The following is issued on behalf of the Hong Kong Monetary Authority:
 
     The Monetary Authority announced today (November 3) that the countercyclical capital buffer (CCyB) ratio for Hong Kong remains unchanged at 1 per cent.
      
     "While quantitative indicators suggest that overheating risks in Hong Kong remain well contained, uncertainties about the global environment have heightened," the Monetary Authority, Mr Eddie Yue, said. "In view of the planned transition to a Positive Neutral CCyB of 1 per cent in 2024, it is appropriate to keep the CCyB ratio at the current level for the time being and continue to monitor the situation closely."
      
     Further details of the decision may be found in the Announcement of the CCyB to Authorized Institutions on the HKMA website.
 
Background

     In setting the CCyB ratio the Monetary Authority considered a series of quantitative indicators and qualitative information including an "indicative buffer guide" (which is a metric providing a guide for CCyB ratio based on the gap between the ratio of credit to GDP and its long term trend, and between the ratio of residential property prices to rentals and its long term trend). The latest indicative buffer guide, calculated based on 2023Q2 data, signals a CCyB of 0 per cent. The projection based on all available data suggests that the indicative buffer guide would likely signal a CCyB of 0 per cent when all relevant 2023Q3 data become available.
      
     Whilst the indicative buffer guide, as its name suggests, provides only a "guide" for CCyB decisions, the determination of the jurisdictional CCyB ratio for Hong Kong is not a mechanical exercise and, in addition to the indicative buffer guide, the Monetary Authority also reviewed a range of other reference indicators. While quantitative indicators suggest that overheating risks in Hong Kong remain well contained, uncertainties about the global environment have heightened. In view of the planned transition to a Positive Neutral CCyB (Note) of 1 per cent in 2024, it is appropriate to keep the CCyB ratio at the current level for the time being and continue to monitor the situation closely.
      
     The CCyB is an integral part of the Basel III regulatory capital framework and is being implemented in parallel by Basel Committee member jurisdictions worldwide. The CCyB has been designed by the Basel Committee to increase the resilience of the banking sector in periods of excess credit growth. The banking sector can then act as a "shock absorber" in times of stress, rather than as an amplifier of risk to the broader economy.
      
     The power to implement the CCyB in Hong Kong is provided by the Banking (Capital) Rules, which enable the Monetary Authority to announce a CCyB ratio for Hong Kong. The specific CCyB requirement applicable to a given Authorized Institution (AI) is expressed as a percentage of its CET1 capital to its total risk-weighted assets. Each AI's CCyB requirement may vary depending on the geographic mix of its private sector credit exposures and the CCyB applicable in each jurisdiction where it has such exposures.

Note: Under the Positive Neutral CCyB approach, authorities aim for a positive CCyB when risks are judged to be neither subdued nor elevated. Please refer to www.bis.org/publ/bcbs_nl30.htm for more information.

     The Census and Statistics Department (C&SD) released the latest provisional figures on restaurant receipts and purchases today (November 3).

     The value of total receipts of the restaurants sector in the third quarter of 2023, provisionally estimated at $27.1 billion, increased by 12.5% over a year earlier. Over the same period, the provisional estimate of the value of total purchases by restaurants increased by 8.1% to $8.6 billion.

     After netting out the effect of price changes over the same period, the provisional estimate of the volume of total restaurant receipts increased by 8.4% in the third quarter of 2023 compared with a year earlier.

     Analysed by type of restaurant and comparing the third quarter of 2023 with the third quarter of 2022, total receipts of Chinese restaurants increased by 18.3% in value and 14.0% in volume. Total receipts of non-Chinese restaurants increased by 5.5% in value and 1.9% in volume. Total receipts of fast food shops increased by 11.4% in value and 7.1% in volume. Total receipts of bars increased by 10.4% in value and 6.6% in volume. As for miscellaneous eating and drinking places, total receipts increased by 18.1% in value and 13.8% in volume.

     Based on the seasonally adjusted series, the provisional estimate of total restaurant receipts decreased by 2.0% in value and 6.4% in volume in the third quarter of 2023 compared with the preceding quarter.

     Comparing the first three quarters of 2023 with the same period in 2022, total restaurant receipts increased by 33.9% in value and 28.9% in volume.

     To facilitate further understanding of the short-term business performance of the restaurants sector, statistics in respect of the restaurant receipts and purchases in individual months of the reference quarter are also compiled.

     Analysed by month, it was provisionally estimated that the value of total receipts of the restaurants sector increased by 14.4%, 12.6% and 10.4% respectively in July, August and September 2023, compared with the corresponding months in 2022.

     After discounting the effect of price changes, it was provisionally estimated that the volume of total restaurant receipts increased by 10.2%, 8.7% and 6.3% respectively in July, August and September 2023, compared with the corresponding months in 2022.

Commentary

     A Government spokesman said that the value of total restaurant receipts continued to record a visible year-on-year increase of 12.5% in the third quarter of 2023, though extreme weather conditions caused some temporary disruption to business in the early part of September.

     Looking ahead, the ongoing recovery of inbound tourism should continue to render support to business of restaurants. Continued improvement in household income, as well as the Government’s various support initiatives including "Night Vibes Hong Kong", should also help.

Further information

     Table 1 presents the revised figures of restaurant receipts by type of restaurant and total purchases by the restaurants sector for the second quarter of 2023 as well as the provisional figures for the third quarter of 2023.

     Table 2 and Table 3 present the revised value and volume indices respectively of restaurant receipts by type of restaurant for the second quarter of 2023 and the provisional indices for the third quarter of 2023.

     Table 4 presents the year-on-year rate of change in total restaurant receipts in value and volume terms based on the original quarterly series, as well as the quarter-to-quarter rate of change based on the seasonally adjusted series.

     The revised figures on restaurant receipts and purchases for the third quarter of 2023 (with breakdown by month) will be released through the website of C&SD (www.censtatd.gov.hk/en/scode540.html) and relevant publications of the Department from December 20, 2023.

     The classification of restaurants follows the Hong Kong Standard Industrial Classification (HSIC) Version 2.0, which is used in various economic surveys for classifying economic units into different industry classes.

     More detailed statistics are given in the “Report on Quarterly Survey of Restaurant Receipts and Purchases”. Users can browse and download the publication at the website of the C&SD (www.censtatd.gov.hk/en/EIndexbySubject.html?pcode=B1080002&scode=540).

     Users who have enquiries about the survey results may contact the Distribution Services Statistics Section of C&SD (Tel.: 3903 7401; e-mail: qsr@censtatd.gov.hk).

     Police today (November 3) appealed to the public for information on a man who went missing in Sheung Shui.
 
     Chu Siu-ming, aged 71, went missing after he left a caring centre on Wo Tai Street on November 1 morning. The staff of his caring centre made a report to Police on the same day.
        
     He is about 1.6 metres tall, 57 kilograms in weight and of thin build. He has a round face with yellow complexion and short grey hair. He was last seen wearing a grey short-sleeved shirt, dark-coloured shorts and dark-coloured slippers.

     Anyone who knows the whereabouts of the missing man or may have seen him is urged to contact the Regional Missing Persons Unit of New Territories North on 3661 3128 or email to rmpu-ntn-1@police.gov.hk, or contact any police station.
 

  

     The effective exchange rate index for the Hong Kong dollar on Friday, November 3, 2023 is 106.4 (down 0.2 against yesterday's index).

     The Environmental Protection Department (EPD) today (November 3) released the latest grading of water quality for nine gazetted beaches that are open for swimming in November.
      
     Four beaches were rated as Good (Grade 1) and five as Fair (Grade 2).
 
Grade 1 beaches are:           

 
Grade 2 beaches are:

 
     Compared with the grading released last week, Silver Mine Bay Beach has been upgraded from Grade 3 to Grade 2.
      
     Under the present grading system, beaches are classified into four grades, namely Good (Grade 1), Fair (Grade 2), Poor (Grade 3) and Very Poor (Grade 4), according to the level of E. coli in the water. Grades are calculated on the basis of the geometric mean of the E. coli counts on the five most recent sampling occasions.
      
     While the ratings represent the general water quality at the beaches, an EPD spokesman reminded members of the public that water quality could be temporarily affected during and after periods of heavy rain. Bathers should avoid swimming at beaches for up to three days after a tropical cyclone or heavy rainfall.
      
     A summary of beach grades is published weekly before the weekend. The latest beach grades based on the most current data may be obtained from the EPD's website on Beach Water Quality (www.epd.gov.hk/epd/beach) or the beach hotline, 2511 6666. Members of the public can also obtain the latest daily water quality forecast information for all beaches that are open for swimming through the Beach Water Quality Forecast mobile application (available for download from: www.epd.gov.hk/en/BWQApp) or the dedicated beach water quality forecast page (www.epd.gov.hk/en/BWQForecast) on the EPD's beach thematic website.