man was also suspected of using and being in possession of a forged Hong Kong identity card. Two men, aged 41 and 57, were suspected of employing the illegal workers.

     In addition, during operation “Windsand”, one male Mainland visitor, aged 52, was arrested for breaching his condition of stay by being involved in suspected parallel goods trading at San Wan Road in Sheung Shui district. The goods mainly included health care products and cosmetic products.

     An ImmD spokesman said, “Any person who contravenes a condition of stay in force in respect of him or her shall be guilty of an offence. Also, visitors are not allowed to take employment in Hong Kong, whether paid or unpaid, without the permission of the Director of Immigration. Offenders are liable to prosecution and upon conviction face a maximum fine of $50,000 and up to two years’ imprisonment. Aiders and abettors are also liable to prosecution and penalties.”

     The spokesman warned, “As stipulated in section 38AA of the Immigration Ordinance, an illegal immigrant, a person who is the subject of a removal order or a deportation order, an overstayer or a person who was refused permission to land is prohibited from taking any employment, whether paid or unpaid, or establishing or joining in any business. Offenders are liable upon conviction to a maximum fine of $50,000 and up to three years’ imprisonment. Under the prevailing laws, it is an offence to use or possess a forged Hong Kong identity card or a Hong Kong identity card related to another person. Offenders are liable to prosecution and upon conviction face a maximum penalty of a $100,000 fine and up to 10 years’ imprisonment.”

     The spokesman reiterated that it is a serious offence to employ people who are not lawfully employable. Under the Immigration Ordinance, the maximum penalty for an employer employing a person who is not lawfully employable, i.e. an illegal immigrant, a person who is the subject of a removal order or a deportation order, an overstayer or a person who was refused permission to land, has been significantly increased from a fine of $350,000 and three years’ imprisonment to a fine of $500,000 and 10 years’ imprisonment to reflect the gravity of such offences. The director, manager, secretary, partner, etc, of the company concerned may also bear criminal liability. The High Court has laid down sentencing guidelines that the employer of an illegal worker should be given an immediate custodial sentence.

     According to the court sentencing, employers must take all practicable steps to determine whether a person is lawfully employable prior to employment. Apart from inspecting a prospective employee’s identity card, the employer has the explicit duty to make enquiries regarding the person and ensure that the answers would not cast any reasonable doubt concerning the lawful employability of the person. The court will not accept failure to do so as a defence in proceedings. It is also an offence if an employer fails to inspect the job seeker’s valid travel document if the job seeker does not have a Hong Kong permanent identity card. Offenders are liable upon conviction to a maximum fine of $150,000 and to imprisonment for one year. In that connection, the spokesman would like to remind all employers not to defy the law by employing illegal workers. The ImmD will continue to take resolute enforcement action to combat such offences.

     Under the existing mechanism, the ImmD will, as a standard procedure, conduct an initial screening of vulnerable persons, including illegal workers, illegal immigrants, sex workers and foreign domestic helpers, who are arrested during any operation with a view to ascertaining whether they are trafficking in persons (TIP) victims. When any TIP indicator is revealed in the initial screening, the ImmD officers will conduct a full debriefing and identification by using a standardised checklist to ascertain the presence of TIP elements, such as threats and coercion in the recruitment phase and the nature of exploitation. Identified TIP victims will be provided with various forms of support and assistance, including urgent intervention, medical services, counselling, shelter or temporary accommodation and other supporting services. The ImmD calls on TIP victims to report crimes to the relevant departments immediately.

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     The Centre for Health Protection (CHP) of the Department of Health (DH) today (November 10) said that three new confirmed melioidosis infection cases had been recorded from October 14 to November 10.    &… read more

The following is issued on behalf of the Hong Kong Monetary Authority:
 
     The Hong Kong Monetary Authority (HKMA) announces that a tender of 2-year Exchange Fund Notes will be held on November 21, 2023 (Tuesday) for settlement on November 22, 2023 (Wednesday), as set out in the published tentative issuance schedule. This is to roll over an issue of 2-year Exchange Fund Notes maturing on the same day. 

     A total of HK$1,200 million 2-year Notes will be on offer, of which HK$5 million will be made available for offer to members of the public who wish to submit non-competitive tender bids through Hong Kong Securities Clearing Company Limited (HKSCC). If the Notes reserved for non-competitive tender are under-subscribed, the non-subscribed amount will be added to the portion of notes for competitive tender (initially set at HK$1,195 million). The Notes will mature on November 24, 2025 and will carry interest at the rate of 4.08 per cent per annum payable semi-annually in arrears.

     Members of the public who wish to submit non-competitive tender applications for Notes that are open to HKSCC may do so through Stock Exchange Participants/Brokers, or for those who hold Investor Accounts of the Central Clearing and Settlement System (CCASS) at the HKSCC, directly through HKSCC, for submission to the HKMA for processing. Competitive tender applications for the Notes must be submitted through any of the Eligible Market Makers appointed by the HKMA, with the current published list available on the HKMA’s website at www.hkma.gov.hk. Each tender must be for an amount of HK$50,000 or integral multiples thereof for both competitive and non-competitive tender.
 
     The tender results will be published on the HKMA’s website, the Refinitiv screen (HKMAOOE), and Bloomberg. Applicants who submitted non-competitive tender bids through HKSCC may also obtain the tender results from Stock Exchange Participants/Brokers, or for applicants who hold Investor Accounts at HKSCC’s CCASS from the CCASS terminal for CCASS Broker/Custodian/Participants and CCASS Phone System.

HKMA Exchange Fund Note Programme Tender Information
—————————————————————
     Tender information of 2-Year Exchange Fund Notes:
 

Issue Number	:	02Y2511
Stock code	:	4096 (EFN 4.08 2511)
Tender date and time	:	November 21, 2023 (Tuesday) 9.30am to 10.30am
Issue and Settlement Date	:	November 22, 2023 (Wednesday)
Amount on offer	:	HK$1,200 million (up to HK$5 million for non-competitive tender)
Commencement of/ Deadline for submission of non-competitive tender bids by retail investors through HKSCC	:	Please refer to requirements as set down by HKSCC
Maturity	:	Two years
Maturity Date	:	November 24, 2025 (Monday)
Interest Rate	:	4.08% p.a.
Interest Payment Dates	:	May 22, 2024 November 22, 2024 May 22, 2025 November 24, 2025
Tender amount	:	Each tender must be for an amount of HK$50,000 or integral multiples thereof for both competitive and non-competitive tender. Members of the public who wish to apply for the Notes through non-competitive tenders that are open to HKSCC may do so through Stock Exchange Participants/ Brokers, or for those who hold Investors Accounts at HKSCC’s CCASS, directly through HKSCC. Members of the public who wish to apply for the Notes through competitive tender may only do so through any of the Eligible Market Makers on the current published list.
Other details	:	Please see Information Memorandum published or approach Eligible Market Makers, HKSCC, or brokers who are Exchange Participants of the Stock Exchange of Hong Kong.
Expected commencement date of dealing on the Stock Exchange of Hong Kong	:	November 23, 2023 (Thursday)

     Price/Yield Table of the new EFN at tender for reference* only:
 

Yield-to- Maturity	Price	Yield-to-Maturity	Price
3.080	101.97	4.080	100.08
3.130	101.87	4.130	99.98
3.180	101.78	4.180	99.89
3.230	101.68	4.230	99.80
3.280	101.59	4.280	99.71
3.330	101.49	4.330	99.61
3.380	101.40	4.380	99.52
3.430	101.30	4.430	99.43
3.480	101.21	4.480	99.34
3.530	101.11	4.530	99.24
3.580	101.02	4.580	99.15
3.630	100.92	4.630	99.06
3.680	100.83	4.680	98.97
3.730	100.73	4.730	98.88
3.780	100.64	4.780	98.78
3.830	100.55	4.830	98.69
3.880	100.45	4.880	98.60
3.930	100.36	4.930	98.51
3.980	100.26	4.980	98.42
4.030	100.17	5.030	98.33
4.080	100.08	5.080	98.24

 
*Disclaimer: The information provided here is for reference only. Although extreme care has been taken to ensure that the information provided is accurate and up-to-date, the HKMA does not warrant that all, or any part of, the information provided is accurate in all respects. You are encouraged to conduct your own enquiries to verify any particular piece of information provided on it. The HKMA shall not be liable for any loss or damage suffered as a result of any use or reliance on any of the information provided here. read more

     The Government released today (November 10) the Third Quarter Economic Report 2023, together with the revised figures on Gross Domestic Product (GDP) for the third quarter of 2023.
 
     The Government Economist, Mr Adolph Leung, gave an account of the economic situation in the third quarter of 2023 and the latest GDP and price forecasts for 2023.
 
Main points

＊  The Hong Kong economy continued to revive in the third quarter of 2023, supported by inbound tourism and private consumption. Real GDP grew by 4.1% year-on-year, having increased by 1.5% in the preceding quarter. On a seasonally adjusted quarter-to-quarter comparison, real GDP increased by 0.1%.

＊  Total exports of goods declined further by 8.6% year-on-year in real terms in the third quarter amid weak external demand for goods. Exports to the Mainland fell further. Exports to the US recorded a further decline, and those to the EU continued to fall visibly. Exports to most other major Asian markets shrank in varying degrees. However, exports of services expanded notably further by 23.9%. Exports of travel services leapt almost nine fold thanks to the continued revival of visitor arrivals. Exports of transport services rose further in tandem. Exports of business and other services grew modestly, while exports of financial services fell further.

＊  Domestically, private consumption expenditure rose further by 6.3% year-on-year in real terms in the third quarter alongside rising household income and the Government’s various support initiatives, though the rate of increase moderated somewhat. Overall investment expenditure rebounded sharply by 18.4% against a low base of comparison.

＊  The labour market improved further in the third quarter. The seasonally adjusted unemployment rate declined from 2.9% in the second quarter to 2.8% in the third quarter, and the underemployment rate edged down from 1.1% to 1.0%. The unemployment rates of the various major sectors stayed low in general, with those of many major sectors recording falls. Employment income continued to attain decent growth.

＊  The local stock market remained under pressure in the third quarter, as concerns over the Mainland’s economic outlook and expectations of a prolonged period of high interest rates continued to dampen sentiment. The Hang Seng Index (HSI) closed the quarter at 17 810, down by 5.9% from end-June. The residential property market turned more sluggish in the third quarter. Market sentiment stayed cautious amid rising local interest rates and the challenging external environment.

＊  Consumer price inflation stayed moderate in overall terms in the third quarter. The underlying Composite Consumer Price Index rose by 1.6% year-on-year in the third quarter, compared with the 1.7% increase in the preceding quarter. Prices of meals out and takeaway food recorded a visible but softened increase over a year earlier, while prices of basic food continued to show a modest increase. The increase in prices of electricity remained notable despite a sharp deceleration. Prices of clothing and footwear continued to rise visibly. Price pressures on other major components stayed largely in check. Private housing rentals continued to decline. 

＊  Looking ahead, inbound tourism and private consumption will continue to underpin economic growth for the rest of the year. More visitors could be received as handling capacity recovers further. As regards private consumption, continued improvement in household income and the Government’s various support initiatives including Night Vibes Hong Kong should provide support. Yet, the difficult external environment amid increasing geopolitical tensions and tight financial conditions would continue to weigh on exports of goods and investment and consumption sentiment.

＊  Taking into account the actual outturn in the first three quarters of 2023 and the near-term outlook, the real GDP growth forecast for 2023 as a whole is revised down to 3.2%, from 4.0% to 5.0% in the August round of review. The Government will continue to closely monitor the situation.

＊  On the inflation outlook, overall inflation would stay moderate in the near term. External price pressures are expected to soften further. While domestic business cost might face some upward pressures as the economy continues to revive, it should remain contained in the near term. Taking into account the inflation situation in the first three quarters of 2023 and factors mentioned above, the forecast rates of underlying and headline consumer price inflation for 2023 are revised down to 1.8% and 2.2% respectively, from 2.0% and 2.4% in the August round of review. 
 
Details
 
GDP
 
     According to the revised figures released today by the Census and Statistics Department, real Gross Domestic Product (GDP) grew by 4.1% year-on-year in the third quarter of 2023 (same as the advance estimate), having increased by 1.5% in the preceding quarter. On a seasonally adjusted quarter-to-quarter comparison, real GDP increased by 0.1% in the third quarter (same as the advance estimate) after a 1.3% decrease in the preceding quarter (Chart).
 
     The latest figures on GDP and its major expenditure components up to the third quarter of 2023 are presented in Table 1. Developments in different segments of the economy in the third quarter are described below.
 
External trade
 
     Total exports of goods declined by 8.6% year-on-year in real terms in the third quarter of 2023, further to the fall of 15.1% in the preceding quarter. The weak external demand for goods continued to weigh on export performance. Analysed by major market and by reference to external merchandise trade statistics, exports to the Mainland fell further in the third quarter. Exports to the US recorded a further decline, and those to the EU continued to fall visibly. Exports to most other major Asian markets shrank in varying degrees. On a seasonally adjusted quarter-to-quarter basis, total exports of goods decreased by 0.3% in the third quarter, after a 0.5% decrease in the preceding quarter.
 
     Exports of services expanded notably by 23.9% year on year in real terms in the third quarter, after growing by 22.8% in the preceding quarter. Exports of travel services leapt almost nine fold and recovered to 53% of the level in the same quarter in 2018, thanks to the continued revival of visitor arrivals during the quarter. Exports of transport services rose further in tandem. Exports of business and other services grew only modestly amid the difficult external environment. Meanwhile, exports of financial services fell further alongside subdued cross border financial and fund raising activities. On a seasonally adjusted quarter-to-quarter basis, exports of services declined by 1.8% in the third quarter, having increased by 5.3% in the preceding quarter.

Domestic sector
 
     Consumption activities stayed strong in the third quarter of 2023, supported by rising household income and the Government’s various support initiatives. Private consumption expenditure rose further by 6.3% year-on-year in real terms in the third quarter, though the growth rate narrowed from 7.7% in the preceding quarter as the difficult global economic environment dampened consumer sentiment. On a seasonally adjusted quarter to quarter basis, private consumption expenditure fell slightly by 0.8%, following an increase of 3.4% in the preceding quarter. Meanwhile, government consumption expenditure fell by 4.5% year-on-year in the third quarter, after a 9.8% decrease in the preceding quarter.
 
     Having declined by 0.5% in the preceding quarter, overall investment spending in terms of gross domestic fixed capital formation rebounded sharply by 18.4% in real terms in the third quarter over a year earlier against a low base of comparison despite the eased business sentiment. Expenditure on acquisitions of machinery, equipment and intellectual property products surged by 39.9%. Expenditure on building and construction rose notably by 12.5%, with increases seen in both public and private sector spending. Separately, the costs of ownership transfer fell as property transactions shrank.
 
The labour sector
 
     The labour market improved further in the third quarter of 2023. The seasonally adjusted unemployment rate declined from 2.9% in the second quarter to 2.8% in the third quarter, and the underemployment rate edged down from 1.1% to 1.0%. The unemployment rates of the various major sectors stayed low in general, with those of many major sectors recording falls. The median monthly employment earnings continued to attain decent year-on-year growth of 7.1% in the third quarter.
 
The asset markets
 
     The local stock market remained under pressure in the third quarter of 2023, as concerns over the Mainland’s economic outlook and expectations of a prolonged period of high interest rates continued to dampen sentiment. The HSI was range-bounded in July, and trended down in the ensuing two months. It closed the quarter at 17 810, 5.9% lower than end-June. On November 9, the HSI closed at 17 511.
 
     The residential property market turned more sluggish in the third quarter. Market sentiment stayed cautious amid rising local interest rates and the challenging external environment. The number of transactions, in terms of the total number of sale and purchase agreements for residential property received by the Land Registry, fell visibly by 25% from the preceding quarter or 21% from a year earlier to a low level of 9 174. Overall flat prices fell further by 4% between June and September. The index of home purchase affordability edged down to around 72% in the third quarter alongside the decline in overall flat prices, though the effect was partially offset by higher mortgage rates. Meanwhile, overall flat rentals rose further by 3% during the third quarter. The non-residential property market was quiet in the third quarter. Trading activities for all major market segments stayed subdued, while prices and rentals generally showed only small changes.
 
Prices
 
     Consumer price inflation stayed moderate in overall terms in the third quarter of 2023. Netting out the effects of the Government’s one-off relief measures, underlying Composite CPI inflation stayed moderate at 1.6% in the third quarter, compared with 1.7% in the preceding quarter. Prices of meals out and takeaway food recorded a visible but softened increase over a year earlier, while prices of basic food continued to show a modest increase. The increase in prices of electricity remained notable despite a sharp deceleration. Prices of clothing and footwear continued to rise visibly. Price pressures on other major components stayed largely in check. Private housing rentals continued to decline. Domestic business cost pressures remained contained. Wage growth accelerated further on the back of the continued improvement in labour market conditions, but was still largely moderate. Commercial rentals stayed soft. External price pressures showed some moderation, alongside easing inflation in many major economies from earlier peaks. The headline Composite CPI inflation rate was 1.9% in the third quarter, compared with 2.0% in the preceding quarter.
 
Latest GDP and price forecasts for 2023
 
     Looking ahead, inbound tourism and private consumption will continue to underpin economic growth for the rest of the year. More visitors could be received as handling capacity recovers further. As regards private consumption, continued improvement in household income and the Government’s various support initiatives including Night Vibes Hong Kong should provide support. Yet, the difficult external environment amid increasing geopolitical tensions and tight financial conditions would continue to weigh on exports of goods and investment and consumption sentiment.
 
     Taking into account the actual outturn in the first three quarters of 2023 and the near-term outlook, the real GDP growth forecast for 2023 as a whole is revised down to 3.2%, from 4.0% to 5.0% in the August round of review (Table 2). The Government will continue to closely monitor the situation. For reference, the latest growth forecasts by private sector analysts range from 3.2% to 4.0%, averaging around 3.5%.

     On the inflation outlook, overall inflation would stay moderate in the near term. External price pressures are expected to soften further. While domestic business cost might face some upward pressures as the economy continues to revive, it should remain contained in the near term. Taking into account the inflation situation in the first three quarters of 2023 and factors mentioned above, the forecast rates of underlying and headline consumer price inflation for 2023 are revised down to 1.8% and 2.2% respectively, from 2.0% and 2.4% in the August round of review (Table 2).
 
     The Third Quarter Economic Report 2023 is now available for online download, free of charge at www.hkeconomy.gov.hk/en/situation/index.htm. The Report of the Gross Domestic Product by Expenditure Component, which contains the GDP figures up to the third quarter of 2023, is also available for browse and download, free of charge on the homepage of the Census and Statistics Department, www.censtatd.gov.hk. read more

     In response to the Japanese Government’s plan to discharge nuclear-contaminated water at the Fukushima Nuclear Power Station, the Director of Food and Environmental Hygiene issued a Food Safety Order which prohibits all aquatic products, sea salt and seaweeds originating from the 10 metropolis/prefectures, namely Tokyo, Fukushima, Ibaraki, Miyagi, Chiba, Gunma, Tochigi, Niigata, Nagano and Saitama, from being imported into and supplied in Hong Kong.
 
     For other Japanese aquatic products, sea salt, and seaweeds that are not prohibited from being imported into Hong Kong, the Centre for Food Safety (CFS) of the Food and Environmental Hygiene Department will conduct comprehensive radiological tests to verify that the radiation levels of these products do not exceed the guideline levels before they are allowed to be supplied in the market.
 
     As the discharge of nuclear-contaminated water is unprecedented and will continue for 30 years or more, the Government will closely monitor and step up the testing arrangements. Should anomalies be detected, the Government does not preclude further tightening the scope of the import ban.
 
     From noon on November 9 to noon today (November 10), the CFS conducted tests on the radiological levels of 169 food samples imported from Japan, which were of the “aquatic and related products, seaweeds and sea salt” category. No sample was found to have exceeded the safety limit. Details can be found on the CFS’s thematic website titled “Control Measures on Foods Imported from Japan” (www.cfs.gov.hk/english/programme/programme_rafs/programme_rafs_fc_01_30_Nuclear_Event_and_Food_Safety.html).
 
     In parallel, the Agriculture, Fisheries and Conservation Department (AFCD) has also tested 50 samples of local catch for radiological levels. All the samples passed the tests. Details can be found on the AFCD’s website (www.afcd.gov.hk/english/fisheries/Radiological_testing/Radiological_Test.html).
 
     The Hong Kong Observatory (HKO) has also enhanced the environmental monitoring of the local waters. No anomaly has been detected so far. For details, please refer to the HKO’s website
(www.hko.gov.hk/en/radiation/monitoring/seawater.html).
 
     From August 24 to noon today, the CFS and the AFCD have conducted tests on the radiological levels of 13 407 samples of food imported from Japan (including 8 895 samples of aquatic and related products, seaweeds and sea salt) and 3 860 samples of local catch respectively. All the samples passed the tests. read more