The Government published in the Gazette today (November 29) ​the Employment and Retirement Schemes Legislation (Offsetting Arrangement) (Amendment) Ordinance 2022 (Commencement) Notice (the Commencement Notice) to appoint May 1, 2025, as the day on which the Employment and Retirement Schemes Legislation (Offsetting Arrangement) (Amendment) Ordinance 2022 (the Amendment Ordinance) comes into operation.
      
     Enacted by the Legislative Council in June 2022, ​the Amendment Ordinance seeks to abolish the use of the accrued benefits derived from employers' mandatory contributions under the Mandatory Provident Fund (MPF) System to offset severance payment (SP) and long service payment (LSP) (the offsetting arrangement). Employers may continue to use the accrued benefits of their voluntary contributions and gratuities based on employees' length of service to offset SP/LSP.
      
     The abolition of the offsetting arrangement has no retrospective effect. If an employee's employment commenced before the effective date of the Amendment Ordinance (the transition date), the employer can continue to use the accrued benefits of the MPF contributions (irrespective of whether the contributions are mandatory or voluntary; and irrespective of whether the contributions are made before, on or after the transition date) to offset the employee's SP/LSP for the employment period before the transition date.
      
     The abolition of the offsetting arrangement will also be applicable to occupational retirement schemes under the Occupational Retirement Schemes Ordinance (Cap. 426), the two school provident funds under the Grant Schools Provident Fund Rules (Cap. 279C) and Subsidized Schools Provident Fund Rules (Cap. 279D) and overseas occupational retirement schemes joined by employees from outside Hong Kong which are exempted from the MPF System.
      
     To tie in with the abolition of the offsetting arrangement, the Government will launch the 25-year Subsidy Scheme for Abolition of MPF Offsetting Arrangement on May 1, 2025, to share out the SP/LSP expenses of employers after the abolition of the offsetting arrangement.
      
     "The Government is implementing the preparatory work, and will continue to conduct extensive publicity to help employers and employees understand the abolition of the offsetting arrangement," the Government spokesman said.
      
     The Commencement Notice will be tabled at the Legislative Council on December 4 for negative vetting.

     The Hong Kong Special Administrative Region (HKSAR) Government today (November 28) firmly rejects and strongly disapproves of the groundless attacks, malicious slanders and smears against various aspects of the HKSAR in the so called resolution on Hong Kong passed by the European Parliament.

     A Government spokesman solemnly pointed out, "We strongly condemn any suggestion of imposing unilateral sanctions on any officials of the HKSAR Government based on groundless accusation with no factual basis. The officials will not be threatened by such barbaric and despicable acts.

Hong Kong National Security Law and Safeguarding National Security Ordinance

     All countries in the world are duty bound to safeguard their national security, and the HKSAR, as an inalienable part of the People's Republic of China, is no exception. The Hong Kong National Security Law and the Safeguarding National Security Ordinance are compatible and complementary, jointly establishing a comprehensive and effective legal system for safeguarding national security and ensuring the effective protection of national security. This gives full play to institutional advantages, building a strong line of defence to maintain security and stability in the HKSAR, as well as providing solid institutional safeguards to promote good governance. Implementation of relevant legislation has enabled the livelihood and economic activities of the Hong Kong community, and as well the business environment, to return to normalcy. People living, and businesses operating, in Hong Kong have experienced the major transition from chaos to order herein.

Press freedom

     Hong Kong citizens enjoy freedom of the press and freedom of speech as protected under the Basic Law and the Hong Kong Bill of Rights. In fact, the Hong Kong National Security Law and the Safeguarding National Security Ordinance clearly stipulate that human rights shall be respected and protected in safeguarding national security. The rights and freedoms, including the freedoms of the press, of speech and of publication, enjoyed by Hong Kong people under the Basic Law and the provisions of the International Covenant on Civil and Political Rights (ICCPR) and the International Covenant on Economic, Social and Cultural Rights as applicable to the HKSAR, are protected in accordance with the law.

     Like all other places in the world, such rights and freedoms are not absolute. Journalists, like everyone else, have an obligation to abide by all the laws. Their freedom of commenting on and criticising government policies remains uninhibited as long as they do not violate the law. The court, in its reasons for verdict in a recent case of 'conspiracy to publish seditious publication', has analysed in detail the duties and responsibilities of the media, specifically highlighting that, according to Article 19(3) of the ICCPR, when the media and relevant personnel publish opinions, information and articles, they must observe and discharge 'special duties and responsibilities', including protection of national security or public order, or of public health or morals.

     The court further cited precedents from the European Court of Human Rights regarding press freedom, pointing out that the European Convention on Human Rights does not guarantee a wholly unrestricted freedom of speech even with respect to press coverage on matters of serious public concern. The most crucial point is that journalists must act in good faith and on accurate factual basis and provide reliable and precise information in accordance with the tenets of 'responsible journalism' in order to enjoy the protection of their rights to freedom of speech and press freedom.

     In fact, since the implementation of the Hong Kong National Security Law and the Safeguarding National Security Ordinance, the media landscape in Hong Kong has remained vibrant.

Fair and timely trial

     The HKSAR law enforcement agencies have been taking law enforcement actions based on evidence and strictly in accordance with the law in respect of the acts of the persons or entities concerned, paying no regard to their political stance, background or occupation of the person or organisation involved. Any suggestion that certain individuals or organisations should be immune from legal consequences for their illegal acts, including those involving collusion with foreign or external forces, is no different from advocating a special privilege to break the law, and this totally runs contrary to the spirit of the rule of law.

     As guaranteed by the Basic Law and the Hong Kong Bill of Rights, all defendants charged with a criminal offence shall have the right to a fair trial by the judiciary exercising independent judicial power. The Basic Law also provides that the courts of the HKSAR shall exercise judicial power independently, free from any interference.

     The Correctional Services Department (CSD) is committed to ensuring that the custodial environment is secure, safe, humane, appropriate and healthy, and have put in place established mechanism to ensure the rights of persons-in-custody (PICs) are protected, including arrangement of regular inspection of independent visitors, namely Justices of the Peace.  Adequate medical care is also provided in all institutions.  The HKSAR Government emphasised that the CSD adopts the above arrangements when handling matters related to inmate Lai Chee-ying, which is the same as other PICs.

     In the interests of a particular prisoner or for the maintenance of good order and discipline, the Commissioner of Correctional Services is empowered to make arrangements under section 68B of the Prison Rules that such prisoner should not associate with other prisoners (i.e. the so-called 'solitary confinement'). One of the purposes of the relevant arrangement is to ensure the personal safety and well-being of the PIC, which can be requested by the PIC themselves and approved by the Commissioner after considering the matter in accordance with the law; or the Commissioner may make such arrangements after considering the relevant factors in accordance with the legal requirements and procedures.  It must be clarified that the arrangement for Lai Chee-ying's removal from association from other PICs has been made at his own request and approved by the CSD after considering all relevant factors in accordance with the law all along.

     All cases concerning offence endangering national security will be handled in a fair and timely manner by the law enforcement, prosecution and judicial authorities of the HKSAR as required by Article 42(1) of the Hong Kong National Security Law. The time taken between the institution of prosecution and the completion of trial of each case depends on a multitude of factors. The prosecution and defence will adhere to any direction given by the court to ensure a timely trial.

     In accordance with international law and international practice based on the Charter of the United Nations, safeguarding national security is an inherent right of all sovereign states. Many common law jurisdictions, including the United States, the United Kingdom and Canada, have enacted multiple pieces of legislation to safeguard national security. Turning a blind eye to the facts and making exaggerated remarks, the European Parliament has grossly interfered in China's internal affairs and Hong Kong's affairs, demonstrated typical despicable political manipulation and hypocrisy with double standards. The HKSAR despises the so called 'sanctions' and will not be intimidated. The HKSAR will continue to resolutely discharge the duty of safeguarding national security, and urges them to stop any untruthful reporting on and malicious smearing of the relevant judgment.

Trade

     Hong Kong, being one of the most open economies in the world, firmly supports free and open trade, and a multilateral trading system. This year, Hong Kong has once again been recognised as the world's freest economy. We strongly oppose any trade measures imposed out of political motives. The status of Hong Kong being a separate customs territory is guaranteed under Article 116 of the Basic Law, it cannot be revoked by any outside party.

     Hong Kong and the European Union (EU) are important trading partners. The total value of bilateral merchandise trade reached HK$510 billion in 2023. Hong Kong and the EU have been collaborating over the years, and any malicious acts that undermine the mutually beneficial relations would harm the interests of the EU and its companies.

     The HKSAR Government has been establishing and maintaining economic and trade relations with places around the world in accordance with the 'one country, two systems' principle and has, pursuant to Article 156 of the Basic Law and legislation of the host countries, set up 14 overseas Hong Kong Economic and Trade Offices (ETOs) as the official representatives of the HKSAR, including the one established in Brussels, Belgium which is the official representation of the HKSAR Government to the EU and 15 countries in Europe.

     The ETO in Brussels has been operating in accordance with local legislation and maintaining close liaison with interlocutors in governments, business, think tanks and various sectors to consolidate and enrich the ties of Hong Kong and the EU in different areas such as trade, investment, and arts and culture. The ETO in Brussels will continue to promote Hong Kong's unique advantages, tell the good stories of Hong Kong and, where necessary, refute erroneous reports and clarify misconceptions, so as to foster economic and trade relations and co-operation on different fronts between Hong Kong and the EU on a mutually beneficial basis."

     The Hong Kong Special Administrative Region (HKSAR) Government today (November 28) strongly opposes and condemns the United States (US) for its so-called travel advisory, which once again confuses the public and maliciously smears the HKSAR.

     A spokesman for the HKSAR Government said, "As a highly international city, Hong Kong has frequent exchanges and close liaison with other countries, regions and relevant international organisations. Such normal exchange activities are protected by the Basic Law and the laws of Hong Kong. What the Hong Kong National Security Law (NSL) and other relevant laws regulate is the use of Hong Kong by foreign countries or external elements to carry out acts and activities endangering national security, which is obviously different from normal exchange activities."

     "The laws related to national security provide clear definition to the offences. No one, including tourists, will unwittingly breach the law. The US has manipulated its foreign travel advisory into a political instrument, creating the illusion that all tourists coming to Hong Kong will be regarded as culprits endangering national security, thereby affecting travel. Such action bears ulterior motives, and is extremely appalling and irresponsible," the spokesman said.

     "In fact, Hong Kong remains an attractive destination for tourists. Following the resumption of normal cross-boundary travel starting from February 2023, Hong Kong's tourism industry began to recover at full speed with a steady growth in visitor arrivals. From January to October 2024, some 36.7 million arrivals were recorded, representing a year-on-year increase of about 37 per cent. In addition, the international business community continues to have confidence in Hong Kong. A survey by the American Chamber of Commerce in Hong Kong earlier this year noted that nearly 80 per cent of its members have confidence in Hong Kong's rule of law. Close to 70 per cent of the respondents indicated that their operations had not been affected by the NSL. The US has substantial economic interest in Hong Kong. Over the past decade, it registered a trade surplus of about US$270 billion with Hong Kong. Over 1 200 US companies operate in Hong Kong.

     "Security and development work together like the two wings of a bird. Development requires a safe social environment. In March 2024, the HKSAR fulfilled the constitutional responsibility and historic mission of enacting local legislation for Article 23 of the Basic Law. The newly enacted Safeguarding National Security Ordinance (SNSO) achieves convergence, compatibility and complementarity with the NSL. Together they form a comprehensive legal system and enforcement mechanism for safeguarding national security. Now that stability and security have been restored in Hong Kong, Hong Kong people can regain the enjoyment of rights and freedoms which many of them were unable to enjoy during the period of serious violence and Hong Kong version of 'colour revolution' in 2019. The HKSAR Government solemnly urges the US to discern fact from fallacy, stop immediately their wanton slanders and smears against the HKSAR," the spokesman reiterated.

     Following is the speech by the Permanent Secretary for Financial Services and the Treasury (Financial Services), Ms Salina Yan, at the Hong Kong Institute of Directors Annual Dinner cum Award Ceremony for Director Excellence 2024 today (November 28):

Dr Christopher To (Chairman of the Hong Kong Institute of Directors), å¾�衛剛部長 (Director-General of the Economic Affairs Department of the Liaison Office of the Central People's Government in the Hong Kong Special Administrative Region, Mr Xu Weigang), Dr Kelvin Wong (Chairman of the Securities and Futures Commission), Dr Moses Cheng (Founder Chairman of the Hong Kong Institute of Directors), distinguished guests, ladies and gentlemen,

     Good evening. It is my great pleasure to join you all today to celebrate the anniversary of the Hong Kong Institute of Directors (HKIoD) and to congratulate the winners of this year's Awards for Director Excellence.

     For 27 years, the HKIoD has played an important role in anchoring Hong Kong's position as a leading international financial centre through its unwavering commitment to promoting excellence in corporate governance and director professionalism. The Institute has made significant strides in fostering a culture of robust governance which is indispensable for earning the trust of clients, investors, business partners and stakeholders in growing a business or an entity and making it strong and prosperous over time. As the Institute's Statement of Definition for Corporate Governance points out, the board of directors of a company is ultimately responsible for corporate governance and making strategic decisions that determine the company's prosperity and integrity. I would add that a company's prosperity and integrity can contribute to the overall economic and social development of a community as well. The core values of a company and those of the society can find alignment through good corporate governance.

     The Directors of the Year Awards, launched in 2001, give due recognition of exemplary boards and directors who set benchmarks for good governance practices. The theme of this year's Awards, "Leading with Agility in an Era of Innovation," resonates deeply the world's fast-paced development and the HKSAR (Hong Kong Special Administrative Region) Government's policy emphasis on innovation and technology. Rapid technological advancements not only demand, but can help provide, new and modern approaches for delivering corporate governance. 

     In this connection, apart from issuing policy statements on the new technological frontier of virtual assets enabled by blockchain ledger and exponential opportunities enabled by artificial intelligence, the Financial Services and the Treasury Bureau has also made considerable progress in modernising our company law, the vehicle that provides the legal basis for the operation of our companies. 

     Last year, with the endorsement of the Legislative Council, we amended the Companies Ordinance to enable companies to hold virtual or hybrid general meetings, in addition to meetings in physical locations. This change is essential for businesses to hold meetings despite unexpected circumstances such as the pandemic, thus ensuring that corporate affairs can still be handled in challenging times.

     To better leverage the opportunities and convenience offered by the digital economy, we will soon introduce another set of legislative proposals to amend the Companies Ordinance so that Hong Kong companies can adopt an implied consent mechanism for disseminating corporate communications via websites. This change will alleviate companies' administrative burden, streamline the communication process and enhance operational efficiency. The same bill will also make possible a treasury regime that allows listed companies greater flexibility in managing their capital through share buy-backs, holding bought-back shares in treasury without cancelling the shares, while safeguarding shareholder interests through prior approvals and repurchase moratoriums.

     Ultimately, we are moving to an uncertificated or paperless securities market regime. We have already provided for the overall framework in the law and will introduce the detailed rules on the operation next year. When this is done, the whole process from IPO to any subsequent change of share ownership can be done digitally.

     Apart from being a conduit, innovation and technology (I&T) is also a catalyst for change in our capital markets. Together with the Hong Kong Exchanges and Clearing Limited (HKEX) and the Securities and Futures Commission, we have taken steps to ensure that our listing platform is adequately modernised to cater for the funding needs of I&T companies. Hence, apart for pre-profit bio-tech companies, HKEX has updated the listing rules to welcome in specialist tech companies, and under the revamped GEM board, companies not reaching the pre-requisite cash flow but with substantial research component can also be admitted. The result has been very encouraging. Since the listing reforms in 2018, more than 300 companies listed in the Stock Exchange belong to the new economy.

     Technological advancements have certainly enhanced our ability to cope with working under severe weather conditions. Remote working arrangements, online banking and securities services are crucial in facilitating trading and clearing. To improve the efficiency of our listing platform, maintain mutual market access channels with other securities markets, including markets in the Mainland, and enhance our competitiveness, we have taken a big step forward in maintaining normal trading operation under severe local weather conditions since September 23. To make this happen, the stock exchange, market participants, banks and other associated service providers have worked hard to create a practical work plan that allows trading, clearing, investing and fund transfers to continue under inclement weather conditions. 

     I am happy to say that our market operated smoothly on the first trading day under the severe weather test when typhoon no. 8 signal was hoisted two weeks ago. This is a good demonstration of our commitment to enhancing our market infrastructure and raising our competiveness leveraging technology and innovation.

     Talking about severe or unusual weather, I note that a new Climate Governance Award is added this year to recognise outstanding achievements by directors and boards in advancing climate governance. This follows HKIoD's move in hosting the Climate Governance Initiative Hong Kong Chapter, which is part of the global initiative to mobilise and equip directors in taking climate change related decisions and organising various capacity building programmes and forums on climate change for directors. 

     In strong like-mindedness with HKIoD, the Government has placed climate change and sustainability at the heart of our green finance policy formulation. 

     Since 2020, HKEX has laid down requirements in the ESG (environmental, social and governance) Reporting Guide for listed companies to disclose their boards' oversight and governance of ESG issues, ESG management approach and strategy, and how the boards review progress against ESG-related goals.

     In April this year, HKEX introduced enhanced climate-related disclosure requirements developed based on IFRS (International Financial Reporting Standards) S2 Climate-related Disclosures, which will take effect in phases starting January next year, serving as the first step to prepare listed companies towards eventual sustainability reporting in accordance with the Hong Kong Sustainability Reporting Standards. 

     As an international financial centre, we are taking a big step forward toward aligning local practices with global requirements. In March, the Government issued a statement outlining our vision and approach to develop a comprehensive ecosystem for sustainability disclosure, aligning with the International Financial Reporting Standards – Sustainability Disclosure Standards or ISSB Standards. As foreshadowed in the Chief Executive's 2024 Policy Address, we will soon publish a roadmap on the concrete steps to take to fully adopt ISSB Standards in Hong Kong, leading Hong Kong to be among the first jurisdictions to align its local requirements with ISSB Standards.

     Ladies and gentlemen, Vice Premier He Lifeng (Vice Premier of the State Council), in his speech delivered at the Global Financial Leaders' Investment Summit held in Hong Kong last week, offered three valuable suggestions on enhancing Hong Kong's financial development and consolidating our position as an international financial and business centre. These are, to recap, deepening reforms and continuing to innovate to enhance our competitiveness; expanding the network of co-operation and continuing our path of opening up and engagement with international markets; and leveraging our plans with national development strategies in strengthening Hong Kong's gateway and hub positions.

     These policy insights are most relevant for us in navigating a changing world. Under "One Country, Two Systems", Hong Kong attaches the highest level of importance in maintaining the integrity and robustness of our financial systems. We walk our talks. HKIoD has been a strong thought leader and practical training provider of corporate governance for the public and private sectors as well as not-for-profit organisations. We look forward to our continued partnership with the HKIoD in strengthening the different pillars of corporate governance to further strengthen Hong Kong's role as an international financial and commercial centre.

     As the festive season and new year are around the corner, I wish you all happiness, good health, and success in the year ahead. Thank you.

    

     The Culture, Sports and Tourism Bureau (CSTB) today (November 28) announced that it has approved the sale of New World Development Company Limited (NWD)'s shareholding in Kai Tak Sports Park Limited (KTSPL) to Chow Tai Fook Enterprises Limited (CTFE).
      
     In September this year, KTSPL applied to the Government regarding NWD's intention to sell its shareholding in KTSPL to CTFE.  Having considered the information submitted by KTSPL, the CSTB decided to approve the application for the relevant shareholding change. CTFE has assured the Government of its commitment to dedicating resources to ensure the smooth construction progress of the Kai Tak Sports Park (KTSP) and to take forward the operation of the KTSP in partnership with the Government.
      
     Opening in the first quarter of 2025, the KTSP is the largest sports infrastructure project ever commissioned in Hong Kong. The KTSP is funded by the Government and adopts a "Design, Build and Operate" model, with KTSPL responsible for its design, construction, and future operation. The aforementioned shareholding change must be approved by the Government in accordance with the contract between the Government and KTSPL.