The following is issued on behalf of the Hong Kong Monetary Authority: The Hong Kong Monetary Authority (HKMA) published today (December 20) statistics on Stored Value Facilities (SVF) schemes issued by SVF l… read more
The following is issued on behalf of the Communications Authority:
This press release summarises the decisions of the Communications Authority (CA) following its 91st meeting held in December 2019:
Non-compliance with licence requirements on broadcast of announcements in the public interest (APIs) and publicity material for the CA (CA publicity material) by Television Broadcasts Limited (TVB)
—————————————————————
The CA decided that TVB had breached Condition 19.1 of its domestic free television programme service licence (licence) by failing to broadcast some of the scheduled APIs provided by the Government and CA publicity material during the period from July 13 to November 26, 2019, as stipulated under the licence (Note). TVB is required to make up the shortfall in the broadcast of APIs and CA publicity material in the coming three months.
TVB reported to the CA that the broadcast of some of the scheduled APIs and CA publicity material on TVB News channel was pre-empted since July 13, 2019, without compensation to make way for breaking news and live broadcasts relating to or arising out of the recent social events. While the CA noted the circumstances, the CA considered that the difficulties in broadcasting the scheduled APIs and CA publicity material with flexibility permitted under the existing arrangement should not have been insurmountable.
Taking into account TVB’s representations as well as all the relevant circumstances of the breach, the CA decided that TVB should be strongly advised to observe the relevant licence condition more closely and be required to provide additional timeslots as compensatory arrangement to make up the shortfall in the broadcast of APIs and CA publicity material in the coming three months.
Non-compliance with the licence requirement on the broadcast of hourly news and weather reports by Hong Kong Commercial Broadcasting Company Limited (CRHK)
———————————————————————————–
The CA decided that CRHK had breached Condition 23.1(b) of its sound broadcasting licence by failing to broadcast an hourly weather report at 7am and hourly news and weather reports from 8am to 2pm on AM864 Channel on September 2, 2019.
The CA noted that the missed broadcasts of hourly news and weather reports had been due to a technical fault of the microphone in the on-air studio, and that a staff of CRHK had forgotten to read out the weather report at 7am. The CA considered that CRHK had not exercised sufficient vigilance to monitor on-air broadcasts and to avoid human error.
Taking into account CRHK’s representations as well as the specific circumstances of the breach, the CA decided that CRHK should be strongly advised to observe the relevant licence condition more closely. The CA noted that CRHK had promptly taken remedial measures with a view to preventing such a recurrence in the future.
Note: TVB is required under Condition 19.1 of TVB’s licence to broadcast such APIs and CA publicity material as directed or provided by the CA. In accordance with the licence, TVB has been directed to broadcast on each of its programme channels (a) a maximum of one minute of APIs every single clock hour in accordance with the schedules prepared by the Information Services Department (ISD); and (b) a maximum of five minutes of CA publicity material every week in accordance with the schedules prepared by the Office of the Communications Authority (OFCA).
To give some flexibility to the licensees, the CA allows them to deviate from ISD’s and OFCA’s schedules under exceptional circumstances (i.e. deviations due to live broadcasts or caused by forces beyond the licensees’ control) on condition that the pre-empted APIs and CA publicity material would be broadcast two hours prior to or after the live broadcasts, or within two hours after the scheduled time, as the case may be. read more
The Census and Statistics Department (C&SD) released today (December 20) the Consumer Price Index (CPI) figures for November 2019. According to the Composite CPI, overall consumer prices rose by 3.0% in November 2019 over the same month a year earlier, slightly smaller than the corresponding increase (3.1%) in October 2019. Netting out the effects of all Government’s one-off relief measures, the year-on-year rate of increase in the Composite CPI (i.e. the underlying inflation rate) in November 2019 was 2.9%, smaller than that in October 2019 (3.1%). The smaller increase in November was mainly due to the decreases in the charges for package tours as well as inbound and outbound transport fares.
On a seasonally adjusted basis, the average monthly rate of increase in the Composite CPI for the three-month period ending November 2019 was 0.1%, and that for the three-month period ending October 2019 was 0.2%. Netting out the effects of all Government’s one-off relief measures, the corresponding rates of increase were 0.1% and 0.2% respectively.
Analysed by sub-index, the year-on-year rates of increase in the CPI(A), CPI(B) and CPI(C) were 3.5%, 2.9% and 2.5% respectively in November 2019, as compared to 3.5%, 3.1% and 2.9% respectively in October 2019. Netting out the effects of all Government’s one-off relief measures, the year-on-year rates of increase in the CPI(A), CPI(B) and CPI(C) were 3.6%, 2.8% and 2.4% respectively in November 2019, as compared to 3.6%, 3.0% and 2.8% respectively in October 2019.
On a seasonally adjusted basis, for the three-month period ending November 2019, the average monthly rates of increase in the seasonally adjusted CPI(A), CPI(B) and CPI(C) were 0.1%, 0.1% and 0.2% respectively. The corresponding rates of increase for the three-month period ending October 2019 were all 0.2%. Netting out the effects of all Government’s one-off relief measures, the corresponding average monthly rates of increase in the seasonally adjusted CPI(A), CPI(B) and CPI(C) for the three-month period ending November 2019 were 0.1%, 0.1% and 0.2% respectively, and the corresponding rates of increase for the three-month period ending October 2019 were all 0.2%.
Amongst the various components of the Composite CPI, year-on-year increases in prices were recorded in November 2019 for food (excluding meals bought away from home) (13.9%), miscellaneous goods (3.3%), housing (3.0%), meals bought away from home (2.2%), transport (2.1%) and miscellaneous services (1.5%).
On the other hand, year-on-year decreases in the components of the Composite CPI were recorded in November 2019 for electricity, gas and water (-6.4%); clothing and footwear (-3.5%); durable goods (-2.3%) as well as alcoholic drinks and tobacco (-0.1%).
Taking the first 11 months of 2019 together, the Composite CPI rose by 2.9% over a year earlier. The respective increases in the CPI(A), CPI(B) and CPI(C) were 3.3%, 2.7% and 2.6% respectively. The corresponding increases after netting out the effects of all Government’s one-off relief measures were 3.0%, 3.5%, 2.8% and 2.6% respectively.
For the three months ending November 2019, the Composite CPI rose by 3.1% over a year earlier, while the CPI(A), CPI(B) and CPI(C) rose by 3.5%, 3.0% and 2.8% respectively. The corresponding increases after netting out the effects of all Government’s one-off relief measures were 3.1%, 3.6%, 3.0% and 2.7% respectively.
For the 12 months ending November 2019, the Composite CPI was on average 2.8% higher than that in the preceding 12-month period. The respective increases in the CPI(A), CPI(B) and CPI(C) were 3.3%, 2.7% and 2.6% respectively. The corresponding increases after netting out the effects of all Government’s one-off relief measures were 3.0%, 3.5%, 2.8% and 2.6% respectively.
Commentary
A Government spokesman said that the underlying consumer price inflation rate eased further to 2.9% in November. Price pressures on many major CPI components abated somewhat, though food inflation remained visible due to elevated pork prices.
Looking ahead, overall inflation pressures will likely be contained in the near term by mild imported inflation and easing local cost pressures amid sub-par economic conditions. The Government will continue to monitor the inflation situation closely, particularly the impact on the lower-income people.
Further information
The CPIs and year-on-year rates of change at section level for November 2019 are shown in Table 1. The time series on the year-on-year rates of change in the CPIs before and after netting out the effects of all Government’s one-off relief measures are shown in Table 2. For discerning the latest trend in consumer prices, it is also useful to look at the changes in the seasonally adjusted CPIs. The corresponding time series on the average monthly rates of change during the latest three months for the seasonally adjusted CPIs are shown in Table 3. The rates of change in the original and the seasonally adjusted Composite CPI and the underlying inflation rate are presented graphically in Chart 1.
More detailed CPI data (including year-on-year comparison, month-to-month comparison, seasonally adjusted data series and the CPIs by the Classification of Individual Consumption According to Purpose (COICOP)) are available in the monthly reports. Users can download the November 2019 issue of the “Monthly Report on the Consumer Price Index” (www.censtatd.gov.hk/hkstat/sub/sp270.jsp?productCode=B1060001), the time series of CPIs at detailed level (www.censtatd.gov.hk/hkstat/sub/sp270.jsp?productCode=D5600001), the time series of CPIs at COICOP division level (www.censtatd.gov.hk/hkstat/sub/sp270.jsp?productCode=D5600002) and the time series of CPIs after netting out the effects of all Government’s one-off relief measures (www.censtatd.gov.hk/hkstat/sub/sp270.jsp?productCode=D5600003) free of charge at the website of the C&SD.
For enquiries about the CPIs, please contact the Consumer Price Index Section of the C&SD (Tel: 3903 7374 or email: cpi@censtatd.gov.hk). read more
The Census and Statistics Department (C&SD) released today (December 20) the preliminary figures of chain volume measures of Gross Domestic Product (GDP) by economic activity for the third quarter of 2019.  … read more
The Census and Statistics Department (C&SD) released today (December 20) the preliminary Balance of Payments (BoP) and International Investment Position (IIP) statistics of Hong Kong for the third quarter of 2019. This release also included the preliminary External Debt (ED) statistics of Hong Kong for the same period.
I. Balance of Payments
Hong Kong recorded a BoP deficit of $59.8 billion (as a ratio of 8.3% to GDP) in the third quarter of 2019, as against a surplus of $28.3 billion (as a ratio of 4.1% to GDP) in the second quarter of 2019. Reserve assets correspondingly decreased by the same amount ($59.8 billion) in the third quarter of 2019.
Current account
The current account recorded a surplus of $74.4 billion (as a ratio of 10.3% to GDP) in the third quarter of 2019. This implies that Hong Kong continues to save more than invest, enabling Hong Kong to accumulate external financial assets (such as equity securities or debt securities) as a buffer against global financial volatilities. Compared with the current account surplus of $48.0 billion (as a ratio of 6.6% to GDP) in the third quarter of 2018, the increase in surplus was mainly due to a decrease in the goods deficit, partly offset by a decrease in the services surplus and a decrease in the net inflow of primary income.
The goods deficit decreased to $0.3 billion in the third quarter of 2019, compared with the $51.7 billion in the same quarter of 2018. Over the same period, the services surplus decreased to $38.9 billion in the third quarter of 2019, compared with the $63.2 billion in the same quarter of 2018. The primary income inflow and outflow amounted to $440.0 billion and $398.7 billion respectively, thus yielding a net inflow of $41.3 billion in the third quarter of 2019, compared with a net inflow of $42.3 billion in the same quarter of 2018.
Financial account
An overall net outflow of financial non-reserve assets amounting to $163.5 billion (as a ratio of 22.6% to GDP) was recorded in the third quarter of 2019, compared with an overall net outflow of $38.1 billion (as a ratio of 5.5% to GDP) in the second quarter of 2019. In the third quarter of 2019, due to transfer of funds of the Exchange Fund, the amount of foreign currency deposits placed by the Exchange Fund with local banks increased by $63.1 billion. Other investment assets of local banks correspondingly increased by the same amount. Excluding this factor, an overall net outflow of financial non-reserve assets amounting to $100.4 billion was recorded. The overall net outflow recorded in the third quarter of 2019 was mainly due to a net outflow of portfolio investment.
In the third quarter of 2019, reserve assets decreased by $59.8 billion, as against an increase of $28.3 billion in the second quarter of 2019.
II. International Investment Position
At the end of the third quarter of 2019, both Hong Kong’s external financial assets and liabilities stood at a very high level, amounting to $42,495.4 billion (equivalent to 14.7 times of GDP) and $31,323.8 billion (equivalent to 10.8 times of GDP) respectively, a typical feature of a prominent international financial centre.
After netting out the external financial liabilities from the external financial assets, Hong Kong’s net external financial assets amounted to $11,171.6 billion (equivalent to 3.9 times of GDP) at the end of the third quarter of 2019, compared with $11,202.0 billion (also equivalent to 3.9 times of GDP) at the end of the second quarter of 2019. Hong Kong’s net external financial assets to GDP ratio is one of the largest in the world, which provides the economy with a strong cushion against sudden external shocks.
III. External Debt
At the end of the third quarter of 2019, Hong Kong’s gross ED amounted to $12,914.3 billion (equivalent to 4.5 times of GDP). Compared with $12,760.3 billion (equivalent to 4.4 times of GDP) at the end of the second quarter of 2019, gross ED increased by $154.0 billion. This was mainly attributable to the increases in ED of other sectors and debt liabilities in direct investment (intercompany lending).
As one of the world’s major financial centres, Hong Kong has a significant amount of ED held against the local banking sector arising through normal banking businesses. At the end of the third quarter of 2019, 60.6% of Hong Kong’s ED was attributable to the banking sector. Other ED mainly consisted of ED of other sectors (23.2%) and debt liabilities in direct investment (intercompany lending) (16.0%).
Further information
BoP is a statistical statement that systematically summarises, for a specific time period (typically a year or a quarter), the economic transactions of an economy with the rest of the world (i.e. between residents and non-residents).
IIP is a balance sheet showing the stock of external financial assets and liabilities of an economy at a particular time point. The difference between the external financial assets and liabilities is the net IIP of the economy, which represents either its net claim on or net liability to the rest of the world.
Gross ED, at a particular time point, is the outstanding amount of those actual current, and not contingent, liabilities that are owed to non-residents by residents of an economy and that require payment of principals and/or interests by the debtors at some time points in the future.
Table 1 presents Hong Kong’s BoP. Table 2 presents the detailed current account, while Table 3 presents the detailed capital and financial account. Table 4 shows Hong Kong’s IIP, and Table 5 shows Hong Kong’s ED.
With the incorporation of the latest data from surveys and other sources, the statistics on BoP, IIP and ED for 2018 have been revised. As regards the statistics on BoP, IIP and ED for the third quarter of 2019, they are only preliminary figures and are subject to revision upon the availability of more data.
More details of the statistics of BoP (including seasonally adjusted current account), IIP and ED, together with the conceptual and methodological details, are presented in the publication Balance of Payments, International Investment Position and External Debt Statistics of Hong Kong, Third Quarter 2019 published by the C&SD. Users can download this publication free of charge at the website of the C&SD (www.censtatd.gov.hk/hkstat/sub/sp260.jsp?productCode=B1040001).
For enquiries about the BoP, IIP and ED statistics, please contact the Balance of Payments Section of the C&SD (Tel: 3903 6979; fax: 2116 0278; email: bop@censtatd.gov.hk). read more