Following is a question by the Hon Chan Yung and a reply by the Secretary for Home and Youth Affairs, Miss Alice Mak, in the Legislative Council today (October 14):

Question:

     It is learnt that the Government has established a steering committee and a project planning office to co-ordinate the celebration activities for the 30th anniversary of Hong Kong's return to the motherland. In this connection, will the Government inform this Council:

(1) of the expected timeframe for announcement of the overall plan, current progress of the preparation work and timetable of the celebration activities for the 30th anniversary of Hong Kong's return to the motherland, and whether it will study collaborating with the relevant Central authorities and the Mainland cities of the Guangdong-Hong Kong-Macao Greater Bay Area to jointly co-ordinate national-level celebration projects, so as to expand the impact of the activities;

(2) whether it will roll out celebration activities at three levels, namely community, education and sports, including mobilising resources in 18 districts to organise activities with distinctive characteristics, encouraging various sectors to continue providing special offers on the 1st of July, making good use of the existing patriotic education facilities and red tourism elements to design thematic activities integrating celebration with education, as well as organising the event of Reunification Cup at the Kai Tak Sports Park to bring together tradition and international sports events, with a view to promoting the mega event economy; and

(3) whether it will organise international forums, exhibitions or economic and trade activities relating to Hong Kong's return to the motherland, so as to attract visitors and inward investment, and demonstrate the achievements of the successful implementation of "one country, two systems" in Hong Kong over the past 30 years since its return to the motherland, and how the Government assesses the effectiveness of these activities in reinforcing the international image of Hong Kong and telling good stories of Hong Kong, China?

Reply

President,

     July 1, 2027, marks the glorious and historic moment of the 30th anniversary of the establishment of the Hong Kong Special Administrative Region (HKSAR) and the 30th anniversary of Hong Kong's return to the motherland. This is the first major establishment anniversary Hong Kong celebrates following the full implementation of the principle of "Patriots Administering Hong Kong". It signifies that Hong Kong has entered a historic phase of advancing from stability to prosperity in the march to fully implementing the "one country, two systems" policy, safeguarding national sovereignty and security, and ensuring long-term prosperity and stability. As the country takes forward the National 15th Five-Year Plan in full steam, the HKSAR Government has also formulated Hong Kong's first Five-Year Plan to proactively align with the National 15th Five-Year Plan, ensuring that Hong Kong can better seize the development opportunities while integrating into and serving the overall development of the country.

     Leveraging this important historic moment, the Government will celebrate the extraordinary achievements made over the 30 years of return to the motherland together with all sectors of society and citizens of Hong Kong, while showcasing Hong Kong's ever brighter future to the world. Under the steer of the Chief Executive, the Government has established a steering committee chaired by the Chief Secretary for Administration to provide overall steer on the planning and preparation of celebrations. Designated task forces chaired by the Deputy Chief Secretary for Administration have been set up under the steering committee to co-ordinate and oversee the implementation of specific tasks. The Government has also set up a Project Planning Office to support the steering committee and task forces, and to take forward the planning and preparation work.

     Under the leadership of the steering committee, all Government bureaux and departments are fully committed to organising a diverse and exciting array of celebratory activities for rolling out in 2027. The celebratory activities will cover a wide range of areas and incorporate elements of national education. This will allow members of the public to deepen their understanding of the history and development of the country and Hong Kong while celebrating the anniversary, thereby enhancing their sense of national identity and belonging, and deeply cultivating a sense of patriotism. While sharing the joy of the return to the motherland with the citizens and compatriots in the Chinese Mainland, the Government will also leverage the celebratory activities to showcase Hong Kong's distinctive edge of enjoying strong support of the motherland while being closely connected to the world under the "one country, two systems" principle, and to highlight Hong Kong's unique role and status on the international stage. The opportunity will be taken to tell the good stories of China and Hong Kong to the world, and to demonstrate the good opportunities awaiting Hong Kong under the National 15th Five-Year Plan.  

     Celebrating the 30th anniversary of return to the motherland is keenly anticipated by the entire city. The Government looks forward to the participation and support of all sectors of society, including the Legislative Council, in this important celebration in their different ways. The Government is currently making every effort to plan and advance the celebratory activities for the 30th anniversary; announcements will be made at suitable junctures when plans are firmed up.

     Thank you, President.

     Following is a question by the Hon Maggie Chan and a written reply by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, in the Legislative Council today (October 14):
 
Question:
 
     Hong Kong's First Five-Year Plan emphasises "promoting the enhancement and upgrading of the pension finance system and continuing to diversify pension finance product offerings". Both the number of valid applicants and the total principal amount of subscription of the Silver Bond issued in 2026 have reached historic highs. In this connection, will the Government inform this Council:
 
(1) as it is learnt that the Silver Bond issued in 2026 recorded over 476 000 valid applications with subscription amount close to $120 billion, which is more than double the final issuance amount of $55 billion, whether the Government will, based on the eligible elderly population and subscription situations over the years, regularly review and increase the final issuance amount of Silver Bond, so as to further promote the silver economy; if so, of the details; if not, the reasons for that;
 
(2) as it is learnt that under the allocation mechanism of the Silver Bond issued in 2026, the maximum allocation of bonds per person was capped at 13 units, which was far lower than the maximum of 17 units allocated for the Silver Bond in 2025; as a result, over 388 000 applications seeking more than 12 units were only allocated 12 units initially, with the additional unit to be determined by ballot, the success rate of which was only about one in four, whether the Government will study increasing the per capita allocation of Silver Bond (such as increasing the basic guaranteed number of units to be allocated), and evaluate the role of Silver Bond in providing retirement income protection for the elderly; if so, of the details; if not, the reasons for that; and
 
(3) as it is learnt that Silver Bond holders may redeem their bonds early if they have financial needs, whether the Government has compiled statistics on the respective numbers of redemption cases and the amounts involved throughout the years since the issuance of Silver Bond in the 2016-2017 financial year, and whether it will review the redemption arrangements with reference to the relevant data, so as to enhance the flexibility of Silver Bond in the financial management of the elderly?
 
Reply:
 
President,
 
     The Government set up the Government Sustainable Bond Programme (GSBP) and the Infrastructure Bond Programme (IBP) in 2018 and 2024 respectively, with the aim of utilising market resources to meet the funding needs of sustainable projects and public works projects which are conducive to long-term development of Hong Kong, pushing ahead Hong Kong's infrastructure and urban development, and facilitating the early completion of projects for the good of the economy and people's livelihood.
 
     As the Government accelerates the development of the Northern Metropolis and other public works projects relating to the economy and people's livelihood, the total borrowing ceiling of the GSBP and the IBP was raised to HK$900 billion following approval by the Legislative Council in May this year. During 2026-27 to 2030-31, the Government plans to issue about HK$160 billion to $220 billion worth of bonds each year under the two bond programmes. Silver Bond is offered under the IBP (Note).

Note: Silver bond was first launched in 2016. During 2016 to 2023, it was offered under the Government Bond Programme (GBP); since 2024, it was offered under the IBP. The GBP was a Government initiative to develop the local bond market. In February 2024, the Government announced that the IBP and the GSBP would gradually replace the GBP.
 
     In response to the question raised by Hon Maggie Chan, having consulted the Hong Kong Monetary Authority, our reply is as follows:
 
(1) and (2) Currently, the Government issues Silver Bond mainly for raising funds for capital works projects, while at the same time providing senior citizens with a reliable investment option with steady returns. The target issuance amount of the 2026 Silver Bond was HK$50 billion. In view of the positive response in subscription, the final issuance amount was increased to HK$55 billion.
 
     When formulating specific arrangements of the bond issuance plan each year, the Government will take into consideration a basket of factors, including interest rates and tenors of different currencies and types of bonds, issuance costs of the Government, market response, fiscal position of the Government and duration and progress of works. The above factors are also applicable to the formulation of issuance arrangements of Silver Bond. The population of senior citizens and historical subscription results are some of the reference information when considering the issuance arrangements of Silver Bond, but not the decisive factors regarding the issuance amount.
 
     Apart from Silver Bond, the Government has various measures on promoting silver economy. Among them, the Financial Services and the Treasury Bureau is taking the lead to promote the "silver financial and security arrangements", to assist senior citizens in prudent financial planning and risk management through arrangements such as retirement financial planning products, mortgage and investor education. Silver Bond provides senior citizens with a reliable investment option with steady returns, but is not for retirement income protection. Since the financial situation and investment plans vary significantly among individual senior citizens, we are not able to make an assessment in this regard.
 
     On the "maximum principal allocation amount" of Silver Bond, as the Government aims at allowing more citizens to join the scheme, the allocation mechanism in the Issue Circular of the 2026 Silver Bond specified that the maximum allocation amount per investor is HK$1 million, viz each investor would be allocated 100 units at most. Under the current mechanism via allocation cycles, the highest number of allocated units for each Silver Bond issuance is determined subject to the total number of valid applications and amounts applied for. Using the Silver Bond issued in 2026 as an example, all valid applications received have been allocated bonds up to a maximum of 13 units. For the 88 422 applications seeking 12 or fewer units, they will be allocated the full amounts applied for. The remaining 388 281 applications applying for more than 12 units would be allocated 12 units each and then entered into a ballot. Of these applications, 97 396 applications would be allocated one additional unit.
 
     The current allocation mechanism can cover all valid applications while satisfying the demand of small-lot investors. The Government will continue to take into account of the market response of Silver Bond when formulating suitable bond issuance arrangements in the future.
 
(3) An early redemption arrangement has been in place since the launch of Silver Bond in 2016. Currently, a bondholder can submit an early redemption request to the Government through a Placing Bank or Designated Securities Broker on any business day. The bonds will be redeemed at par by the Placing Bank or Designated Securities Broker on the third business day after the submission of the request. The amount equals to the principal amount together with accrued but unpaid interest (for the period up to (but excluding) the Early Redemption Settlement Date), which is calculated at the fixed rate applicable to the respective batches of bonds.
 
     The amount involved in the early redemption of Silver Bond during the past 10 years (up to September 2026) is set out below. The Government does not keep records of the number of early redemption cases.
 

Year of issuance	Early Redemption Amount (HK$'billion)	Early Redemption Ratio (%)
2025	7.0	1.3
2024	12.2	2.2
2023	18.2	3.3
2022	30.5	6.8
2021	31.6	10.5
2020	15.4	10.3
2019	1.0	3.4
2018	1.0	3.4
2017	1.4	4.7
2016	1.5	5.1

     The early redemption ratio of Silver Bond during the aforementioned period is on average around 5 per cent of the issuance amount. This shows that the majority of senior citizens held/are holding their bonds until maturity and also reflects that Silver Bond and its issuance arrangements are supported by senior citizens. The current early redemption arrangements render Silver Bond both a safe and flexible investment option, offering senior citizens considerable liquidity in investment.

     ​Hongkong Post announced today (October 14) that, as advised by airlines, customs clearance for mail at Tribhuvan International Airport, Kathmandu, will be suspended from October 16 to 24. Mail delivery services to Nepal are subject to delays.

     Following is a question by the Hon Elizabeth Quat and a reply by the Secretary for Innovation, Technology and Industry, Professor Sun Dong, in the Legislative Council today (October 14):

Question:

     Computing power is the most crucial factor of production in the era of artificial intelligence. Regarding supporting the development of the intelligent computing industry, will the Government inform this Council:

(1) as it is learnt that the total supply of computing power in Hong Kong is currently insufficient, and that the utilisation rate of existing computing power facilities (including Cyberport's Artificial Intelligence Supercomputing Centre) has long remained high with demand exceeding supply, resulting in an interim gap in the supply of computing power in Hong Kong before the Sandy Ridge Data Facility Cluster comes into operation, and the industry has further pointed out that even after the operation of the cluster, the computing power will still be insufficient to support development needs, of the short-, medium- and long-term measures to support the development of the industry;

(2) whether it will expedite the study on the development of a "computing power exchange" and the establishment of mechanisms for the certification, trading, settlement and pricing of computing power, so as to transform Hong Kong's traditional financial strengths into advantages in resource allocation in the era of AI, as well as explore ways to leverage the collaboration model with other Mainland cities to open up a new channel for "tokens going global"; and

(3) as there are views that the existing planning has not fully taken into account the enormous demand for water and electricity required for developing the intelligent computing industry, whether the Government will study the construction of a "dedicated water and electricity supply corridor for the intelligent computing industry" from the Mainland to Hong Kong, and negotiate the addition of a "dedicated cooling water quota for the intelligent computing industry in the Northern Metropolis" under the existing Dongjiang water supply agreement?

Reply:

President:

     The First Five-Year Plan for Economic and Social Development of the Hong Kong Special Administrative Region (2026-2030) identifies AI as an important industry for the future development of Hong Kong. The Hong Kong Special Administrative Region Government will actively promote the development of computing infrastructure, fostering the healthy development of AI and the intelligent computing industry.

     In response to the question raised by the Hon Elizabeth Quat, upon consulting the Development Bureau, the Environment and Ecology Bureau and the Financial Services and the Treasury Bureau, our reply is as follows:

(1) Hong Kong's overall computing power has reached 5 000 peta floating-point operations per second (PFLOPS), of which Cyberport's Artificial Intelligence Supercomputing Centre (AISC) accounts for 3 000 PFLOPS. The current utilisation rate of the AISC has exceeded 90 per cent, reflecting strong market demand for AI computing services. The Government will proactively increase the supply of computing power and enhance resource utilisation through short, medium and long-term measures.

     In the short term, the Government will make good use of existing facilities and the Artificial Intelligence Subsidy Scheme (AISS) to support the research and development, model training and application needs of local research institutes, universities and enterprises. The Committee of the AISS will review arrangements for the allocation of computing power resources and their duration of use as appropriate, having regard to the actual needs of the subsidised projects and overall status of resource utilisation, with a view to enhancing its efficiency. Cyberport will also continue to review the service capacity of the AISC and future demand, and explore feasible options for increasing its computing power.

     In the medium term, the construction of the Sandy Ridge Data Facility Cluster has already commenced. The site will be developed into a regional data facility cluster of advanced data centres and related industries. It is expected to commence its first phase of operations in 2027 and become fully operational in or before 2032, when it will provide 180 000 PFLOPS of computing power, substantially increasing Hong Kong's computing power.

     In the long term, the Government is preparing to commission a new consultancy study on computing power to analyse Hong Kong's future demand. Guided by the core directions of "high efficiency computing power, stable electricity supply, low-carbon transition", the study will optimise the operations of data centres and the layout of computing power in Hong Kong, providing a basis for planning the long-term development of Hong Kong's intelligent computing industry.

(2) In the long run, the Government recognises that Hong Kong has the strengths and potential to support the development of activities such as computing power trading and the provision of token-based AI services to overseas markets. At present, however, the priority of Hong Kong is to strengthen its computing power infrastructure. From the perspective of financial markets, establishing a comprehensive product ecosystem, including relevant trading, settlement and price discovery mechanisms requires the foundation of a mature underlying market and a sound market ecosystem.  

     At this stage, the Government will focus on developing Hong Kong's intelligent computing industry and supporting infrastructure to strengthen the computing power supply. We will also closely monitor the latest developments in the intelligent computing industry in the Chinese Mainland and overseas, maintain communication with the industry, and explore arrangements that can enhance the efficiency of computing power resource allocation and promote the development of AI and the intelligent computing industry.

     On regional collaboration, the Government will continue to leverage Hong Kong's roles as a "super connector" and a "super value-adder" to strengthen co-operation with other cities in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) in areas such as computing power resources and market development. We also welcome service providers, including operators of computing power facilities in the GBA, to provide services to Hong Kong enterprises in response to market demand.

     As regards cross-boundary AI and computing services, including the provision of token-based AI services to overseas markets, their development must take into account factors such as data flows, cybersecurity, personal data protection, and applicable laws and regulations. The Innovation, Technology and Industry Bureau is facilitating cross-boundary co-operation and AI innovation through the facilitation measure of the Standard Contract for the Cross-boundary Flow of Personal Information within the Guangdong-Hong Kong-Macao Greater Bay Area (Mainland, Hong Kong), as well as efforts to promote the secure flow of Mainland scientific research data to the Hong Kong Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone, etc. The Government will work together with the industry and relevant stakeholders to actively explore co-operation models conducive to the long-term development of AI industry in Hong Kong, further enhancing Hong Kong's competitiveness as an international hub for AI and intelligent computing services.

(3) In planning the development of the intelligent computing industry, the Government will review the supporting water and electricity infrastructure in parallel. The planned development of the industries with high water consumption in the Northern Metropolis (NM) is mainly concentrated in San Tin, Sandy Ridge and Hung Shui Kiu/Ha Tsuen. Having considered the latest development needs of the NM, including the planning information on the intelligent computing industry from the Digital Policy Office, the preliminary assessment of the Water Supplies Department (WSD) indicates that the area as a whole has sufficient supplies of fresh water and recycled water to complement its development.

     To address the water requirements of cooling systems during the operation of intelligent computing facilities, the Government will continue to encourage enterprises to adopt water-saving technologies and make good use of different water sources, including the appropriate allocation of fresh water and recycled water for cooling purposes. To provide a stable and economical water supply, the Government will consider factors such as projected water demand and the associated timetable, cost-effectiveness, the availability of fresh water in the vicinity, and the availability of effluent from tertiary sewage treatment for producing recycled water. The WSD will upgrade water supply infrastructure as appropriate to meet specific needs. There is no need to establish a dedicated water supply corridor or quota for the intelligent computing industry at this stage.

     On electricity supply, the two power companies are required under the Scheme of Control Agreements to provide, operate and maintain sufficient electricity-related facilities and supply electricity to meet demand. The CLP Power Hong Kong Limited has undertaken construction and planning work to meet the electricity demands of Hong Kong's future development, which would be sufficient to support the overall development of the I&T industry (including data centres).

     The Innovation and Technology Commission announced today (October 14) that the Pilot Innovation and Technology Accelerator Scheme (PITAS) Assessment Committee (the Assessment Committee) under the Innovation and Technology Fund has supported in principle nine applications. The list is as follows:
 

• BJ-HK-SZ Innotech Accelerator Limited
• China Outbound Accelerator Limited
• China Resources Corporate Services (HK) Limited
• Hong Kong Branch of The National Torch Academy of Innovation and Entrepreneurship Co., Limited
• Surrich Consulting Co., Limited
• Tenwings Accelevator Company Limited
• ventureLAB Smart City Accelerator Limited
• Xi'an Jiaotong University Hong Kong Institute of Advanced Studies Co., Limited
• Zhong Xing No.1 Investment Fund Limited

     The Secretary for Innovation, Technology and Industry, Professor Sun Dong, said, "The nine selected organisations possess extensive networks and resources in areas such as AI, robotics, biomedicine, new energy and new materials. They will provide value-added services including co-working space, research and development support, investment matching and market development to accelerate the growth of innovation and technology (I&T) companies in Hong Kong. The Hong Kong Special Administrative Region Government will continue to enhance the I&T ecosystem and develop Hong Kong into an international I&T centre."

     PITAS aims to attract professional I&T enterprise service providers with proven track records in and beyond Hong Kong to set up accelerator bases in Hong Kong and, through their business networks and expertise, support the development and needs of I&T enterprises in a more comprehensive and targeted manner. Under PITAS, the Government will provide funding support on a one‑to‑two matching basis between the Government and the service provider to cover the necessary expenditure for establishing and operating an I&T accelerator to a ceiling subsidy of $30 million. The project duration is up to three years. 

     Upon its launch, PITAS received an enthusiastic response with over 50 applications. The Assessment Committee selected the above nine organisations for funding support based on a series of assessment criteria, including the experience of I&T enterprise service providers, operational models, capital and resources, quality of the management and project teams, and expected benefits to the I&T ecosystem in Hong Kong, etc.

     Details of PITAS are available on the website below (www.itf.gov.hk/en/funding-programmes/supporting-start-ups/pitas). For enquiries, please contact the Secretariat of the scheme (Tel: 3543 5904; email: pitas@itc.gov.hk).