Following is the video speech by the Financial Secretary, Mr Paul Chan, at the Global Fintech Market Updates: Hong Kong-Korea Ecosystem webinar this afternoon (September 8):

Consul General (Consul General of the Republic of Korea in Hong Kong, Mr Baek Yong-chun), Margaret ( Executive Director of the Hong Kong Trade Development Council, Ms Margaret Fong), distinguished guests, ladies and gentlemen, 

     Good afternoon.  

     It's a pleasure to speak to you today. I'm always pleased to talk about the future of finance, especially in an international forum bringing together fintech professionals, investors and believers from Hong Kong, Korea and beyond.

     We have much to learn from each other, much to gain, in fintech co-operation. 

     Hong Kong now counts more than 600 fintech companies. They provide mobile payments, cross-boundary transfers, financial consultancy, wealth management and much more. 

     Let me add that eight virtual banks, four virtual insurers and one virtual-asset trading platform are now operating in Hong Kong. 

     And we're just getting going, ladies and gentlemen. The Mainland's 14th Five-Year Plan supports Hong Kong's determination to enhance its status as an international financial centre, develop into a global innovation and technology hub and deepen mutual access between the financial markets of Hong Kong and the Mainland.

     To that end, we are pursuing a plethora of fintech prospects, including the use of central bank digital currency for cross-border transactions.

     The boundless possibilities of financial technology can only boost Hong Kong's competitiveness as a global financial services centre. 

     Korea's innovative high-tech sector also has much to offer Hong Kong. And I'm grateful to the Korean consulate, the Korea Trade-Investment Promotion Agency and our Trade Development Council for organising today's inaugural fintech market gathering, for encouraging co-operation between our two economies in this far-reaching sector.

     I know you will enjoy today's welcome exchange. The good news is, there's more to come. Hong Kong Fintech Week takes place in the first week of November. And I look forward to seeing you there.

     Until then, I wish you all good health and the best of business. 

     Thank you.

     Police today (September 8) appealed to the public for information on a man who went missing in Kwai Chung.

     Li Hon-sun, aged 82, went missing after he was last seen on Hing Ning Road, Kwai Chung yesterday morning (September 7). His family made a report to Police on the same day.
         
     He is about 1.7 metres tall, 70 kilograms in weight and of medium build. He has a long face with yellow complexion and short white hair. He was last seen wearing a white shirt, black trousers, black shoes, a white cap and carrying a black umbrella and a black sling bag.

     Anyone who knows the whereabouts of the missing man or may have seen him is urged to contact the Regional Missing Person Unit of New Territories South on 3661 1176 or 6124 8205 or email to rmpu-nts-2@police.gov.hk, or contact any police station.

  

     Following is a question by the Hon Elizabeth Quat and a reply by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, in the Legislative Council today (September 8):
 
Question:
 
     In June 2019, the "612 Humanitarian Relief Fund" (the Fund) was established to raise funds through online crowdfunding so as to provide relief in terms of money, etc. for those injured and those arrested in the movement of opposition to the proposed legislative amendments. As at the end of July this year, the donations received cumulatively by the Fund exceeded $253 million. It has been reported that the Fund has not applied for registration under the Societies Ordinance, nor does it fall within any of the associations to which the Societies Ordinance does not apply as specified in the Schedule to the Ordinance. In this connection, will the Government inform this Council:
 
(1) whether it has studied if the Fund is required to apply for registration or exemption from registration under the Societies Ordinance; if it has studied and the outcome is in the affirmative, of the follow-up actions;
 
(2) whether it will enact legislation to regulate public fundraising activities for raising funds to subsidise persons suspected of breaking the law; and
 
(3) given that the Fund itself does not have a bank account and has been receiving donations through a bank account of another body, namely "Alliance for True Democracy", whether it has investigated if the Fund has received funds from organisations or persons outside Hong Kong, and if the activities of these two associations have contravened the Anti-Money Laundering and Counter-Terrorist Financing Ordinance and other laws?
 
Reply:
 
President,
 
     First, thank you the Hon Elizabeth Quat for raising this question, allowing us to state clearly the position of the Government.
 
     As an international financial centre, upholding the rule of law has always been the cornerstone of Hong Kong's success. It also lays the foundation for the orderly conduct of various trades, financial services and investment activities in the market. The Government is therefore on high alert for illicit activities. If any persons or organisations have violated laws and regulations, our regulatory bodies and law enforcement agencies will take appropriate actions in accordance with relevant legislations. If there are any acts involving attempts to endanger national security, or incite, aid, abet or provide pecuniary or other financial assistance or property for other persons to commit offences endangering national security, bringing threat to the nation's and Hong Kong society's prosperity and stability and the living of the general public, it may constitute an offence under the Hong Kong National Security Law, which is a very serious crime. The Government will take it very seriously.
 
     Regarding the Hon Quat's question, Members may have already noted that the National Security Department of the Hong Kong Police Force announced last week that they had launched an investigation against the "612 Humanitarian Relief Fund" for suspected contravention of the Hong Kong National Security Law or other Hong Kong relevant laws. In consultation with the Security Bureau, my reply to the question is as follows:
 
(1) According to the records of the Societies Office, the "612 Humanitarian Relief Fund" is not registered as a society or exempted from society registration under the Societies Ordinance. Section 5 of the Societies Ordinance stipulates that, unless otherwise specified, a local society shall apply to the Societies Officer for registration or exemption from registration within one month of its establishment or deemed establishment. Section 2(2) of the Societies Ordinance provides that the Societies Ordinance shall not apply to any person listed in the Schedule to the Ordinance, including any company registered under the Companies Ordinance, any trade union or any trade union federation registered under the Trade Unions Ordinance, any company, association or partnership formed for the sole purpose of carrying on any lawful business and registered under any other Ordinance, etc.
 
     According to the records of the Companies Registry and Labour Department's Registry of Trade Unions, the "612 Humanitarian Relief Fund" is neither registered as a company under the Companies Ordinance, nor as a trade union or trade union federation under the Trade Unions Ordinance. As mentioned above, the National Security Department of the Hong Kong Police Force is currently investigating the "612 Humanitarian Relief Fund" for suspected contravention of the Hong Kong National Security Law or other Hong Kong laws. If any individual or institution is suspected of any illegal act, the Police will deal with it in accordance with the law having regard to the relevant statutory requirements and the actual circumstances of the case.
 
(2) and (3) The Government has to emphasise that, any funds raised, transferred and used must be in compliance with the regulatory requirements stipulated in the relevant laws. Law enforcement agencies will, in light of the actual circumstances, monitor and keep an eye on the operation of such funds, and take enforcement actions against illegal acts in accordance with the law.
 
     Regarding Members' concern about anti-money laundering, the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO) requires financial institutions and designated non-financial businesses and professions (such as legal professionals, accounting professionals, trust or company service providers, etc.) to carry out anti-money laundering measures in accordance with the AMLO, including specific requirements such as customer due diligence and record-keeping. The AMLO also provides that any person carrying on a trust or company service by way of business in Hong Kong is required to obtain a licence to provide relevant services. If any person is suspected of providing trust or company services without a licence, he or she will breach the law, and the Companies Registry will investigate and follow-up.
 
     Under the law including the Organized and Serious Crimes Ordinance, the Theft Ordinance, etc., the activity of any persons involving the objectives of money laundering, fraud and other illegal acts will be investigated and prosecuted. 
 
     The Hong Kong National Security Law has clear provision regulating the pecuniary or other financial assistance or property for the commission by other persons of the offences stipulated in the law, in order to combat offences of colluding with a foreign country or with external elements to endanger national security.
 
     On the other hand, in respect of crowd-funding platform, if any online fundraising activities involve financial services-related activities such as an offer to the public to purchase securities or conduct lending, the relevant crowd-funding platform may be subject to regulation by the Securities and Futures Ordinance, the Companies (Winding Up and Miscellaneous Provisions) Ordinance, the Money Lenders Ordinance, etc.
 
     Therefore, crowd-funding activities are regulated by the relevant legislations depending on their purposes and nature.
 
     The National Security Department of the Hong Kong Police Force is currently investigating the "612 Humanitarian Relief Fund" for suspected contravention of the Hong Kong National Security Law or other Hong Kong laws. The Government will not comment on the operation of individual self-proclaimed funds. We strongly appeal to the public to distance themselves from fundraising activities of self-proclaimed funds which are suspected of contravening the Hong Kong National Security Law or other Hong Kong laws, so as to avoid being deceived or bearing any legal risks. 
 
     Thank you President.

     Following is a question by the Hon Paul Tse and a reply by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, in the Legislative Council today (September 8):
 
Question:
 
     Some members of the public are concerned about the Government's practice over the years of spending huge sums of money on engaging consultants for purposes such as publicising Hong Kong and taking forward public works projects. For example, in 2001 and 2010, without extensive consultation, a total of $30 million was spent on designing and promoting the "flying dragon" icon logo to publicise "Brand Hong Kong", which was criticised as a black box operation; in 2015, nearly $70 million was spent on commissioning a consultancy study on the Environmentally Friendly Linkage System for Kowloon East, but eventually the system was not adopted; in June last year, $49 million was spent on engaging a consultancy firm to formulate a strategy to publicise Hong Kong overseas; and in December last year, $550 million was allocated for conducting consultancy studies related to artificial islands in the Central Waters. A senior engineer has described the situation as "a chaotic situation of consultants administering Hong Kong". In this connection, will the Government inform this Council:
 
(1) whether it has drawn up guidelines on engaging consultants; if not, whether it will do so; if it has, of the relevant procedure and criteria, as well as the method for determining the level of consultancy fees; whether it has reviewed if the practice of engaging consultants in the aforesaid cases was cost-effective;

(2) whether it will, in conducting recruitment exercises for the relevant civil service posts, accord priority to applicants with experience in consultancy work, so that the research work for similar projects can be entrusted to civil servants in future; and

(3) of the respective total amounts of expenditure incurred by the Government in each of the past five financial years on engaging consultants to publicise Hong Kong and take forward public works projects; whether it has reviewed if such a practice is necessary and in line with the principle of fiscal prudence?
 
Reply:
 
President,
 
     Having consulted the Development Bureau, the Home Affairs Bureau and the Civil Service Bureau, my reply to the three parts of the question is as follows:
 
(1) If the expertise and qualified staff required for an assignment is not available in the Government or within the timeframe required, and the recruitment of such qualified staff is not appropriate, procuring departments may appoint a consultant for assistance upon obtaining policy support of their respective bureaux. As the consultancy services provided by consultants appointed by each department involve different portfolios, departments would determine whether to procure consultancy services, as well as the selection criteria, the assessment methodology and weighting pursuant to their practical needs. Nevertheless, to procure consultancy services in support of the Government's programme and activities, departments should follow the Government's established procurement policy and regulations, and acquire value-for-money services through bidding means and procedures along the principles of fairness, competitiveness, openness, transparency and integrity. The Government would keep lists of consultancy firms of different categories for portfolios that frequently require consultancy services for departments' reference when preparing their invitation lists of consultancy firms.
 
     Consultancy services employed by the Government could be divided into three categories according to their relevant professional fields, including the engineering and associated sector, the architectural and associated sector, and the others. For a consultancy agreement of value above the quotation limit in general procurement regulations (i.e. $3 million) but not exceeding $10 million, the selection and appointment of consultant should be agreed and approved by the relevant departmental consultants selection committee (DCSC). As for consultancy agreements of value above $10 million, depending on which of the three abovementioned sectors it belongs to, the appointment would need to be agreed and approved by the relevant consultants selection board, including the Engineering and Associated Consultants Selection Board (EACSB), the Architectural and Associated Consultants Selection Board (AACSB), or the Central Consultants Selection Board. Moreover, the Civil Engineering and Development Department and the Architectural Services Department have separately promulgated selection handbooks and technical circulars to set out the relevant regulations and guidelines for engineering and architectural consultancies, which have been uploaded to the websites of the two departments.
 
     Prior to inviting consultancy firms to submit proposals, procuring departments should formulate the assessment methodology for consultancy proposals and obtain approval from the relevant consultants selection board. The method to assess consultancy proposals includes the weightings assigned to the assessment of technical and price proposals and the assessment criteria. Technical weighting should normally account for 60 per cent to 70 per cent of the overall score, while the price weighting should account for 30 per cent to 40 per cent. The procuring department should set up an assessment panel to assess the consultancy proposals using the assessment method. The procuring department would recommend the appointment of the consultancy firm with the highest combined score in technical and price assessments for approval by the relevant consultants selection board.
 
     Works departments should follow the procedures prescribed by the EACSB or the AACSB when procuring engineering or architectural consultancy services. In general, all consultancy firms on the abovementioned consultants selection boards' lists of consultants which fulfil the qualification requirements are eligible to participate in biddings. The assessment panel would assess the technical proposal and price proposal submitted by the bidders in two stages, during which the manpower resources proposals and bidding prices submitted by the consultants will be compared with the relevant estimates by the departments, so as to assess the reasonableness of the consultancy proposals.
 
     The works departments and the Information Services Department (ISD) have reviewed the cost-effectiveness of the consultancy services under their purview as referred to in this question upon their completion.

(2) Appointments to the civil service are based on the principle of open and fair competition in order to select the most suitable candidate to fill a civil service vacancy. As Heads of Department/ Grade are best placed to know the work and operational needs of the grades under their charge, they are responsible for stipulating the entry requirements for such grades, in respect of academic or professional qualification, technical skills, working experience, language proficiency, etc. Heads of Department/ Grade should ensure that these entry requirements are relevant to and commensurate with the satisfactory performance of the relevant duties.

(3) In the past five financial years, the total value of consultancy agreements awarded by the EACSB, AACSB and DCSCs of works departments were $1.16 billion, $1.24 billion, $2.46 billion, $1.46 billion and $1.31 billion respectively.
 
     Works departments would regularly review the in-house manpower resources and the requirements of each particular project in order to decide whether there is any need to employ consultancy firms. Employment of consultancy firms for carrying out parts of the projects could speed up project implementation and introduce innovative technologies and specialist expertise. It could also avoid employing a large amount of manpower during peak construction seasons and expanding departmental establishment excessively. On the whole, the employment of consultants could facilitate the implementation of public works projects.
 
     In respect of promoting Hong Kong, the ISD has only awarded one public relations (PR) service contract relevant to promoting Hong Kong, i.e. the one with the theme "Relaunch Hong Kong", in the past five financial years. The contract value was about US$5.7 million. In light of the massive disruptions to Hong Kong's society and economy caused by rioters in 2019, followed by the repercussions brought about by the COVID-19 pandemic, the ISD decided to appoint a PR firm with expertise in areas such as crisis management, city branding, data analysis and global marketing to help the Government to devise a global marketing and PR strategy targeting key overseas markets to help Hong Kong reconnect with the world and relaunch as soon as possible. This special task could not be completed by mere re-deployment of existing manpower. The relevant agreement was procured through open bidding, and is in compliance with the guidelines on appointment of consultancy firms.

     Thank you, President.

     The effective exchange rate index for the Hong Kong dollar on Wednesday, September 8, 2021 is 101.3 (up 0.2 against yesterday's index).