â€‹The Home and Youth Affairs Bureau (HYAB) announced today (May 3) the launch of the Pilot Scheme on Subsidy to Grassroots Youth for Participating in Exchange Activities Outside Hong Kong (Pilot Scheme), providing further support to grassroots youth to participate in exchange activities outside Hong Kong under the Funding Scheme for Youth Exchange in the Mainland (FSYEM) and the Funding Scheme for International Youth Exchange (FSIYE) in 2024-25.
      
     The HYAB and the Youth Development Commission (YDC) earlier launched the FSYEM and FSIYE targeting young people aged between 12 and 35. The FSYEM provides funding for eligible non-governmental organisations (NGOs) to organise youth exchange projects to the Mainland, with a view to promoting Hong Kong youth's awareness and understanding of the home country, strengthening exchanges with Mainland people and enhancing their sense of national identity. The FSIYE provides funding for eligible NGOs to organise international exchange projects for Hong Kong youth for them to widen their global exposure and understand the history, culture and development situations of different places in the world. 
      
     In 2024-25, the FSYEM (first round) will sponsor over 480 youth exchange projects with around 30 800 places in total, covering different provinces and municipalities on the Mainland. The FSIYE will sponsor 96 youth exchange projects with around 2 500 places in total, covering 44 overseas countries.
      
     Depending on the location, duration, content and other different factors of the exchange projects, some of the funded NGOs may still need to charge participation fees. In order to further support young people of different backgrounds to participate in these funded exchange projects under the FSYEM and the FSIYE, the HYAB launches the Pilot Scheme to provide additional subsidies to grassroots youth with financial needs. The beneficiaries include eligible youths receiving (i) Comprehensive Social Security Assistance (CSSA); and (ii) a full grant under the School Textbook Assistance Scheme or a full grant of tuition fees under one of the means-tested schemes by the Working Family and Student Financial Assistance Agency.
      
     Under the Pilot Scheme, the fees to be borne by eligible participants will be capped at $500 for Mainland exchange projects and $3,000 for international exchange projects, while the remainder of the fees will be fully subsidised by the Government. The organisers will be required to bear in advance the fees exceeding the aforementioned caps (excluding refundable deposits) for eligible participants. The Government will reimburse the relevant subsidies to the organisers after receiving the complete exchange project report.
      
     The lists of funded exchange projects under the FSYEM and FSIYE have been uploaded to the YDC website. Eligible youth can contact the organisers direct for the application and detailed information about the Pilot Scheme when they apply for the exchange projects.
 

The following is issued on behalf of the Hong Kong Monetary Authority:

     The Monetary Authority announced today (May 3) that the countercyclical capital buffer (CCyB) ratio for Hong Kong remains unchanged at 1 per cent.

     The Monetary Authority, Mr Eddie Yue, said, "Quantitative indicators suggest that overheating risks in Hong Kong are well contained. Under the framework that has taken into account the Positive Neutral CCyB introduced on April 1, 2024, a 1 per cent CCyB ratio should be maintained for Hong Kong when systemic risks are neither subdued nor elevated. It is therefore appropriate to keep the CCyB ratio at 1 per cent now 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 2023Q4 data and the Positive Neutral CCyB (Note) according to the revised formula, signals a CCyB of 1 per cent. The projection based on all available data suggests that the indicative buffer guide would likely signal a CCyB of 1 per cent when all relevant 2024Q1 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. Quantitative indicators suggest that overheating risks in Hong Kong are well contained. Under the framework that has taken into account the Positive Neutral CCyB introduced on April 1, 2024, a 1 per cent CCyB ratio should be maintained for Hong Kong when systemic risks are neither subdued nor elevated. It is therefore appropriate to keep the CCyB ratio at 1 per cent now 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 against system-wide risks. 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 following is issued on behalf of the Hong Kong Monetary Authority:

     The Hong Kong Monetary Authority (HKMA) wishes to alert members of the public to a press release issued by Bank of China (Hong Kong) Limited relating to phishing emails, which have been reported to the HKMA. A hyperlink to the press release is available on the HKMA website.
      
     The HKMA wishes to remind the public that banks will not send SMS or emails with embedded hyperlinks which direct them to the banks' websites to carry out transactions. They will not ask customers for sensitive personal information, such as login passwords or one-time password, by phone, email or SMS (including via embedded hyperlinks).
      
     Anyone who has provided his or her personal information, or who has conducted any financial transactions, through or in response to the emails concerned, should contact the bank using the contact information provided in the press release, and report the matter to the Police by contacting the Crime Wing Information Centre of the Hong Kong Police Force at 2860 5012.

The following is issued on behalf of the Hong Kong Monetary Authority:

     The Hong Kong Monetary Authority (HKMA) published today (May 3) the Hong Kong Taxonomy for Sustainable Finance (Hong Kong Taxonomy) to enable informed decision making on green and sustainable finance and facilitate relevant finance flows.
      
     The HKMA has been developing a green classification framework for adoption in the local market. A discussion paper was released in May 2023 to gather feedback from stakeholders on a prototype of the framework. Respondents welcome the development of the prototype and consider that it could provide a clearer definition of green products, enhance interoperability and help reduce greenwashing risks.
      
     Based on consultation feedback, the prototype was fine-tuned and published as the Hong Kong Taxonomy. Currently, it encompasses 12 economic activities under four sectors namely power generation, transportation, construction, and water and waste management. As steered by the Green and Sustainable Finance Cross-Agency Steering Group (Note 1), the development has been guided by the principles of interoperability, comparability and inclusiveness. It also facilitates easy navigation among the Common Ground Taxonomy, China's Green Bond Endorsed Projects Catalogue and the European Union's Taxonomy for Sustainable Activities. It will serve as a pivotal tool to raise awareness about green finance, promote common understanding on green activities, facilitate green finance flows, and provide a foundation for further applications. We encourage the financial sector to use the Hong Kong Taxonomy to assess the "greenness" of projects and assets when labelling and developing products, as well as making disclosures.
      
     A consultation report was also published to summarise the feedback received, together with responses and recommendations on future work. In addition, to facilitate users to understand and apply the Hong Kong Taxonomy, a supplemental guidance was prepared to provide background information, illustrative use cases, and responses to frequently asked questions.
      
     The Hong Kong Taxonomy is a living document. For the next step, the HKMA will seek to expand the coverage of the taxonomy to include more sectors and activities, including transition activities. The HKMA will also continue the collaboration with relevant stakeholders to promote its application and enhancement, contributing to the sustainable development in Hong Kong and the world.
      
     The Chief Executive of the HKMA, Mr Eddie Yue, said, "The release of the Hong Kong Taxonomy for Sustainable Finance marks a key milestone for Hong Kong's sustainable finance landscape. By providing a common language and framework for sustainable finance, we are equipping market participants with an important tool to make informed decisions, drive impactful cross-border investments, and contribute to global efforts in combating climate change."
      
     The consultation report, Hong Kong Taxonomy and supplemental guidance are available on the HKMA website.
      
     Separately, the HKMA will be launching the beta version of a cloud-based platform shortly for banks to assess the potential impact of physical risks on residential and commercial buildings in Hong Kong under different climate scenarios. The platform is part of the HKMA's efforts to help the banking sector address issues related to data and analytical tools and build up capabilities in climate risk management.

Note 1: Established in May 2020, the Green and Sustainable Finance Cross-Agency Steering Group is co-chaired by the HKMA and the Securities and Futures Commission. Members include the Accounting and Financial Reporting Council, the Environment and Ecology Bureau, the Financial Services and the Treasury Bureau, the Hong Kong Exchanges and Clearing Limited, the Insurance Authority and the Mandatory Provident Fund Schemes Authority. It aims to co-ordinate the management of climate and environmental risks to the financial sector, accelerate the growth of green and sustainable finance in Hong Kong and support the Government's climate strategies.

     The Chief Executive has approved the appointment of Mr Carlson Tong Ka-shing as Chairman of the Hong Kong Exchanges and Clearing Limited (HKEX) with immediate effect.

     The approval was made under the Securities and Futures Ordinance (SFO) (Cap. 571). Mr Tong's chairmanship will coincide with his term of appointment as a member of the Board of Directors of the HKEX, which will conclude at the end of the 2025 Annual General Meeting of the HKEX.

     The Financial Secretary, Mr Paul Chan, said, "Mr Tong is a well-respected and prominent doyen in the financial industry with profound professional knowledge and experience. He served as the Chairman of the Securities and Futures Commission, and achieved excellent progress in taking forward market development and effective market regulation. Last year, he also led the Task Force on Enhancing Stock Market Liquidity in comprehensively reviewing the major factors affecting market liquidity, and made specific and forward-looking recommendations to the Government on improving the competitiveness of the Hong Kong stock market and promoting its sustainable development."
 
     Mr Chan continued, "Mr Tong's expertise in the securities market and broad international connections will be great assets to facilitating the HKEX's further development. We believe that with Mr Tong's leadership, the HKEX will continue to enhance its listing platform and deepen co-operation with the Mainland and overseas financial markets, further consolidating and enhancing our position as an international financial centre and important fundraising market."

     Mr Tong was appointed by the Financial Secretary as a member of the Board of Directors of the HKEX in February 2023 under the SFO for a term of around two years until the conclusion of the Annual General Meeting of the HKEX in 2025.
 
     Mr Tong was elected as Chairman of the HKEX by the directors at the board meeting on April 24, 2024. The HKEX is a recognised exchange controller under the SFO. Section 69(1) of the SFO provides that no person shall be the chairman of a company which is a recognised exchange controller unless he has the approval in writing of the Chief Executive.