HK pursuing green finance hub

I am pleased to have this welcome opportunity to address the Hong Kong Green Finance Association’s annual forum once again and pleased to share with you the Hong Kong Special Administrative Region Government’s continuing efforts in Hong Kong’s rise as a green and sustainable finance hub.

 

That ambitious goal reflects our interest in expanding Hong Kong’s financial offerings and capabilities, in giving global businesses and investors more good reasons to turn to Hong Kong as their international financial centre. It is also part of our larger commitment to Hong Kong and our country.

 

Embracing sustainability, in finance and the environment, speaks to tomorrow’s Hong Kong – a prosperous and progressive economy and community, a regional green hub for finance as for lifestyle. And we are determined to deliver on that promise.

 

Last month, we published our Climate Action Plan 2050. It sets out proactive strategies and measures designed to reduce carbon emissions.

 

With the support of business and our community, we hope to reduce Hong Kong’s carbon emissions by 50% before 2035 and to achieve carbon neutrality before 2050.

 

As an international financial centre, Hong Kong is home to a large and diversified financial market. That includes a world-class regulatory framework. It brings together leading financial and professional institutions and green assessment and certification bodies, as well as international investors.

 

In short, Hong Kong has the wide-ranging expertise to emerge as a green finance hub for the region, as well as a premier financing centre for green enterprises and projects. What’s more, it has what it takes and what the world needs to play an important role in combating climate change.

 

Rest assured, we will continue to work in concert with our financial regulators and the industry, taking a multi-pronged strategy to promote green and sustainable finance in Hong Kong.

 

By developing green finance, we are not just attracting resources for our own sustainable development, but, more importantly, serving to support our country’s “30·60” targets for carbon emission peak and carbon neutrality.

 

Just two weeks ago, we completed the successful offering of another US$3.75 billion worth of green bonds denominated in US dollars, euro and renminbi. More than enriching the green and sustainable finance network, that is the Hong Kong SAR Government’s inaugural offering of renminbi-denominated bonds and euro-denominated bonds, allowing us to reach out to new groups of investors while setting an important new benchmark for potential issuers in Hong Kong and in the region.

 

Interestingly, that was also the first time an Asian government issued a euro-denominated green bond of as long as 20 years. At the beginning of this year, we issued a 30-year US dollar-denominated green bond – also the first issuance among Asian governments.

 

Meanwhile, we are actively preparing for the issuance of a retail tranche, providing the public with an avenue to invest in and promote our green economy. 

 

Green bond issuance is just part of our efforts to develop Hong Kong into a green finance centre in the Asia-Pacific region. Underpinned by the Green & Sustainable Finance Cross‑Agency Steering Group established in May last year, we have indeed been working on this along three main directions.

 

On green finance infrastructure, the steering group has launched the Centre for Green & Sustainable Finance to support the industry in areas such as capacity building, data collection and analysis.

 

On the regulatory front, our regulators have introduced regulatory measures on climate risk management and disclosure. We are also working towards adopting the Common Ground Taxonomy developed by the Mainland and the European Union, with the aim of providing a unified standard among the financial sector.

 

On enhancing public awareness on green finance, other than creating more green business opportunities for the financial sector, we are leading by example by engaging our Exchange Fund in responsible investment and expanding its green portfolio.

 

With China’s dual “30·60” targets in place, as the green and sustainable finance hub in the region Hong Kong could play an important role in channelling international funds to support our country’s transformation to a green economy.

 

The Shenzhen Municipal Government recently issued RMB5 billion municipal government bonds in Hong Kong, the three-year and five-year tenors of which totalling RMB3.9 billion were green bonds. We welcome more Mainland municipal governments, entities and corporates to make use of Hong Kong’s capital market for green and sustainable financing and certification to support their green projects.

 

We are assessing the feasibility of Hong Kong becoming a regional carbon-trading centre as well, while exploring opportunities presented by carbon-emission markets in the Mainland and overseas.

 

And the Government is promoting co-operation between the HKEX (Hong Kong Exchanges & Clearing) and the Guangzhou Futures Exchange in such areas as clearing, technology, product development and marketing. It’s part of our continuing efforts to create a green, low-carbon market in the region.

 

That includes raising awareness of environmental, social and governance (ESG) issues, given ESG’s natural fit with sustainability and finance. Indeed, we have recently added professionals in ESG to the Hong Kong Talent List. That list, created in 2018, identifies talented individuals from a wide variety of professions. The goal, of course, is to persuade them that their future is waiting for them right here in Hong Kong.

 

We are also actively promoting the Green & Sustainable Finance Grant Scheme – for good reason. We want to encourage the issuance of more green and sustainable bonds and loans in Hong Kong.

 

We are also keen to attract financial and professional service providers, and external reviewers, to set up in Hong Kong. Their presence can boost our green finance business.

 

In its first six months, the grant scheme has approved about 30 applications covering a welcome variety of green and sustainable debt instruments.

 

That, ladies and gentlemen, is just the beginning. We are pursuing green finance and sustainability, and the hub role Hong Kong can, and will, play in it. Soon enough, the world will come to associate green not only with money and the environment but with Hong Kong – the green city.

 

Financial Secretary Paul Chan gave these remarks online at the 2021 Hong Kong Green Finance Association Annual Forum – Financing Carbon Neutrality in Asia on November 30.

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CE calls for better vaccination rate

My COVID-19 work report for September this year was titled Maintaining Zero Infection Striving to Resume Quarantine-Free Travel with the Mainland. At that time, we had just held the first meeting on the anti-epidemic work of the Mainland and Hong Kong with relevant Mainland authorities, with a view to creating conditions for resuming quarantine-free travel between the Mainland and Hong Kong. In the past two months, we have been actively following up on the opinions received from the Mainland experts, and have further enhanced Hong Kong’s anti-epidemic measures. Following the video conference exchange between the experts of the two sides in early November, a Mainland epidemic prevention and control expert delegation came to Hong Kong for a four-day inspection visit last week, and the second meeting was convened in Shenzhen afterwards. All these show that the central government fully understands the earnest aspiration of Hong Kong people for the gradual resumption of cross-boundary travel and attaches great importance to this.

 

How the epidemic has developed and our anti-epidemic efforts

In the past month, Hong Kong basically maintained zero local infection, with sporadic imported cases of which a few involved cargo crew. Three cargo crew members who returned from Germany tested negative for COVID-19 upon arrival at Hong Kong International Airport. Then, according to the established exemption arrangements, they were allowed to go home and were required to undergo medical surveillance and regular testing. In the compulsory testing conducted on the third and sixth day of their arrival in Hong Kong, they were confirmed with COVID-19 infection. Since they had entered the community, we immediately took a host of measures. We cordoned off the buildings where they lived and required the residents there to undergo virus testing. We also included the premises they had visited in mandatory testing notices, arranged their close contacts to stay in quarantine centres, etc. As all three of them had stayed in the same hotel arranged by the airline in Frankfurt, Germany, for the sake of prudence, we also required more than 100 Hong Kong crew members who had stayed in that hotel to undergo quarantine. At the same time, we asked the airline to investigate the matter and implement a number of enhancement measures, including stepping up the monitoring of cargo crew’s compliance with the requirements of closed-loop operation during their layovers at outports, imposing more stringent restrictions on crew members’ movements during their medical surveillance periods in Hong Kong, imposing daily postarrival testing for them, and mandating all of them to receive their third dose of vaccine.

 

The airline’s investigation revealed that the crew members concerned had failed to comply with the requirements under closed-loop operation during their layover at outports. Though noting that these were isolated cases, we considered the situation unacceptable. We directed the airline to follow up on the matter seriously and to make the best endeavours to prevent the occurrence of similar incidents. After considering the findings of the investigation and the information provided by the authorities in Germany, we believed that there was no outbreak in the hotel in Germany, and thus arranged for the other aircrew members to be released from the quarantine centre. So far, no community infections have occurred as a result of the cases of these three crew members.

 

We have previously cancelled the quarantine exemption arrangements for most of the exemption categories of persons upon their arrival in Hong Kong, but it is necessary to retain the exemption for a very small number of persons. Despite the ongoing epidemic, there remains a strong demand for air cargo services, which directly affect the supply of people’s daily necessities, personal protective equipment, pharmaceuticals, vaccines, etc. Therefore, it is necessary to have some exemption arrangements for cargo crews, as in the case of cross-boundary goods vehicle drivers. That said, we will keep under review the implementation of the arrangements so as to eliminate the risk of the import of infection.

 

The major anti-epidemic measures introduced are set out here in chronological order:

Date

Event

October 27

The Government updated the criteria for releasing confirmed patients from isolation and tightened the discharge criteria for confirmed patients to lower the risk of virus transmission by re-positive cases in the community.

October 28

The Government announced that in addition to airport staff of targeted groups who had started undergoing virus testing every three days, relevant healthcare staff in the North Lantau Hospital Hong Kong Infection Control Centre also needed to undergo testing every three days, while staff of other high-risk and high-exposure groups would be progressively arranged to undergo more frequent testing.

November 1

The Government announced that starting from November 12, the quarantine exemption arrangements for most of the exemption categories of persons upon their arrival in Hong Kong would be cancelled. In addition, all government employees and members of the public must use the LeaveHomeSafe mobile app when entering government buildings or offices.

November 11

Eligible persons under certain groups, ie immunocompromised patients and persons with a higher risk of infection (including elderly aged 60 or above, healthcare workers, etc) could receive a third dose of COVID-19 vaccine free of charge.

November 12

The Government, deeply concerned about the imported cases of COVID-19 involving locally based cargo crew, announced further enhancement of the prevailing anti-epidemic measures applicable to air crew.

November 18

Temporary Specimen Collection Centre (TSCC) Two set up by the Department of Health at the Terminal 1 Satellite Concourse of Hong Kong International Airport commenced operation. Together with the current TSCC One set up at the Terminal 1 Midfield Concourse, travellers arriving from places of different risk levels can be effectively segregated.

November 20

The Secretary for Food & Health approved extending the age eligibility of the Sinovac vaccine to cover those aged three to 17, and agreed the use of Sinovac vaccine in adolescents from 12 to 17 years of age for priority deployment with appointment and vaccination starting from December 2. The arrangement will be extended to children of a younger age group at a later stage.

November 23

The Government announced that starting from December 9, the requirement to use the LeaveHomeSafe mobile app will be extended to all specified premises. The Government extended the third dose COVID-19 vaccination arrangements so that people who have received two doses of the Sinovac vaccine with the second dose received six months ago, irrespective of whether they belong to the certain groups, can receive a third dose of a COVID-19 vaccine.

 

Vaccination

In the face of the epidemic, which has been persisting for nearly two years, governments around the world have been adopting different strategies, yet vaccination is still the key. To this end, some controversial measures which aim to increase the vaccination rate have been introduced in various places. Although the rate of Hong Kong population having received the first dose of vaccine has eventually reached the basic requirement of 70% (the rate of population having received two doses of vaccine is 67%), given the recent quick rebounds of cases in other places especially in Europe, I fear that the 70% vaccination rate is not sufficient to provide adequate protection to Hong Kong. If the local epidemic situation unfortunately rebounds, not only will it pose significant risk to the health of people who have yet to receive vaccination, especially the elderly, it will also dash hopes of resuming quarantine-free travel with the Mainland.

 

For yourself and others, please get vaccinated as soon as possible.

 

Chief Executive Carrie Lam issued this article titled Looking Forward to Resuming Quarantine-Free Travel with the Mainland on November 29.

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Legal meeting to be held in HK

The Asian-African Legal Consultative Organization (AALCO) will hold its Annual Session, from November 29 to December 1 in the Hong Kong Special Administrative Region for the first time. Securing international organisations to hold decision-making meetings in Hong Kong is conducive to developing Hong Kong into a centre for international legal and dispute resolution services in the Asia-Pacific region, which is one of the major policy initiatives in the Chief Executive’s Policy Address this year. When explaining policy initiatives at Legislative Council Panel on Administration of Justice & Legal Services, I pointed out that the Department of Justice is actively pursuing the feasibility of establishing an arbitration centre in Hong Kong with international legal and dispute resolution institutions. This will greatly enhance Hong Kong’s position and international image of being an international legal and dispute resolution hub.

 

It is our honour that Premier Li Keqiang will attend and deliver remarks at the Inaugural Session on November 29 through video link in Beijing. The AALCO is the only cooperation platform dedicated to international law spanning Asia and Africa. The 59th Annual Session of AALCO is the third annual session hosted by China whilst the Hong Kong SAR, for the first time, was designated as the venue for the meeting. It will also be the second time Premier Li Keqiang has attended the opening ceremony following the one in 2015. This fully demonstrates the importance attached by the Central People’s Government (CPG) to AALCO and that our country is ready to work with the counterparts in Asia and Africa to jointly defend international law and promote international rule of law.

 

Originally constituted in 1956 as the Asian Legal Consultative Committee, AALCO has held permanent observer status at the United Nations (UN) since 1980 and maintains a permanent office at UN Headquarters. Being the only intergovernmental legal consultative organisation in the Asian and African region with 47 member states, AALCO serves as an important forum to deliberate on international legal issues. Deliberations reflecting diverse legal traditions and myriad cultures in Asian and African nations are consolidated and communicated to other institutions and international organisations, including the UN, so that Asian and African viewpoints, concerns and cultures are appropriately represented in world deliberations on international legal issues, contributing to a more inclusive and comprehensive development of international law, and the understanding and maintenance of the rule of law internationally.

 

The annual session is one of the major events in AALCO’s calendar each year, during which delegates from member states and those attending as observers primarily participate in deliberations which examine international law matters discussed by other international organisations such as International Law Commission, and examine issues of international law that are of particular interest and relevance to AALCO member states. This reinforces the importance of multilateralism and the collaboration among countries in this area.

 

Further to AALCO’s work plan approved in the 57th Annual Session in 2018 in relation to the setup of another arbitration centre, the AALCO and the CPG have agreed on the establishment of the centre in Hong Kong, China. An agreement was subsequently signed on 10 November this year. Since 1978, AALCO regional arbitration centres have been set up in five places. Starting from the Asian International Arbitration Centre in Kuala Lumpur to the latest Nairobi Centre for International Arbitration in 2007, the sixth of which will be established in the Hong Kong SAR this year with major support from the CPG and AALCO. The regional arbitration centre in Hong Kong will seek to integrate itself in the AALCO dispute settlement system and perform a variety of tasks, such as promoting the growth and effective functioning of arbitration and other dispute resolution services, including online dispute resolution (ODR) services, which will strengthen Hong Kong’s position as an international legal, deal-making and dispute resolution hub.

 

In view of the growing importance of ODR, it is an opportune time for the AALCO Annual Session to further explore the way forward. A side event on Dispute Settlement – Online Dispute Resolution will be held on the second day of the annual session in which a number of legal experts and academics will share with us their views which will no doubt benefit the legal and dispute resolution sector not only in Hong Kong but also around the world in the promotion of ODR in future.

 

Secretary for Justice Teresa Cheng wrote this article and posted it on her blog on November 27.

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Northern Metropolis spatial, strategic

The theme of this event is A New Journey with Greater Opportunities, a very apt description of what the Guangdong-Hong Kong-Macao Greater Bay Area will offer. Indeed, my Greater Bay Area journey commenced on the first day of my taking office as the Chief Executive of the Hong Kong Special Administrative Region when on July 1, 2017, witnessed by President Xi Jinping, the National Development & Reform Commission (NDRC) and the governments of Guangdong, Hong Kong and Macau signed the Framework Agreement on Deepening Guangdong-Hong Kong-Macao Cooperation in the Development of the Greater Bay Area right here in Hong Kong. After thorough preparatory works spearheaded by the NDRC, the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area was promulgated in February 2019 and a large-scale seminar took place also in Hong Kong attended by leaders of the nine Greater Bay Area Mainland cities and the Guangdong governor, as well as the chief executives of the two special administrative regions. I believe some of the guests in this forum have also attended that forum. Within the Hong Kong SAR Government, I personally chair a high-level steering committee to press ahead with policy measures and co-operation projects and a dedicated Greater Bay Area Commissioner was created to provide focal support.

 

By now, I believe our business friends are familiar with the potential of the Greater Bay Area. With a total population of 86 million, a combined GDP (gross domestic product) of US$1.7 trillion and a per capita GDP of over US$19,000, the Greater Bay Area is an economic powerhouse providing continuous impetus to Hong Kong’s economy, and is undoubtedly the best entry point through which Hong Kong integrates into the overall development of our country.

 

During my Greater Bay Area journey, I come to the conclusion that the Greater Bay Area development embraces several key factors for its success. First and foremost is the support of the central government. The Greater Bay Area development is personally conceived, steered and guided by President Xi Jinping. It has been given top leaders’ attention through a Leading Group for the Development of the Greater Bay Area convened by Vice Premier Han Zheng, of which the two SAR chief executives are members. Since the promulgation of the outline development plan, many ministries and commissions have released guidelines or plans setting out their support for the Greater Bay Area development. Policy measures have been introduced to facilitate Hong Kong’s businesses and professionals to tap into the Greater Bay Area market. Notable ones include liberalisation to facilitate entry of Hong Kong legal and construction professional services as well as Hong Kong-registered drugs and medical appliances, and most recently, in September, the launch of the Cross-boundary Wealth Management Connect Scheme. To facilitate the flow of talents within the Greater Bay Area and respond positively to the aspirations of the international chambers of commerce in Hong Kong, many of whom are present here, for the facilitation of non-Chinese Hong Kong residents to travel to the Mainland cities of the Greater Bay Area, I have put forward concrete proposals to the central government. As reported in my 2021 Policy Address, through the helpful co-ordination of the Hong Kong and Macao Affairs Office, the Hong Kong SAR Government hopefully will discuss this matter with the relevant Mainland authorities in due course.

 

The second factor for the Greater Bay Area’s success is its compatibility with the country’s vision and aspirations as contained in the National 14th Five-Year Plan, which Commissioner Liu (Liu Guangyuan, Commissioner of the Ministry of Foreign Affairs in the Hong Kong SAR) has touched upon. Not only is there dedicated reference to the Greater Bay Area being an important regional development, the commitment to develop a high-quality Greater Bay Area will call for more openness and innovation, more international co-operation and more synergy between Hong Kong and the Mainland cities. Businesses based in Hong Kong will certainly enjoy the first-mover advantage.

 

Thirdly, the Greater Bay Area’s geographical advantages and a large market share in air and sea traffic put it at the forefront as a transport hub. The internal connectivity within the Greater Bay Area has also benefited from major infrastructure such as the Hong Kong-Zhuhai-Macao Bridge and the high-speed train. Looking ahead, the additional cross-boundary rail projects that I have announced in my 2021 Policy Address in the context of the Northern Metropolis Development Strategy, such as the one connecting Hung Shui Kiu in the northwestern part of Hong Kong to Qianhai in Shenzhen, as well as the upgraded border control points adopting co-location and other facilitating clearance procedures, will significantly enhance people flow.

 

Fourthly, the Greater Bay Area region not only leads the country in terms of its level of economic development, but also enjoys strong complementarity particularly with Hong Kong. For instance, in the area of innovation and technology, Hong Kong’s strengths lie in basic research and higher education, and these complement very well with the Mainland cities’ industrial capability. The strong partnership between Hong Kong and Shenzhen in building what we now call “one zone, two parks” in the Shenzhen-Hong Kong Innovation & Technology Co‑operation Zone is unprecedented. The governments of both sides have already signed a co-operation arrangement and launched joint policy to attract talents and enterprises to develop in the co-operation zone in September. In my 2021 Policy Address, I put forward the Northern Metropolis Development Strategy, which is the first strategic plan or action agenda of the Hong Kong SAR Government with a spatial concept and strategic mindset going beyond the administrative boundary of Hong Kong and Shenzhen. Under this development strategy, about 150 hectares of additional land around Lok Ma Chau/San Tin will be consolidated with the Hong Kong-Shenzhen Innovation & Technology Park in the Lok Ma Chau Loop to form what we now call the San Tin Technopole. This, together with the Shenzhen Innovation & Technology Zone, will form an even larger Shenzhen-Hong Kong Innovation & Technology Co-operation Zone of approximately 540 hectares, combining the strengths of both Hong Kong and Shenzhen to pool together local and non-local innovative resources, and becoming an essential propeller for the development of an international innovation and technology hub in the Greater Bay Area.

 

Hong Kong’s role as an international financial centre will provide a platform for overseas capital to enter the Greater Bay Area and for Mainland companies to raise capital in accessing the global markets. In this respect, apart from launching recently the Cross-boundary Wealth Management Connect Scheme, which brings abundant business opportunities for our banks, we are expanding further the channels for the two-way flow of cross-boundary renminbi funds and developing offshore renminbi products and tools to consolidate Hong Kong’s status as a global offshore renminbi business hub. We will also facilitate more issuance of offshore renminbi bonds in Hong Kong, such as bonds successfully issued by the Shenzhen Municipal Government in October this year, the first of this kind, and continue to explore the expansion of the scope of Shenzhen-Hong Kong Stock Connect, facilitate application of cross-boundary fintech, and strengthen co-operation on green and sustainable finance.

 

Another example is aviation. With the support of the central government and Guangdong Province, the Airport Authority of Hong Kong is actively following up on equity injection into the Zhuhai airport on the basis of market principles in order to strengthen airport co‑operation of the two places. The Hong Kong SAR Government will also endeavour to establish a high‑end aviation industrial cluster in Zhuhai in collaboration with Guangdong Province, encompassing such fields as aircraft maintenance engineering, manufacturing and distribution of aircraft parts and components, and research on aircraft engineering. These are part of our strategy to consolidate Hong Kong’s status as an international aviation hub.

 

Above all, the fact that the Greater Bay Area has been regarded as a further step in taking forward the practice of “one country, two systems” is, in my view, the most reassuring factor of its success on a sustainable basis. This is especially so following the two important initiatives taken by the central authorities in the last two years, namely the enactment and implementation of the National Security Law and the improvements to the Hong Kong SAR’s electoral system. After overcoming serious political challenges, Hong Kong is back on the track of “one country, two systems” and Hong Kong is poised to take full advantage of her unique strengths under our constitutional order.

 

Chief Executive Carrie Lam gave these remarks at A New Journey with Greater Opportunities – Virtual Tour to the Greater Bay Area for Foreign Businesses in Hong Kong on November 26.

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New listing regime in progress

Our business, social and personal lives have been sorely affected by the pandemic. And yet, despite the daunting circumstances that have plagued us for nearly two years now, our financial system remains stable and remarkably resilient.

 

Let me count the ways, starting with initial public offerings (IPOs). IPO funds raised in Hong Kong reached HK$400 billion last year, up a cheering 27% over 2019. As of September, total funds raised through IPOs exceeded HK$280 billion.

 

Consider, too, the role of financial services in our gross domestic product. In 2019, the sector contributed more than 21%, surpassing trading and logistics, and making it the undisputed engine of the Hong Kong economy.

 

The world is taking note. In September, Hong Kong reclaimed third place in the Global Financial Centres Index, only behind New York and London.

 

And the World Investment Report, published in June by the United Nations Conference on Trade & Development, ranked Hong Kong the world’s third largest recipient of foreign direct investment (FDI) last year, trailing only the United States and the Mainland – and up from fifth place in 2019. The United Nations’ report attributed Hong Kong’s strong FDI to, and I quote, “the resolution of conflicts arising from the implementation of the National Security Law,” among others.

 

That echoes the Report on Hong Kong’s Business Environment, published by the Hong Kong Special Administrative Region Government in September. The report offers a considered analysis of the severe challenges we have faced, and overcome, in the past two years. No less important, it serves as a guide to where we are going as an economy and a community. The answer, by the way, is more than implied in the report’s subtitle: “A Place with Unique Advantages and Unlimited Opportunities.”

 

Today’s forum offers me a welcome opportunity to share some of my thoughts on how we can tap into those unlimited opportunities.

 

The promising prospect of unlimited opportunities was given to Hong Kong in the National 14th Five-Year Plan. The plan supports our continuing growth as an international financial centre and our deepening integration in the Mainland’s economic blueprint.

 

The Securities & Futures Commission (SFC) has a critical role to play in realising that promise.

 

Consider the mutual access schemes, Stock Connect and Bond Connect. Stock Connect’s average daily turnover more than doubled last year, with northbound traffic arising about 120% and southbound soaring almost 130%.

 

The numbers are equally encouraging for Bond Connect, with northbound turnover climbing 82% in 2020, and another year-on-year growth of 34% this year up to August.

 

Southbound Bond Connect began operation in September, and marks another milestone in mutual access between the capital markets of Hong Kong and the Mainland.

 

Hong Kong’s role as a bridge, allowing international investors to access the Mainland market and Mainland funds to flow out to the international market, will be all the more significant.

 

Looking ahead, our listing policies and regulatory procedures should keep track of market changes. That can boost the competitiveness of Hong Kong listings, reinforcing our status as a premier capital formation centre.

 

Hong Kong Exchanges & Clearing (HKEX) has the Government’s full support in enhancing our listing regime. I am sure some of you took part in the recent consultation by the HKEX on the establishment of a listing regime for special purpose acquisition companies, or SPACs. With consultation now concluded, our regulators are making concerted efforts to work out a SPAC listing regime that aims to strike that fine balance between market development and investor protection.

 

HKEX has also concluded its review on our secondary listing regime. Starting from January 1 next year, Greater China issuers without a weighted voting rights structure can secondary list with a lower minimum market capitalisation at listing and without the need to demonstrate that they are innovative companies.

 

Hong Kong’s asset and wealth management business will find a concerted forum spotlight later this morning. The good news is that Hong Kong’s fund management business grew 21%, year on year, to almost HK$35 trillion at the end of 2020. And I am determined to create more opportunities for the business and its players.

 

As you know, the SFC created the open-ended fund company structure some three years ago. Last year, the limited partnership fund regime was introduced. Since then, more than 350 funds have set up here in Hong Kong.

 

Tax concessions are part of the plan. The latest is exempting carried interest payable by private equity funds operating in Hong Kong from taxation.

 

We are offering financial incentives, as well. Subsidies of up to HK$1 million are available to each qualifying, open-ended fund company, and as much as HK$8 million for each real estate investment trust.

 

We are also encouraging foreign funds to establish a presence in Hong Kong. On November 1, we introduced a set of new fund redomiciliation mechanisms designed to attract foreign funds to relocate their registration and operation to this city.

 

The family office business is also a priority, and Invest Hong Kong and regulators now offer one-stop support services to family offices looking to establish, or expand, in Hong Kong. Tax concessions for such offices are also under serious consideration.

 

Then there is the Guangdong-Hong Kong-Macao Greater Bay Area Wealth Management Connect. It is nothing less than a milestone for our asset and wealth management sector.

 

Certainly, our position as the world’s largest offshore renminbi business hub will grow with the expansion of the two-way, cross-boundary fund flow. We count the largest pool of renminbi liquidity outside the Mainland, and about 70% of offshore renminbi payments are handled by the banks right here in Hong Kong.

 

Rest assured, we will continue to expand channels for the two-way flow of renminbi funds. Among other initiatives, we are looking to allow stocks traded via Stock Connect southbound to be denominated in renminbi.

 

We will also continue to enable the issuance of offshore renminbi bonds. In September, the Ministry of Finance announced its plan to issue in Hong Kong this year renminbi sovereign bonds totalling RMB20 billion. The Shenzhen Municipal People’s Government also issued offshore renminbi municipal government bonds here in October. These issuances showcase Hong Kong as the premier gateway for international capital to access the Mainland.

 

There is more on the bonds. I am leading a steering group intent on promoting the diversified development of Hong Kong’s bond market. I am confident that we can boost Hong Kong’s current position as Asia’s third largest bond market, outside Japan, in total bond issuances.

 

We value our connectivity with international markets. Beyond the Mainland, Hong Kong has formalised mutual recognition of funds’ arrangements with Switzerland, France, the United Kingdom, Luxembourg, the Netherlands and Thailand. That, of course, enlarges our fund industry’s distribution network. And the SFC is working to continue to expand that network.

 

Green and sustainable finance shows great promise as well. Earlier this month, Ashley (SFC Chief Executive Officer Ashley Alder) spoke at the Green Horizon Summit @ COP26 in his role as Chair of the IOSCO (International Organization of Securities Commissions) Board. Here in Hong Kong, the Green & Sustainable Finance Cross‑Agency Steering Group, co-chaired by Ashley and the Monetary Authority, will bolster our reputation as a leader in this region in green and sustainable finance. It will also help move our financial sector in the direction of carbon neutrality before 2050.

 

Back in January, the Hong Kong SAR Government completed our issuance of green bonds worth US$2.5 billion. The offering, in three tranches, featured tenors up to 30 years – the first such issuance among Asian governments.

 

Demand from international investors was strong, with the 30-year tranche attracting orders more than seven times its issuance size.

 

Just last Thursday, we completed the successful offering of another US$3 billion worth of green bonds denominated in US dollars and euro. That is the Hong Kong SAR Government’s inaugural offering of euro-denominated bonds, with a 20-year tranche being the longest issued by an Asian government to date, allowing us to reach out to a new group of investors while setting an important new benchmark for potential issuers in Hong Kong and in the region.

 

We will soon follow up with a retail tranche that the public can participate in as well. And we will continue with our Green & Sustainable Finance Grant Scheme to encourage more issuers to take advantage of this outstanding service platform of Hong Kong.

 

Green bond issuance aside, we have been promoting green finance in three other directions. First, on the regulatory front, our regulators have introduced regulatory measures on climate risk management and disclosure. We are working towards adopting the Common Ground Taxonomy developed by the Mainland and the European Union, with the aim of providing a unified standard among the financial sector.

 

Second, on green finance infrastructure, we have launched the Centre for Green & Sustainable Finance to support the industry in areas such as capacity building, data collection and analysis. Thirdly, on enriching public awareness on green finance, apart from creating more green business opportunities for the financial sector, we are leading by example by engaging our Exchange Fund in responsible investment and expanding its green portfolio.

 

Apart from market development, it is equally important that we continue to uphold, and review, our regulatory mechanisms to ensure the smooth functioning of our financial system and the overall financial stability of Hong Kong.

 

Certainly, it has always been a difficult balance to strike between promoting market development and preserving market integrity. And the SFC, in its ongoing review of the regulatory regime for virtual assets service providers, will, no doubt, give that the painstaking consideration it deserves.

 

Financial Secretary Paul Chan gave this speech at the SFC Regulatory Forum 2021 on November 25.

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Govt supports universities’ GBA plans

Polytechnic University (PolyU) today is now a global powerhouse in post-secondary education, rising to 66th place in this year’s QS World University Rankings and 12th in the Times Higher Education Young University Rankings for 2021. Five PolyU disciplines take their place among the world’s top 50 in the QS rankings. Equally impressive, more than 160 PolyU scholars were ranked among the top two per cent of the world’s most-cited scientists, according to a Stanford University index covering more than 100,000 leading international scientists. Twenty PolyU scientists were ranked among the top 50 scholars in the world in their respective fields.

 

PolyU is known for its ground-breaking innovations. They include the world’s first optical fibre sensing system for railway monitoring, as well as pioneering yarn technology that has revolutionised the global textile industry. And, since 2010, PolyU has been an important contributor to our nation’s space programme. PolyU scientists have helped develop, among other things, the Surface Sampling & Packing System for China’s first lunar sample return mission. And, earlier this year, Hong Kong swelled with pride at PolyU’s contributions to the remarkable success of our nation’s mission to Mars.

 

PolyU is clearly committed to excellence, to elevating its academic and research standards. You continue to attract gifted innovation and technology academics from around the world, now with the help of the Global STEM (science, technology, engineering and mathematics) Professorship Scheme, which the Government launched in June. And I’m pleased to note that PolyU is collaborating with prominent global institutions in setting up research centres as part of two newly established research clusters, Air@InnoHK and Health@InnoHK, both at the Hong Kong Science Park. To support PolyU’s aspirations in furthering research and development, as (Lam) Tai-fai (Chairman of the Hong Kong Polytechnic University Council) has mentioned, I have accepted the university’s proposal to explore the use of its Hung Hom Bay Campus for academic and research development, which was mentioned in my 2021 Policy Address.

 

PolyU is also working with the Science Park to nurture innovation and technology talent for the Guangdong-Hong Kong-Macao Greater Bay Area, and developing other initiatives to encourage young entrepreneurs and startups looking to the Greater Bay Area for their future. I fully support these initiatives, as we need a steady stream of scholars, scientists and technologists if we are to take full advantage of the unprecedented opportunities presented by the rapid rise of our country and the Greater Bay Area.

 

Indeed, my Government supports the continuing efforts of our universities in boosting their presence in the cities of the Greater Bay Area. In doing so, we will reinforce and expand the singular strengths of our higher-education sector. In this regard, I am pleased to note that PolyU is moving ahead with the preparatory work in the establishment of its Foshan campus. The new campus will, I am confident, spur innovation and entrepreneurship in Hong Kong and throughout the Greater Bay Area. As usual, as the Chief Executive of the Hong Kong Special Administrative Region, I stand ready to offer my support and assistance to PolyU.

 

Looking forward, I have no doubt that with the commitment and dedication of the PolyU community, the university’s future will give rise to many more marvellous years ahead.

 

Chief Executive Carrie Lam gave these remarks at the 85th anniversary launch ceremony of Polytechnic University on November 25.

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Healthtech opportunities to be seized

Before I talk about opportunities, let us together recap what we have learnt from the COVID-19 pandemic which has now haunted the world for almost two years, and sadly claimed over five million lives. For a public health crisis of this magnitude, as the World Health Organization has repeatedly reminded us, no one is safe until everyone is safe. While different governments may have adopted different strategies in coping with COVID-19, there should be no doubt that:

 

First, governments must follow a science-based approach in responding to the pandemic and strive for collaboration rather than confrontation;

 

Second, we must promote research and development (R&D) and render support to international co-operation of our scientists who are racing against time to find the right vaccines and cure; and

 

Third, we must pursue inclusive and sustainable development and make sure nobody is left behind.

 

Against that backdrop, this summit, under the theme Shaping a Resilient & Sustainable Future, provides a timely and invaluable forum for government officials, scientists, healthcare practitioners, corporate leaders and investors to exchange views on a wide range of issues, such as developments and trends in global public health, medical technology, digital health, health equity, healthcare innovation and investment, and many others.

 

When Peter (Peter Lam Chairman of Hong Kong Trade Development Council) and I first discussed an Asia summit on global health, we immediately came to the same view that Hong Kong is best positioned to be the host. Geographically, Hong Kong is a hub in Asia and for decades, a gateway into the Mainland of China. As fully demonstrated in the COVID-19 pandemic, our country is placing utmost importance on the health of its people and according to the 14th Five-Year Plan promulgated in March this year, life sciences will be high on the agenda of more pioneering R&D in the coming years. Hong Kong, which has been playing a connecting role between the Mainland and the rest of the world, stands ready to embrace healthcare development.

 

Another factor is our high quality public health and hospital services. Hong Kong’s health indicators in terms of infant mortality rate, maternal mortality rate and life expectancy at birth are amongst the world’s best.

 

Over the years, Hong Kong has established a solid foundation in research through world-class universities and technological infrastructure. To start with, we have five universities among the world’s top 100, and among them two excellent medical schools. Indeed, according to the latest Times Higher Education World University Rankings, the University of Hong Kong has risen to the world’s number 20 in clinical and health subjects. We have an enviable group of world renowned experts in biomedical research who frequently won local and overseas science awards. They include Prof Dennis Lo, a speaker today, who pioneered the development of non-invasive prenatal diagnostic tests for multiple genetic disorders, which benefits millions of pregnant women worldwide every year and Prof Tony Mok, also a speaker today, who and his team are the first to confirm clinical application of precision medicine for certain types of lung cancer, which has been conducive to the development of multiple generations of targeted therapy.

 

Our research excellence is well-recognised internationally. Based on the latest research assessment exercise conducted by the University Grants Committee and evaluated by a large pool of overseas distinguished scholars and experts, about 25% and 45% of the research projects of our publicly funded universities assessed were judged to be world-leading and internationally-excellent respectively. Such remarkable performance is a testimony to the high standards of Hong Kong’s research quality. Since taking office more than four years ago, I have accorded personal attention to the development of innovation and technology in Hong Kong. The Hong Kong Special Administrative Region Government has invested heavily with a total commitment of over $130 billion thus far and our flagship innovation and technology initiative is the establishment of the InnoHK research clusters. The two research clusters comprise 28 research laboratories jointly set up by local universities and world renowned universities and research institutes, and among them, 16 are focusing on biomedical and healthcare-related technology. These R&D centres have commenced operation at the Hong Kong Science Park progressively.

 

We have a vibrant ecosystem for startups, including those focusing on health-related areas. Indeed, we can see that exciting new businesses are emerging, particularly in the digital healthcare sector in which many promising new AI (artificial intelligence) applications are being developed in the field of internet healthcare, big data, etc. Currently, there are more than 200 health technology-related startups in the Hong Kong Science Park. Through its corporate venture fund, the Hong Kong Science Park has invested in six such startups, with a total investment of $67 million. At the same time, these startups have attracted significant investment from Science Park’s co-investors, which amounts to over $1.1 billion. At another important technological infrastructure, that is the Cyberport, there are also over 90 startups focusing on health technology and these companies have raised around $120 million since 2017.

 

As these startups continue to grow, they should have no problem in getting the financial services and equity that they need, given Hong Kong’s status as an international financial centre. Since April 2018, the Hong Kong Exchange has introduced a new regime including rules to allow the listing of pre-revenue or pre-profit biotechnology companies. As at mid-November this year, 45 pre-revenue or pre-profit biotechnology companies have been successfully listed on Hong Kong Exchange, with a total of some $110 billion raised through IPOs (initial public offerings). Furthermore, we have expanded the scope of eligible securities under our Stock Connect programmes with Shanghai and Shenzhen to cover the pre-revenue or pre-profit biotech companies, thereby attracting investment from the Mainland. With all these efforts, Hong Kong is now Asia’s largest and the world’s second largest fundraising hub for biotech companies.

 

In addition, a diversified range of investment products tracking these biotech stocks, such as biotechnology stock index and exchange traded funds, have been launched. As the product offering increases, investors, from public and private equity funds to sovereign wealth and hedge funds, have also joined the Hong Kong biotech market, along with large cornerstone investors and specialist funds, who bring healthcare expertise to the market. This will in turn help spur the development of the health and life sciences sector in Hong Kong.

 

I should also mention our robust intellectual property protection regime, which is an essential element to promote innovation and technological development, particularly in the pharmaceutical and healthcare industries. Between 2014 and 2020, about 30% of the patent filings from local and overseas applications received by our Intellectual Property Department are in the fields of biotechnology, pharmaceuticals and medical technology. This is testimony to Hong Kong being an important market of pharmaceutical and healthcare products globally. Let me add that our original grant patent system, first launched in December 2019 to provide an additional and alternative path for patent applications to seek standard patent protection directly in Hong Kong, has been well received. As of end October this year, some 9% of the more than 500 original grant patent applications received are related to inventions of biotechnology, pharmaceuticals and medical technology.

 

Ladies and gentlemen, what I have been telling you is only what we already have, or what we have already achieved. Now that with the staunch support of the central government, Hong Kong has overcome the political challenges that have impeded our progress in many respects and has been given the mission to develop an international innovation and technology hub under our country’s 14th Five Year Plan, my Government will spare no efforts in building on our strengths to drive Hong Kong’s healthcare development. As outlined in my 2021 Policy Address delivered last month, we do have some ambitious plans to strengthen our capabilities on various fronts, in order to prepare Hong Kong for the enormous opportunities ahead in the area of health and life sciences.

 

First, we will boost our healthcare R&D infrastructure. The Hong Kong-Shenzhen Innovation & Technology Park in the Lok Ma Chau Loop will be completed by phases from 2024 onwards. One of the priority development areas of the park will be healthcare technologies, and we plan to set up an InnoLife Healthtech Hub there. This new hub will bring together the current 16 life and health-related laboratories in the InnoHK research clusters that I have just mentioned and the eight State Key Laboratories in life and health disciplines in Hong Kong. It will focus on R&D of biomedicine, physics, engineering, artificial intelligence and so on for application in the fields of prevention, diagnosis, pathology tracking, medicine, surgical micro-robots, advanced treatment, rehabilitation, etc. With some $6 billion earmarked for its operations in the next few years, we expect that InnoLife will become a prominent platform in attracting and gathering startups or large enterprises in life and health disciplines from around the world.

 

Hong Kong-Shenzhen Innovation & Technology Park in the Lok Ma Chau Loop is only about 87 hectares in size, which is obviously not sufficient for our promising future. Thus in my Policy Address, I announced the Northern Metropolis Development Strategy, which will develop the northern part of Hong Kong, about 300 sq km in size, that is about one-third of Hong Kong’s landmass, into a vibrant metropolis. Innovation and technology will be the economic engine of this metropolis, and an area called the San Tin Technopole, which is near the Lok Ma Chau area, will provide another 150 hectares of land for innovation and technology, which will be disposed of in a strategic manner to accommodate research and advanced manufacturing industries.

 

Other initiatives to enhance the infrastructure include the continued expansion of the Hong Kong Science Park and Cyberport as well as allocation of extra land to the University of Hong Kong and the Chinese University of Hong Kong for research use. We are also embarking on an ambitious public hospital expansion programme to provide more and better facilities. A dedicated Children’s Hospital is in operation and a Chinese Medicine Hospital, the first of its kind in Hong Kong, is under construction. To tie in with the Northern Metropolis vision, we plan to develop new acute hospitals in this region which will shoulder a stronger role in supporting clinical research.

 

Hardware aside, we will continue to enrich Hong Kong’s healthcare ecosystem through a combination of R&D funding and education to nurture local talent and recruitment of scientists from overseas and the Mainland. I am pleased to say that the Global STEM (science, technology, engineering and mathematics) Professorship Scheme launched in June this year has attracted renowned scientists and scholars to come to work in Hong Kong’s universities. Over 40 distinguished scholars and their research teams from eight economies recruited in the first batch are gradually arriving. We are reviewing a second batch of nominees under the scheme.

 

Health and life sciences research require clinical data and clinical trials. It helps that our clinical trial centres are recognised by the National Medical Products Administration, and their data which meet the relevant clinical trial standards are also widely recognised by relevant bodies in the US and the European Union. It also helps that unlike in many other cities, public hospital service in Hong Kong is highly concentrated and hence the sole service provider, the Hospital Authority, is in possession of a huge amount of valuable data for research. In this connection, the Hospital Authority will continue to streamline and standardise the administrative procedures for multi-clusters clinical research involving commercial sponsor, and to explore collaboration with the Hong Kong Science Park on the use of clinical data for R&D.

 

Concurrently, the Department of Health has also been implementing a number of facilitating measures in recent years to ensure clinical trials are approved in a timely manner. These include extending the validity period of clinical trial certificates from two to five years, streamlining and simplifying the application procedures for non-first in human trials, and developing an online submission system to facilitate the application for clinical trial certificates. The Government will also expedite the legislative process for registration of drugs containing new chemical or biological entities with a view to making relevant pharmaceutical products available in the market as early as possible, supporting the development of life and health technology and benefitting more patients in need.

 

In today’s summit, a couple of sessions are devoted to opportunities arising from co-operation with the Mainland, particularly the Guangdong-Hong Kong-Macao Greater Bay Area which has a population of some 86 million. To facilitate such exchanges and collaboration, we have obtained the central government’s support in relaxing the limitation on exporting Mainland human genetic resources to Hong Kong and in allowing the use of Hong Kong-registered drugs and medical appliances in selected medical institutions in the Greater Bay Area Mainland cities. I am sure experts joining those sessions will have more insights to share and I can confidently say that the future looks bright.

 

In short, ladies and gentlemen, Hong Kong is willing and ready to play a pivotal role in promoting better understanding of global health issues, in pursuing research excellence and medical innovation to tackle some growing health issues, and in matching businesses with trade and investment opportunities in the Asian region. Above all, we believe advances in health and life sciences will benefit mankind. I sincerely invite you all to join us, here in Hong Kong, to create an exciting future.

 

Chief Executive Carrie Lam gave these remarks at the opening session of the Asia Summit on Global Health on November 24.

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Gerontechnology meets social needs

With our city’s population ageing rapidly, there is a growing consensus on using novel technology to meet the needs of elderly and their caregivers. Gerontechnology, combining gerontology with technology, is widely recognised as a key to tackle this challenge. One of the Government initiatives at work in promoting gerontechnology is through the Social Innovation & Entrepreneurship Development Fund (SIE Fund) under the Commission on Poverty. The SIE Fund has engaged a consortium of 10 organisations in January this year to develop and operate a one-stop Gerontechnology Platform. Through promoting participation, establishing cross-sectoral partnership and fostering collaboration, the platform links up different stakeholders on the supply and demand sides to enhance the synergistic effect in order to promote the development and application of gerontechnology in Hong Kong. This would enhance the welfare, living quality, independent living skills and self-care capabilities of the elderly under the new normal, and provide support to their families, carers, care workers and care providers.

 

Apart from this flagship project, the SIE Fund has also been funding social entrepreneurs, companies and organisations to take forward innovative projects to address social needs using innovative ideas, services and products. I am glad that the SIE Fund has already supported about 50 projects targeting elderly with the adoption of technology. These projects have reached out to over 13,000 elderly in need.

 

On the other hand, to promote wider use of technology to enable an active and healthy living of the elderly in the community, the Government has been running the $1 billion worth Innovation & Technology Fund for Application in Elderly & Rehabilitation Care since 2018 to help elderly and rehabilitation service units procure or rent technology products to improve the quality of life of service users and reduce pressure and burden on care staff. So far, over $380 million of subsidy has been approved for more than 1,300 elderly and rehabilitation service units to procure or rent around 10,000 technology products, benefitting thousands of our elderly.

 

To drive the adoption of gerontechnology, we need more research and development, R&D. To this end, the Government has been providing funding for R&D centres, designated local public and academic research institutes as well as private companies through various schemes under the Innovation & Technology Fund to encourage more R&D projects and devise technology solutions related to gerontechnology. The Health@InnoHK has also been set up at the Hong Kong Science Park as a research cluster to attract talents around the globe.

 

The Policy Address this year has put forward a number of I&T (innovation & technology) initiatives that are forward-looking and groundbreaking. One of them is the setting up of an InnoLife Healthtech Hub in the Hong Kong-Shenzhen Innovation & Technology Park in the Lok Ma Chau Loop, with the 16 life and health-related laboratories in the InnoHK research clusters and the eight State Key Laboratories in life and health disciplines as the basis, to focus on related research work. This is a good illustration of Hong Kong’s advantages and strengths in scientific research. My bureau, the Innovation & Technology Bureau, has been tasked to press ahead with this initiative and I look forward to seeing the hub come into play and gerontechnology-related research outcomes turn into products in the years to come.

 

All the things that I have said could not be done by the Government alone. We need the full support from everyone in the society. I would like to take this opportunity to express my gratitude to the Hong Kong Metropolitan University for organising the conference again this year. Promotion and partnership are of paramount importance. Our conference today is an important platform connecting various stakeholders. This major event offers great opportunities linking up academics, researchers, service providers, both NGOs (non-governmental organisations) and the private sector as well as suppliers. And we are more than happy to play our part in fostering a vibrant gerontechnology ecosystem within which wider cross-sector collaboration will bear fruit. You can rest assured that our support for gerontechnology will continue to strengthen.

 

Secretary for Innovation & Technology Alfred Sit gave these remarks at the International Conference on Gerontechnology 2021 at the Hong Kong Metropolitan University on November 23.

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Govt enriches I&T ecosystem

It gives me great pleasure to speak at the opening of the Inno Bay 2021 programme co-organised by China Global Television Network and Hong Kong X Foundation. I like very much the name of this programme – Inno Bay succinctly captures the ambition of developing an international innovation and technology (I&T) hub in the Guangdong-Hong Kong-Macao Greater Bay Area and echoes the point that innovation and reform is one of the basic principles in driving the Greater Bay Area, as enshrined in the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area promulgated in February 2019.

 

As a special administrative region of the People’s Republic of China, Hong Kong is one of the core cities in the 9+2 Greater Bay Area, comprising nine cities in the Guangdong province as well as the two special administrative regions of Hong Kong and Macau. Leveraging unique advantages under “one country, two systems” and high quality research in our universities, with five of them amongst the world’s top 100, and our excellent technology infrastructure which was recently ranked the world’s number two by the IMD world digital competitiveness index, as well as being the world’s number two platform for the listing of biotech companies, Hong Kong is well positioned to make significant contributions to the Greater Bay Area’s I&T goal.

 

To enhance our global competitiveness, my Government has made unprecedented efforts in I&T development in Hong Kong. Over the past four years, we have invested nearly US$17 billion in technology infrastructure and research and development, as well as in nurturing talent. It is gratifying to see that the I&T ecosystem in Hong Kong has become increasingly vibrant, with Hong Kong being the birthplace of 12 unicorns already. Indeed, we can count 18 unicorns with strong links to Hong Kong, according to the Hong Kong X Foundation.

 

That determination for Hong Kong to succeed and significant efforts made in recent years have not gone unnoticed by the central government. Memoranda of co-operation have been entered into with the Ministry of Science & Technology and the Chinese Academy of Sciences. Hong Kong research projects have received national funding and joint research laboratories have been set up in the Hong Kong Science Park on top of the 16 State Key Laboratories in Hong Kong. All these have culminated in express support for Hong Kong to develop into an international innovation and technology hub in the nation’s 14th Five-Year Plan promulgated in March this year, which also includes the Shenzhen-Hong Kong Loop as one of the four major platforms of co-operation in the Greater Bay Area.

 

I am grateful for the nation’s support, and together with our local I&T sector, we are determined to play to our strengths. Therefore, in my 2021 Policy Address delivered on October 6, I outlined enhanced measures to enrich Hong Kong’s I&T ecosystem, including supporting our universities to build more laboratory facilities, recruiting more research talents, giving more impetus to re-industrialisation and collaborating more closely with Shenzhen. In particular, we plan to develop an InnoLife Healthtech Hub in the Hong Kong-Shenzhen I&T Park as the COVID-19 pandemic has reminded us of the importance of life sciences to humankind. We are confident that this is an area Hong Kong could play a pivotal role in the Greater Bay Area and beyond.

 

Chief Executive Carrie Lam delivered this video speech at China Global Television Network’s programme InnoBay 2021 on November 22.

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HK to repay nation’s support

The 19th Central Committee of the Communist Party of China (CPC) convened its sixth plenary session earlier. Article 1 of the Constitution of the People’s Republic of China stipulates that leadership by the CPC is the defining feature of socialism with Chinese characteristics. With this year being the 100th anniversary of the founding of the CPC, the consideration and adoption of the Resolution on the Major Achievements & Historical Experience of the Party over the Past Century at the sixth plenary session is particularly meaningful. Since its founding, the CPC has made seeking happiness for the Chinese people and rejuvenation for the Chinese nation its aspiration and mission, and the Chinese nation has gradually achieved the tremendous transformation from standing up and growing prosperous to becoming strong.

 

The communique of the sixth plenary session affirmed unequivocally that, with regard to upholding the policy of “one country, two systems” and promoting national reunification, the central committee has adopted a series of measures to address both symptoms and root causes of relevant issues and resolutely implemented the principle that Hong Kong and Macau should be governed by patriots. These moves have helped to restore order in Hong Kong and ensure a turn for the better in the region. All this has laid a solid foundation for advancing law-based governance in Hong Kong and Macau and for securing steady and continued success of the “one country, two systems” policy. This staunch support from the central authorities is the fundamental safeguard of the lasting prosperity and sustainability of Hong Kong. In fact, the fourth plenary session of the 19th Central Committee of the CPC has already adopted a decision on upholding the principle of “one country, two systems”, maintaining lasting prosperity and stability of Hong Kong and Macau, and promoting the peaceful reunification of China as one of the notable strengths of the state and governance systems of our country. In his important speech at the ceremony celebrating the 100th anniversary of the founding of the CPC on July 1 this year, Secretary General Xi Jinping also reiterated again that we should stay true to the letter and spirit of the principle of “one country, two systems”, under which the people of Hong Kong administer Hong Kong with a high degree of autonomy; we should ensure the exercise of overall jurisdiction over Hong Kong by the central government and the implementation of the legal systems and enforcement mechanisms for the Hong Kong Special Administrative Region to safeguard national security; and while protecting China’s sovereignty, security and development interests, we should ensure social stability in the Hong Kong SAR and maintain lasting prosperity and stability in Hong Kong.

 

As I mentioned in the 2021 Policy Address, Hong Kong has encountered unprecedented political challenges over the last two years, putting national security at huge risk. Nevertheless, the central government has continued to act in accordance with the Constitution and the Basic Law. The promulgation and implementation of the National Security Law, as well as the improved electoral system of the Hong Kong SAR, have provided a timely curb on the chaos in Hong Kong. With my experience of being deeply involved in the related work of these two major initiatives of the central government, I have made clear the central government’s original aspiration of upholding the “one country, two systems” principle and refuted those groundless accusations by external parties.

 

Hong Kong is now embracing a new era where “one country, two systems” has been put back on the right track. I think the best way for Hong Kong people to repay the central government for its firm support is to ensure the robustness of “one country, two systems”, to focus on development, to make good use of the country’s strong support to Hong Kong mentioned in the National 14th Five-Year Plan, and to leverage our strengths to meet the country’s needs in various areas including finance and innovation and technology, in order to embark on a new journey with people of the whole country to create a better future. I hope that every patriot aspiring to run for the elections of the seventh term of the Legislative Council would if elected, fully discharge their responsibilities of reflecting public views and monitoring the operation of the Government in the Legislative Council, so that Hong Kong could continue to play an irreplaceable role in reaching the country’s second centenary goal, just as it has in the country’s reform and opening up over the past some 40 years.

 

Chief Executive Carrie Lam issued the above statement on the sixth plenary session of the 19th Central Committee of the Communist Party of China on November 13.

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