Tag Archives: China

     The Environment Bureau (ENB) and the two power companies announced today (November 9) the electricity tariff adjustments for next year and the direction of low-carbon transformation in future. After negotiation between the Government and the two power companies, next year the two power companies will freeze the Basic Tariff rates, bear large deficit balances in the Fuel Clause Recovery Accounts (i.e. postpone the recovery of fuel costs), and provide special rebates to reduce the final Net Tariffs in 2022. With effect from January 1, 2022, the Hongkong Electric Company Limited (HK Electric) will increase its average Net Tariff by 7 per cent to 135.3 cents per kWh, and CLP Power Hong Kong Limited and Castle Peak Power Company Limited (CLP Power) will increase its average Net Tariff by 5.8 per cent to 128.9 cents per kWh.
 
     The Secretary for the Environment, Mr Wong Kam-sing, said at a press conference today that the whole world is now facing surging international fuel prices, and various regions have increased their energy prices and electricity tariffs. The two power companies are also facing tremendous pressure to adjust their tariffs.
 
     Mr Wong said, “Although the final tariffs for HK Electric and CLP Power will be increased next year, the increase is solely due to surging fuel prices. The Government has urged the power companies to take various measures to mitigate the impact on tariffs, including bearing large deficit balances in their Fuel Clause Recovery Accounts and using hefty resources from the Tariff Stabilisation Funds. The power companies will continue to use their Community Energy Saving Funds to help the disadvantaged groups and small and medium-sized enterprises. The power companies estimate that the average monthly tariff increase next year for a typical three-member household will be about $20 to $24. The Government encourages all members of the public to save more energy, which will help reduce carbon emissions and also reduce their own electricity expenses. The Government has provided monthly electricity charges relief of $50 to each residential electricity account since 2019, and it will continue to be distributed next year and the following year.”
 
     The Managing Director of HK Electric, Mr Wan Chi-tin, noted that HK Electric pledges full support for the long-term target of carbon neutrality. Describing climate action as a matter of great urgency, he said, “Various measures will be taken to achieve zero-carbon electricity generation. This includes the development of a large-scale offshore wind farm, the study into the use of hydrogen energy and other new technologies, promotion of energy conservation in the community, the greater use of electric vehicles and the introduction of smart meters for customers. The work ahead is arduous and will only be successful if we have the support of the community and the efforts of all the parties involved. Committed to combating climate change and ensuring the sustainable development of Hong Kong, we shall map out our plan and discuss with the Government on ways to implement measures. On the other hand, the upsurge in global fuel prices has resulted in an increase in electricity generation costs all around the world. In order to minimise the tariff impact, we will freeze our Basic Tariff and offer a Special Rebate in the coming year.”
 
     The Managing Director of CLP Power, Mr Chiang Tung-keung, said, “International fuel prices have been surging for more than a year, resulting in increased prices for electricity worldwide. We are acutely aware of the impact of tariffs on households, and we understand many people and businesses, including disadvantaged groups and small and medium-sized enterprises, are still struggling financially. That is why we are supporting Hong Kong people through these challenging times by freezing our average Basic Tariff next year, offering two special rebates, and drawing on the CLP Community Energy Saving Fund. Looking ahead, CLP Power wholeheartedly supports the Government’s mission to make our city carbon neutral before 2050. We will continue to support the development of renewable energy in Hong Kong, enhance regional co-operation to seek out new zero-carbon energy sources, explore the use of green hydrogen energy and other new technologies to reduce the carbon intensity of our power supply, and promote the early electrification of our transport and other sectors. In transitioning to low-carbon electricity generation, CLP Power continues to adopt careful planning to maintain high levels of safe and reliable supply for our customers. We will continue to support the Government and help customers manage their energy demand and promote energy saving.”
 
     All parts of the world are now more actively combating climate change. The Government of the Hong Kong Special Administrative Region also attaches great importance to deep decarbonisation work. In early October this year, the Government promulgated Hong Kong’s Climate Action Plan 2050, setting out the vision of “Zero-carbon Emissions‧Liveable City‧Sustainable Development” and outlining four major decarbonisation strategies and measures – net-zero electricity generation, energy saving and green buildings, green transport and waste reduction – to strive for achieving carbon neutrality before 2050. Starting this year, the Chief Executive is chairing the new Steering Committee on Climate Change and Carbon Neutrality to formulate the overall strategy and oversee the collaboration of inter-departmental actions. The ENB will also set up the Office of Climate Change and Carbon Neutrality to further promote full participation by the Government and the public in environmental transformation and working together to achieve carbon neutrality.
 
     Mr Wong said, “Decarbonisation comes at a price. The two power companies need to invest a substantial amount of capital to build the infrastructure required for the production, reception and storage of zero-carbon energy, which will inevitably put upward pressure on electricity tariffs. Furthermore, we can see that in the future the power companies also need to increase capital to support the overall development of Hong Kong, such as supporting the Government’s initiatives and the rapid development of data centres. The Chief Executive in Council approved today for CLP Power to increase the estimated total capital expenditure as approved in its 2018-23 Development Plan by $3.2 billion.”
 
     Mr Wong appealed to all businesses and the general public to step up efforts to save energy in daily life including making use of innovative technology. To lead by example, the Government has set the first ever Green Energy Target for the whole Government to improve the energy performance of government buildings and infrastructure by 6 per cent in five years by 2024-25. Last month, the Government also officially launched the “Carbon Neutrality” Partnership and called on large institutions from sectors of property development, public utilities, finance, professional bodies and more to set an example in further deepening and accelerating their pace in pursuing low-carbon transformation, which would include the support for energy saving and renewable energy development. Mr Wong expressed the hope that everyone will try their best to save electricity, save money, and reduce carbon emissions in various aspects to mitigate climate change. read more

     â€‹The Government will gazette the extension of existing social distancing measures for 14 days till November 24.

     “Amid the severe pandemic situation across the world, the Government strives to protect public health and at the same time foster favourable conditions for resuming cross-boundary travel with the Mainland and cross-border travel in future. To this end, we need to maintain the social distancing measures currently in place,” a spokesman for the Food and Health Bureau said today (November 9).

     “In addition, in order to enhance the efficiency of contact tracing upon confirmation of an infected case as a way to protect the safety of members of the public and employees, the Government is exploring extending the use of the ‘LeaveHomeSafe’ mobile application in a comprehensive manner in catering premises and suitable scheduled premises. Details will be announced later.”
 
     The spokesman noted that the COVID-19 vaccination rate for the elderly aged 80 or above in Hong Kong is only 15 per cent at present, meaning that around 85 per cent of the elderly in that age group are in a dangerous situation, which is alarming. The Comirnaty and CoronaVac vaccines are highly effective in preventing severe cases and deaths from COVID-19. They can provide effective protection to those vaccinated in preventing serious complications and even deaths after infection. The Government continues to call on persons who are not yet vaccinated, especially senior citizens, chronic patients and other immunocompromised persons who face a much higher chance of death after COVID-19 infection, to get vaccinated as early as possible for better self-protection before the fifth wave strikes Hong Kong.
  
     According to the directions and specifications under the Prevention and Control of Disease (Requirements and Directions) (Business and Premises) Regulation (Cap. 599F), the Prevention and Control of Disease (Prohibition on Group Gathering) Regulation (Cap. 599G) and the Prevention and Control of Disease (Wearing of Mask) Regulation (Cap. 599I), the details of the requirements and restrictions which will take effect from November 11 till November 24 (the specified period) are as follows (see Annex 1 for requirements and restrictions under Cap. 599F):
 
Catering business

(1) The existing requirements and restrictions applicable to catering business will be maintained during the specified period. Except for bars or pubs which are subject to other requirements, all catering business must operate according to one of the operating modes among Types A, B, C and D Mode of Operation, with details in Annex 2.
 
Bars and pubs
 
(2) The existing requirements and restrictions applicable to bars and pubs will be maintained during the specified period, with details in Annex 2.
 
Scheduled premises
 
(3) During the specified period, the existing requirements and restrictions applicable to the following scheduled premises under Cap. 599F will be maintained. They can operate according to the specified Mode of Operation if specified measures are adopted (details in Annex 1 and Annex 2). Otherwise, they should continue to be closed:
(a) bathhouses;
(b) premises (commonly known as party rooms) that are maintained or intended to be maintained for hire for holding social gatherings;
(c) establishments (commonly known as clubs or nightclubs) that are open late into the night, usually for drinking and dancing or other entertainment;
(d) karaoke establishments;
(e) mahjong-tin kau premises; and
(f) cruise ships.
 
(4) During the specified period, the existing requirements and restrictions applicable to other scheduled premises under Cap. 599F will be maintained. These scheduled premises can be opened when the relevant requirements and restrictions are fulfilled (including the persons responsible for carrying on the premises arranging for all staff members involved in the operation of the premises to undergo a polymerase chain reaction (PCR)-based nucleic acid test for COVID-19 once every 14 days, the samples of which must be taken through combined nasal and throat swabs and by professionals, or to complete a COVID-19 vaccination course as an alternative).
 
(5) Persons responsible for carrying on catering businesses and managers of scheduled premises that contravene the statutory requirements under Cap. 599F would have committed a criminal offence. Offenders are subject to a maximum fine of $50,000 and imprisonment for six months. In addition, persons who are present at any premises of a catering business or any scheduled premises have to comply with directions applicable to them. Non-compliance with the relevant directions would be an offence and offenders are subject to a maximum fine of $10,000. The liability may be discharged by paying a fixed penalty of $5,000. In particular, a staff member or a customer who makes false declarations or provides false information under the relevant measures would be regarded as non-compliant with the directions issued under Cap. 599F and would be subject to a fixed penalty of $5,000. Any contravention against group gathering requirements within a premises under Cap. 599F would continue to be handled according to the requirements under Cap. 599G, which means that participants of the group gathering would be subject to a fixed penalty of $5,000.
 
Group gathering
 
(6) Unless exempted, the prohibition on group gatherings of more than four persons in public places will continue during the specified period. The requirement is also applicable to group gatherings in catering business and scheduled premises regulated under Cap. 599F in which the relevant requirements or restrictions are not complied with.
 
(7) According to Cap. 599G, any person who participates in a prohibited group gathering; organises a prohibited group gathering; or owns, controls or operates the place of such a gathering and knowingly allows the taking place of such a gathering commits an offence. Offenders are liable to a maximum fine of $25,000 and imprisonment for six months. Persons who participate in a prohibited group gathering may discharge liability for the offence by paying a fixed penalty of $5,000. Any participant, staff member or customer who makes false declarations or provides false information under the relevant measures may be regarded as participating in a prohibited group gathering and subject to a fixed penalty of $5,000.
 
Mask-wearing requirement
 
(8) The mandatory mask-wearing requirement under Cap. 599I will be extended during the specified period. A person must wear a mask at all times when the person is boarding or on board a public transport carrier, is entering or present in an MTR paid area, or is entering or present in a specified public place (i.e. all public places, save for outdoor public places in country parks and special areas as defined in section 2 of the Country Parks Ordinance (Cap. 208)).
 
(9) Under Cap. 599I, if a person does not wear a mask in accordance with the requirement, an authorised person may deny that person from boarding a public transport carrier or entering the area concerned, as well as require that person to wear a mask and disembark from the carrier or leave the said area. A person in contravention of the relevant provision commits an offence and the maximum penalty is a fine at level 3 ($10,000). In addition, authorised public officers may issue fixed penalty notices to persons who do not wear a mask in accordance with the requirement and such persons may discharge liability for the offence by paying a fixed penalty of $5,000. read more

     The Census and Statistics Department (C&SD) released today (November 9) the results of the Monthly Survey on Business Situation of Small and Medium-sized Enterprises (SMEs) for October 2021.

     The current diffusion index (DI) on business receipts amongst SMEs decreased from 47.8 in September 2021 in the contractionary zone to 46.7 in October 2021, whereas the one-month’s ahead (i.e. November 2021) outlook DI on business receipts was 49.7. Analysed by sector, the current DIs on business receipts for majority of the surveyed sectors dropped by varying degrees in October 2021 as compared with previous month, particularly for restaurants (from 54.2 to 44.2) and wholesale trade (from 47.4 to 43.4). On the other hand, increases were observed in the retail trade (from 46.7 to 48.6) and business services (from 46.2 to 47.5).

     The current DI on new orders for the import and export trades decreased from 49.4 in September 2021 to 49.1 in October 2021, whereas the outlook DI on new orders in one month’s time (i.e. November 2021) was 48.6.

Commentary

     A government spokesman said that business sentiment among SMEs softened somewhat in October, partly due to increased uncertainties over the global economic outlook. The adverse weather in some days of the month also affected the performance of the restaurants sector. Yet, the diffusion index on employment rose back, suggesting that the hiring sentiment of SMEs held largely stable.

     The spokesman added that the threat of the more infectious Delta variant and supply bottlenecks in many places may continue to weigh on the business sentiment of the trade-related sectors going forward. Yet, the stabilised local epidemic situation, improved employment and income conditions, and the Consumption Voucher Scheme should remain supportive to the further revival of consumption-related activities in the near term. To pave way for a broader-based economic recovery, it is essential for the community to strive towards more widespread vaccination and abide by the anti-epidemic measures. The Government will monitor the situation closely.

Further information

     The Monthly Survey on Business Situation of Small and Medium-sized Enterprises aims to provide a quick reference, with minimum time lag, for assessing the short-term business situation faced by SMEs. SMEs covered in this survey refer to establishments with fewer than 50 persons engaged. Respondents were asked to exclude seasonal fluctuations in reporting their views. Based on the views collected from the survey, a set of diffusion indices (including current and outlook diffusion indices) is compiled. A reading above 50 indicates that the business condition is generally favourable, whereas that below 50 indicates otherwise. As for statistics on the business prospects of prominent establishments in Hong Kong, users may refer to the publication entitled “Report on Quarterly Business Tendency Survey” released by the C&SD.

     It should be noted that the results of the survey should be interpreted with care. The survey solicits feedback from a panel sample of about 600 SMEs each month and the survey findings are thus subject to sample size constraint. Views collected from the survey refer only to those of respondents on their own establishments rather than those on the respective sectors they are engaged in. Besides, in this type of opinion survey on expected business situation, the views collected in the survey are affected by the events in the community occurring around the time of enumeration, and it is difficult to establish precisely the extent to which respondents’ perception of the business situation accords with the underlying trends. For this survey, main bulk of the data were collected in the last week of the reference month. 

     More detailed statistics are given in the “Report on Monthly Survey on the Business Situation of Small and Medium-sized Enterprises”. Users can download the publication at the website of the C&SD (www.censtatd.gov.hk/en/EIndexbySubject.html?pcode=B1080015&scode=300).

     Users who have enquiries about the survey results may contact Industrial Production Statistics Section of the C&SD (Tel: 3903 7246; email: sme-survey@censtatd.gov.hk). read more

     â€‹Hong Kong Customs today (November 9) arrested a woman suspected of applying a false trade description to numerology consultation services, in contravention of the Trade Descriptions Ordinance (TDO).

     Customs earlier received information alleging that a female numerology consultant, in the sale of numerology consultation services, claimed that the services’ academic qualification had been approved by a relevant statutory body, which was suspected to be a false trade description.

     After investigation, Customs found that the numerology consultation services provided by the consultant had not been accredited by the relevant statutory body, which was contrary to the claim.

     Customs officers subsequently conducted an operation today and arrested the 32-year-old female numerology consultant. An investigation is ongoing and the arrested woman has been released on bail pending further investigation.

     Customs reminds traders to comply with the requirements of the TDO. Consumers should also procure services at reputable traders and inquire about the service details before making a transactional decision.

     Under the TDO, any trader who applies a false trade description to a service supplied to a consumer commits an offence. The maximum penalty upon conviction is a fine of $500,000 and imprisonment for five years.

     Members of the public may report any suspected violations of the TDO to Customs’ 24-hour hotline 2545 6182 or its dedicated crime-reporting email account (crimereport@customs.gov.hk). read more

     The effective exchange rate index for the Hong Kong dollar on Tuesday, November 9, 2021 is 101 (down 0.1 against yesterday’s index). read more