Tag Archives: China

     Following is a question by the Hon Judy Chan and a written reply by the Secretary for Health, Professor Lo Chung-mau, in the Legislative Council today (February 12):

Question:

     In 2022, in consultation with experts, the Government introduced the COVID-19 oral drugs Paxlovid and Molnupiravir through the Hospital Authority (HA), and prescribed the two drugs to suitable patients through various channels such as public hospitals, designated clinics and residential care homes for the elderly. The Government has indicated that the fee for each course of treatment in respect of the two drugs is over $6,000. There are views that the fees for the two drugs are excessively high, and the Government should expeditiously introduce other less expensive drugs with similar efficacy. In this connection, will the Government inform this Council:

(1) of the details of the vetting and approval process for introducing the two drugs by the Government in consultation with experts at that time, and whether such vetting and approval process was different from the general approval process for introducing new drugs; if so, of the reasons for and details of that;

(2) of the current clinical guidelines for prescribing the two drugs, and the number of revisions made in the past;

(3) whether it knows the following information on the use of each of the two drugs by HA in each of the past three years: (i) the quantity purchased and expenditure incurred, (ii) the quantity used (with a breakdown by the channels through which they were used), and (iii) the quantity discarded due to expiry or other reasons;

(4) whether there has been any change to the approved shelf life of the two drugs since their introduction, and of the current respective shelf life; whether it knows the respective stock of the two drugs currently kept by HA; and

(5) whether the authorities have plans to introduce other drugs with efficacy similar to that of the two drugs; if so, of the progress and timetable; if not, the reasons for that?

Reply:

President,

     With the ever evolvement of the SARS-CoV-2 virus, the prevention and treatment capacities of the local healthcare system and the handling capacity of society as a whole have been enhanced significantly. COVID-19 has been managed as an upper respiratory tract illness by the Government since early 2023. Despite this, the World Health Organization still highlights the importance of ensuring access to appropriate treatments for patients with COVID-19, including providing oral antiviral drugs to high-risk patients on a need basis taking the local situation into account. High-risk persons concerned include the elderly, immunocompromised individuals or persons with chronic illnesses.

     The Health Bureau, together with the Department of Health (DH) and the Hospital Authority (HA), have been keeping abreast of the latest development of clinical treatment and scientific evidence-based research relating to SARS-CoV-2 virus, while making reference to the latest data from drug regulatory authorities and drug manufacturers globally so as to provide appropriate treatment for COVID-19 patients.

     In consultation with the DH and the HA, the reply to the question raised by the Hon Judy Chan is as follows: 

(1) According to the Pharmacy and Poisons Ordinance (Cap. 138), pharmaceutical products must satisfy the criteria of safety, efficacy and quality for registration with the Pharmacy and Poisons Board of Hong Kong (Board) before they can be sold or supplied in Hong Kong. 

     During the COVID-19 pandemic, the then Pharmacy and Poisons (Registration of Pharmaceutical Products and Substances: Certification of Clinical Trial/Medicinal Test) Committee (Committee) established under the Board considered that, in view of the public health emergency and the local medical need at the time, together with the relevant scientific evidence, the benefits of the use of COVID-19 oral antiviral drugs, namely Paxlovid and Molnupiravir, in the treatment of mild-to-moderate COVID-19 outweighed the risks and hence conditionally approved the applications of the relevant drugs for registration in February and March 2022 respectively. As part of the conditional approval of registration, the corresponding drug registration certificate holders were required to submit additional data through clinical studies and post-marketing report to the Board according to the conditions imposed by the Committee (including that the concerned products can only be supplied to doctors or medical institutions). The certificate holders of the drugs have been continuously providing relevant reports and data to substantiate their products’ safety, efficacy and quality. In this connection, Paxlovid was granted full registration in February 2024.

(2) According to the existing mechanism, the expert panel formed by the DH and the HA closely monitors the efficacy and possible side-effects of the relevant drugs in light of the evolving scientific evidence, and also evaluates various drugs treating COVID-19 while reviewing and updating the clinical guidelines in a timely manner with reference to the latest clinical development and research data in the Mainland and overseas, with a view to providing patients with appropriate treatments to reduce their risk of severe complications and death.

     Based on the above principle, the relevant clinical guidelines have been updated for 27 times so far. Under the current guidelines, healthcare professionals will consider prescribing relevant drugs to patients aged 70 or above, and patients aged below 70 with high-risk conditions or chronic diseases according to their clinical needs.

(3) Apart from providing antiviral drugs for treating COVID-19 at public hospitals/clinics under the HA, the Government has been providing private doctors with the two aforementioned COVID-19 oral drugs procured by the HA for free prescription to eligible COVID-19 confirmed patients since April 2022. Private doctors who have registered under the Electronic Health Record Sharing System (eHRSS) can make requests for provision of the two COVID-19 oral drugs via the dedicated online platform. Private doctors must follow the aforementioned treatment guidelines set out by the HA. Besides, the DH’s clinic dispensaries also distributed a small amount of treatment courses.

     From 2022 to 2024, the HA has prescribed the two COVID-19 oral drugs to about 471 300 HA patients (a single patient may be prescribed with COVID-19 oral antivirals for more than once), including about 314 600 patients prescribed with Paxlovid and about 156 700 with Molnupiravir. Separately, about 181 700 treatment courses were prescribed by private doctors to eligible COVID-19 confirmed patients for free, in which about 104 000 Paxlovid treatment courses and about 77 700 Molnupiravir treatment courses were prescribed. About 1 500 treatment courses were prescribed by clinics under the DH (including Families Clinics and Elderly Health Centres).

     Detailed figures on the quantity and expenditure incurred by the HA in purchasing the two COVID-19 oral drugs are tabulated below:
 

	2021/22	2022/23	2023/24
Total number of purchase* (Each treatment course)	356 000	342 000	85 000
Total expenditure ($ million)	2,051	1,968	503

* Figures adjusted to the nearest thousands

     Following the prevailing practice, the HA dispenses drugs before the expiration dates based on the “first-expired, first-out” principle. For those drugs requiring disposal, including unserviceable ones, the HA will dispose of them in accordance with the established procedures. There has not been any disposal of COVID-19 oral drugs so far.

(4) The shelf-life of the two COVID-19 oral antiviral drugs, namely Paxlovid and Molnupiravir, are 24 and 30 months respectively. The HA has sufficient stock of drugs for prescription to COVID-19 patients, and will continue to closely monitor the supply and utilisation of the relevant drugs in order to cater for the needs of patients.

(5) The DH and the HA will continue to keep in view the latest data from drug regulatory authorities and drug manufacturers globally (including the Mainland) and introduce suitable drugs in a timely manner based on the available scientific evidence to ensure that patients are prescribed with drugs of proven safety and efficacy.

     Apart from Paxlovid and Molnupiravir, no other COVID-19 oral antivirals drugs are currently registered in Hong Kong. Based on the latest scientific evidence, there are no other COVID-19 oral antiviral drugs in the market that can provide the same level of appropriate treatment especially for high-risk patients. read more

     Following is a question by the Hon Vincent Cheng and a reply by the Secretary for Culture, Sports and Tourism, Miss Rosanna Law, in the Legislative Council today (February 12):
 
Question:

     â€‹It has been reported that a recently released documentary film on four Hong Kong trails is widely acclaimed. There are views that as Hong Kong has beautiful trails and ridgelines, the Government should adopt a new mindset or a new perspective in promoting trail tourism. In this connection, will the Government inform this Council:
 
(1) of the Government’s plans in place to enhance the ancillary facilities on trails or in country parks, such as providing additional replenishment and rest stations, water-filling stations, toilets and directional signs, so as to meet the needs of different types of hikers, and to further promote trail tourism and a safe hiking culture;
 
(2) of the Government’s plans and publicity strategies in place to promote Hong Kong’s trails to tourists from different places, such as whether it will consider taking the initiative to invite renowned runners to promote the trails, or supporting the broadcasting of the aforesaid documentary film on international streaming platforms or in places outside Hong Kong, so as to attract tourists from abroad; if so, of the details; if not, the reasons for that; and
 
(3) in order to further promote Hong Kong’s trail tourism, whether the Government will consider supporting the organisation and promotion of trail races or cross-country races, so as to attract more local and non-local people to take part in such races, thereby stepping up publicity on Hong Kong’s beautiful natural trails?
 
Reply:
 
President,
 
     Hong Kong has rich green and eco-tourism resources, including hiking trails and country parks throughout the city, with breathtaking great outdoors that are only minutes away from the urban hustles, attracting numerous tourists each year for hiking and outdoor activities. Further capitalising on Hong Kong’s abundant ecological resources for promoting green tourism development, is in fact one of the directions in diversifying tourism products as outlined in the Development Blueprint for Hong Kong’s Tourism Industry 2.0 that we announced at the end of last year.
      
     In respect of the question raised by the Hon Vincent Cheng, in consultation with the Environment and Ecology Bureau, the reply is as follows:
      
     To promote green tourism, the Tourism Commission, in collaboration with the Agriculture, Fisheries and Conservation Department (AFCD), has been taking forward the Enhancement of Hiking Trails since 2018 to enhance the tourism supporting facilities of 20 hiking trails in country parks which are popular and with tourism potential, and to enhance the “Enjoy Hiking” thematic website. Enhancement works include improvement to existing hiking trail network, control of soil erosion at trails, enhancement of vegetation coverage, addition of lookout points and enrichment of visitor information. The enhancement works on 12 hiking trails have been completed, and those for the remaining eight hiking trails are expected to be completed progressively by the first quarter of 2026.
      
     The AFCD also seeks to enhance hiking trails and provide supporting facilities in country parks, including the provision of 57 flushing toilets and over 120 portable toilets; 289 pavilions, 37 water filling stations and about 30 drinks vending machines. The Government has set aside $500 million to enhance country parks, including the improvement and addition of facilities, as well as gradually setting up large-scale enhancement facilities such as tree-top adventure and open museum of historical relics. Examples of the works involved are the construction of five toilets and reconstruction of six toilets at popular hiking spots. These toilets will adopt low-carbon and environmentally-friendly designs, and will be gradually rolled out from 2026 to 2028. The viewing platform overlooking Po Pin Chau and the Lin Ma Hang Lead Mine Cave Revitalisation Project were opened to the public in end-2024.
      
     The AFCD makes use of school visits, guided tours, online videos, social media, etc, to promote the unique natural scenery and hiking experiences of Hong Kong, provide information on hiking safety and hill fire prevention, and advocate “take your litter home”. Apart from placing directional signs in country parks, the AFCD also provides consolidated information of hiking trails, including maps, distance, level of difficulty and attractions along the trails, through the “Enjoy Hiking” website, to facilitate locals and tourists’ planning of their itineraries. The mobile application “Enjoy Hiking Hiker Tracking Service” also records users’ location, thereby shortening the search and rescue time in case of accidents. Furthermore, the AFCD collaborates with the Hong Kong Economic and Trade Offices (ETOs) in the Mainland and the Forestry Administration of Guangdong Province to promote Hong Kong’s natural scenery and hiking routes, as well as to disseminate hiking safety messages, through their social media platforms in the Mainland. The AFCD will continue to review and refine its promotion strategy and information, and through diverse information distribution channels, to ensure locals and tourists safely enjoy the natural wonders of Hong Kong. At the same time, the Hong Kong Police Force, the Fire Services Department, the Government Flying Service and the Civil Aid Service also raise hiker’s awareness on hiking safety through various channels and activities.
      
     Apart from the AFCD’s promotion, the Hong Kong Tourism Board (HKTB), through its “Hong Kong Great Outdoors” year-round promotional platform, introduces in detail hiking trails in different districts accompanied by stories to deepen understanding of the trails, as well as docent activities and tourism products by the travel trade and other organisations, allowing tourists to appreciate Hong Kong’s inspiring natural landscape. Besides, films are also a very effective promotional channel. For example, the film “Four Trails” documents a recent trail running event, featuring participants from various places who challenge their limits by crossing mountains and valleys, while simultaneously showcasing Hong Kong’s unique natural scenery. The Cultural and Creative Industries Development Agency (CCIDA) is collaborating with overseas ETOs and the film festival partners worldwide to promote this film at overseas film festivals. In addition, CCIDA will strive for opportunities of showing this film on both international and Mainland streaming platforms to attract more tourists to experience the natural beauty of Hong Kong. Also, the HKTB previously invited the director and producer of the film to share Hong Kong’s great natural scenery and trail running experiences with overseas media.
      
     In addition, various trail running and cross-country events are held by different organisations every year, along with other leisure trail events. The Government has supported and promoted some of these events to encourage more tourists to come to Hong Kong and participate. The Government will continue to promote green tourism based on the principles of nature conservation and sustainable development to pursue the concept of “tourism is everywhere” in Hong Kong. read more

     â€‹A spokesperson for the Security Bureau said today (February 12) that etomidate and its three analogues will be listed as dangerous drugs following the publication of the Dangerous Drugs Ordinance (Amendment of First Schedule) Order 2025 (DDO Order) in the Gazette on Friday (February 14). On the same date, the Control of Chemicals Ordinance (Amendment of Schedule 2) Order 2025 (CCO Order) will also be published in the Gazette.  
 
     The DDO Order will take effect upon its gazettal on February 14, 2025. The CCO Order is expected to become effective on April 11, 2025. Both Orders are subject to the negative vetting procedure of the Legislative Council (LegCo). Details, including the justifications for the legislative proposal, can be found in the brief for LegCo issued today in the Annex. 
 
     The DDO Order will add six substances, namely, butonitazene, bromazolam, etomidate, metomidate, propoxate, and isopropoxate, to the First Schedule to the Dangerous Drugs Ordinance (DDO) (Cap. 134). Among them, metomidate, propoxate, and isopropoxate are analogues of etomidate. “In view of the recent abuse situation of etomidate, which is the main active ingredient of a new substance with the street name ‘space oil drug’, the Government is expediting the process and has arranged for the DDO Order to take effect immediately upon gazettal on February 14 in order to significantly enhance deterrence and enable effective law enforcement action against the ‘space oil drug’,” the spokesman said. Under the strict control of the DDO, trafficking and illicit manufacturing of these substances are liable to a maximum penalty of life imprisonment and a fine of $5 million. Possession and consumption of these substances in contravention of the DDO will be subject to a maximum penalty of seven years’ imprisonment and a fine of $1 million.
 
     “The Government has been combating the ‘space oil drug’ on all fronts,” the spokesman said. The Government has renamed “space oil” as “space oil drug” to make clear to the public its nature as a dangerous drug and its harmful effects. In addition, the Government has formulated preventive education and publicity strategy against the “space oil drug” in collaboration with various agencies, encouraging them to explain the harmful effects of the “space oil drug” to the public through different channels, raise self-awareness on drug prevention among the public, and seek more ways to reach out to hidden drug abusers. 
 
     To tie in with the legislative work, the Government will launch a new TV Announcement in the Public Interest, namely “Don’t fall into ‘space oil drug’  traps!” starting from February 14, and will continue placing advertisement through various online and offline channels and at different locations to promote the relevant message in different ways. 
 
     As young people are the target of “space oil drug” sellers, the Narcotics Division of the Security Bureau and the Education Bureau will jointly launch an anti-“space oil drug” week in schools in end-February. During the period, a series of activities will be held, including talks, anti-drug videos broadcasts and drama shows, with a view to preventing the spread of the “space oil drug” among the younger cohort. 
 
     â€‹Regarding the CCO Order, 18 precursor chemicals, namely, BMK glycidic acid and its methyl, ethyl, propyl, isopropyl, butyl, isobutyl, sec-butyl and tert-butyl esters (nine substances), PMK ethyl glycidate, and six additional esters of 3,4-MDP-2-P methyl glycidic acid, namely, the propyl, isopropyl, butyl, isobutyl, sec-butyl and tert-butyl esters (seven substances), 4-piperidone and 1-boc-4-piperidone, will be added to Schedule 2 to the Control of Chemicals Ordinance (CCO) (Cap. 145). It is an offence to possess, manufacture, transport or distribute any substance controlled under the CCO for the unlawful production of dangerous drugs, or to import or export the substance not under and in accordance with a licence issued by the Customs and Excise Department. The maximum penalty is a fine of $1 million and imprisonment for 15 years.
 
     The spokesperson said, “The amendments aim to deter any potential trafficking and abuse of these dangerous drugs and precursor chemicals. This will help fortify Hong Kong’s defence against drugs. Our law enforcement agencies are ready to enforce the new regulation, including taking action against the ‘space oil drug’.” read more

     Following is a question by the Hon Yiu Pak-leung and a written reply by the Secretary for Culture, Sports and Tourism, Miss Rosanna Law, in the Legislative Council today (February 12):
 
Question:
 
     In recent years, the Government has been committed to developing Sha Tau Kok (STK) into a tourist hotspot, including launching the First Phase “STK Pier opening up scheme” and the second phase of the STK opening-‍up plan, upgrading the tourism supporting facilities in STK, as well as providing photo-taking spots. In addition, there are views that the official opening of the Robin’s Nest Country Park on November 2 last year has added more highlights to the STK area. On making good use of the tourism resources in the STK area, will the Government inform this Council:
 
(1) of the respective numbers of individual visitors and tour group visitors visiting STK each month since the launch of the second phase of the STK opening-up plan in January last year, and among which the numbers of non-local visitors (set out in Table 1);
 
Table 1

Month	Total number of visitors	Number of individual visitors (among which the number of non-local visitors)	Number of tour group visitors (among which the number of non-local visitors)

 
(2) of the respective numbers of individual visitors and tour group visitors on the 10 dates with the highest number of visitors to STK last year, and among which the numbers of non-local visitors (set out in Table 2);
 
Table 2

Date	Total number of visitors	Number of individual visitors (among which the number of non-local visitors)	Number of tour group visitors (among which the number of non-local visitors)

 
(3) as it is learnt that the Police can generally complete the processing of applications for electronic Tourism Closed Area Permits for access to STK at an earlier time (which originally required a minimum of three working days), of the distribution of the time taken by the Police to vet and approve such permits last year (i.e. (i) within four ‍hours, (ii) more than four hours to 12 hours, (iii) more than 12 hours to 24 hours, (iv) more than 24 hours to 48 hours, (v) more than 48 ‍hours to 72 hours, and (vi) more than 72 hours), and set out in Table 3 a breakdown by the type of applicants (i.e. (a) individual visitors and (b) tour group visitors, and (I) local visitors and (II) ‍non-‍local visitors);
 
Table 3

Vetting and approval time	(a)		(b)
	(I)	(II)	(I)	(II)
(i)
……
(vi)
Total

 
(4) as some members of the industry have relayed that it takes time for non-local visitors to apply for electronic Tourism Closed Area Permits to gain access to STK, which is not conducive to travel agencies promoting relevant tourism products to tourists, whether the authorities will consider introducing visa-on-arrival arrangements for tour groups visiting on a “group in, group out” basis, so as to facilitate travel agencies in arranging for more tourists to visit STK;
 
(5) as it is learnt that currently the seven MacIntosh Forts built along the Shenzhen River are no longer in practical operational use, and two of them have undergone basic revitalisation works and are conditionally open to the public, whether the authorities have considered fully opening these two revitalised forts; if so, of the details; if not, the reasons for that; whether the authorities will consider using the forts as visitor service centres or open museums to make good use of heritage resources, thereby enhancing the attractiveness of Robin’s Nest Country Park;
 
(6) given that the “contactless channels” at the Chung Ying Street Checkpoint in STK became operational on December 23 last year, of the progress of exploring the possibility of allowing Hong Kong tour groups to enter Chung Ying Street via such checkpoint on a “group in, group out” basis (including the estimated earliest implementation date); and
 
(7) given that with effect from January 24 this year, the Security Bureau has opened a specified section of road within the frontier closed area near Lin Ma Hang Village in STK, exempting the requirement to apply for a closed area permit for people travelling by green minibus passing through this section of road, with a view to facilitating tourists to travel to Robin’s Nest Country Park, whether the authorities will consider allowing tourist coaches to access this section of road, so as to facilitate the launch of relevant tourism products by the industry?
 
Reply
 
President,
 
     The Culture, Sports and Tourism Bureau (CSTB) published the Action Plan on Sha Tau Kok Cultural Tourism Zone on December 30, 2024, in tandem with the promulgation of the Development Blueprint for Hong Kong’s Tourism Industry 2.0. The CSTB will continue to promote the tourism development in Sha Tau Kok (STK) under the overall principle of “low density, high quality” and through enriching its historical and cultural elements. Specifically, the Government is progressively opening up STK Frontier Closed Area (FCA) for tourism, including rolling out of the second phase of the STK Opening-up Plan in January 2024, under which local and non-local visitors are allowed to enter STK FCA (except Chung Ying Street) for sightseeing. In light of its proximity to the Robin’s Nest Country Park, STK has effectively linked up various tourists spots of the Blue and Green Recreation, Tourism and Conservation Circle of the district, serving as a starting point for visitors travelling by ferry to the surrounding islands and areas, such as Lai Chi Wo, Kat O and Ap Chau.
 
     In consultation with the Security Bureau (SB), the Development Bureau and the Environment and Ecology Bureau, the consolidated reply to the question raised by the Hon Yiu Pak-leung is as follows:
 
(1) and (2) The monthly figures of electronic Tourism Closed Area Permit (e-CAP) issued by the Hong Kong Police Force (HKPF) for entering STK in 2024, and the ten dates with most e-CAP issued in the same year, are set out at Annex.

(3) To facilitate the implementation of the second phase of the STK Opening-up Plan starting from January 2024, the HKPF launched e-CAP on December 1, 2023. The HKPF has been committed to processing applications as soon as possible. Upon submission by applicants of all the documents required and verification of the relevant information, the vast majority of the e-CAP applications were approved within three working days. The HKPF does not maintain breakdown information of the time required for approval of e-CAP as mentioned in the question.
 
(4) and (6) Since 2022, the SB has, in collaboration with relevant bureaux and departments, formulated specific measures to progressively open-up STK FCA in accordance with the principle of gradual and orderly progress. The SB has fully consulted the local community in the process, closely monitored the implementation of the opening-up plan, as well as maintaining close liaison with relevant stakeholders to ensure timely responses to the concerns raised and implement the opening-up plan in an orderly manner.
       
     As far as Chung Ying Street is concerned, due to its unique historical background and geographical factors, Chung Ying Street directly adjoins the Mainland without any barrier as a boundary demarcation. It is also the only place in Hong Kong where there is no boundary control facilities, while cross-boundary movement of people and cargo is allowed. In light of the boundary security considerations from the SB, Chung Ying Street has not been opened to tourists for entry from Hong Kong STK over the years.
      
     With the gradual opening-up of STK FCA for tourism, the Government will continue to adopt an open stance in exploring the promotion of tourism at Chung Ying Street, as well as other feasible measures that can further facilitate the trade and tourists visiting STK FCA, with a view to fostering the development of cultural tourism in STK. The CSTB, the SB and Shenzhen Municipal Government, have been in ongoing communication with each other over the development of cultural tourism in both Hong Kong and Shenzhen STK, and will explore the feasible option of allowing Hong Kong group tours to enter Chung Ying Street for sightseeing via the Chung Ying Street Checkpoint on a “group in, group out” basis, with a view to further deepening the historical and cultural elements of STK tourism.
 
(5) For security reason, the seven MacIntosh Forts located at the boundary of New Territories are currently not opened to the public. In view of the establishment of the Robin’s Nest Country Park on March 1, 2024, the Agriculture, Fisheries and Conservation Department (AFCD) installed an interpretation panel near the MacIntosh Fort (Kong Shan) at the Lin Ma Hang Country Trail to introduce the Forts. The AFCD also featured a thematic introduction of the Forts in an episode of the video series titled “Discovering Robin’s Nest Country Park”, which was produced in celebrating the establishment of the Robin’s Nest Country Park, covering the history of the Forts and its role in boundary defence in the past.
 
(7) Starting from January 24, 2025, a section of road within the FCA near Lin Ma Hang Village in STK has been opened for public travelling on public light buses on scheduled service (i.e. green minibuses), by exempting the requirement to apply for a closed area permit. Members of the public concerned can enter Lin Ma Hang Village via the said section of road, thereby facilitating them to visit the Robin’s Nest Country Park and nearby areas. The current exemption is applicable to passengers travelling by green minibuses, but does not apply to private vehicles, taxis or other vehicles without a valid closed road permit, and to members of the public using other means of travel such as walking or cycling. Taking into account the limitations in the road design and safety considerations of the concerned section, the said section of road is not suitable for entry by large coach buses. The Government will examine the effectiveness of the exemption and, on the premise that boundary security and traffic safety can be ensured, keep an open mind in studying the feasibility of extending the exemption arrangement in the future to cover other transportation means. read more

     Following is a question by the Hon Robert Lee and a written reply by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, in the Legislative Council today (February 12):
 
Question:
 
     There are views that the Government should actively take forward a more comprehensive support policy to promote the development of the fund industry as a whole on all fronts. In this connection, will the Government inform this Council:
 
(1) whether it has compiled statistics on the respective shares of capital allocations from Hong Kong’s offshore Renminbi (RMB) (liquidity pool to mutual funds, deposits, stocks, bonds and other investment vehicles, together with a breakdown by holders of such capital, i.e. retail investors, institutional investors, and enterprises; given that the Government is actively promoting the internationalisation of RMB, what measures it has in place to guide more offshore RMB capital to invest in various fund products, so as to promote the development of related businesses;
 
(2) whether it has compiled statistics on the respective shares of Mainland capital investments in Hong Kong funds and bank deposits under the constant enhancement of the Cross-boundary Wealth Management Connect (WMC) Scheme in the Guangdong-Hong Kong-Macao Greater Bay Area, and in which types of funds the investments are mainly made; of the Government’s plans in place to discuss with the Mainland regulatory authorities about further expansion of the scope of fund products under WMC, as well as all-‍round coverage of cross-border fund sales and promotional activities;
 
(3) whether the Government will step up negotiations with the Mainland regulatory authorities to further increase the number of funds and product types under the mutual recognition of funds scheme; whether it knows if information on such recognised funds will be included in the Hong Kong Exchanges and Clearing Limited’s Integrated Fund Platform to facilitate trading by investors; and
 
(4) of the respective proportions of the amounts invested in “financial assets” and “non-financial assets” by applicants of the New Capital Investment Entrant Scheme after its implementation, together with a breakdown by the classification of assets; whether the Government will publish the relevant statistics on a regular basis; if so, of the details; if not, the reasons for that?
 
Reply:
 
President,
 
     Hong Kong is an international asset and wealth management centre, with assets under management exceeding HK$31 trillion. The Government has been attracting more global capital to be managed in Hong Kong through a series of measures with the aim of propelling the all-rounded development of the fund industry. In consultation with Invest Hong Kong (InvestHK), the Hong Kong Monetary Authority (HKMA), the Securities and Futures Commission (SFC) and the Hong Kong Exchanges and Clearing Limited (HKEX), my reply to the various parts of the question is as follows:
 
(1) With the support of the Central People’s Government, Hong Kong is a premier global offshore Renminbi (RMB) business hub which possesses the world’s largest offshore pool of RMB funds, and operates the largest foreign exchange and interest rate derivatives market. Hong Kong also provides a diversified range of RMB products and services, with a leading position in RMB settlement, financing and asset management.
 
     The Government has been promoting the development of the offshore RMB business in Hong Kong, and has been actively deepening the mutual access between the Mainland and Hong Kong financial markets, so as to assist the high-level opening up of our country’s capital market. The China Securities Regulatory Commission (CSRC) announced in April 2024 a series of measures to promote the expansion of the mutual access between the financial markets of the Mainland and Hong Kong. These measures include expanding the eligible product scope of equity exchange-traded funds (ETFs) under Stock Connect and including real estate investment trusts (REITs) under Stock Connect, which would support the Hong Kong financial market by increasing the availability of attractive investment products, providing more investment opportunities for domestic and international investors, and consolidating Hong Kong’s position as an offshore RMB business hub.
 
     In addition, the HKMA and the People’s Bank of China (PBoC) announced on January 13 this year new measures to further strengthen Hong Kong’s position as a global offshore RMB business hub. Relevant measures include the introduction of the HKMA RMB Trade Financing Liquidity Facility, further enhancement and expansion of Bond Connect (Southbound), development of offshore RMB repurchase business using Northbound Bond Connect bonds as collateral, inclusion of Northbound Bond Connect bonds as eligible margin collateral at OTC Clearing Hong Kong Limited, promoting cross-boundary payment facilitation and financial facilitation in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA). We will press ahead with the development of an offshore RMB ecosystem to promote the internationalisation of the RMB in a steady and prudent manner.
 
     In terms of financial products, besides RMB foreign exchange trading products, the offshore RMB investment products and services offered in Hong Kong also include RMB-denominated stocks, ETF, REIT, futures contracts for precious metals, and other diversified financial products. However, the Government does not maintain data on the allocation of funds within the offshore RMB pool to various investment products.
 
(2) Cross-boundary Wealth Management Connect (WMC) has seen continuous and steady development since its launch in September 2021. “WMC 2.0” commenced on February 26, 2024, with enhancement measures including increasing the individual investor quota from RMB1 million to RMB3 million, lowering the threshold for participating in the Southbound Scheme to support more GBA residents to participate in the scheme, expanding the scope of participating institutions to include eligible securities firms, expanding the scope of eligible investment products, and further enhancing the promotion and sales arrangements. According to the statistics published by the PBoC, up to end-2024, over 136 000 individual investors in the GBA participated in the WMC and cross-boundary fund remittances (including Guangdong, Hong Kong and Macao) amounting to over RMB99.4 billion had been recorded.
 
     Currently, the scope of eligible products under the Southbound Scheme includes all “non-complex” funds domiciled in Hong Kong and authorised by the SFC that primarily invest in Greater China equity; low-risk to medium-high-risk “non-complex” funds domiciled in Hong Kong and authorised by the SFC (excluding high-yield bond funds and single emerging market equity funds); low-risk to medium-risk and non-complex bonds; and RMB, Hong Kong dollar and foreign currency deposits. The Government does not maintain data on the proportion of Mainland capital invested in these different products.
 
     The Government and Hong Kong regulatory authorities will continue to maintain close communication with the industry and the Mainland regulatory authorities, and continuously review the implementation of “WMC 2.0” with a view to exploring further enhancement measures, including the product scope and sales arrangements.
 
(3) The Mainland-Hong Kong Mutual Recognition of Funds (MRF) arrangement (the “Arrangement”) was launched in July 2015, where eligible Mainland and Hong Kong funds can be offered to retail investors in each other’s market through a streamlined vetting process. As of end-2024, a total of 83 funds were authorised by the regulators of the two places, with aggregate net subscription amount of around RMB43.5 billion.
 
     The Arrangement has been enhanced with effect from January 1, 2025. Enhancements include relaxing the sales restriction and allowing Hong Kong funds to delegate investment management functions to overseas asset management companies within the same group. The measures will significantly increase the diversity of fund products, enhance the scale of funds, and bring positive effect to the distribution of Hong Kong MRF funds in the Mainland. The SFC will maintain close co-operation with the CSRC to continuously explore and discuss enhancement measures, so as to fully leverage Hong Kong’s distinct advantage and role as an international financial centre and a bridge for two-way capital flow to facilitate a higher level of two-way opening in the country’s capital market.
 
     On the other hand, the Integrated Fund Platform (the Platform) developed by HKEX will help lower the entry threshold of the fund industry, broaden Hong Kong’s fund distribution network, and enhance market efficiency. The first phase of the Platform (the Fund Repository) was launched in December 2024 to facilitate investors’ access to information on fund investment options. Other services of the Platform will be rolled out gradually from this year with functionalities including fund subscription and redemption (including MRF funds), settlement, and nominee services.
 
(4) The New Capital Investment Entrant Scheme (New CIES) was open for application on March 1, 2024 to further enrich the talent pool and attract new capital to Hong Kong. An eligible applicant must make investment of a minimum of HK$30 million in the permissible investment assets, including investing a minimum of HK$27 million in permissible financial assets and/or real estate (subject to a cap of HK$10 million), and placing HK$3 million into a new Capital Investment Entrant Scheme Investment Portfolio (CIES Investment Portfolio).
 
     As of end-2024, InvestHK has received over 800 applications, and approved 240 applications for Assessment for Investment Requirements. Except for the applicants’ investment in Hong Kong under the New CIES, the Government does not maintain the data on the investments made by applicants in Hong Kong outside the New CIES. Excluding the sum for investing in the CIES Investment Portfolio, the approved investment distribution is as follows:
 

	Investment amount (HK$ Million)
Eligible collective investment schemes	2,968
Equities	2,553
Debt securities	1,018
Real estate	10
Certificates of deposits	5
Total	6,554

 
     The Government will continuously review the applicants’ investment arrangement and room for enhancing the New CIES, including further enhancing the net asset assessment and calculation requirements and allowing applicants to hold assets through his/her wholly owned eligible private company with effect from March 1 this year, thereby attracting global asset owners to establish their presence in Hong Kong. read more