Author Archives: hksar gov

     Following is a question by the Hon Judy Chan and a written reply by the Secretary for Food and Health, Professor Sophia Chan, in the Legislative Council today (May 25):
 
Question:

     With the epidemic in Hong Kong having been brought under control gradually, some community isolation facilities (CIFs) have been suspended or have ceased to operate. In this connection, will the Government inform this Council:

(1) of the current total number of CIFs (including the facilities which have been suspended or have ceased to operate), and set out by name of such facilities their respective service targets and utilisation rates; whether it has plans to change the uses of those facilities which have ceased to operate; if so, of the details;

(2) of the current number and utilisation rate of those quarantine facilities dedicated for inbound foreign domestic helpers (FDHs), as well as the lowest and highest fees charged for the relevant facilities; whether it has assessed if the number of such facilities is sufficient to meet the demand; if it has assessed and the outcome is in the affirmative, of the details; whether it will consider turning some of the CIFs with relatively low utilisation rates into quarantine facilities dedicated for FDHs, and allowing employers of FDHs to rent the relevant facilities at reasonable prices for use by FDHs whom they have employed; if so, of the details; if not, the reasons for that; and

(3) as the typhoon season will soon begin in Hong Kong, whether it has reviewed the pre-typhoon preparatory measures and drainage systems of various CIFs, as well as carried out repair and maintenance works for the facilities which have been suspended or have ceased to operate; if so, of the details; if not, the reasons for that?
 
Reply:
 
President,

     In consultation with the Security Bureau (SB), Labour and Welfare Bureau (LWB) and Development Bureau (DEVB), the consolidated reply to the question raised by the Hon Judy Chan is as follows:

(1) In the light of the fifth wave of COVID-19, the Government will, depending on the health risk, care needs and transmission risk in the household, make arrangements for infected persons according to the multi-tiered triage and treatment strategy for suitable treatment and isolation. Asymptomatic patients who require no medical support but have to be isolated somewhere other than their household due to their care needs or household environment will be arranged to be admitted to community isolation facilities (CIFs) to reduce the risk of transmission. Besides, persons who have entered Hong Kong from overseas and are tested positive at the airport or designated quarantine hotels (DQHs) generally will be admitted to CIF hotels to undergo isolation. Having regard to the development of the epidemic and cost-effectiveness, the Government is focusing on utilising the Penny’s Bay CIF and one CIF Hotel. The remaining CIFs at Tsing Yi, San Tin, Hong Kong Boundary Crossing Facilities Island of the Hong Kong-Zhuhai-Macao Bridge, Fanling, Hung Shui Kiu and Yuen Long have been put into standby mode. As the epidemic has not yet come to an end, the Government still needs to reserve these CIFs so as to ensure that Hong Kong can cope with a possible sixth wave of epidemic if it arrives.

(2) Since the outbreak of the epidemic, the Government has arranged for foreign domestic helpers (FDHs) to come to Hong Kong in a gradual and orderly manner on the premise of guarding against importation of infected cases, so as to meet the need of local families for FDHs. Since March 1, 2022, FDHs coming to work in Hong Kong may be admitted to a DQH as with other inbound travellers from overseas, instead of having to be admitted to a designated quarantine facility for FDHs as before. The arrangement provides greater flexibility for FDH employers to make the most appropriate quarantine arrangement for FDHs. Meanwhile, to meet the demand, the Government has gradually increased the number of DQH rooms from around 6 000 at end-March to around 22 000 at present, with over half of the DQHs providing rooms with a standard rate of under $800 per night. According to the room-booking statistics provided by the hotels, as at May 23, the overall booking rate for May and June is around 65 per cent and 70 per cent respectively. The Government will closely monitor the supply-and-demand of DQH rooms and make adjustments when needed.

(3) To ensure the safety of both users and staff of the CIFs managed by the Government, relevant bureaux and departments including the DEVB, SB, Architectural Services Department, Drainage Services Department, Hong Kong Observatory and related building contractors have formulated severe weather contingency plans and mechanisms for maintaining close communication, inspecting the facilities in CIFs and carrying out improvement/reinforcement works as well as implementing response measures.

     Concerning the Penny’s Bay CIF that is in operation, staff members have already put in place a contingency plan for adverse weather, including forming an emergency response team to strengthen their ability to cope with the situation concerned. Once there is a forecast of typhoon or adverse weather, corresponding actions will be immediately taken. They include removing or securing outdoor facilities that are not firmly affixed beforehand; arranging cleansing workers to inspect drainage and clear the blockage regularly to prevent flooding; suspending non-essential outdoor work and reminding all staff to put on appropriate protective gears when working outdoors; and monitoring the latest weather/typhoon information and direction so that the staff may consider suspending all admission to and discharge from the CIF in case of extremely adverse weather. 

     As for the CIFs in standby mode, apart from having members of SB’s Anti-epidemic Task Force working on shift to manage the facilities on-site, the contractors of the Department of Health will continue to deploy security personnel and cleansing workers in accordance with the practical need to assist in inspection of the facilities and maintenance work such as cleansing.  read more

     Following is a question by the Hon Dominic Lee and a written reply by the Secretary for Development, Mr Michael Wong, in the Legislative Council today (May 25):
 
Question:
 
     Pak Lok Path in Tai Wai is a private road belonging to a private housing estate, Pristine Villa, and it also serves as a main access road for daily use by residents near To Fung Shan. It is learnt that the vehicular flow at Pak Lok Path increases drastically every year around Ching Ming Festival and Chung Yeung Festival as many people go to Ching To Yuen (a columbarium that is still applying for a private columbarium licence) on To Fung Shan for ancestral worship. However, the owners of Pristine Villa have in recent years barred vehicles of non-Villa residents from entering Pak Lok Path during the aforesaid days, seriously affecting nearby residents’ ways to get about. Some members of the Sha Tin District Council opine that the Government should explore the possibility of resuming Pak Lok Path. In this connection, will the Government inform this Council:
 
(1) whether there are any precedents of resuming private roads for conversion into public roads; if so, of the number of such roads, and set out, by the name of road, the reasons for resumption and the government departments responsible for the resumption; if not, the reasons for that;
 
(2) whether it has studied if the owners of Pristine Villa have the right to close off Pak Lok Path and deny access of outsiders; if it has studied and the outcome is in the affirmative, of the legal basis concerned; if the outcome is in the negative, the reasons for that;
 
(3) whether it has plans to resume Pak Lok Path; if so, of the government department(s) responsible and the details of the relevant work (including the progress in the negotiations with the owners of Pristine Villa); if not, the reasons for that, and whether it will consider doing so; and
 
(4) as some members of the public are of the view that the operation of the columbarium by Ching To Yuen is the main cause for the aforesaid traffic problems, and this issue has been bothering the residents near To Fung Shan for years, whether the Government will take appropriate actions against this unlicensed private columbarium within a short time, so as to improve the situation?
 
Reply:
 
President,
 
     Pak Lok Path in Tai Wai falls within the private lot of the Pristine Villa (Sha Tin Town Lot No. 331) (the Lot). According to the lease conditions governing the Lot, the grantee was required to construct an access road within the stipulated area of the Lot (i.e. the existing Pak Lok Path). Currently, the said road is jointly owned by the owners of Pristine Villa.
 
     In consultation with the Transport and Housing Bureau and the Food and Health Bureau (FHB), the co-ordinated reply to the questions raised by the Hon Lee is as follows:
 
(1) The Government has mechanisms to invoke applicable legislations/provisions to resume private roads when necessary having regard to the circumstances of individual private roads for tackling problems of the private roads concerned, e.g. environmental hygiene, traffic and road maintenance, etc. Since the circumstances of private road resumptions in the past and the departments responsible for the resumptions varied from case to case, the Government does not have complete statistics on the resumption of private roads for conversion into public roads.
 
(2) and (3) As mentioned above, Pak Lok Path falls within the private lot of Pristine Villa. There is no requirement under the lease of the lot that the grantees are obliged to open Pak Lok Path for public use.
 
     The Government notes that since 2020, during the periods of Ching Ming and Chung Yeung Festivals, the Incorporated Owners (IO) of Pristine Villa would close Pak Lok Path during the daytime, and only allow its residents and vehicles authorised by the IO to use the road. As the traffic problem arising from Pak Lok Path has brought inconvenience to the local community, relevant government departments have been exploring different solutions. The Transport Department (TD) and other departments concerned have implemented special traffic arrangements in the vicinity of the lower section of To Fung Shan Road during the Ching Ming and Chung Yeung Festivals, under which the road was converted from one-lane one-way (uphill) traffic to one-lane two-way traffic in order to maintain smooth traffic. In addition, the TD is conducting a study on improving the section of To Fung Shan Road between Chung Ling Road and Pak Lok Path. If improvement works are feasible, uphill and downhill traffic can be routed through To Fung Shan Road without routing through Pak Lok Path after the improvement. Relevant departments will continue to monitor the traffic situation of Pak Lok Path and the effectiveness of the above measures before considering whether resumption of Pak Lok Path is necessary. 
 
(4) According to the information from the FHB, the Private Columbaria Ordinance (Cap. 630) (the Ordinance) establishes a licensing regime to regulate the operation of private columbaria. Under the Ordinance, there would be a grace period (of nine months beginning on the gazettal date of the Ordinance, i.e. from June 30, 2017 to March 29, 2018) for a private columbarium in operation immediately before the Ordinance came into effect. If such a private columbarium applied for a Temporary Suspension of Liability (TSOL) on or before March 29, 2018, the grace period remains valid during the processing of the application, until it is finally disposed of or withdrawn. During the grace period, the private columbarium concerned may continue to operate without a specified instrument (i.e. a licence, an exemption or a TSOL), but the operator must not sell or newly let out niches.
 
     Ching To Yuen is a private columbarium already in operation immediately before the Ordinance came into effect. It submitted an application for the TSOL before the deadline in accordance with the requirement described above, and is therefore currently under the grace period under the Ordinance. The Private Columbaria Licensing Board is working in full swing to process applications for specified instruments from private columbaria (including Ching To Yuen). It aims to arrive at certain decisions (i.e. giving approval or approval-in-principle to or rejecting the licence/exemption/TSOL applications) by the middle of next year on all applications for specified instruments in respect of the pre-cut-off columbaria.
 
     According to the lease governing the lot of Ching To Yuen, there are restrictions that no human remains should be deposited within the lot and no structures be erected within certain portion of the lot. As such, the columbarium is in breach of the relevant lease conditions. In the event that the licence application from Ching To Yuen is rejected by the Private Columbaria Licensing Board, the Lands Department will collaborate with the Food and Environmental Hygiene Department to take land lease enforcement actions against the columbarium concerned. read more

     The Electrical and Mechanical Services Department (EMSD) today (May 25) removed three storage type electric water heaters and six refrigerating appliances from the record of listed models under the Energy Efficiency (Label… read more

     Following is a question by the Hon Shiu Ka-fai and a written reply by the Secretary for Labour and Welfare, Dr Law Chi-kwong, in the Legislative Council today (May 25):
 
Question:
 
     Operators of quite a number of industries have relayed that with a shortage of labour in Hong Kong, they have for a long time been facing recruitment difficulties. Moreover, some studies have pointed out that the ageing population and the persistently low fertility rate in Hong Kong have resulted in a continuous decline in the labour force. In this connection, will the Government inform this Council:
 
(1) of the “child dependency ratio” and “elderly dependency ratio” in Hong Kong in each of the past 10 years; whether it has assessed the changes in such ratios in the coming 10 and 20 years, and their impacts on Hong Kong’s labour force, society and economy;
 
(2) of (i) the respective numbers of applications received and approved by the Government for importation of labour at technician level or below (excluding foreign domestic helpers), as well as (ii) the respective numbers of workers involved (with a tabulated breakdown of these two figures by type of industry), in each of the past five years; the number of enterprises involved in such applications;
 
(3) of the conditions that enterprises in general have to meet at present for applying for importation of labour, as well as the application procedure and the time required;
 
(4) whether it has assessed if the existing measures relating to application for importation of labour at technician level or below meet the actual needs of Hong Kong’s different industries, economy and society; if it has assessed, of the details; if not, the reasons for that; whether it will consider improving the measures concerned; if so, of the details; if not, the reasons for that; and
 
(5) whether it has made reference to the policies of other jurisdictions (such as Singapore, Macao and Japan) on importation of labour, and the effects produced by such policies; if so, of the details; if not, the reasons for that?
 
Reply:
 
President,

     Having consulted the concerned bureaux, I provide a consolidated reply to the Member’s question as follows:
 
(1) The child dependency ratio and the elderly dependency ratio of Hong Kong during 2012 to 2021 are shown in the table below: 
 

Year	Child dependency ratio (Note 1)	Elderly dependency ratio (Note 2)
2012	152	183
2013	149	190
2014	150	198
2015	154	208
2016	155	218
2017	157	228
2018	159	238
2019	160	249
2020	159	262
2021	157	282

Note 1: Child dependency ratio refers to the number of persons aged under 15 per 1 000 persons aged between 15 and 64.
Note 2: Elderly dependency ratio refers to the number of persons aged 65 and over per 1 000 persons aged between 15 and 64.

     According to results of the population projections released by the Census and Statistics Department using the mid-2019 population estimate as the base, population ageing is expected to continue. It is projected that there will be a significant increase in the number of deaths, coupled with a decrease in the number of births. Therefore, the child dependency ratio of Hong Kong is projected to decrease gradually, while the elderly dependency ratio is projected to rise continuously in the next 20 years. The projected child dependency ratio and elderly dependency ratio in selected years are shown in the table below:
 

Year	Child dependency ratio	Elderly dependency ratio
2026	158	357
2031	144	435
2036	132	483
2041	125	521

 
     In the face of population ageing, the Government will continue to adopt various measures to encourage more people to join the labour market. The Government will also continue to actively invest in education and training to enhance labour productivity.

(2) and (3) Pursuant to the established policy of the Government, employers must accord employment priority to local workers and only employers with genuine difficulties in local recruitment may be allowed to import workers. The Government operates different schemes for employers to apply for importation of workers on account of their actual operational circumstances so as to supplement skills that are not readily available in the local labour market, and sustain the competitiveness and meet the development needs of Hong Kong. Depending on the skill level and/or education requirement of the jobs concerned, employers may apply to the Immigration Department or the Innovation and Technology Commission for admission of professionals, or to the Labour Department (LD) for importation of workers at technician level or below under the Supplementary Labour Scheme (SLS).

     Employers are required under the SLS to launch a four-week open recruitment exercise to accord priority to filling job vacancies with local workers. Upon employers’ completion of the above recruitment procedures, the LD will analyse each application so as to assess whether the employer has sincerity to recruit/train local workers, its genuine need for manpower, size of its local workforce, the views of training bodies/professional organisations on the local manpower supply situation of the concerned job title, etc. The LD will then make recommendations and invite members of the Labour Advisory Board (LAB) to give views. The Commissioner for Labour will thoroughly assess various factors and the views and justifications provided by the LAB members, before approving or refusing the concerned applications for importation of labour as appropriate.

     The time for the LD to process each SLS application is affected by various factors. In recent years, the processing of most SLS applications has taken about five months.

     The numbers of applications received and approved under the SLS by the LD from 2017 to 2021 are at Annex 1. Breakdowns of the numbers of imported workers applied for and approved by industry are at Annexes 2 to 6. The LD does not keep the number of enterprises involved in such applications.
 
(4) and (5) Relevant government bureaux and departments have been closely monitoring the manpower supply and demand of different sectors, as well as enhancing training and attracting new recruits. On the premise of safeguarding the employment priority of local workers, the Government allows admission of professionals and importation of workers, and will explore with stakeholders the possibility of increasing imported labour on an appropriate and regulated basis, to alleviate the shortage of manpower in individual sectors/job categories. The Government will make reference to the policies of other places on importation of workers when required. read more

     Following is a question by Dr the Hon Tan Yueheng and a written reply by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, in the Legislative Council today (May 25):
 
Question:
 
     According to the statistics released by an accounting firm, Hong Kong ranked sixth in the world in terms of funds raised through initial public offerings (IPOs) in the first quarter of this year, with the amount slumping nearly 90 per cent year-on-year to only about $13.6 billion, hitting a record low in nearly nine years. On the other hand, some members of the financial sector are of the view that, as announced by the Hong Kong Exchanges and Clearing Limited (HKEX) in March this year, the contents of the three strategic pillars (i.e. Connecting China and the World, Connecting Capital with Opportunities and Connecting Today with Tomorrow) to be implemented are relatively vague and general and lack concrete measures, and the pillars are unattractive to investors. In this connection, will the Government inform this Council:
 
(1) whether it has conducted an in-depth analysis of the reasons for the slump in the amount of IPO funds raised in Hong Kong in the first quarter of this year; if so, of the details, including whether there were reasons other than the epidemic;
 
(2) of the measures in place to boost Hong Kong’s IPO fundraising market, as well as the specific implementation timetable;
 
(3) whether it knows the specific measures that the HKEX has put in place in the short to medium term (i.e. three to five years) to implement the aforesaid three strategic pillars, as well as the new highlights and breakthroughs of such measures; and
 
(4) whether it knows the specific proposals that the HKEX has put in place to pursue differentiated development, so as to cope with the competition from other exchanges in the region?

Reply:
 
President,
 
     In 2022, the uncertainties in global economy and financial markets have brought tremendous challenge to worldwide markets, among which the stock markets have been particularly volatile. The Government, the Hong Kong Exchanges and Clearing Limited (HKEX) and financial regulators have been closely monitoring market conditions to ensure that Hong Kong’s stock market and financial system are operating in an orderly and smooth manner, while continuing to take forward market development and endeavouring to enhance the overall competitiveness of Hong Kong’s listing platform.
 
     In consultation with the Securities and Futures Commission (SFC) and the HKEX, my reply to the four parts of the question is as follows:
 
(1) In light of various macroeconomic factors such as heightened geopolitical tensions, uncertainty of COVID-19 situation, inflation and interest rate increase by major central banks, the leading financial markets around the globe have been relatively volatile in recent months. Initial public offerings (IPOs) have also been affected as issuers generally are more cautious. According to market information, the amount of fund raised through IPOs globally decreased by more than 50 per cent year-on-year in the first quarter. The ranking on IPO fund raised of other markets, such as the major exchanges in the United States and Europe, also declined. The ranking on IPO fund raised of Nasdaq dropped from the first in 2021 to the fifth in the first quarter, whereas the ranking of New York Stock Exchange and London Stock Exchange, which were the second and sixth in 2021 respectively, fell out of the global top ten places. As an international financial centre, Hong Kong’s IPO performance was also affected by external factors. Notwithstanding this, the HKEX received 22 new listing applications in April 2022, and was processing a total of 168 listing applications as at the end of April. This reflects that the demand for listing has not slowed down.
 
(2) Despite the short term market situation, the Government, SFC and the HKEX are committed to continuously strengthening the competitiveness of our fundraising platform, building a solid foundation for future development. Over the past few years, we implemented a series of enhancements to the listing regime in forging a more diverse, dynamic and sustainable listing platform, promoting the prosperity of the securities market.
 
     To cater for the fundraising needs of emerging and innovative companies, the HKEX launched a new listing regime in April 2018 to allow emerging and innovative enterprises that have weighted voting rights (WVR) structures and pre-revenue / pre-profit biotechnology companies to list in Hong Kong, and establish a new concessionary route for qualifying issuers to seek secondary listing in Hong Kong. As at the end of April 2022, a total of 74 companies had been listed through the new regime with $580.7 billion raised, representing over 40 per cent of the total fund raised through IPOs in the same period. Hong Kong has also become Asia’s largest and the world’s second-largest fundraising hub for biotechnology.
 
     The HKEX launched a listing regime for special purpose acquisition companies (SPACs) in January 2022, introducing a brand new listing avenue for emerging enterprises with potential. At the same time, the HKEX has implemented enhancement measures to allow Greater China companies without WVR structures which are not from innovative sectors to seek secondary listing in Hong Kong and offer greater flexibility for issuers seeking dual-primary listings. Such measures would further attract quality “China Concept Stocks” to list in Hong Kong and provide more choices to investors, thereby increasing market liquidity.
 
     The Financial Secretary announced in the 2022-23 Budget that, in order to cater for the emerging new economy in the Mainland in recent years and considering the fundraising needs of large‑scale advanced technology enterprises, SFC and the HKEX would review the Main Board Listing Rules and, having due regard to the risks involved, examine the revision of the listing requirements to meet the fundraising needs of such enterprises. The HKEX is approaching relevant market participants for views, with a view to putting forward concrete recommendations as soon as practicable.
 
     In addition, in response to market views, the HKEX commenced a review on the functions and positioning of GEM last year, and established a dedicated panel under the Listing Committee to handle the work concerned. The review will be conducted under the principle of further strengthening the competitiveness of Hong Kong as a global premier listing hub and enhancing the overall quality of the Hong Kong capital market. Alongside facilitating different types of enterprises to list in Hong Kong, the HKEX will take into consideration market attractiveness and liquidity, and safeguard the interests of the investing public. The HKEX is engaging different parties and will make reference to the experiences of similar markets in other places.
 
(3) and (4) The HKEX unveiled in March 2022 its vision to build the “Marketplace of the Future”, with a view to facilitating the two-way capital flows between East and West as well as delivering vibrant and diversified markets, thereby strengthening Hong Kong’s position as an international financial centre. Building on Hong Kong’s unique advantages in leveraging the strengths of our country and engaging the world, the HKEX put forward three strategic pillars, namely “Connecting China and the World”, “Connecting Capital with Opportunities”, and “Connecting Today with Tomorrow”. The HKEX has devised concrete measures in the short, medium and long term under each of the three strategic pillars. With the continuous growth of the Mainland economy and the opportunities brought by Hong Kong’s position in connecting the financial markets in the Mainland and the rest of the world, the HKEX will enhance Hong Kong’s overall competitiveness relative to other overseas markets. The concrete details and measures on the HKEX’s vision have been uploaded to its dedicated webpage www.hkexgroup.com/about-hkex/about-hkex/our-strategy.
 
     Overall speaking, leveraging on the Mainland strength, the HKEX will continue to bring the Mainland growth story to international investors, while facilitating Mainland enterprises to raise funds in Hong Kong and Mainland capital in offshore asset allocation through the Hong Kong capital market. By further developing the mutual access programme and growing its portfolio of Mainland-related product offerings, the HKEX’s goal is to develop Hong Kong into Mainland’s go-to offshore hub for fundraising, trading, and risk management. In the short term, the HKEX will work to expand the mutual access schemes, take forward the inclusion arrangements for exchange traded funds (ETFs) in Stock Connect and allow stocks traded via the Southbound Trading of Stock Connect to be denominated in Renminbi. The HKEX will also look into including more products and services under the mutual access programme, such as listed bonds, and expand the suite of risk management tools in equity and fixed income products.
 
     In addition, the HKEX is committed to enhancing the depth, vibrancy and diversity of its markets, strengthening Hong Kong’s position as a premier fundraising, risk management and trading hub by improving the primary market attractiveness and enabling more efficient trading, clearing and settlement. Apart from the initiatives mentioned in part (2) and this part as above, the HKEX will also strive to optimise the efficiency of IPO price discovery, as well as to enhance the trading hours of derivatives products and trading calendar of mutual access programmes, thereby enhancing market structure.
 
     In face of the new trends including digitisation, tokenisation, big data, personalised finance, and the new mission of incorporating environmental, social and governance (ESG) considerations, the HKEX is actively developing digital capabilities and exploring new opportunities in digital assets, ESG, private markets and other emerging sectors, leveraging its data as well as agile and modern infrastructure to develop new business. In the short and medium term, the HKEX plans to launch FINI (Fast Interface for New Issuance), an electronic IPO settlement platform, and will look into the introduction of ESG equity index derivatives and voluntary carbon credit trading, as well as enhance its Sustainable and Green Exchange (STAGE).
 
     Over the next few years, the HKEX will, in collaboration with the Government, take forward various business reforms following the above plans and drive the development of the local financial services sector in collaboration with the Government, with a view to supporting the development of the financial market for the future of Hong Kong. read more