The Leisure and Cultural Services Department (LCSD) announced that the Hoi Fai Road open space in Tai Kok Tsui has been merged with Hoi Fai Road Garden and renamed as Hoi Fai Road Park, which is open for public use from today (April 10). 

     Occupying an area of about 9 500 square metres, the park provides a variety of recreational facilities, including a viewing platform, jogging track, fitness corners installed with smart fitness stations, and an inclusive children's playground with diversified equipment suitable for children of all ages. Located near the Olympic MTR Station, the park's design concept incorporates Olympic games elements, which ties in with the upcoming 2024 Paris Olympics, providing the public with a unique visiting experience and ample photo-taking opportunities.

     Members of the public who plan to visit the park can walk from Exit A of the Olympic Station for about five minutes, or take various bus and minibus routes to get there. For enquiries, please contact the Yau Tsim Mong District Leisure Services Office of the LCSD at 2314 2392 during office hours.

              

     A fire broke out at a building on Jordan Road in Yau Ma Tei at 7.53am today (April 10), and was upgraded to No. 3 alarm at 8.04am. The fire was surrounded at 8.54am.
 
     Firemen are now using two jets and mobilising two breathing apparatus teams to fight the blaze.

     About 150 persons were evacuated to places of safety. According to the Hospital Authority, as at 11.30am, 40 persons were sent to public hospitals, of which five persons were certified dead.

     Following is a question by the Hon Doreen Kong and a written reply by the Secretary for Housing, Ms Winnie Ho, in the Legislative Council today (April 10):
 
Question:
 
     Regarding the allocation of public rental housing (PRH) flats, will the Government inform this Council:
      
(1) of the current number of vacant PRH flats, broken down by flats which are (i) "lettable", (ii) "unlettable" and (iii) "under offer"; the reasons for their vacancy and the average vacancy period, as well as the respective allocation processes for types (i) and (iii) flats;
 
(2) of the average time required from the issue of the Notices-to-quit by the Hong Kong Housing Authority (HA) to new PRH tenants taking up the flats concerned in the past five years;
 
(3) whether it has studied and explored ways to shorten the vacancy period of the PRH flats recovered in (2), such as enabling the new tenants to gain an understanding of the renovations or furniture and equipment left behind by the former tenants, and to sign a document giving consent to accept the present situation of the flats, thereby reducing the alteration works in the flats and shortening the time for handing over the flats;
 
(4) of the average time from people waiting for PRH flats being given the first flat offer to being successfully allocated a flat, and the average number of flat offers given to those people;
 
(5) of the criteria based on which HA includes PRH flats in the list of flats available for selection (the list) under the Express Flat Allocation Scheme (EFAS); whether HA will continue to conduct normal allocation of such PRH flats after including them in the list and before formally releasing the list for each phase of EFAS, so as to increase the chance of such flats being allocated;
 
(6) of the number of flats successfully allocated under EFAS in the past three years and the number of flats under EFAS which have not been selected by PRH applicants all along; given that currently, tenants who are willing to take up PRH flats with "effective vacancy period" of 12 months or more will be granted monthly rent reduction under EFAS, whether the authorities will consider suitably relaxing the 12-‍month effective vacancy period requirement, so as to expedite the turnover of flats with a longer vacancy period; and
 
(7) as it is learnt that vacant flats in some old PRH estates (e.g. Choi Hung Estate) which have already been included in redevelopment projects are still undergoing normal allocation, whether the Government has studied the trend of growth of the vacancy rate of such PRH flats as well as their popularity; of the measures in place to increase the successful allocation rate of such flats?
 
Reply:
 
President,
 
     In response to the questions raised by the Hon Doreen Kong, our reply is as follows:
      
(1) The allocation of public rental housing (PRH) flats is an ongoing process. In addition to newly completed flats, domestic flats are recovered from time to time in PRH estates. They will be used for allocation to meet the intended purposes in accordance with the annual allocation plan, such as allocation to PRH applicants on the waiting list, rehousing use for redevelopment projects and various types of transfer exercises including transfer of overcrowded households. During the period from recovery of a PRH flat to its successful allocation, temporary vacancy may arise due to various reasons, such as undergoing renovation or refurbishment works, awaiting replies from applicants under offer, pending re-allocation after refusal of offers by applicants, pooling flats for allocation under transfer schemes, reserving for internal transfer of households on social, medical or compassionate grounds, etc. Hence, the number of vacant PRH flats varies daily. The Housing Authority (HA) will allocate lettable flats to various categories of PRH applicants as soon as possible based on the principle of optimising public housing resources.
 
     As at end December 2023, there were about 816 000 lettable PRH flats under the HA, comprising about 808 000 flats already let, about 4 100 flats under offer in which replies are being awaited from applicants, and about 4 000 lettable vacant flats (among which about 2 000 flats were pending re-allocation of flats that have been offered and refused by applicants, and about 2 000 flats were being reserved to meet designated purposes in accordance with the annual allocation plan, such as various types of transfer exercises including transfer of overcrowded households, etc.), and the vacancy rate (Note) was 0.5 per cent. In addition to lettable PRH flats, there were about 2 700 unlettable PRH flats under the HA, including flats undergoing repairs and recovered Tenants Purchase Scheme flats which had been included in a sale exercise, etc.
 
(2) Regarding refurbishment of PRH flats, after the tenant moves out, the Housing Department (HD) will conduct a comprehensive inspection of the landlord’s provisions in the flat, and will promptly arrange repairs and refurbishment in accordance with the requirements specified under the works contract. The HD will thoroughly carry out major maintenance works that may affect the structural integrity of nearby areas or the building itself, including power supply, water supply, water seepage, etc. In general, the refurbishment of a vacant flat should be completed within 44 days (key performance indicator). To expedite the allocation of PRH flats, the HA arranges advance allocation of vacant flats undergoing refurbishment to eligible PRH applicants, so that prospective tenants can move in as soon as possible upon completion of the refurbishment works. In addition, the HA has also introduced the Vacant Flat Refurbishment Allowance Scheme (the Scheme) to provide an option during tenants' intake for them to choose to carry out minor repair works by themselves or to have them carried out by HD's vacant flat refurbishment works contractors. The Scheme covers PRH flats with building age of less than 21 years. If prospective tenants choose to carry out refurbishment of the vacant flat by themselves, they will not only be granted an ex-gratia allowance, but will also be able to advance their intake, reducing the vacant period of PRH flats. Regarding the duration between the issuing of a Notice-to-Quit and the successful letting of a PRH flat, the HD does not keep related statistics as it would mainly depend on whether the applicant allocated with the flat accepts the offer.
 
(3) According to the prevailing arrangements, before the tenant moves out of a flat, the HD will conduct a comprehensive inspection of the fittings and fixtures inside the flat to assess and determine the items that can be retained or should be repaired or replaced. If the fixtures and fittings installed by the outgoing tenant are in good conditions, the HD will generally allow them to be retained without having to be reinstated such that the prospective tenant can choose to keep using them. If the incoming tenant chooses to accept the fixtures and fittings installed by the outgoing tenant, he/she will be responsible for the future repair and maintenance of these fixtures and fittings.
 
     The HD has all along been reviewing the work flow of vacant flat refurbishment. In recent years, to expedite the works progress, a mechanism has been developed such that contractors will be advised in advance of the information of estates in which vacant flats will arise from the purchase of subsidised housing so that the contractors can arrange manpower and materials in a timely manner.
 
(4) Under the prevailing PRH allocation policy, eligible PRH applicants are entitled to three housing offers. In principle, waiting time for PRH refers to the time taken from the date of registration for PRH of an applicant up to the time when he/she receives the first housing offer. Whether applicants would accept the first housing offer or wait for subsequent offers depends on their personal preference and housing needs. The HD has not kept statistics on the period between the time when an applicant receives the first offer and the time when he/she finally takes up a flat, as well as the average number of housing offers actually received by an applicant.
 
(5) For less popular flats, the HA will invite eligible applicants who have been waiting for PRH for one year or more to select these flats through the Express Flat Allocation Scheme (EFAS). The EFAS aims to facilitate early intake of PRH flats by PRH applicants and expedite the allocation of less popular PRH flats, with a view to optimising PRH resources. The flats on the "list of flats available for selection" under EFAS are less popular PRH flats, including flats with "Adverse Environmental Indicators" (e.g. flats in which accidents had taken place), flats with less popular design and flats which have been vacant for some time. Before these flats are included under the EFAS, the HD will continue to allocate these flats to PRH applicants as usual. Once the flats have been included under the list, they will be reserved for allocation by EFAS applicants and will not be allocated to other PRH applicants.
 
(6) To encourage the taking up of PRH flats with a longer vacancy period and improve the letting rate, starting from 2007, the HA would grant a rent-free period of four months in the form of reduced rent at 50 per cent for eight months, starting from the second calendar month of the tenancy, to tenants taking up flats which have been vacant for 12 months or longer but less than 24 months. For flats which have been vacant for 24 months or above, a rent-free period of six months in the form of reduced rent at 50 per cent for 12 months would be granted.
 
     The figure of successful letting of PRH flats with a longer vacancy period has been rising continuously in recent years following the implementation of the above measures. In the past three years (i.e. 2020-21, 2021-22 and 2022-23), the numbers of successful EFAS applications were 1 074, 1 244 and 1 472 respectively. All flats offered under EFAS were selected, with the final letting rate exceeding 70 per cent, which reflected that the prevailing incentive measures could successfully encourage PRH applicants to take up these flats and hence effectively enhance the turnover of flats.
 
(7) The number of vacant flats in PRH estates varies daily depending on the circumstances. The HD will complete refurbishment of all recovered PRH flats, including those in older estates, before arranging intake of them by PRH applicants. Statistics show that the vacancy rate of older estates is similar to that of other estates. As mentioned above, to enhance the letting rate, tenants who are willing to take up PRH flats that have been vacant for 12 months or above are provided with rent concession. In addition, the HD will expedite the letting of less popular PRH flats through EFAS to reduce the vacancy rate of PRH. The HA will uphold the principle of optimising PRH resources and arrange the allocation of lettable flats to various categories of PRH applicants as soon as possible, so as to expedite PRH allocation and the turnover of flats.
 
Note: The vacancy rate is calculated by dividing the number of lettable vacant PRH flats under the HA by the total stock of lettable PRH flats under the HA.

Attention TV/radio announcers:

Please broadcast the following as soon as possible:

     Here is an item of interest to swimmers.

     The Leisure and Cultural Services Department announced today (April 10) that the Environmental Protection Department has classified the water quality at Anglers' Beach and Ma Wan Tung Wan Beach in Tsuen Wan District as Grade 4, which means the beaches are not suitable for swimming. The red flags have been hoisted. Beachgoers are advised not to swim at the beaches until further notice.

     Following is the speech by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, at a luncheon co-hosted by the Hong Kong Economic and Trade Office in New York and the Asia Society yesterday (April 9, New York time):

Distinguished guests, ladies and gentlemen,

    It is my great honour to be here today at this luncheon co-hosted by the Asia Society and our Economic and Trade Office in New York. The Asia Society has all along been promoting mutual understanding and strengthening partnerships among peoples, leaders, and institutions of Asia and the United States for years.  

     Before I chat with Andy (Editor at Large at Barron's, Mr Andy Serwer), I would like to share with you Hong Kong's vision and strategies on strengthening our position as a global financial hub and a gateway to Asia in three simple letters – A, B and C.

A for anchor: Hong Kong as a global wealth management hub

     "A" stands for anchor. Hong Kong is like an anchor, being stable and resilient during uncertain times. Being stable is a key to attract wealth in a place. Despite the hit by COVID-19 on our social life and economy, Hong Kong remains Asia's largest hub for hedge funds and the second largest for private equity, behind only Mainland China. Currently, we oversee nearly US$4 trillion in assets. Eleven of world's top 20 insurers, and 73 of world's top 100 banks, operate in Hong Kong. Our banking sector maintains a capital adequacy ratio of around 21 per cent, much higher than the international standard of 8 per cent. Our liquidity ratio stands at 175 per cent, well above the 100 per cent benchmark. Our Linked Exchange Rate System is supported by robust foreign currency reserve assets of over US$420 billion – 1.7 times the size of our monetary base. This provides unparalleled stability and confidence in our currency, a crucial factor for investors and businesses alike.

     Also, Hong Kong has developed as a leading family office hub. At the moment, we have over 2 700 single-family offices. We have introduced various measures in the past few years to facilitate the establishment and operation of family offices in Hong Kong, such as providing tax concessions to family-owned investment holding vehicles managed by single-family offices in Hong Kong, launching a new Network of Family Office Service Providers, bringing together private banks, accounting and legal firms, trusts, and other professionals to better serve the needs of family offices, as well as setting up the Hong Kong Academy for Wealth Legacy to spearhead training, knowledge exchange, and networking opportunities for both industry practitioners and next-generation wealth owners.  

     Our stability is backed by the "one country, two systems" principle. A high degree of autonomy, courts' independent exercise of judicial power and the rule of law are all upheld in Hong Kong.

B for buffer: Hong Kong as an international risk management centre

     Now, we turn to "B". Do you know what it stands for? Yes, it stands for buffer. Hong Kong has long positioned itself as an international risk management centre, providing a diverse range of risk management channels, including professional insurance services. We strive to diversify our financial services offerings, for example developing RMB (Renminbi) businesses, as we seek to provide a buffer against external economic challenges and uncertainties. 

     Hong Kong, as the world's largest offshore RMB business hub, processes about 75 per cent of global offshore RMB settlement. We also have the world's largest offshore RMB liquidity pool, at over RMB1 trillion. To capitalise on this enormous opportunity, we are pressing ahead with the development of a robust offshore RMB ecosystem, which includes (i) deepening mutual-market access schemes (such as Bond Connect, Swap connect and Wealth Management Connect schemes) that facilitate RMB cross-boundary investment and two-way fund flows, (ii) encouraging financial institutions to provide more offshore RMB products and risk management tools, and (iii) developing our Central Moneymarkets Unit into Asia's major international central securities depository platform.

     As an international risk management centre, Hong Kong is also actively promoting the development of insurance-linked securities (ILS). We have established a dedicated regulatory regime and launched a pilot grant scheme to attract more issuers to our city. To date, we have facilitated the issuance of four catastrophe bonds in Hong Kong, one of which marked the inaugural listing of its type of ILS, including the issuance of a catastrophe bond by the World Bank in Hong Kong with a size of US$350 million, which offers protection against losses related to earthquake risks in Chile.

     With our strong financial buffers, diverse product offerings, and robust regulatory frameworks, Hong Kong serves as a vital cushion against the volatility and uncertainties that characterise today's global landscape.  

C for capstan: Hong Kong as a gateway to asia and beyond

     Finally, we come to "C", which stands for capstan, i.e. the machine for raising the heavy weight such that the ship can move forward. Hong Kong is strategically located within a four-hour flight from most of Asia Pacific's key financial markets, and less than a five-hour flight from half of the world's population, and is just next to the Mainland China, making the city an ideal place for business events and travel from all over the world.

     In particular, Hong Kong is a gateway to the fast-growing markets of the Association of Southeast Asian Nations (ASEAN), one of our priority strategic partners. Travelling from Hong Kong to the Philippines or Vietnam is even faster than you can travel from Singapore to these countries. ASEAN is a priority strategic partner for Hong Kong, and we are actively strengthening our engagement with the region. I recently had the pleasure of welcoming Dr Tony Tan Caktiong, the Chairman and Founder of Jollibee Foods Corporation from the Philippines, to Hong Kong for the Wealth for Good in Hong Kong Summit for global family offices. Over a delightful tea gathering at a Jollibee restaurant, we discussed Hong Kong's appeal to family offices and entrepreneurs, highlighting our strategic location, business-friendly environment, status as an international financial centre, our low and simple tax system, as well as the liquidity of our capital market. These factors make Hong Kong an ideal destination for businesses seeking global expansion.

     Our connectivity extends beyond ASEAN to the broader Belt and Road Initiative regions. Hong Kong will continue to host the annual Belt and Road Summit, a flagship event that brings together government officials, business leaders, and other stakeholders to explore collaboration opportunities. We are also hosting the Conference of Belt and Road Initiative Tax Administration Cooperation Forum in September, providing a platform for representatives from governments, international organisations, academic institutions, and strategic enterprises to establish connections and exchange ideas on tax administration co-operation and capacity building.

     Hong Kong's role as a capstan, or pivot point, is fundamental to our vision of continuing to serve as a gateway to Asia and a hub for global businesses and investors. By leveraging our strategic location, deep connections with Mainland China, and strong partnerships across the region, Hong Kong is poised to drive further collaboration, innovation, and progress, not only for ourselves, but for the broader Asia-Pacific community.

     Ladies and gentlemen, please remember Hong Kong's "ABCs" – anchor, buffer, and capstan – which underscores our steadfast commitment to maintaining our position as an international financial centre and a trusted partner for businesses and investors. Our anchor of stability and resilience, our robust financial buffers, and our role as a strategic pivot point make Hong Kong an indispensable part of the global economic landscape.

     And please enjoy your lunch, as I am now excited to continue my conversation with Andy. Thank you.