The following is issued on behalf of the Hospital Authority:

     Regarding an earlier announcement on a cluster of Methicillin-resistant Staphylococcus aureus (MRSA) carriers in the Neonatal Intensive Care Unit (NICU), the spokesperson for Kwong Wah Hospital made the following updates today (April 19):

     In accordance with the prevailing infection control guidelines, the hospital has performed an enhanced surveillance and one more patient, a 12-day-old boy, was confirmed as an MRSA carrier without clinical symptoms. The patient is in stable condition and is being treated in isolation.

     The hospital has performed enhanced medical surveillance and screening of the patients in the NICU. The following infection control measures have been stepped up according to established guidelines:
 

1. Thorough cleaning and disinfection of the NICU, including the environment, incubators, equipment and instruments;
2. Enhanced medical surveillance of the patients and environmental screening procedures in the NICU; and
3. Applied stringent contact precautions and enhanced hand hygiene of staff. Family members are reminded that infection control measures must be implemented when visiting their babies.

     As an enhanced infection control measure, admission to the ward concerned has been suspended.

     The case has been reported to the Hospital Authority Head Office and the Centre for Health Protection for follow-up.

     Twenty-one landlords of subdivided units (SDUs), who contravened Part IVA of the Landlord and Tenant (Consolidation) Ordinance (Cap. 7) (the Ordinance) by failing to submit a Notice of Tenancy (Form AR2) to the Commissioner of Rating and Valuation within 60 days after the term of the regulated tenancy commenced, pleaded guilty and were fined a total of $32,000 today (April 19) at the Eastern Magistrates' Courts. Two of the landlords committed five offences respectively and each of them was fined $4,000. Since the Ordinance has come into force, the Rating and Valuation Department (RVD) has successfully prosecuted 239 cases involving a total of 204 SDU landlords, with fines ranging from $400 to $18,600, amounting to a total of $433,700.
 
     The RVD earlier discovered that the landlords failed to comply with the relevant requirements under the Ordinance. Upon an in-depth investigation and evidence collection, the RVD prosecuted against the landlords.
 
     A spokesman for the RVD appealed to SDU landlords to comply with the relevant requirements under the Ordinance, and also reminded SDU tenants of their rights under the Ordinance. He also stressed that the RVD would continue to take resolute enforcement action against any contraventions of the Ordinance. Apart from following up on reported cases, the RVD has been adopting a multipronged approach to proactively identify, investigate and follow up on cases concerning landlords who are suspected of contravening the Ordinance. In particular, the RVD has been requiring landlords of regulated tenancies to provide information and reference documents of their tenancies for checking whether the landlords concerned have complied with the requirements of the Ordinance. If a landlord, without reasonable excuse, refuses to provide the relevant information or neglects the RVD's request, the landlord commits an offence and is liable to a maximum fine at level 3 ($10,000) and to imprisonment for three months. Depending on the actual circumstances and having regard to the information and evidence collected, the RVD will take appropriate actions on individual cases, including instigating prosecution against suspected contraventions of the Ordinance.
 
     To help curb illegal acts as soon as possible, members of the public should report to the RVD promptly any suspected cases of contravening the relevant requirements.  Reporting can be made through the telephone hotline (2150 8303), by email (enquiries@rvd.gov.hk), by fax (2116 4920), by post (15/F, Cheung Sha Wan Government Offices, 303 Cheung Sha Wan Road, Kowloon), or in person (visiting the Tenancy Services Section office of the RVD at Room 3816-22, 38/F, Immigration Tower, 7 Gloucester Road, Wan Chai, Hong Kong, and please call 2150 8303 to make an appointment).  Furthermore, the RVD has provided a form (Form AR4) (www.rvd.gov.hk/doc/en/forms/ar4.pdf) on its website to facilitate SDU tenants' reporting to the RVD.
 
     The RVD reminds that pursuant to the Ordinance, a regulated cycle of regulated tenancies is to comprise two consecutive regulated tenancies (i.e. the first-term tenancy and second-term tenancy) for an SDU, and the term of each regulated tenancy is two years. A tenant of a first-term tenancy for an SDU is entitled to be granted a second-term tenancy of the regulated cycle, thus enjoying a total of four years of security of tenure. Since the first batch of regulated tenancies has already approached their second-term tenancies, the RVD has started a new round of publicity and education work in order to assist SDU landlords and tenants to understand the important matters pertaining to the second-term tenancy, and procedures that need to be followed about two months prior to the commencement of the purported second-term tenancy. In addition, the RVD has started issuing letters enclosing relevant information to the concerned landlords and tenants of regulated tenancies in batches, according to the expiry time of their first-term tenancies, to remind them about their respective obligations and rights under the Ordinance. These landlords and tenants may also visit the dedicated page for the second-term tenancy on the RVD's website (www.rvd.gov.hk/en/tenancy_matters/second_term_tenancy.html) for the relevant information, including a concise guide, brochures, tutorial videos and frequently asked questions, etc. SDU landlords and tenants are also advised to familiarise themselves with the relevant statutory requirements and maintain close communication regarding the second-term tenancy for handling the matters properly and in a timely manner according to the Ordinance.
 
     For enquiries related to regulated tenancies, please call the telephone hotline (2150 8303) or visit the RVD's webpage (www.rvd.gov.hk/en/our_services/part_iva.html) for the relevant information.
 

     The Permanent Secretary for Security, Mr Patrick Li, attended an influence conference on governments co-organised by the Office of Cyberspace Affairs of the CPC Anhui Provincial Committee and Weibo in Hefei today (April 19), and delivered a keynote speech sharing how the Security Bureau (SB) tells good Hong Kong stories through social media. During his three-day visit to Hefei, Mr Li also called on the leaders of the United Front Work Department and the Publicity Department of the CPC Anhui Provincial Committee, as well as visiting local enterprises.

     Addressing the conference, Mr Li expressed gratitude to Weibo and Mainland netizens for their support, enabling the SB to win a Weibo award for outstanding posts after receiving an overwhelming response for publishing a post titled "Tropical Cyclone" on the SB Weibo account, featuring precious photos and a video captured by the Government Flying Services (GFS) of the Hong Kong Special Administrative Region (HKSAR) while fearlessly carrying out an operation on a fixed-wing aircraft to collect meteorological data near the typhoon centre when Super Typhoon Saola hit Hong Kong last year. He said the post received comments and tributes, and was shared by various Mainland meteorological institutions, with members of the public expressing deep respect for the professionalism of the GFS. Three representatives from the GFS also joined the conference. Mr Li said the example demonstrated how the HKSAR Government maximised the impact of publicity and told a good story of professionalism through flexible use of social media platforms and cross-departmental collaboration.

     Noting that the SB is dedicated to strengthening communication with members of the public through social media in a down-to-earth, diversified and interactive approach, Mr Li said that with the HKSAR enjoying strong support of the motherland and being closely connected to the world under "one country, two systems", the team will make good use of social media platforms to tell good stories of the country and Hong Kong.

     Over the past two days (April 17 and 18), Mr Li met with Deputy Head of the United Front Work Department of the CPC Anhui Provincial Committee and Director of the Overseas Chinese Affairs Office of the People's Government of Anhui Province, Mr Zhang Qiming, and Deputy Director of the Publicity Department of the CPC Anhui Provincial Committee and Director of the Information Office of the Anhui Provincial Government, Mr Zheng Mingwu, separately to brief them about the work and publicity strategies of the SB. They also explored co-operation in various areas including encouraging youth to know more about the motherland and enhancing their sense of national identity.

     In Hefei, Mr Li paid a visit to innovation and technology enterprises and facilities, including new media Three Sheep Group to learn about its promotion strategies. He also visited the Anhui Innovation Pavilion and iFLYTEK Corporation, which specialises in artificial intelligence, to learn about its relevant research and developments as well as products. Moreover, he met with personnel of the Hefei Institute for Public Safety Research, Tsinghua University, to share experiences in meeting challenges brought by extreme weather and matters regarding emergency response management.

     â€‹Mr Li concluded his visit today and returned to Hong Kong in the afternoon.

              

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

     The Hong Kong Monetary Authority (HKMA) announced today (April 19) that it had completed an investigation and disciplinary proceedings for Hua Nan Commercial Bank, Ltd., Hong Kong Branch (HNCBHK) under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Chapter 615 of the Laws of Hong Kong) (AMLO) (Note 1).  The Monetary Authority (MA) has imposed a pecuniary penalty of HK$9,000,000 against HNCBHK for contraventions of the AMLO.
 
     The disciplinary action (Note 2) follows an investigation by the HKMA on HNCBHK's systems and controls for compliance with the AMLO. The control deficiencies identified in the investigation relate to HNCBHK's failure to continuously monitor business relationships with some customers during the period between April 2012 and July 2018 by examining the background and purposes of their transactions and setting out its findings in writing. HNCBHK also failed to establish and maintain effective procedures for carrying out its duties under the AMLO in relation to continuous monitoring of business relationships with customers during this period.
 
     In addition, during the period between March 1 and July 9, 2018, HNCBHK, as an ordering institution, failed to record the names of the recipients and/or include the names of the recipients in the messages accompanying a number of cross-border outgoing wire transfers.
 
     In deciding the disciplinary action, the MA has taken into account all relevant circumstances and factors, including the following:
 

1. the seriousness of the investigation findings and the duration of the contraventions;
2. the need to send a clear deterrent message to HNCBHK and the industry about the importance of effective controls and procedures to address money laundering and terrorist financing risks; 
3. HNCBHK self-identified the deficiencies in its anti-money laundering and counter-financing of terrorism controls and proactively reported them to the HKMA;
4. HNCBHK has taken remedial and enhancement measures to address the deficiencies identified; 
5. HNCBHK has no previous disciplinary record in relation to the AMLO; and 
6. the co-operation with the HKMA rendered by HNCBHK during the enforcement proceedings. 

     The Executive Director (Enforcement and AML) of the HKMA, Ms Carmen Chu, said, "Ongoing monitoring of business relationships with customers is crucial for Authorized Institutions (AIs) to detect and report potential money laundering activities, and therefore plays a key role in safeguarding the integrity of the banking system.  To this end, AIs should maintain risk-based policies and procedures, provide clear guidance and adequate training to staff members on their respective responsibilities, as well as regularly updating risk assessment and reviewing the adequacy and effectiveness of transaction monitoring systems, leveraging on innovation and technology as appropriate."
 
Note 1: Prior to March 1, 2018, the short title of Chapter 615 of the Laws of Hong Kong was the Anti-Money Laundering and Counter-Terrorist Financing (Financial Institutions) Ordinance. 

Note 2: The disciplinary action is taken under section 21 of the AMLO.  The AMLO imposes customer due diligence and record-keeping requirements on specified financial institutions, including Authorized Institutions, and designated non-financial businesses and professions.  As regards Authorized Institutions, the MA is the relevant authority under the AMLO. 

     The Census and Statistics Department (C&SD) released today (April 19) the results of the Quarterly Business Tendency Survey for the second quarter (Q2) of 2024.
 
Business situation
 
     For all surveyed sectors taken together, the proportion of respondents expecting their business situation to be better (14%) in Q2 2024 over the preceding quarter is slightly higher than that expecting it to be worse (12%). 
 
     When compared with the results of the Q1 2024 survey round, the proportion of respondents expecting a better business situation in Q2 2024 is 14%, slightly higher than the corresponding proportion of 13% in Q1 2024, while the proportion of respondents expecting a worse business situation in Q2 2024 is broadly the same as the corresponding proportion in Q1 2024 (12%).
 
     Analysed by sector, more respondents in the financing and insurance sector expect their business situation to be better in Q2 2024 as compared with Q1 2024. On the other hand, more respondents in the retail and construction sectors expect their business situation to be worse, as compared to those expecting it to be better.
 
     The results of the survey should be interpreted with care. In this type of survey on expectations, the views collected in the survey are affected by the events in the community occurring around the time of enumeration, and it is difficult to establish precisely the extent to which respondents' perception of the future accords with the underlying trends. The enumeration period for this survey round was from March 2, 2024 to April 11, 2024. 
 
Volume of business/output
 
     Respondents in quite a number of the surveyed sectors expect their volume of business/output to decrease on balance or remain broadly unchanged in Q2 2024 as compared with Q1 2024. In particular, more respondents in the retail sector expect their volume of sales to decrease in Q2 2024 over Q1 2024. On the contrary, more respondents in the financing and insurance sector expect their volume of business to increase, as compared to those expecting it to decrease.
 
Employment
 
     Respondents in most of the surveyed sectors expect their employment to increase on balance or remain broadly unchanged in Q2 2024 as compared with Q1 2024. In particular, more respondents in the real estate, financing and insurance, accommodation and food services and construction sectors expect their employment to increase in Q2 2024 over Q1 2024. In the information and communications sector, however, more respondents expect their employment to decrease, as compared to those expecting it to increase.
 
Selling price/service charge
 
     Respondents in most of the surveyed sectors expect their selling prices/service charges to remain broadly unchanged in Q2 2024 as compared with Q1 2024. In the accommodation and food services sector, however, more respondents expect their charges for services rendered/prices of food provided to go up in Q2 2024 over Q1 2024. On the other hand, more respondents in the retail sector expect their selling prices to go down, as compared to those expecting them to go up.
 
Commentary
 
     A Government spokesman said that large enterprises' overall business sentiment and appetite for hiring improved slightly as compared to three months ago.
 
     Looking forward, the spokesman said that while the complicated external environment will still affect business sentiment in the near term, continued growth of the local economy should provide support. The Government will monitor the situation closely.
 
Further information
 
     The survey gathers views on short-term business performance from the senior management of about 560 prominent establishments in various sectors in Hong Kong with a view to providing a quick reference, with minimum time lag, for predicting the short-term future economic performance of the local economy.
 
     The survey covers 10 major sectors in Hong Kong, namely manufacturing; construction; import/export trade and wholesale; retail; accommodation and food services (mainly covering services rendered by hotels and restaurants); transportation, storage and courier services; information and communications; financing and insurance; real estate; and professional and business services sectors.
 
     Views collected in the survey refer only to those of respondents on their own establishments rather than those on the respective sectors they are engaged in, and are limited to the expected direction of quarter-to-quarter change (e.g. "up", "same" or "down") but not the magnitude of change. In collecting views on the quarter-to-quarter changes, if the variable in question is subject to seasonal variations, respondents are asked to provide the expected changes after excluding the normal seasonal variations.
 
     Survey results are generally presented as "net balance", i.e. the difference between the percentage of respondents choosing "up" and that choosing "down". The percentage distribution of respondents among various response categories (e.g. "up", "same" and "down") reflects how varied their business expectations are. The "net balance", with its appropriate sign, indicates the direction of expected change in the variable concerned. A positive sign indicates a likely upward trend while a negative sign indicates a likely downward trend. However, the magnitude of the "net balance" reflects only the prevalence of optimism or pessimism, but not the magnitude of expected change, since information relating to such magnitude is not collected in the survey.
 
     Furthermore, owing to sample size constraint, care should be taken in interpreting survey results involving a small percentage (e.g. less than 10%) of respondents in individual sectors.
 
     Chart 1 shows the views on expected changes in business situation for the period Q2 2023 to Q2 2024.
 
     Table 1 shows the net balances of views on expectations in respect of different variables for Q2 2024.
 
     The survey results are published in greater detail in the "Report on Quarterly Business Tendency Survey, Q2 2024". Users can browse and download the publication at the website of the C&SD (www.censtatd.gov.hk/en/EIndexbySubject.html?pcode=B1110008&scode=300).
       
     Users who have enquiries about the survey results may contact the Business Expectation Statistics Section of the C&SD (Tel: 3903 7263; email: business-prospects@censtatd.gov.hk).