Tag Archives: China

     Following is the speech by the Financial Secretary, Mr Paul Chan, at Consensus Hong Kong 2025 today (February 19):
 
Michael (Chairman of Consensus Hong Kong, Mr Michael Lau), Sara (Chief Executive Officer of CoinDesk, Ms Sara Stratoberdha), distinguished guests, industry leaders and innovators, friends from around the world,
 
     It is my pleasure to be here at Consensus Hong Kong 2025. Let me begin by expressing my heartfelt gratitude to CoinDesk for choosing Hong Kong as the first Asian city for hosting this iconic conference. Your decision underscores Hong Kong’s growing prominence as a global hub for Web3 and crypto innovation. This event also reflects our commitment to building a thriving digital asset ecosystem. 
 
Vast potential of Web3 and AI
 
     Consensus 2025 is a congregation of Web3 talent from around the world, and its agenda reflects the most pressing topics and trends in the Web3 space today. From the convergence of AI and blockchain to the tokenisation of real-world assets (RWA), crypto and consumers, and DeFi 2.0 (decentralised finance), the discussions here are set to shape the future landscape of digital finance and the digital economy.
 
     One of the most exciting developments is, of course, the intersection of AI and blockchain, where “dencetralised AI” can unlock many new applications and opportunities. For example, AI can assist blockchain platforms in performing more accurate credit assessments, improving smart contract audits, providing tailored investment advice, and more.
 
     Globally, the application of Web3 in finance is gaining traction. Blockchain innovations not just reduce transaction costs but also enhance market transparency, and the efficiency and accessibility of financial services. Indeed, we are seeing more institutional adoption where traditional banks, asset managers and brokers increasingly integrate digital assets into their offerings. The benefits are clear. The World Economic Forum, for example, estimates that financial institutions could free up some US$100 billion per year by leveraging distributed ledger technology for collateral management.
 
     Hong Kong, with its advanced financial infrastructure and robust regulatory environment, is at the forefront of this transformation. Hong Kong has already made history by issuing the world’s first tokenised government green bonds in 2023, followed by a groundbreaking multi-currency issuance in 2024. 
 
     Beyond finance, Web3 plus AI innovations are inspiring a host of applications in the real economy. From streamlining supply chain management to enhancing game players’ experience; and from improving healthcare management to making agricultural and industrial production more intelligent, they are empowering and transforming business operations and public services.  
 
     Rapid tech innovation does not come without challenges. Often, the progress of innovation outpaces regulatory response, creating gaps that can lead to substantial risks. The fallout from several crypto exchanges’ failures in recent years serves as vivid reminders that we must pay attention to market integrity, investor protection, money laundering and cybersecurity risks, as financial products and services continue to innovate and digitalise.
 
     On a positive note, the history of financial innovations shows that we learnt and adapted fast, and put in better guardrails and became more resilient. The key to success lies in maintaining an open, fair, balanced and forward-looking regulatory approach that is conducive to the sustainable and responsible development of financial innovation, including Web3.
 
Hong Kong’s unparalleled advantages
 
     This is the path taken by Hong Kong. While some major jurisdictions have recently begun to embrace cryptocurrencies, which has undoubtedly fuelled a boom of the crypto market, Hong Kong stands out as a market with consistent, predictable, forward-looking policies, and a balanced regulatory framework. For innovators and companies committed to building the future of Web3, or financial institutions looking to bridge traditional and digital finance, Hong Kong is where you want to be. 
 
     Our regime is premised on the “same activity, same risk, same regulation” principle, which ensures a level playing field for all market participants. In this regard, Hong Kong has already put in place a licensing regime for digital asset trading platforms. Our Securities and Futures Commission has already issued nine such licences, with more in the pipeline. We are also advancing on the regulation of stable coins, and have introduced the relevant piece of legislation.
 
     To facilitate further innovation, regulatory sandboxes have been set up by our regulators to allow innovators to test and refine their ideas, and to get early regulatory feedback. Besides, initiatives like the Hong Kong Monetary Authority’s Project Ensemble are accelerating the development of tokenisation ecosystems, covering RWAs like fixed income, investment funds, green finance and trade finance.
 
     Indeed, this pro-innovation and collaborative regulatory approach is a unique value proposition of Hong Kong to Web3 innovators and participants.
 
     AI is constantly evolving and increasingly applied to finance. Its convergence with blockchain will create more use cases, with both new opportunities to be captured, and challenges to be addressed. Hong Kong has set out a clear policy stance on the use of AI in financial services. The Government and financial regulators are working closely with the industry to monitor technology and market development and establish a transparent supervisory framework.
 
     Hong Kong’s commitment to Web3 extends beyond regulation. We are investing heavily in the related infrastructure and talent development. Our Cyberport and Science Park have become vibrant hubs for Web3 innovation and fintech, while our universities and partnerships with the industry are nurturing generations of blockchain experts. Through talent admission schemes, we are also attracting top-notch professionals from around the world, ensuring that Hong Kong remains at the cutting edge of technological advancement.
 
Concluding remarks
 
     Ladies and gentlemen, while the tides of change may ebb and flow, the quest for innovation has never stopped. The digital asset market today may somewhat resemble the early days of all great transformative paradigms: as new frontiers emerge, there will always be champions of progress and cautious observers. What remains true is that the market ultimately rewards those who dare to innovate, and adapt and persevere.
 
     The tides of change are upon us, and Hong Kong is ready to ride the wave. As the Web3 ecosystem continues to evolve, Hong Kong will remain a stable, open and vibrant market for digital assets. I am confident that global companies and institutions will join force with us to lead its development.
 
     Once again, my heartfelt thanks to CoinDesk for hosting this event in Hong Kong. I wish you all a productive and inspiring event over the next two days. And do remember to take some time to enjoy Hong Kong, Asia’s world city. Thank you. read more

     Following is the speech by the Financial Secretary, Mr Paul Chan, at Consensus Hong Kong 2025 today (February 19):
 
Michael (Chairman of Consensus Hong Kong, Mr Michael Lau), Sara (Chief Executive Officer of CoinDesk, Ms Sara Stratoberdha), distinguished guests, industry leaders and innovators, friends from around the world,
 
     It is my pleasure to be here at Consensus Hong Kong 2025. Let me begin by expressing my heartfelt gratitude to CoinDesk for choosing Hong Kong as the first Asian city for hosting this iconic conference. Your decision underscores Hong Kong’s growing prominence as a global hub for Web3 and crypto innovation. This event also reflects our commitment to building a thriving digital asset ecosystem. 
 
Vast potential of Web3 and AI
 
     Consensus 2025 is a congregation of Web3 talent from around the world, and its agenda reflects the most pressing topics and trends in the Web3 space today. From the convergence of AI and blockchain to the tokenisation of real-world assets (RWA), crypto and consumers, and DeFi 2.0 (decentralised finance), the discussions here are set to shape the future landscape of digital finance and the digital economy.
 
     One of the most exciting developments is, of course, the intersection of AI and blockchain, where “dencetralised AI” can unlock many new applications and opportunities. For example, AI can assist blockchain platforms in performing more accurate credit assessments, improving smart contract audits, providing tailored investment advice, and more.
 
     Globally, the application of Web3 in finance is gaining traction. Blockchain innovations not just reduce transaction costs but also enhance market transparency, and the efficiency and accessibility of financial services. Indeed, we are seeing more institutional adoption where traditional banks, asset managers and brokers increasingly integrate digital assets into their offerings. The benefits are clear. The World Economic Forum, for example, estimates that financial institutions could free up some US$100 billion per year by leveraging distributed ledger technology for collateral management.
 
     Hong Kong, with its advanced financial infrastructure and robust regulatory environment, is at the forefront of this transformation. Hong Kong has already made history by issuing the world’s first tokenised government green bonds in 2023, followed by a groundbreaking multi-currency issuance in 2024. 
 
     Beyond finance, Web3 plus AI innovations are inspiring a host of applications in the real economy. From streamlining supply chain management to enhancing game players’ experience; and from improving healthcare management to making agricultural and industrial production more intelligent, they are empowering and transforming business operations and public services.  
 
     Rapid tech innovation does not come without challenges. Often, the progress of innovation outpaces regulatory response, creating gaps that can lead to substantial risks. The fallout from several crypto exchanges’ failures in recent years serves as vivid reminders that we must pay attention to market integrity, investor protection, money laundering and cybersecurity risks, as financial products and services continue to innovate and digitalise.
 
     On a positive note, the history of financial innovations shows that we learnt and adapted fast, and put in better guardrails and became more resilient. The key to success lies in maintaining an open, fair, balanced and forward-looking regulatory approach that is conducive to the sustainable and responsible development of financial innovation, including Web3.
 
Hong Kong’s unparalleled advantages
 
     This is the path taken by Hong Kong. While some major jurisdictions have recently begun to embrace cryptocurrencies, which has undoubtedly fuelled a boom of the crypto market, Hong Kong stands out as a market with consistent, predictable, forward-looking policies, and a balanced regulatory framework. For innovators and companies committed to building the future of Web3, or financial institutions looking to bridge traditional and digital finance, Hong Kong is where you want to be. 
 
     Our regime is premised on the “same activity, same risk, same regulation” principle, which ensures a level playing field for all market participants. In this regard, Hong Kong has already put in place a licensing regime for digital asset trading platforms. Our Securities and Futures Commission has already issued nine such licences, with more in the pipeline. We are also advancing on the regulation of stable coins, and have introduced the relevant piece of legislation.
 
     To facilitate further innovation, regulatory sandboxes have been set up by our regulators to allow innovators to test and refine their ideas, and to get early regulatory feedback. Besides, initiatives like the Hong Kong Monetary Authority’s Project Ensemble are accelerating the development of tokenisation ecosystems, covering RWAs like fixed income, investment funds, green finance and trade finance.
 
     Indeed, this pro-innovation and collaborative regulatory approach is a unique value proposition of Hong Kong to Web3 innovators and participants.
 
     AI is constantly evolving and increasingly applied to finance. Its convergence with blockchain will create more use cases, with both new opportunities to be captured, and challenges to be addressed. Hong Kong has set out a clear policy stance on the use of AI in financial services. The Government and financial regulators are working closely with the industry to monitor technology and market development and establish a transparent supervisory framework.
 
     Hong Kong’s commitment to Web3 extends beyond regulation. We are investing heavily in the related infrastructure and talent development. Our Cyberport and Science Park have become vibrant hubs for Web3 innovation and fintech, while our universities and partnerships with the industry are nurturing generations of blockchain experts. Through talent admission schemes, we are also attracting top-notch professionals from around the world, ensuring that Hong Kong remains at the cutting edge of technological advancement.
 
Concluding remarks
 
     Ladies and gentlemen, while the tides of change may ebb and flow, the quest for innovation has never stopped. The digital asset market today may somewhat resemble the early days of all great transformative paradigms: as new frontiers emerge, there will always be champions of progress and cautious observers. What remains true is that the market ultimately rewards those who dare to innovate, and adapt and persevere.
 
     The tides of change are upon us, and Hong Kong is ready to ride the wave. As the Web3 ecosystem continues to evolve, Hong Kong will remain a stable, open and vibrant market for digital assets. I am confident that global companies and institutions will join force with us to lead its development.
 
     Once again, my heartfelt thanks to CoinDesk for hosting this event in Hong Kong. I wish you all a productive and inspiring event over the next two days. And do remember to take some time to enjoy Hong Kong, Asia’s world city. Thank you. read more

     Following is a question by the Hon Chan Chun-ying and a written reply by the Secretary for Transport and Logistics, Ms Mable Chan, in the Legislative Council today (February 19):
      
Question:

     In order to implement the HKeToll free-flow tolling service, the Highways Department is demolishing the toll booths, toll islands and toll plaza shelters of the three road harbour crossings (RHCs) and adjusting the traffic lane arrangements. On making good use of the spaces released from the toll collection facilities of RHCs, will the Government inform this Council:

(1) as it is learnt that the demolition works of the toll booths, toll islands and toll plaza shelters of the three RHCs have basically been completed, but many water-filled barriers and traffic cones used for the purposes of road works have not yet been removed from the road surfaces in the vicinity of the three RHCs, causing vehicles entering and exiting RHCs to reduce their speed, thus affecting the smooth flow of traffic, and that the Government indicated in its reply to a question from a Member of this Council on November 13 last year that the demolition works involving the three RHCs were not expected to be completed until the second quarter of this year, of the complexities of the remaining works and whether the Government has explored early completion of such works; if so, of the details; if not, the reasons for that;

(2) given that in its reply to a question from a Member of this Council on October 18, 2023, the Government indicated that the demolition of all the manual toll booths could release land with an estimated total area of about 23 000 square metres at the three RHCs, whether, apart from using the land to provide more bus stops or improve the existing ones and increase the number of buffer zones, the Government has considered landscaping the RHC entrances to create three scenic cityscapes; if so, of the details; if not, the reasons for that; and

(3) as it is learnt that there are many advertising spaces at the three RHCs, whether the Government has studied taking this opportunity to revamp these advertising spaces to provide digital advertising screens, three-dimensional advertising screens and projection advertising screens, etc, thereby attracting more advertisers and increasing government revenue; if so, of the details; if not, the reasons for that?

Reply:

President,

     The HKeToll, a free-flow tolling service, has been implemented in all government-tolled tunnel since end-2023 and will be implemented at the Tai Lam Tunnel after the Government takes over it in May this year. The HKeToll enables vehicles to pay tolls remotely without having to stop at the toll booths, thereby enhancing the efficiency of toll collection, and providing more effective traffic management as well as safer and smoother commuting for motorists; and the freed-up areas following the removal of manual toll booths will be utilised to improve the traffic at the tunnel entrances and exits.
     
     Having consulted the Development Bureau and the Transport Department (TD), my reply to the various parts of the question raised by the Hon Chan Chun-ying is as follows:

(1) All HKeToll related works at the Cross-Harbour Tunnel (CHT) and Eastern Harbour Crossing (EHC) have been completed, including the removal of toll islands and toll plaza canopies, and adjustment of lane arrangements. The traffic cones currently placed on site mainly aim at guiding vehicles along the lanes and preventing them from entering the shadow area of the central dividers, so as to rationalise the traffic near the tunnel entrances and exits and maintain road safety.

     As for the Western Harbour Crossing (WHC), we are currently carrying out road resurfacing and related works in the vicinity of the former toll plaza, which requires removal of the existing concrete pavement of the main traffic lanes at the former toll plaza for repaving the road base as well as the bituminous pavement. As the works are close to existing traffic lanes, bus stops, branch road entrances and exits, etc, they need to be carried out in phases to ensure that the project will not cause significant impact on tunnel operations, traffic conditions and road safety. Upon the completion of the works at the main traffic lane, we will continue the remaining works at the freed-up areas and remove temporary traffic management measures such as water barriers after completion. The relevant departments will complete the works as soon as possible, and it is expected the works at WHC will be completed in the second quarter of this year.

(2) The freed-up areas following the removal of toll booths will be used for improving the traffic at the tunnel entrances and exits, including widening the existing space for loading/unloading of buses and access to bus stops, increasing the number of lane-side buffer zones to ensure the safe operation of the tunnels, as well as rationalising traffic lane arrangements, with consideration given to road safety and landscaping. In the long run, the TD will continue to review the future traffic condition of the road section and the spaces available, and proactively consider how to complement the development of the neighbouring areas and improve the traffic and cross-harbour bus service. Besides, taking the CHT as an example, at the Government’s invitation, the MTR Corporation Limited (MTRCL) has conducted a study to re-plan the sites in the vicinity of the Hung Hom Station and the waterfront, including exploring ways to enhance the pedestrian connectivity between Hung Hom and Tsim Sha Tsui East, and improve the passenger bus waiting environment at the CHT. The Government is currently considering MTRCL’s report, and expects stakeholder consultation on the land use proposals will take place by mid-2025.

(3) At present, there are a total of 95 advertising panels located at the tunnel entrances and exits, tunnel buildings (such as administration buildings and ventilation buildings) and bus stops of the three road harbour crossings. The tunnel operators under the TD appoint advertising agents through open tender to sell advertising spaces, and the relevant advertising revenue goes to the Government.

     The TD has been closely monitoring the market demand for advertising display within the tunnel areas with a view to optimising the use of advertising spaces. The TD also reviews the number and types of advertising panels from time to time, taking into account factors such as cost-effectiveness, avoiding distraction to motorists, road safety and visual impact to nearby residents. To tie in with the market demand and changes to the toll plaza, the TD has commissioned a total of four new advertising panels from November 2024 to January 2025 at the EHC to increase advertising revenue.

     The TD will continue to maintain close liaison with tunnel operators and advertising agents to keep in view the market demand for displaying advertisements within the tunnel area, and consider the feasibility of different options, including the proposal in the question, with a view to increasing advertising revenue. read more

     Following is a question by the Hon Chan Chun-ying and a written reply by the Secretary for Transport and Logistics, Ms Mable Chan, in the Legislative Council today (February 19):
      
Question:

     In order to implement the HKeToll free-flow tolling service, the Highways Department is demolishing the toll booths, toll islands and toll plaza shelters of the three road harbour crossings (RHCs) and adjusting the traffic lane arrangements. On making good use of the spaces released from the toll collection facilities of RHCs, will the Government inform this Council:

(1) as it is learnt that the demolition works of the toll booths, toll islands and toll plaza shelters of the three RHCs have basically been completed, but many water-filled barriers and traffic cones used for the purposes of road works have not yet been removed from the road surfaces in the vicinity of the three RHCs, causing vehicles entering and exiting RHCs to reduce their speed, thus affecting the smooth flow of traffic, and that the Government indicated in its reply to a question from a Member of this Council on November 13 last year that the demolition works involving the three RHCs were not expected to be completed until the second quarter of this year, of the complexities of the remaining works and whether the Government has explored early completion of such works; if so, of the details; if not, the reasons for that;

(2) given that in its reply to a question from a Member of this Council on October 18, 2023, the Government indicated that the demolition of all the manual toll booths could release land with an estimated total area of about 23 000 square metres at the three RHCs, whether, apart from using the land to provide more bus stops or improve the existing ones and increase the number of buffer zones, the Government has considered landscaping the RHC entrances to create three scenic cityscapes; if so, of the details; if not, the reasons for that; and

(3) as it is learnt that there are many advertising spaces at the three RHCs, whether the Government has studied taking this opportunity to revamp these advertising spaces to provide digital advertising screens, three-dimensional advertising screens and projection advertising screens, etc, thereby attracting more advertisers and increasing government revenue; if so, of the details; if not, the reasons for that?

Reply:

President,

     The HKeToll, a free-flow tolling service, has been implemented in all government-tolled tunnel since end-2023 and will be implemented at the Tai Lam Tunnel after the Government takes over it in May this year. The HKeToll enables vehicles to pay tolls remotely without having to stop at the toll booths, thereby enhancing the efficiency of toll collection, and providing more effective traffic management as well as safer and smoother commuting for motorists; and the freed-up areas following the removal of manual toll booths will be utilised to improve the traffic at the tunnel entrances and exits.
     
     Having consulted the Development Bureau and the Transport Department (TD), my reply to the various parts of the question raised by the Hon Chan Chun-ying is as follows:

(1) All HKeToll related works at the Cross-Harbour Tunnel (CHT) and Eastern Harbour Crossing (EHC) have been completed, including the removal of toll islands and toll plaza canopies, and adjustment of lane arrangements. The traffic cones currently placed on site mainly aim at guiding vehicles along the lanes and preventing them from entering the shadow area of the central dividers, so as to rationalise the traffic near the tunnel entrances and exits and maintain road safety.

     As for the Western Harbour Crossing (WHC), we are currently carrying out road resurfacing and related works in the vicinity of the former toll plaza, which requires removal of the existing concrete pavement of the main traffic lanes at the former toll plaza for repaving the road base as well as the bituminous pavement. As the works are close to existing traffic lanes, bus stops, branch road entrances and exits, etc, they need to be carried out in phases to ensure that the project will not cause significant impact on tunnel operations, traffic conditions and road safety. Upon the completion of the works at the main traffic lane, we will continue the remaining works at the freed-up areas and remove temporary traffic management measures such as water barriers after completion. The relevant departments will complete the works as soon as possible, and it is expected the works at WHC will be completed in the second quarter of this year.

(2) The freed-up areas following the removal of toll booths will be used for improving the traffic at the tunnel entrances and exits, including widening the existing space for loading/unloading of buses and access to bus stops, increasing the number of lane-side buffer zones to ensure the safe operation of the tunnels, as well as rationalising traffic lane arrangements, with consideration given to road safety and landscaping. In the long run, the TD will continue to review the future traffic condition of the road section and the spaces available, and proactively consider how to complement the development of the neighbouring areas and improve the traffic and cross-harbour bus service. Besides, taking the CHT as an example, at the Government’s invitation, the MTR Corporation Limited (MTRCL) has conducted a study to re-plan the sites in the vicinity of the Hung Hom Station and the waterfront, including exploring ways to enhance the pedestrian connectivity between Hung Hom and Tsim Sha Tsui East, and improve the passenger bus waiting environment at the CHT. The Government is currently considering MTRCL’s report, and expects stakeholder consultation on the land use proposals will take place by mid-2025.

(3) At present, there are a total of 95 advertising panels located at the tunnel entrances and exits, tunnel buildings (such as administration buildings and ventilation buildings) and bus stops of the three road harbour crossings. The tunnel operators under the TD appoint advertising agents through open tender to sell advertising spaces, and the relevant advertising revenue goes to the Government.

     The TD has been closely monitoring the market demand for advertising display within the tunnel areas with a view to optimising the use of advertising spaces. The TD also reviews the number and types of advertising panels from time to time, taking into account factors such as cost-effectiveness, avoiding distraction to motorists, road safety and visual impact to nearby residents. To tie in with the market demand and changes to the toll plaza, the TD has commissioned a total of four new advertising panels from November 2024 to January 2025 at the EHC to increase advertising revenue.

     The TD will continue to maintain close liaison with tunnel operators and advertising agents to keep in view the market demand for displaying advertisements within the tunnel area, and consider the feasibility of different options, including the proposal in the question, with a view to increasing advertising revenue. read more

     â€‹Following is a question by the Hon Luk Chung-hung and a written reply by the Secretary for Transport and Logistics, Ms Mable Chan, in the Legislative Council today (February 19):

Question:

     It is learnt that public light buses (PLBs) are an important supplementary feeder transport means in Hong Kong, with an average daily patronage in the millions. However, some members of the trade have pointed out that due to factors such as rising fuel expenses and the increase in Cross-Harbour Tunnel (CHT) tolls resulting from the rationalisation of traffic flow among the three road harbour crossings (RHCs), the operating costs of PLBs have increased, thereby affecting the livelihood of drivers. Regarding the support for the development of the PLB trade, will the Government inform this Council:

(1) whether it has compiled statistics on the average monthly number of red minibuses using CHT in the two years before and one year after the rationalisation of traffic flow among RHCs; whether the average monthly number of red minibuses using CHT has decreased after the rationalisation of traffic flow at CHT;

(2) whether it will consider the trade’s request to lower the RHC toll for PLBs to $25 to bring it in line with that for taxis; if so, of the relevant adjustment arrangements; if not, the reasons for that;

(3) whether it will consider opening up the bus-only lanes and drop-off points for tunnels to PLBs; if so, of the relevant arrangements; if not, the reasons for that; and

(4) whether it has plans to introduce other measures to support the development of the PLB trade?

Reply:

President,

     In consultation with the Transport Department (TD), our reply to the question raised by the Hon Luk Chung-hung, is as follows: 

(1) As the toll collection systems only record the use of tunnels by vehicle type “light bus” (including private light buses and public light buses (PLBs)), the TD does not have figures on the use of tunnels by red minibuses (RMBs).

     Since the implementation of time-varying tolls, taking December 2024 as an example, there is no significant change in the total weekday cross-harbour light bus (including private light buses and PLBs) traffic compared with that before the implementation. Some of the light bus traffic at the Cross-Harbour Tunnel has been diverted to the Western Harbour Crossing (WHC), thus resulting in a more even distribution of cross-harbour traffic of light bus among the three road harbour crossings (RHCs).

(2) Generally speaking, the tolls for commercial vehicles (CVs) (including goods vehicles, light buses and buses) are generally higher than that for private cars as CVs take up more road space and cause more wear and tear to road surfaces. With the implementation of time-varying tolls, the Government has taken into account the “efficiency first” principle, the passenger-carrying efficiency and the socio-economic benefits of CVs in the past, and has brought the higher tolls for CVs closer to a level comparable to that for private cars during busy hours. The tolls for PLBs using WHC have been substantially reduced compared to the previous tolls (from $85 to $50, a reduction of about 41 per cent), and the tolls are comparable to the average tolls of the three RHCs in the past (about $44). For taxis, journeys are mainly passenger-driven and passengers are required to pay the tolls for both the outward and return cross-harbour journeys, i.e. a total of $50, which is in line with the CHT tolls for PLBs.

     With the implementation of time-varying tolls, the distribution of cross-harbour traffic is becoming more even and the capacity of the three RHCs can be better utilised. The overall traffic queues and congestion at the tunnel portals has also been alleviated, thus effectively improving the overall cross-harbour traffic. RMBs have been operating with a high degree of flexibility in terms of routeings, frequencies and fares. In planning cross-harbour routes for PLBs, most operators will take into account a number of factors besides tolls. These factors include target passengers, routeings and destinations, accessibility and journey time. With the implementation of time-varying tolls, the overall cross-harbour traffic has improved, saving cross-harbour travel time and helping to reduce fuel costs. It will also enhance the efficiency of PLB services and attractiveness of PLBs to passengers.

     The Government is now collecting and consolidating the cross-harbour traffic data of 2024, including data on the traffic flow, speed and queues of the three RHCs at different times of the day/quarters/directions, as well as the distribution of traffic flow by vehicle types, so as to conduct a comprehensive analysis of the impact of the time-varying tolls on the cross-harbour traffic, and then examine whether the toll levels of various vehicle types need to be adjusted. The review is expected to be completed by mid-2025.
     
(3) As road-based mass carriers with high patronage, buses have relatively higher passenger carrying capacity and efficiency. Therefore, the TD will give priority to buses in the use of roads as far as practicable, such as providing bus-only lanes and designated bus gate to optimise the capacity of busy roads. If bus-only lanes are opened for use by other vehicles, the effectiveness of bus-only lanes and the journey time of buses may be affected. Therefore, the TD currently has no plan to open bus-only lanes for use by other vehicles.

     At present, there are bus stops for a number of cross-harbour bus routes near the entrances and exits of the RHCs. Their usage has reached saturation. To avoid affecting bus operation and passengers’ boarding and alighting, the TD has no plan to open the cross-harbour tunnel bus stops as drop-off points for PLBs.

(4) The Government has been paying close attention to the operating situation of the PLB trade and has implemented various measures to help improve the operating environment. In respect of day-to-day operations, the TD provides appropriate and practicable support on the request of the trade to meet operational needs, for example, suitably relaxing or rescinding some passenger pick-up/drop-off restricted zones or prohibited zones for RMBs, taking into account the actual road conditions of individual locations; and permitting overnight parking of PLBs at designated PLB stands where it does not impact road safety or other road users, with a view to meeting operational needs of the PLB trade.

     The Government also noted that the PLB sector has been facing continuous and acute shortage of drivers. To this end, the Government launched the Labour Importation Scheme for Transport Sector – PLB/Coach Trade in July 2023, to allow importation of non-local drivers by eligible PLB operators on the premise of safeguarding the employment priority for local workers. A total of 900 quotas for imported PLB drivers have been approved under two rounds of application. As of end January 2025, over 600 imported drivers have successfully obtained the driver license required and have been deployed to services. In addition, the TD and the Employees Retraining Board (ERB) have introduced a pilot placement scheme in late 2024. The placement-tied driving training scheme, using the PLB trade as pilot, is jointly launched by the ERB, green minibus (GMB) operators and third-party training organisations to encourage local workers to join the PLB trade.

     On the other hand, it has been the Government’s established policy to encourage the conversion of RMBs to GMB operations, which has a wider catchment area and a relatively stable operating environment, with a view to improving their operating conditions and allowing for more effective monitoring by the TD to ensure the service quality. To align with this policy, the TD has been planning and developing new GMB route packages in light of district development and passenger demand and has been inviting applications from interested parties (including RMB operators) to run these routes through the annual GMB Operators Selection exercise. At the same time, in August 2024, the TD invited operators of 11 selected RMB routes meeting specific conditions to apply for conversion to GMB route operations. The operators of the two approved RMB routes have started the gearing-up work for conversion to GMB route operations. The two routes are expected to commence service in March 2025. 

     The Government will continue to closely monitor the operation of PLB trade and maintain close communication with relevant stakeholders to explore more feasible measures to improve the operating environment of the trade. read more