The following is issued on behalf of the Hong Kong Monetary Authority: The Hong Kong Monetary Authority (HKMA) published today (June 22) statistics on SVF schemes issued by SVF licensees for the first quarter of 2018. &nb… read more
The following is issued on behalf of the Hong Kong Monetary Authority:
The Hong Kong Monetary Authority (HKMA) today (June 22) published today statistics of payment cards issued in Hong Kong for the first quarter of 2018.
The payment card statistics (see Annex) include quarterly data on credit and debit cards issued in Hong Kong under the credit and/or debit card schemes of the eight payment card scheme operators (Note 1). The HKMA began to publish the payment card statistics on a quarterly basis in June 2010 to enhance transparency of the payment card industry in Hong Kong, in line with international practice.
According to the quarterly statistics, the total number of credit cards in circulation (Note 2) was 19.89 million by the end of Q1/2018. The figure represents a 1.1% increase from the previous quarter and a 3.3% increase from the previous year. The number and value of credit card transactions (including retail sales and cash advances) (Note 3) are susceptible to seasonal factors and the general economic environment, making the trends more prone to fluctuation. The total number of credit card transactions was 167.01 million for Q1/2018, representing a 0.1% increase from the previous quarter and a 14.5% increase from the same period in 2017. The total value of credit card transactions was HK$182.6 billion for Q1/2018, representing a 0.1% decrease from the previous quarter and a 13.9% increase from the same period in 2017. Of the total transaction value, HK$142.5 billion (78%) was related to retail spending in Hong Kong, HK$28.3 billion (15%) in retail spending overseas and HK$11.8 billion (7%) in cash advances.
The total number of debit cards in circulation is not available due to overlapping of debit card brands in a single card. Like the number and value of credit card transactions, the number and value of debit card transactions in relation to retail sales and bills payments (Note 4) are also affected by seasonal factors. On a quarterly basis, the total number of debit card transactions in relation to retail sales and bills payments decreased 1.6% to 34.65 million while the total value increased by 8.2% to HK$87.9 billion in Q1/2018. When compared to the same period in 2017, the total number increased by 1.9% and the total value rose by 12.0% in Q1/2018.
Notes:
The Immigration Department (ImmD) mounted a series of territory-wide anti-illegal worker operations, including operations codenamed “Twilight” and joint operations with the Hong Kong Police Force and the Labour Department codenamed “Champion”, from June 19 to 21. A total of 11 illegal workers and six suspected employers were arrested.
During operation “Twilight”, ImmD Task Force officers raided 17 target locations including restaurants, warehouses, a recycling yard, a massage parlour, a fish market and residential buildings. A total of three illegal workers and two employers were arrested. The illegal workers comprised two men and a woman, aged 21 to 49. Among them, a man was a holder of a recognisance form, which prohibits him from taking any employment. Meanwhile, a man and a woman, aged 53 and 45, were suspected of employing the illegal workers.
Furthermore, during operation “Champion”, enforcement officers raided 124 target locations in Central, Sham Shui Po and Mong Kok including restaurants, salons, retail shops, massage parlours and residential flats. Eight illegal workers and four employers were arrested. The illegal workers comprised six men and two women, aged 25 to 53. Among them, two men were holders of recognisance forms, which prohibit them from taking any employment. Meanwhile, a man and three women, aged 44 to 58, were suspected of employing the illegal workers.
“Any person who contravenes a condition of stay in force in respect of him shall be guilty of an offence. Also, visitors are not allowed to take employment in Hong Kong, whether paid or unpaid, without the permission of the Director of Immigration. Offenders are liable to prosecution and upon conviction face a maximum fine of $50,000 and up to two years’ imprisonment. Aiders and abettors are also liable to prosecution and penalties,” an ImmD spokesman said.
The spokesman warned that, as stipulated in section 38AA of the Immigration Ordinance, illegal immigrants or people who are the subject of a removal order or a deportation order are prohibited from taking any employment, whether paid or unpaid, or establishing or joining in any business. Offenders are liable upon conviction to a maximum fine of $50,000 and up to three years’ imprisonment. The Court of Appeal has issued a guideline ruling that a sentence of 15 months’ imprisonment should be applied in such cases. It is an offence to use or possess a forged Hong Kong identity card or a Hong Kong identity card related to another person. Offenders are liable to prosecution and a maximum penalty of a $100,000 fine and up to 10 years’ imprisonment.
The spokesman reiterated that it is a serious offence to employ people who are not lawfully employable. The maximum penalty is imprisonment for three years and a fine of $350,000. The High Court has laid down sentencing guidelines that the employer of an illegal worker should be given an immediate custodial sentence. According to court sentencing, employers must take all practicable steps to determine whether a person is lawfully employable prior to employment. Apart from inspecting a prospective employee’s identity card, the employer has the explicit duty to make enquiries regarding the person and ensure that the answers would not cast any reasonable doubt concerning the lawful employability of the person. The court will not accept failure to do so as a defence in proceedings. It is also an offence if an employer fails to inspect the job seeker’s valid travel document if the job seeker does not have a Hong Kong permanent identity card. The maximum penalty for failing to inspect such a document is imprisonment for one year and a fine of $150,000.
Under the existing mechanism, the ImmD will, as a standard procedure, conduct initial screening of vulnerable persons, including illegal workers, illegal immigrants, sex workers and foreign domestic helpers, who are arrested during any operation with a view to ascertaining whether they are trafficking in persons (TIP) victims. When any TIP indicator is revealed in the initial screening, the officers will conduct a full debriefing and identification by using a standardised checklist to ascertain the presence of TIP elements, such as threat and coercion in the recruitment phase and the nature of exploitation. Identified TIP victims will be provided with various forms of support and assistance, including urgent interference, medical services, counselling, shelter, temporary accommodation and other supporting services. The ImmD calls on TIP victims to report crimes to the relevant departments. read more
The Centre for Health Protection (CHP) of the Department of Health today (June 22) reported the latest number of cases of dengue fever (DF), and again urged the public to maintain strict environmental hygiene, mosquito control and personal protective measures both locally and during travel.
From June 15 to 21, the CHP recorded five confirmed DF cases. The patients had been to Cambodia (one case), Indonesia (one case), the Philippines (one case), Thailand (one case) and multiple countries (one case, who had been to Malaysia and Singapore) during the incubation period.
As of yesterday (June 21), 37 cases had been confirmed this year, all of which were imported cases. The cases were mainly imported from Thailand (16), the Philippines (eight) and Cambodia (four).
DF remains endemic in some areas in Asia. The latest figures for 2018 reveal that 19 804 cases have been recorded in Thailand, 1 282 in Singapore (since December 31, 2017) and 56 in Japan. In Macao, one local case was recorded this year as of June 19. In the Americas, the latest figures indicate that 10 645 cases have been filed in Mexico in 2018.
The public should take heed of the following advice on mosquito control:
The Census and Statistics Department (C&SD) released today (June 22) the preliminary Balance of Payments (BoP) and International Investment Position (IIP) statistics of Hong Kong for the first quarter of 2018. 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 surplus of $73.8 billion (as a ratio of 10.7% to GDP) in the first quarter of 2018, compared with a surplus of $73.5 billion (as a ratio of 10.2% to GDP) in the fourth quarter of 2017. Reserve assets correspondingly increased by the same amount ($73.8 billion) in the first quarter of 2018.
Current account
On a year-on-year comparison, the current account recorded a surplus of $16.3 billion (as a ratio of 2.4% to GDP) in the first quarter of 2018, compared with a surplus of $20.2 billion (as a ratio of 3.2% to GDP) in the same quarter of 2017. The decrease in the current account surplus was mainly due to an increase in the goods deficit, partly offset by an increase in the services surplus and an increase in the net inflow of primary income.
The goods deficit increased to $76.9 billion in the first quarter of 2018, compared with the $56.6 billion in the same quarter of 2017. This was due to a larger increase in imports of goods relative to that in respect of exports of goods. Over the same period, the services surplus increased to $74.5 billion in the first quarter of 2018, compared with the $61.8 billion in the same quarter of 2017. This was due to a larger increase in exports of services relative to that in respect of imports of services. The overall balance on goods and services recorded a deficit of $2.4 billion in the first quarter of 2018, as against a surplus of $5.3 billion in the same quarter of 2017.
The primary income inflow and outflow amounted to $349.6 billion and $325.4 billion respectively, thus yielding a net inflow of $24.2 billion in the first quarter of 2018, compared with a net inflow of $19.8 billion in the same quarter of 2017.
The secondary income inflow and outflow amounted to $3.1 billion and $8.6 billion respectively, resulting in a net outflow of $5.6 billion in the first quarter of 2018, compared with a net outflow of $4.9 billion in the same quarter of 2017.
On a seasonally adjusted quarter-to-quarter comparison basis, the current account credit and the current account debit in the first quarter of 2018 increased by 4.8% and 4.6% respectively from the fourth quarter of 2017.
Capital and financial account
In the first quarter of 2018, a net outflow of $0.1 billion was recorded in the capital account, compared with a net outflow of $0.4 billion in the fourth quarter of 2017.
An overall net inflow of financial non-reserve assets amounting to $29.3 billion (as a ratio of 4.3% to GDP) was recorded in the first quarter of 2018, compared with an overall net inflow of $41.8 billion (as a ratio of 5.8% to GDP) in the fourth quarter of 2017. The overall net inflow recorded in the first quarter of 2018 was the result of a net inflow of other investment, partly offset by a net outflow of portfolio investment, a net outflow of direct investment and a net outflow due to the cash settlement of financial derivatives.
Direct investment recorded a net outflow of $19.7 billion in the first quarter of 2018, as against a net inflow of $121.8 billion in the fourth quarter of 2017. Portfolio investment recorded a net outflow of $245.7 billion in the first quarter of 2018, compared with a net outflow of $13.6 billion in the fourth quarter of 2017. Financial derivatives recorded a net outflow of $3.8 billion in the first quarter of 2018, as against a net inflow of $19.7 billion in the fourth quarter of 2017. Other investment recorded a net inflow of $298.5 billion in the first quarter of 2018, as against a net outflow of $86.0 billion in the fourth quarter of 2017.
In the first quarter of 2018, reserve assets increased by $73.8 billion, compared with an increase of $73.5 billion in the fourth quarter of 2017.
II. International Investment Position
At the end of the first quarter of 2018, Hong Kong’s external financial assets and liabilities amounted to $43,623.6 billion and $31,989.8 billion respectively. After netting out the external financial liabilities from the external financial assets, Hong Kong was a net creditor. Hong Kong’s net external financial assets amounted to $11,633.8 billion (as a ratio of 428% to GDP) at the end of the first quarter of 2018, compared with $10,893.7 billion (as a ratio of 409% to GDP) at the end of the fourth quarter of 2017.
The ratios of both Hong Kong’s external financial assets and liabilities to GDP at the end of the first quarter of 2018 remained at a very high level, at 16.0 times and 11.8 times respectively, reflecting that Hong Kong is a highly externally oriented economy and also a major financial centre in the region with considerable cross-territory investment.
External financial assets
Within the total value of external financial assets at the end of the first quarter of 2018, direct investment was the largest component, accounting for 36.9% ($16,117.7 billion) of the total value. Portfolio investment ($13,871.8 billion) and other investment ($9,511.6 billion) contributed 31.8% and 21.8% respectively.
External financial liabilities
Within the total value of external financial liabilities at the end of the first quarter of 2018, 53.0% ($16,962.2 billion) was in the form of direct investment. Other investment ($10,068.9 billion) and portfolio investment ($4,336.7 billion) contributed 31.5% and 13.6% respectively.
III. External Debt
At the end of the first quarter of 2018, Hong Kong’s gross ED (measuring total outstanding gross external liabilities other than equity liabilities) amounted to $12,775.6 billion (as a ratio of 470% to GDP). Compared with $12,220.5 billion (as a ratio of 459% to GDP) at the end of the fourth quarter of 2017, gross ED increased by $555.1 billion. This was mainly attributable to the increases in ED of the banking sector, ED of other sectors and debt liabilities in direct investment (intercompany lending).
Sectoral analysis
At the end of the first quarter of 2018, a major proportion of Hong Kong’s ED was attributable to the banking sector, accounting for 63.2% of the total. Other ED mainly consisted of ED of other sectors (19.8%) and debt liabilities in direct investment (intercompany lending) (16.7%).
ED of the banking sector increased from $7,697.4 billion at the end of the fourth quarter of 2017 (as a ratio of 289% to GDP) to $8,071.3 billion at the end of the first quarter of 2018 (as a ratio of 297% to GDP). ED of other sectors, debt liabilities in direct investment (intercompany lending) and ED of the Government and the Hong Kong Monetary Authority amounted to $2,535.1 billion, $2,138.6 billion, $26.4 billion and $4.1 billion respectively at the end of the first quarter of 2018.
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.
BoP and IIP statistics of Hong Kong are compiled in accordance with international standards as stipulated in the Sixth Edition of the Balance of Payments and International Investment Position Manual released by the International Monetary Fund (IMF) in 2009. ED statistics of Hong Kong are compiled according to the 2013 External Debt Statistics: Guide for Compilers and Users published by the Inter-agency Task Force on Finance Statistics chaired by the IMF.
Concepts inherent in these two international guidelines are harmonised with each other.
Table 1 presents Hong Kong’s BoP by standard component. Table 2 presents the detailed current account analysed by sub-account component, while Table 3 presents the detailed capital and financial account analysed by sub-account component. Table 4 shows Hong Kong’s IIP by broad component, and Table 5 shows Hong Kong’s ED by standard component.
Statistics on BoP, IIP and ED for the first quarter of 2018 are only preliminary figures, and are subject to revision upon the availability of more data.
More details of the statistics of BoP, 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, First Quarter 2018 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