Tag Archives: China

     Hong Kong was ranked number two in the 2020 Index of Economic Freedom, published by the Heritage Foundation (the Foundation). Hong Kong attained high scores of 90 or above in seven out of 12 components adopted for measuring economic freedom, though Hong Kong’s overall score decreased by 1.1 points from the previous year due primarily to a decline in the “Investment Freedom” score, which was mainly due to security issues arising from the social unrest in the latter half of 2019.  
 
     A Government spokesperson said today (March 17), “We are naturally disappointed that Hong Kong, which held the world’s freest economy title for 25 successive years, has dropped to number two. But we welcome the Foundation’s continued recognition of Hong Kong’s various strengths and its awareness that the territory remains a dynamic global financial centre with a high degree of competitiveness and openness. It is gratifying to note that Hong Kong attained the highest score among the assessed economies in terms of ‘Fiscal Health’, ‘Business Freedom’, ‘Trade Freedom’ and ‘Financial Freedom’.
 
     “Hong Kong faced some unprecedented challenges in 2019. Since June last year, there have been numerous incidents of protests under the pretext of opposing an extradition bill, which had been put on hold since violence erupted and was subsequently withdrawn. The bill, inter alia, sought to enhance the framework for mutual legal assistance in criminal matters between the Hong Kong Special Administrative Region (HKSAR) and other parts of China, and was certainly not politically motivated.
 
     “The high level of civil disobedience, acts of vandalism and intimidation of people holding a different political standpoint have inevitably tarnished Hong Kong’s reputation as a safe and orderly place. The HKSAR Government condemned such acts of violence and is determined to deal with them in strict accordance with the law.
 
     “While the local social unrest and turbulence in the past year, and how these were perceived overseas, might have affected Hong Kong’s score in the investment environment, we must stress that Hong Kong’s institutional strengths are unscathed and our underlying fundamentals remain strong. It is relevant to note that Hong Kong’s scores in the three components relating to the rule of law – ‘Property Rights’, ‘Judicial Effectiveness’ and ‘Government Integrity’ – have all increased in the 2020 Index of Economic Freedom,” said the spokesperson.
 
     “Investors continue to have confidence in our long-term economic prospects, especially given Hong Kong’s platform role for international investors to access the Mainland market,” he said.
 
     “Since the return to the Motherland, the HKSAR has been exercising ‘Hong Kong people administering Hong Kong’ and a high degree of autonomy in strict accordance with the Basic Law of the Hong Kong Special Administrative Region of the People’s Republic of China. The ‘one country, two systems’ principle has been fully and successfully implemented.
 
     “Under the ‘one country, two systems’ principle, Hong Kong’s capitalist system, free economy and trusted legal system remain as robust as ever, the free flow of capital within, into and out of Hong Kong is guaranteed and Hong Kong residents continue to enjoy a wide array of freedoms, including freedom of speech, of the press, of assembly and of demonstration.
 
     “With the further opening up and deepening of economic reform in the Mainland, Hong Kong is poised to be both a ‘facilitator’ and a ‘beneficiary’ of important national development strategies such as the Guangdong-Hong Kong-Macao Greater Bay Area and the Belt and Road Initiative.
 
     “Contrary to the Foundation’s concern, such integration with the Mainland through trade, tourism and financial links will not erode Hong Kong’s freedoms.
 
     “Free market principles have long been essential considerations of our policies and the cornerstone of the Hong Kong economy. The Government will continue to uphold the fine tradition of the rule of law and judicial independence, maintain a simple and low tax system, improve government efficiency, safeguard an open and free trade regime, and build a level-playing field for all, so as to create a favourable environment for business to thrive and to enable the economy to prosper,” the spokesperson added.
 
     The 2020 Index of Economic Freedom report was released by the Foundation on March 17, 2020, analysing the level of economic freedom of 180 economies. Hong Kong was ranked second in the Index with an overall score of 89.1 (out of 100), which was well above the global average of 61.6. read more

     The overall Comprehensive Social Security Assistance (CSSA) caseload in February showed a rise of 997 cases, representing an increase of 0.5 per cent compared with that of January, according to the latest CSSA caseload statisti… read more

     The total gross value of construction works performed by main contractors in the fourth quarter of 2019 decreased by 4.2% in nominal terms over a year earlier to $62.8 billion, according to the provisional results of the Quarterly Survey of Construction Output released today (March 17) by the Census and Statistics Department (C&SD). 
 
     After discounting the effect of price changes, the provisional results showed that the total gross value of construction works performed by main contractors decreased by 5.2% in real terms over the same period. 
 
     Gross value of construction works in real terms is derived by deflating the corresponding nominal value with an appropriate price index to the price level in the base period of 2000. 
 
     Analysed by type of construction works, the gross value of construction works performed at private sector sites increased by 5.8% in nominal terms in the fourth quarter of 2019 over a year earlier, while that at public sector sites decreased by 7.8%. The gross value of construction works at locations other than construction sites decreased by 8.3% in nominal terms over the same period. Construction works at locations other than construction sites included minor new construction activities and decoration, repair and maintenance for buildings; and electrical equipment installation and maintenance works at locations other than construction sites. 
 
     In real terms, the gross value of construction works performed at private sector sites increased by 7.6% in the fourth quarter of 2019 compared with the same period in 2018, while a decrease of 12.4% was recorded for public sector sites. Meanwhile, the gross value of construction works at locations other than construction sites decreased by 8.9% in the fourth quarter of 2019 over the same period. 
 
     On a seasonally adjusted quarter-to-quarter basis, the gross value of construction works performed by main contractors decreased by 3.1% in nominal terms and decreased by 4.3% in real terms in the fourth quarter of 2019 compared with the third quarter of 2019. 
 
     For 2019 as a whole, the provisional results showed that the total gross value of construction works performed by main contractors decreased by 7.1% in nominal terms compared with 2018 to $234.2 billion. 
 
     After discounting the effect of price changes, the total gross value of construction works performed by main contractors in 2019 decreased by 9.3% in real terms over 2018.

     Analysed by type of construction works, the gross value of construction works performed at private sector sites totalled $72.3 billion in 2019, down by 4.3% in nominal terms compared with 2018. In real terms, it decreased by 3.8%. 
 
     The gross value of construction works performed at public sector sites amounted to $61.9 billion in 2019, down by 18.3% in nominal terms compared with 2018. In real terms, it decreased by 22.7%. 
 
     The gross value of construction works performed by main contractors at locations other than construction sites amounted to $99.9 billion in 2019, down by 0.8% in nominal terms compared with 2018. In real terms, it decreased by 2.5%. 
 
     Analysed by major end-use group, residential buildings projects accounted for the largest share in the total gross value of construction works performed at construction sites in 2019. The gross value of construction works performed in respect of these projects amounted to $63.1 billion in 2019, down by 7.6% in nominal terms compared with 2018. 
 
     Transport projects constituted the second largest group of construction site works in 2019. The gross value of construction works performed in respect of these projects totalled $26.2 billion in 2019, down by 28.9% in nominal terms compared with 2018. 
 
     Tables 1 and 2 show the provisional figures on the gross value of construction works performed by main contractors in the fourth quarter and the whole year of 2019 respectively. Table 3 shows the revised figures for the third quarter of 2019. 
 
     Owing to the widespread sub-contracting practices in the construction industry, a construction establishment can be a main contractor for one contract and a sub-contractor for another contract at the same time. The gross value of construction works performed by main contractors covers only those projects in which the construction establishment takes the role of a main contractor, but not projects in which it takes only the role of a sub-contractor. However, sub-contractors’ contribution to projects should have been included in the gross value of construction works performed by main contractors for whom they worked. 
 
     The classification of construction establishments follows the Hong Kong Standard Industrial Classification Version 2.0, which is used in various economic surveys for classifying economic units into different industry classes. 
 
     More detailed statistics are given in “Report on the Quarterly Survey of Construction Output, 4th Quarter 2019”. Users can download this publication free of charge at the website of the C&SD (www.censtatd.gov.hk/hkstat/sub/sp330.jsp?productCode=B1090002). 
 
     For enquiries about the survey results, please contact the Construction and Miscellaneous Services Statistics Section of the C&SD (Tel: 3903 6965 or email: building@censtatd.gov.hk). read more

     According to the latest labour force statistics (i.e. provisional figures for December 2019 – February 2020) released today (March 17) by the Census and Statistics Department (C&SD), the seasonally adjusted unemployment rate increased from 3.4% in November 2019 – January 2020 to 3.7% in December 2019 – February 2020. The underemployment rate also increased from 1.2% in November 2019 – January 2020 to 1.5% in December 2019 – February 2020.
 
     Comparing December 2019 – February 2020 with November 2019 – January 2020, the unemployment rate (not seasonally adjusted) increased across almost all the major economic sectors, with more distinct increases observed in the construction sector; and retail, accommodation and food services sector.  As to the underemployment rate, increases were mainly seen in the construction sector; transportation sector; and retail, accommodation and food services sector.
 
     Total employment decreased by around 34 400 from 3 803 200 in November 2019 – January 2020 to 3 768 800 in December 2019 – February 2020. Over the same period, the labour force also decreased by around 22 500 from 3 925 500 to 3 903 000.
 
     The number of unemployed persons (not seasonally adjusted) increased by around 11 800 from 122 300 in November 2019 – January 2020 to 134 100 in December 2019 – February 2020. Over the same period, the number of underemployed persons also increased by around 11 800 from 47 300 to 59 100.
           
Commentary
 
     Commenting on the latest unemployment figures, the Secretary for Labour and Welfare, Dr Law Chi-kwong said, “The labour market deteriorated sharply, as the COVID-19 epidemic caused severe disruptions to a wide range of economic activities and dampened economic sentiment. The seasonally adjusted unemployment rate increased visibly by 0.3 percentage point to 3.7% in December 2019 – February 2020, the highest in more than nine years. The underemployment rate also increased by 0.3 percentage point to a five-year high of 1.5%. The year-on-year decline in total employment widened to 2.5%, the largest since the Asian financial crisis. The decline in labour force also enlarged in parallel, suggesting that some people chose to leave the labour force upon losing their jobs.”
 
     “The employment situation of the consumption- and tourism-related sectors (viz. retail, accommodation and food services sectors) exacerbated further, as the threat of the COVID-19 infection has brought inbound tourism to a standstill and dealt a severe blow to consumption-related activities. The unemployment rate and the underemployment rate of these sectors combined surged to 6.1% and 2.5% respectively, both the highest in about a decade. The situation in food and beverage service activities was particularly severe, with the unemployment rate and the underemployment rate soaring to 7.5% and 3.5% respectively. Meanwhile, the unemployment and underemployment situation in the construction sector deteriorated drastically, as construction activities saw visible slowdown. The underemployment rate of the transportation sector also rose noticeably amid sharply reduced people and cargo flows.”
 
     Looking ahead, Dr Law said, “The labour market will be subject to even greater pressure in the near term, and the exact impact will hinge on the duration and severity of the pandemic around the world. The Government will monitor the developments closely.”
 
     He noted that the Labour Department (LD) implements special employment programmes for job-seekers who have special needs or difficulties in employment (such as the youth, mature persons and persons with disabilities) to enhance their employability and facilitate their employment. To assist young people to find jobs, the LD provides through the Youth Employment and Training Programme (YETP) comprehensive training and employment support to young school leavers aged 15-24 with educational attainment at sub-degree level or below. In the second half of 2020, the LD plans to increase the on-the-job training allowance under YETP in order to further encourage employers in hiring young people and to provide them with on-the-job training. The LD will also launch a pilot scheme to encourage YETP trainees to undergo and complete on-the-job training through the provision of a retention allowance, thereby stabilising employment.
 
     Meanwhile, the LD continues to receive and release information on vacancies from various industries for job-seekers with different educational background and working experience. Job-seekers may make use of the LD’s online platforms such as the Interactive Employment Service website for obtaining employment information.
 
Further Information
 
     The unemployment and underemployment statistics were compiled from the findings of the continuous General Household Survey.
 
     The survey for December 2019 – February 2020 covered a sample of some 26 000 households or 75 000 persons, selected in accordance with a scientifically designed sampling scheme to represent the population of Hong Kong.
 
     Data on labour force characteristics were obtained from the survey by interviewing each member aged 15 or over in the sampled households.
 
     In the survey, the definitions used in measuring unemployment and underemployment follow closely those recommended by the International Labour Organization.
 
     Detailed analysis of labour force characteristics is given in the “Quarterly Report on General Household Survey” which is published four times a year. The latest issue of the publication contains statistics for the quarter October – December 2019 while the next issue covering the quarter January – March 2020 will be available by end May 2020. Users can download this publication free of charge at the website of the C&SD (www.censtatd.gov.hk/hkstat/sub/sp200.jsp?productCode=B1050001).
 
     For enquiries about labour force statistics, please contact the Household Statistics Analysis Section of the C&SD (Tel: 2887 5508 or email: ghs@censtatd.gov.hk). read more

     Sha Tin Police District launched a three-day traffic enforcement operation against illegal parking in Sha Tin, Tin Sum and Ma On Shan police divisions starting from today (March 17), to ensure smooth traffic flow and raise… read more