Following is a question by the Hon Benson Luk  and a written reply by the Acting Secretary for Transport and Logistics, Mr Liu Chun-san, in the Legislative Council today (June 5):
 
Question:
 
     The country has earlier on further extended the Individual Visit Scheme (IVS) to cover Qingdao, Xi'an and eight provincial capital cities, increasing the applicable cities of IVS to 59. There are views that as local airlines have substantial room for developing direct flights to those cities and new destinations, while Hong Kong's positioning as an international aviation hub has clearly been affirmed in the National 14th Five-Year Plan, Hong Kong should proactively develop more Mainland and international routes. In this connection, will the Government inform this Council:
 
(1) of the respective numbers of daily average visitor arrivals from Qingdao and Xi'an before and after the extension of IVS to cover the two cities, together with a breakdown by travel pattern (e.g. individual visits or tour groups) and transport mode to Hong Kong (e.g. flight or the Express Rail Link) of visitors;
 
(2) whether it has compiled statistics on the numbers of new routes and new destinations (including international and Mainland routes) developed by Hong Kong in the past five years; if so, of the details (including the origin and destination of specific routes); if not, the reasons for that;
 
(3) whether it knows the launch of new routes plying to and from Hong Kong being planned and discussed by airlines; whether the Government has devised strategic goals for developing new routes (e.g. encouraging airlines to prioritise the development of routes between Hong Kong and second and third tier cities of the Mainland or the applicable cities of IVS, the Belt and Road countries and countries in the Middle East); if so, of the details; if not, the reasons for that; and

(4) whether, in the long run, the Government has plans and policy measures (e.g. training local aviation personnel, including pilots, aircraft maintenance staff, airport ground crews and various service staff, as well as providing airlines with loans and subsidies for fleet expansion) to help airlines grow in scale and strength for the development of more new international and Mainland routes; if so, of the details; if not, the reasons for that?
 
Reply:
 
President,
 
     In consultation with, the Culture, Sports and Tourism Bureau, the Security Bureau, the Civil Aviation Department (CAD) and the Immigration Department (ImmD), the consolidated reply to the question raised by the Hon Luk is as follows:
      
     The Hong Kong Special Administrative Region (HKSAR) Government is sincerely grateful to the Central Government for announcing enhancements of the Individual Visit Scheme (IVS) twice on February 23 and May 11, 2024 respectively, allowing residents of 10 additional cities to explore Hong Kong's unique appeals as a tourism destination more flexibly and conveniently. Since May 27, IVS has covered 59 cities, including all provincial capitals, which will boost local tourism and other related sectors.

(1) The table below sets out the daily average visitor arrivals from Qingdao and Xi'an by types of exit endorsement and control points (CPs) before and after the expansion of IVS to these two cities on March 6, 2024:
 

Note 1: Individual items may not add up to the total due to rounding
Note 2: ImmD does not keep the relevant figures by transport mode to Hong Kong, and hence a breakdown by arrivals at different CPs is provided
Note 3: Including Lo Wu, Lok Ma Chau Spur Line, West Kowloon Station of the Guangzhou-Shenzhen-Hong Kong Express Rail Link, Lok Ma Chau, Shenzhen Bay, Man Kam To, Hong Kong-Zhuhai-Macao Bridge and Heung Yuen Wai
Note 4: Including China Ferry Terminal, Hong Kong – Macau Ferry Terminal and Kai Tak Cruise Terminal

(2) At present, there are about 120 airlines operating passenger and cargo flights between Hong Kong International Airport (HKIA) and some 180 destinations worldwide, including more than 30 Mainland destinations. The daily passenger throughput has recovered up to about 80 per cent of the pre-pandemic level, with 40 million passengers handled in 2023. As for cargo, HKIA handled 4.3 million tonnes of cargo in 2023, maintaining its position as the world's busiest cargo airport.

     According to the data provided by the CAD, comparing the passenger and cargo figures in 2018 with those in 2023/2024 (May 2023 to April 2024), the number of new destinations (excluding new destinations added during the period and subsequently ceased operation) for Hong Kong is 22 (Note 5) (see the table below).
 

Note 5: Not including destinations which were served in 2018 but are yet to be resumed

(3) The HKSAR Government has been making good use of Hong Kong's unique civil aviation status under "One Country, Two Systems" to conduct air services negotiations with our aviation partners in order to meet the demand for passenger and air cargo services. We have signed air services agreements with 67 aviation partners covering more than 700 destinations worldwide, and memorandums of understanding with nine other jurisdictions on related air services arrangements to enable airlines of both sides to operate scheduled flights. We also have relevant air services arrangements with the Mainland, Macao and Taiwan. Under the air services arrangements between the Mainland and the HKSAR, a total of 70 destinations are opened for flights to/from Hong Kong.

     We have been committed to strengthening and expanding Hong Kong's aviation network. For example, we renewed/expanded our air services arrangements with the Mainland, Germany, the United Arab Emirates and Myanmar in 2023, and with Luxembourg and Qatar this year.

     Leveraging the opportunities brought by the Three-Runway System and our country's support of the "Air Silk Road", the HKSAR Government will focus on the current major routes and routes along the Belt-and-Road with potential, including destinations in Europe, Africa, South America and Asia, negotiate and enhance air services agreements and strengthen aviation services between Hong Kong and these regions.

     In terms of air services, while actively resuming services, local airlines are launching new routes, including the passenger services to/from Riyadh to be commenced in the fourth quarter of this year. At present, passenger services between the Mainland and Hong Kong already cover most of the Mainland cities outside Guangdong Province under IVS. In response to the Central Government's support for the HKSAR and to provide travellers with the most convenient and accessible air services, we have been actively encouraging airlines of Hong Kong to launch services between Hong Kong and the Mainland cities newly included under IVS. We note that local airlines have enhanced their services to/from Xi'an and Qingdao, and are actively exploring and planning to launch flights between Hong Kong and the eight additional Mainland cities under IVS. The Airport Authority Hong Kong (AAHK) is also actively encouraging Mainland airlines to launch and enhance their services, including introducing direct flights between Hong Kong and Harbin, which have just commenced on June 2.

     The Transport and Logistics Bureau will continue to encourage local airlines to enhance their services in response to market demand and in line with our country's development strategies. The AAHK will continue to attract and encourage airlines to launch and increase flights to and from Hong Kong through various measures, as well as work with relevant parties to step up publicity efforts so as to boost the demand for travel to Hong Kong for leisure and business purposes.

(4) The HKSAR Government established the Maritime and Aviation Training Fund in 2014 to sustain and enhance the HKSAR Government's support for the manpower development of, amongst others, the aviation industry, encourage more industry practitioners to participate in the relevant technical training or study professional courses, and attract new blood to join the industry. In addition, the HKSAR Government also supported the AAHK to set up the Hong Kong International Aviation Academy (HKIAA) in 2016 to train local and regional air transport talents. The HKIAA launched a cadet pilot programme in September 2023, and introduced in collaboration with Hong Kong Metropolitan University Hong Kong's first Bachelor of Business Administration degree programme with pilot training, thereby nurturing more quality local pilots for Hong Kong's aviation industry.

     On the other hand, the HKSAR Government encourages local airlines to implement initiatives on the localisation of pilots and personnel, and is supportive of their enhanced collaboration with local educational institutes on the training of pilots. The CAD has optimised the personnel training requirements and approval procedures through measures such as processes of continuous evaluation, such that local airlines may refine and implement the reactivation and revalidation processes for pilots and other technical personnel returning to service in a more timely and effective manner.

     In respect of aircraft maintenance personnel, apart from providing relevant training in conjunction with local educational institutions and maintenance organisations, the CAD also provides facilitation for the conversion of overseas professional licences into Hong Kong licences. The signing of the Joint Maintenance Management Cooperation Arrangement with the civil aviation authorities of the Mainland and Macao in 2021 has facilitated eligible holders of aircraft maintenance licences issued by the Mainland, Hong Kong and Macao to work in the aircraft maintenance organisations located in the three places. This does not only enable Hong Kong aircraft maintenance organisations to tap into a wider aircraft maintenance talent pool, but also offers more career opportunities to Hong Kong aircraft maintenance license holders, thereby attracting more people to work in the aircraft maintenance industry and further consolidating Hong Kong's status as an international aviation hub.

     Hong Kong is an international financial centre with diversified financing channels. Airlines will finance their fleet expansion based on their commercial considerations and operational needs, and the HKSAR Government does not have to intervene in the commercial operation of airlines. The Air Transport Licensing Authority will continue to regulate local airlines in accordance with the Air Transport (Licensing of Air Services) Regulations, including regular review of airlines' financial position.

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Please broadcast the following as soon as possible:

     Here is an item of interest to swimmers.

     The Leisure and Cultural Services Department announced today (June 5) that the Environmental Protection Department has classified the water quality at Silver Mine Bay Beach in Islands District as Grade 4, which means the beach is not suitable for swimming. The red flag has been hoisted. Beachgoers are advised not to swim at the beach until further notice.

     Following is a question by the Hon Carmen Kan and a written reply by the Acting Secretary for Financial Services and the Treasury, Mr Joseph Chan, in the Legislative Council today (June 5):
 
Question:
 
     The Government established the Financial Services Development Council (FSDC) in 2013 as a high-level and cross-sectoral advisory body to engage the industry and formulate proposals to promote the further development of Hong Kong's financial services industry. In this connection, will the Government inform this Council:
 
(1) given that with effect from September 2018, FSDC has been incorporated as a company limited by guarantee without any policy execution or statutory functions, whether the authorities will consider changing its organisation to that of a statutory body and vesting it with the necessary powers and functions to better discharge its mission; if so, of the details; if not, the reasons for that;
 
(2) given that the terms of reference of FSDC include conducting policy research and industry surveys, as well as formulating proposals to the Government and regulators, of the following information about the relevant work of FSDC each year since 2018 (set out in a table by scope): (i) the number and subject of policy research and industry surveys conducted and (ii) the numbers of proposals submitted to and accepted by the Government and regulators, as well as the adoption rate;
 
(3) regarding the accepted proposals as mentioned in (2), of the mechanism put in place by FSDC to follow up on the implementation of such proposals mooted in its research reports; regarding the rejected proposals, whether FSDC has logged the reasons for rejection; if so, of the details; if not, the reasons for that;
 
(4) whether FSDC has conducted research on enhancing Hong Kong's status as an international financial centre, particularly in facilitating the securitisation of Mainland enterprises or assets, so that Hong Kong becomes an important platform for Mainland enterprises to "go global" and raise funds in various ways; if so, of the details; if not, the reasons for that;
 
(5) whether FSDC has proactively worked with regulatory and trade bodies to identify new opportunities for, and any constraints on, the sustainable growth and diversity of the financial services industry; if so, of the details; if not, the reasons for that; and
 
(6) of the annual number of seminars, roadshows and visits outside Hong Kong organised, as well as international events participated by FSDC since 2018 for the sake of promoting Hong Kong's financial services industry to Mainland authorities and overseas organisations, as well as identifying more development opportunities for Hong Kong, together with a tabulated breakdown by place where such activities were held?
 
Reply:
 
President,
 
     In consultation with the Financial Services Development Council (FSDC), the reply to the various parts of the question is as follows:
 
(1) The FSDC was established in 2013 by the Government as a high-level, cross-sectoral advisory body to engage the industry in formulating proposals to promote the further development of Hong Kong's financial services industry and to map out the strategic development directions. The FSDC's incorporation as a company limited by guarantee in September 2018 aims to provide flexibility for discharging its functions and leveraging its unique position to engage with stakeholders in promoting the sustained development of the financial services industry. As the FSDC's current organisational setup enables the effective delivery of its functions, we have no plan at this stage to organise the FSDC as a statutory body. We will examine the resources, scale and mode of operation of the FSDC from time to time in continuing to promote industry development.
 
(2) and (3) One of the FSDC's key objectives is conducting policy researches, with the aim to facilitate in-depth exploration of issues conducive to the development of the financial services industry in Hong Kong and make recommendations for consideration by the Government, regulators, industry and relevant stakeholders. In this respect, the FSDC exchanges views with industry representatives and professional organisations from time to time concerning the latest market developments. From 2018-19 to 2023-24, the FSDC published 29 research reports, as detailed in Annex and the table below:
 

 
     The FSDC's recommendations cover short, medium and long-term objectives. The time needed by the Government, regulators, industry, etc, for detailed deliberation, preparation and implementation of the recommendations varies. The FSDC will continue to take forward its recommendations through ongoing and systematic engagement with stakeholders, with a view to enhancing the business environment for the financial services industry.
 
(4) One of the FSDC's research foci is strengthening Hong Kong's position as the leading hub connecting the Mainland and the rest of the world. In recent years, the FSDC has been focusing on examining how to enhance Hong Kong's capital market and fund raising capabilities, thereby consolidating Hong Kong's position as an important gateway for supporting Mainland corporations in their global expansions while attracting overseas capital to the Mainland market. For example, the FSDC published a report titled "Hong Kong as an International Financial Centre – Enhancement of Hong Kong's IPO offerings" in March 2022, proposing the expansion of listing channels for innovative pre-revenue companies to meet the financing needs of small and medium enterprises, which was supported by the Government and stakeholders. The Hong Kong Exchanges and Clearing Limited introduced a new listing regime for specialist technology companies in 2023.
 
     With a view to enhancing Hong Kong's position as an international financial centre, the FSDC published a report titled "Observations on Market Liquidity Enhancement" in August 2022. The key recommendations included facilitating market makers and exchange-traded funds to deliver more comprehensively their market function as liquidity providers. The FSDC published another report titled "Enhancing Market Liquidity and Diversity: Enhancing Hong Kong's Competitiveness as an International Capital Formation Centre" in August 2023, putting forward proposals to enhance the liquidity and diversity of the capital market (including revising the stamp duty on stock transfers). Many recommendations have been implemented. Examples include the launch of "Hong Kong Dollar-Renminbi Dual Counter Model" and the reduction of the stamp duty on stock transfers.
 
     The FSDC's researches also cover various areas of the financial market in the Mainland and the relations with Hong Kong. For example, the FSDC released a report titled "Accelerating Offshore RMB (Renminbi) Market Development: Enriching Hong Kong's Offerings as an International Financial Centre" in March 2024, in which the recommended directions are in line with the five measures announced by the China Securities Regulatory Commission in April to expand the mutual market access between the capital markets of the Mainland and Hong Kong.
 
(5) The FSDC collaborates closely with public and private organisations as well as stakeholders to jointly explore new development opportunities and challenges of the financial services industry. In 2023-24, the FSDC participated in more than 200 industry meetings, engaging in continuous exchange of views and collaboration with the Government, regulators, industry organisations, etc.
 
     With emerging and diversified financial trends, the opportunities brought by the development of virtual assets and Web3 in recent years have attracted industry attention. The FSDC has since 2021 been examining the development potential and market dynamics of virtual assets and Web3, proactively facilitating discussions among the industry, the Government and relevant regulators. The FSDC also published a report titled "Realising the Potential of Blockchain in Advancing Hong Kong's Financial Services Industry" in March 2024, focusing on exploring the potential of blockchain technology in bolstering the development of the financial services industry in Hong Kong, particularly in the business-to-business context.
 
     In addition, the FSDC also published a report titled "Family Wisdom: A Family Office Hub in Hong Kong" in July 2020, aiming to enhance Hong Kong's strengths as a family office hub. The recommendations have been adopted and implemented by the Government, including providing profits tax concessions for family-owned investment holding vehicles managed by single family offices in Hong Kong, and establishing the Hong Kong Academy for Wealth Legacy to provide a platform for collaboration, networking, knowledge sharing and talent training.
 
(6) The FSDC has been showcasing globally the strengths and opportunities of Hong Kong as an international financial centre, leveraging its professional network and unique position as an industry advisory body. From 2018-19 to 2024-25, the FSDC has organised or participated in a total of 138 seminars, road shows, external visits and other international activities as detailed in the table below:
 

     Following is a question by the Hon Paul Tse and a written reply by the Secretary for Environment and Ecology, Mr Tse Chin-wan, in the Legislative Council today (June 5):
 
Question:
 
     It has been reported that in response to municipal solid waste charging (MSW charging), of which the implementation was originally intended for ‍April 1 and subsequently deferred to August 1 this year, the management fees of quite a number of single-block buildings and large-scale housing estates in Hong Kong have been substantially increased, hence adding to the expenditure burden on members of the public. In this connection, will the Government inform this Council:
 
(1) whether it has compiled statistics on the number of buildings and housing estates across the territory where the management fees have been pre-emptively adjusted upwards in response to MSW charging; if so, of the details; if not, whether it will expeditiously compile such statistics;
 
(2) whether it has made any prediction on the number of buildings and housing estates among those mentioned in (1) where the management fees will and will not be restored to the original levels once the Government shelves MSW charging;
 
(3) amid allegations that MSW charging is "ill-considered", "a pointless endeavour", and causing nuisance to the public (adding to their burden even before implementation), whether the authorities will consider advising the owners' committees and owners' corporations of the buildings and housing estates where additional management fees have been pre-emptively charged in response to MSW charging that they should appropriately adjust the management fees downwards; and
 
(4) whether the Government will consider an appropriate downward adjustment to rates, partial payment of Government rent, or introduction of other financial support measures as a means to alleviate the expenditure burden on those members of the public who have to pay extra management fees as a result of MSW charging?
 
Reply:
 
President,
 
     My consolidated reply to the question raised by the Hon Paul Tse is as follows:
 
     The Deputy Chief Secretary for Administration announced at the joint meeting of the Panel on Environmental Affairs and Panel on Food Safety and Environmental Hygiene of the Legislative Council on May 27, 2024 that the implementation of municipal solid waste (MSW) charging on August 1, 2024 would be suspended, and a series of work would be pursued in the meantime, including the enhancement of recycling support, strengthening of public education and publicity, as well as a review on how to enhance the MSW charging scheme. The Government would keep in view the progress of various work and assess the level of participation of the public towards reducing MSW.
 
     We note that some members of the public have expressed concerns towards the raising of property management fee by their property management companies (PMCs) on the grounds of implementing MSW charging. The Property Management Services Authority (PMSA) issued a notice to all licensed PMCs (www.pmsa.org.hk/en/press-release/20240126) on January 26, 2024 reminding them to explain to the owners' organisations, owners and clients, in accordance with the "General Code of Conduct" issued by the PMSA, how the handling fee relevant to MSW charging for the residents to be charged is calculated, including the specific disposal arrangements, the fee elements involved, and the fee needs to be paid to third parties (e.g. cleansing service contractors) if applicable, in order to facilitate the owners' organisations, owners and clients to understand the matter and make decisions on the implementation arrangements. The PMSA also reminded PMCs that, if property management fee is to be adjusted due to various reasons, they should explain the adjustment clearly to the owners' organisations, owners and clients in accordance with the "General Code of Conduct" to avoid misunderstandings.
 
     Following the suspension of MSW charging, the PMSA has issued another notice (www.pmsa.org.hk/en/press-release/20240527) to all the licensed PMCs on May 27, 2024, reminding them that if the preparation for MSW charging was one of the factors for adjusting the property management fee, following the suspension of the implementation, the owners' organisations, owners, and clients and the PMCs should discuss together on whether any corresponding adjustment should be made, or whether the increased fee should be transferred to the management fund to cover future repair and maintenance, or be retained for future implementation of MSW charging, or be refunded to the residents. The PMSA encourages PMCs to consult owners' organisations, owners and clients to address these issues and provide appropriate and clear explanations accordingly. 

     Following is a question by Dr the Hon Hoey Simon Lee and a written reply by the Acting Secretary for Transport and Logistics, Mr Liu Chun-san, in the Legislative Council today (June 5):

Question:

     It has been reported that a number of incidents involving passenger aircraft designed and manufactured by The Boeing Company (Boeing) have occurred in recent years, and some overseas aviation authorities have pointed out that there are deficiencies in the quality and design of Boeing 737 MAX and Boeing 787 passenger aircraft, and that Boeing 737 MAX passenger aircraft have even been grounded by aviation authorities of a number of countries recently. In this connection, will the Government inform this Council:

(1) whether at present it has prohibited Boeing 737 MAX passenger aircraft from flying over Hong Kong;

(2) whether at present it has imposed any additional requirements on overseas-registered Boeing 737 MAX passenger aircraft when they apply for entry into Hong Kong, and whether it has put forward any rectification requirements to Hong Kong-based airlines which own Boeing 737 MAX passenger aircraft, so as to ensure flight safety of such aircraft model;

(3) whether it has compiled statistics on the models of passenger aircraft currently used by Hong Kong-based airlines;

(4) whether it has assessed the possible impact of a total ban on the arrival of Boeing 787 or Boeing 737 MAX passenger aircraft on Hong Kong's air capacity; and

(5) whether it has looked into and followed up the quality issues of aircraft models designed and manufactured by Boeing?

Reply:

President,

     The Civil Aviation Department (CAD), as the regulator of civil aviation affairs, has been strictly regulating the operational safety and airworthiness of all aircraft registered in Hong Kong in accordance with the Air Navigation (Hong Kong) Order 1995 (Cap. 448C) and the requirements of the International Civil Aviation Organization (ICAO) in order to safeguard aviation safety. The statutory requirements and airworthiness standards adopted in Hong Kong are in line with international standards. In accordance with the requirements of the Annex to the Convention on International Civil Aviation, the civil aviation authority of the State of Design (SoD) shall confirm the continued airworthiness of the aircraft type, while the civil aviation authority of the State of Registry (SoR) shall be responsible for overseeing the safe operation of the aircraft registered in the State. The approving authority of the SoD shall also provide the relevant information on continued airworthiness to the civil aviation authority of the SoR, so that the latter can formulate detailed safety regulations to govern the safe operation of aircraft.
 
     In consultation with the CAD, the reply to the Hon Lee's question is as follows:
 
(1), (2) and (5) As a precautionary measure, the CAD had temporarily prohibited all Boeing 737 MAX aircraft from entering, leaving or overflying Hong Kong from March 13, 2019 onwards. Subsequently, the Federal Aviation Administration of the United States (FAA) (i.e. the type-certification authority of Boeing 737 MAX), after conducting detailed investigation and flight test prior to flight resumption, issued an airworthiness directive in November 2020 on the relevant corrective measures (including aircraft design, operational procedures and training of pilots). Making reference to international practices and having assessed the relevant corrective measures issued and endorsed by the FAA, starting from January 2022, the CAD decided that Boeing 737 MAX aircraft that fully comply with the safety standards and have completed the relevant corrective measures would be allowed to enter Hong Kong's airspace.
 
     According to the the CAD's records, there are currently no Boeing 737 MAX aircraft registered in Hong Kong.
 
     To ensure the safe operation of all Boeing aircraft registered in Hong Kong, the CAD has been highly concerned about the relevant investigations involving Boeing aircraft as well as the latest information on regulatory bodies, and has maintained close liaison with the approving authorities and aircraft manufacturers through various channels. The CAD assesses from time to time the impact of any latest development on locally registered Boeing aircraft and requires local airlines to conduct comprehensive assessments and take appropriate follow-up actions, including inspecting their fleets as appropriate and in a timely manner.
 
     In addition, in order to strengthen the safety oversight of foreign-registered aircraft, the CAD will continue to conduct safety assessment inspections on foreign-registered aircraft under a risk-based principle to ensure that aircraft operating in Hong Kong comply with international safety standards.
 
(3) Statistics on the types of passenger aircraft used by Hong Kong-based airlines as at March 28, 2024 are as follows.
 

 
(4) During the period from March 26, 2023 to March 30, 2024 (i.e. 2023 Summer and 2023 Winter seasons), the number of passenger flights operated by Boeing 787 or Boeing 737 aircraft accounted for about 13 per cent of the total number of passenger flights at Hong Kong International Airport.
 
     At present, major civil aviation authorities such as the Civil Aviation Administration of China and the European Union Aviation Safety Agency have not imposed any flight ban on Boeing 787 or Boeing 737 aircraft. The CAD will continue to closely monitor the development of the incident and the airworthiness recommendations issued by the civil aviation authorities, make timely assessment and take appropriate measures to ensure aviation safety in Hong Kong.