The following is issued on behalf of the Hong Kong Monetary Authority:
 
     The Federal Open Market Committee of the United States Federal Reserve announced last night (March 15, US time) to adjust downward the target range for the US federal funds rate by 100 basis points to 0-0.25 per cent. In light of the Fed's decision, the Hong Kong Monetary Authority (HKMA) also adjusted downward the Base Rate today (March 16). The Base Rate is set at 0.86 per cent today according to a pre-set formula[1]. 
      
     The Chief Executive of the HKMA, Mr Eddie Yue said, "Following its rate cut on March 3, the Fed further reduced the interest rate outside its scheduled meetings and also announced a series of other measures last night, including increasing its debt securities holdings, in order to support market operations and encourage banks to provide credits to mitigate risks posed by coronavirus to the US economy. In fact, following the US rate cut on March 3, global central banks and fiscal authorities have lowered interest rates and rolled out other measures. These actions together with the Fed's latest decisions show that they are proactive in using various policy tools to mitigate the relevant risks.
      
     The spread of coronavirus has caused big adjustments in global financial markets. Likewise, Hong Kong's stock market has also seen huge volatilities. But our markets have continued to operate in an orderly manner. Hong Kong dollar exchange and interest rates have been largely stable, and our banking system remained robust with strong capital and liquidity buffers.  On interest rates, Hong Kong interbank rates would likely follow the downward trend of their US counterparts, but the actual adjustment would still depend on factors such as funding demand and supply, and different tenors of interbank rates may also see different degree of adjustments. The retail deposit and lending rates would however be subject to commercial considerations of individual banks.
      
     The global financial markets are facing a very challenging environment. The HKMA will continue to remain vigilant and closely monitor the markets in collaboration with other regulators. We will also maintain currency stability in Hong Kong in accordance with the Linked Exchange Rate System. As the markets will continue to go through significant ups and downs, I would like to remind investors to assess and manage risks carefully before taking any investment decision."

[1] The Base Rate is set at either 50 basis points above the lower end of the prevailing target range for the US federal funds rate or the average of the five-day moving averages of the overnight and one-month Hong Kong Interbank Offered Rates (HIBORs), whichever is the higher. Following the 100-basis point downward adjustment in the target range for the US federal funds rate on March 15 (US time), 50 basis points above the lower end of the prevailing target range for the US federal funds rate is 0.5 per cent, while the average of the five-day moving averages of the overnight and one-month HIBORs is 0.86 per cent. The Base Rate is therefore set at 0.86 per cent according to the pre-set formula.

The following is issued on behalf of the Hong Kong Monetary Authority:

     The Monetary Authority announced today (March 16) that the countercyclical capital buffer (CCyB) for Hong Kong is reduced from 2.0% to 1.0% with immediate effect.
 
      "Economic indicators and other relevant evidence have signaled that the economic environment in Hong Kong has deteriorated further since the novel coronavirus outbreak. The HKMA has been taking actions, including the establishment of the Banking Sector SME Lending Coordination Mechanism, to encourage the banking sector to continue supporting the financing need of SMEs in Hong Kong." Mr. Eddie Yue, the Monetary Authority, said. "Lowering the countercyclical capital buffer at this juncture will allow banks to be more supportive to the domestic economy, in particular those sectors and individuals that are expected to experience additional short-term stress due to the impact arising from the outbreak."
 
     Further details of the decision may be found in the Announcement of the CCyB to Authorized Institutions on the HKMA website.
 
Background
 
     In setting the CCyB ratio the Monetary Authority considered a series of quantitative indicators and qualitative information including an "indicative buffer guide" (which is a metric providing a guide for CCyB ratio based on the gap between the ratio of credit to GDP and its long term trend, and between the ratio of residential property prices to rentals and its long term trend). The latest indicative buffer guide, calculated based on 2019 Q4 data, signals a CCyB of 1.75%. The projection based on all available data however suggests that the indicative buffer guide would very likely signal a lower CCyB than this when all relevant 2020 Q1 data become available.
 
     Whilst the indicative buffer guide, as its name suggests, provides only a "guide" for CCyB decisions, the determination of the jurisdictional CCyB ratio for Hong Kong is not a mechanical exercise and, in addition to the indicative buffer guide, the Monetary Authority also reviewed a range of other reference indicators. The information drawn from all these sources suggests that the economic environment in Hong Kong has deteriorated further since the novel coronavirus outbreak. It is therefore appropriate to reduce the CCyB ratio further from 2.0% to 1.0% at this stage.
 
     The CCyB is an integral part of the Basel 3 regulatory capital framework and is being implemented in parallel by Basel Committee member jurisdictions worldwide. The CCyB has been designed by the Basel Committee to increase the resilience of the banking sector in periods of excess credit growth. The banking sector can then act as a "shock absorber" in times of stress, rather than as an amplifier of risk to the broader economy.
 
     The power to implement the CCyB in Hong Kong is provided by the Banking (Capital) Rules, which enable the Monetary Authority to announce a CCyB ratio for Hong Kong. The specific CCyB requirement applicable to a given Authorized Institution (AI) is expressed as a percentage of its CET1 capital to its total risk-weighted assets (RWA). Each AI’s CCyB requirement may vary depending on the geographic mix of its private sector credit exposures and the CCyB applicable in each jurisdiction where it has such exposures.

     The Hong Kong Special Administrative Region (HKSAR) Government announced today (March 16) that it would arrange the second batch of chartered flights to take Hong Kong residents currently stranded in Xiaogan, Xianning, Huangshi and Wuhan in Hubei Province back to Hong Kong. The costs will be borne by the HKSAR Government. The Wuhan Economic and Trade Office of the HKSAR Government (Wuhan ETO) will arrange transportation for returnees to go to the airport in Wuhan.
 
     On the registration arrangement for the second batch of chartered flights, a spokesman for the Constitutional and Mainland Affairs Bureau said that for Hong Kong residents who are now in Xiaogan, Xianning, Huangshi and Wuhan and who have not previously contacted the Assistance to Hong Kong Residents Unit of the Immigration Department (AHU) or the Wuhan ETO, if they wish to return to Hong Kong, they can call the (852)1868 hotline or contact the AHU through email at 1868@immd.gov.hk for registration before 6pm on March 17. They need to provide the contact person's name, telephone number and current address during registration for contact and follow-up by the AHU.
 
     The spokesman emphasised that Hong Kong residents currently in Xiaogan, Xianning and Huangshi who have earlier sought assistance from the AHU or the Wuhan ETO need not register again by calling the (852)1868 hotline or through email. AHU officers have been notifying the relevant Hong Kong residents by text messages, and will contact them by phone to confirm their registration, including assisting them to fill in the health assessment form of the Department of Health.
 
       Hong Kong residents currently in Wuhan who have earlier sought assistance from the AHU or the Wuhan ETO also need not register again by calling the (852) 1868 hotline or through email. Since the HKSAR Government had completed registration for those Hong Kong residents who wished to take the first batch of chartered flights to Hong Kong, there were new requests for assistance from Hong Kong residents in Wuhan. AHU officers will contact these Hong Kong residents by phone to confirm whether they can be arranged to take the second batch of chartered flights.
 
     The spokesman said, "All people taking the chartered flights to return to Hong Kong must be Hong Kong residents. In order to reduce the risk of cross-infection during the return journey, Hong Kong residents who develop fever, respiratory tract symptoms or other signs of infectious diseases are not suitable to board the chartered flights. Health screenings will be conducted for each passenger before boarding. Those with fever, abnormal vital signs, respiratory tract symptoms or other signs of infectious diseases will not be allowed to board the plane."
 
     "While the HKSAR Government will take measures to minimise the risk of cross-infection among Hong Kong residents during the return journey, it will be unavoidable for them to travel from their current residential places in Hubei Province to the airport, and to take the flights back to Hong Kong in groups. Also, most of the Hong Kong residents taking the second batch of chartered flights will need to take more time to travel from their residential places to the airport in Wuhan. Therefore, Hong Kong residents who wish to take the chartered flights should be aware of the potential risks and consider their health condition in deciding whether they are fit for travel."
 
     "Taking into consideration the potential public health risk, the people concerned will be arranged to undergo 14 days of quarantine observation at a quarantine centre upon their arrival in Hong Kong."
 
     For Hong Kong residents in Hubei Province with relatively urgent needs, such as pregnant women, those who suffer from serious illnesses or are urgently in need of medical treatments in Hong Kong, and secondary school graduates who need to sit for the Hong Kong Diploma of Secondary Education Examination, the HKSAR Government has already arranged for them to take the first batch of chartered flights back to Hong Kong as far as possible. For Hong Kong residents with urgent needs who are still in Hubei Province, the HKSAR Government will discuss the matter with the Hubei Provincial Government and relevant local departments, and seek medical advice on whether they are fit for travel, with the aim of taking them back to Hong Kong on the second batch of chartered flights as far as practicable.
 
     As for Hong Kong residents who are now in areas other than Xiaogan, Xianning, Huangshi and Wuhan with no urgent needs, the HKSAR Government will further discuss with the Hubei Provincial Government and make arrangements for them in stages. The spokesman appealed to them not to call the (852)1868 hotline or make enquiries through email at the moment. The HKSAR Government will make further announcement on the arrangement as soon as it is available.
 
     After obtaining the number of assistance cases, the HKSAR Government will consider all factors, including operational arrangements and capacity of quarantine facilities, in working out the number of chartered flights and passengers to be carried by the second batch of flights as far as practicable.
 
     Currently, more than 3 400 Hong Kong residents who had sought assistance from the HKSAR Government are still stranded in different areas of Hubei Province, among which more than 700 are in Xiaogan, Xianning and Huangshi.

     The Leisure and Cultural Services Department is inviting proposals from local performing artists and arts groups for the 2021 Community Cultural Ambassador Scheme (CCAS) with a view to working with selected performing artists and arts groups to organise outreach arts activities for the general public or particular community groups to bring arts into the community.
 
     Applicants should be registered local non-profit-making performing arts groups or ensembles of artists that have been active in the past year and possess actual experience in public performance of a high standard. Applicants may submit one proposal for one of the following types of activities:
 
(1) Special topics of the 2021 CCAS:
(a) Caring for family and parent-child relationships; or
(b) Promoting social inclusion or encouraging persons with different abilities to participate in arts; or
(2) Audience-building/arts education activities that are designed for the general public.
 
     Each proposal should cover one performing art form, such as Chinese opera/operatic singing, dance, music, theatrical arts (including drama, mime, magic and puppetry) and multi-arts, or more than one performing art form. Proposed projects may include a performance, lecture, demonstration, episodic performance or exhibition activity, or a combination of these activities.
 
     The application form for the scheme can be downloaded from the webpage of the Audience Building Office (ABO) at www.lcsd.gov.hk/ab or can be obtained by mail and fax from the ABO. The deadline for applications is noon on April 27 (Monday).
 
     For enquiries on the scheme, please call 2591 1611 or email amab1@lcsd.gov.hk, or visit www.lcsd.gov.hk/CE/CulturalService/ab/en/ccas2021guide.php.

     The post of the Privacy Commissioner for Personal Data opened for application today (March 16).

     The advertisement on the post, which sets out the requirements for potential candidates and other details, was published in newspapers today. Candidates should be permanent Hong Kong residents and have:

(a) a good general education;

(b) at least 10 years of relevant experience in public administration, professional practice or private sector management at a senior level;

(c) clear vision, impeccable integrity, good leadership qualities, management skills and a mature personality; and

(d) strong language and communication skills, including good command of Chinese and English.

     It would be advantageous to possess:

(a) experience in leading and managing a sizable public or private organisation;

(b) experience related to personal data privacy and familiarity with technological developments that have implications on personal data privacy;

(c) a good track record in public or community service in Hong Kong; and

(d) a legal background.

     The Privacy Commissioner will receive a basic salary equivalent to Point 5 of the Directorate Pay Scale (DPS) in the civil service (currently at $251,250 to $258,800 per month) which will be subject to the same adjustment as will be applied to the DPS. In addition, the other terms include a fixed sum of cash allowance (to substitute for fringe benefits received by an officer at the equivalent Directorate rank in the civil service) and a gratuity payable upon satisfactory performance.

     In line with the practice of open recruitment of senior positions, the Government has engaged an executive search firm to carry out the recruitment exercise.

     All applications should be submitted to Korn Ferry (HK) Limited (by post to 15/F, St George's Building, 2 Ice House Street, Central, Hong Kong, or by email to PCPD-HK@kornferry.com), the executive search firm for this recruitment exercise, by April 3.

     The term of appointment of the incumbent Privacy Commissioner will expire on August 3, 2020. Under the Personal Data (Privacy) Ordinance, the appointment authority of the Privacy Commissioner rests with the Chief Executive. A Selection Board will recommend the most suitable candidate to the Chief Executive for appointment. The board is chaired by Mr Chow Chung-kong, and its members comprise Ms Elizabeth Law, Mrs Carrie Yu and the Secretary for Constitutional and Mainland Affairs.

     The Office of the Privacy Commissioner for Personal Data (PCPD) is an independent statutory body set up to oversee the enforcement of the Ordinance. The Privacy Commissioner has to perform statutory functions and powers under the Ordinance. These functions and powers include, among others, monitoring and supervising compliance with the provisions of the Ordinance, and promoting awareness and understanding of the provisions. He or she will also be responsible for the administration and management matters of the PCPD.