Seizing opportunities for quality devt

During the past year, Hong Kong has returned to normalcy after the epidemic. The society and the daily lives of our people are back to normal, as they have longed for. Visitors are returning, and our economy is regaining positive growth.  A series of mega events have helped to restore a buoyant mood in the community.

 

Meanwhile, geopolitical uncertainties and high interest rates have impacted capital flows. Resumption of outbound travel, changes in consumption patterns and a shift in inbound visitors’ preferences, along with competition from other economies, and so forth, have all weighed down economic confidence.

 

Amid a complicated and ever-changing international environment, and with our economy and society constantly evolving, more strenuous efforts are required to strengthen the momentum of our economic recovery. While the uneven pace of recovery across industries merits our attention, there are also certain constraints that need to be unravelled in a gradual manner.

 

Innovation and technology, as well as data empowerment, will catalyse the emergence of new business models; however, they will also heighten competition and pose challenges to many enterprises. Through vigorous promotion of innovative research and transformation of its outcomes, as well as acceleration of digital transformation in recent years, we are well-equipped to navigate the changes.

 

Underpinned by our country’s firm and steady development, our institutional advantages under “one country, two systems” and our highly international characteristics, Hong Kong will attract yet a bigger pool of talent, capital and enterprises. I have absolute confidence in Hong Kong’s future.

 

Our public finances, nevertheless, need consolidation as the epidemic subsides. Upon a full and thorough evaluation, we will adopt a fiscal consolidation strategy to narrow our fiscal deficit progressively towards achieving the goal of restoring fiscal balance.

 

The theme of this Budget is: “Advance with Confidence. Seize Opportunities. Strive for High-quality Development.” I will elaborate on this a little later.

 

This is the English translation of the opening remarks in Financial Secretary Paul Chan’s Budget Speech, delivered on February 28.

via Moroccan Trader Seizing opportunities for quality devt

Anti-graft academy established

The Independent Commission Against Corruption (ICAC)’s journey began half a century ago. Its clear and compelling mission is to ensure that Hong Kong remains fair, just, stable and prosperous, then as now.

 

Over the past five decades, the ICAC has become an integral part of governance, partnering with our community, and indeed every sector in the community, to uphold the principles of integrity, accountability and transparency.

 

Thanks to the ICAC and its formidable anti-corruption regime, the people of Hong Kong have long enjoyed equal opportunities to pursue their aspirations, whatever they may be.

 

That legacy, established some 50 years ago, carries on today, under the auspices of the unique “one country, two systems” principle. We take heart, and pride, in our city’s long-standing rule of law, clean public services, level playing field for doing business, and community-wide embrace of integrity, mutual respect and fairness.

 

Hong Kong is widely recognised as one of the world’s cleanest cities. In the International Institute for Management Development’s latest World Competitiveness Yearbook, Hong Kong was ranked the world’s second best in government efficiency. This remarkable result was contributed, in no small part, by our high ranking in anti-corruption. Under the criterion called “bribery and corruption do not exist”, Hong Kong was No. 1 throughout Asia, and No. 10 in the world, among over 60 places surveyed.

 

The World Justice Project, which put Hong Kong in the 23rd place globally on the rule of law, also rated us the world’s No. 9 on absence of corruption, out of over 140 places.

 

These compelling results have placed Hong Kong in a strong position, both within Asia and globally, in maintaining clean governance and social integrity. They are clear testimony to the ICAC’s solid efforts in eradicating corruption in the past five decades.

 

Integrity is pivotal to ensuring the continuing prosperity and stability of Hong Kong, and realising our essential contributions to national development. The ICAC supports the country’s anti-corruption drive and policy. It also works closely with like-minded agencies around the world, to advance anti-corruption initiatives.

 

Indeed, the ICAC currently holds the presidency of the International Association of Anti-Corruption Authorities, committed to promoting the effective implementation of the United Nations Convention against Corruption.

 

The Hong Kong Special Administrative Region Government is dedicated to working with every part of our society, as well as our counterparts around the world, in fostering a culture sustained by probity.

 

In this regard, I am delighted to welcome the establishment of the Hong Kong International Academy Against Corruption. This new institution has been created to help in the global struggle against corruption.

 

The academy will offer anti-corruption training courses for graft fighters in Hong Kong and around the world. The academy will also serve as an international research and exchange centre for anti-corruption experts from different parts of the globe.

 

The academy’s initiatives will, I am confident, boost Hong Kong’s status as an anti-corruption centre, while promoting our clean society, social stability and the value we place on integrity and the rule of law.

 

It is an ambitious undertaking – one fully in keeping with the ICAC’s historic anniversary and its renowned prowess in the fight against corruption – and I, for one, cannot wait for the new academy to get going.

 

As we mark the ICAC’s milestone, let us also recognise, and commend, the collective efforts of the ICAC’s dedicated staff, past and present.

 

I applaud, as well, every individual who has contributed to Hong Kong’s long-standing success against corruption and its incessant threats. Their commitment and pursuit of justice have ensured Hong Kong’s success, while inspiring jurisdictions around the world.

 

Ladies and gentlemen, here in Hong Kong, we are celebrating not only the ICAC’s golden jubilee, but also the Lunar New Year. I have every confidence that this bright new year promises strength, wisdom and leadership – qualities that you and the ICAC possess in blessed abundance. That can only mean a very good year for Hong Kong. And each and every one of you.

 

Happy birthday, ICAC. I have every confidence that you will continue to inspire Hong Kong, and the world, over the next 50 years and beyond. Thank you.

 

Chief Executive John Lee gave these remarks at the ICAC 50th Anniversary Reception, which doubled as the Establishment Ceremony of the Hong Kong International Academy Against Corruption, on February 21.

via Moroccan Trader Anti-graft academy established

HK a world-class events city: CE

Happy New Year, and a happy Valentine’s Day to you and to everyone. I trust your hearts are all as “chubby” as mine, on this splendid day, where romance is in the air – or soon will be.

 

Yes, in just a few minutes, thanks to Chubby Hearts Hong Kong, love will soar, in the shape of a pleasing red heart, probably bigger than any you have ever seen before.

 

This inspired installation was created by celebrated UK designer Anya Hindmarch, who is with us today. And thanks, Anya, for coming all the way from the UK. And this marks the very first time her joyful, adorable hearts embrace the skies of Asia. Over the next 11 days, larger-than-life, pop-up hearts will rise over scenic and landmark locations, all across our beloved city of Hong Kong.

 

For that, my thanks to Ms Hindmarch, as well as the Hong Kong Design Centre, for bringing Chubby Hearts to Hong Kong, the fast-beating heart of Asia. Let us give them a heartening round of applause.

 

Chubby Hearts Hong Kong is just one of the many mega events Hong Kong will play host to in the coming year.

 

From leading regional and international trade fairs and exhibitions, to world-class arts, culture and sports competitions and shows, we will create and attract a continuing flow of new and inviting experiences to Hong Kong. These will spotlight our advantages as an events city centre, promote our economy, and reinforce Hong Kong’s status as a must-visit global city – for business and investment, as well as for tourism and non-stop entertainment.

 

Apart from showcasing Hong Kong’s innovative heart and dynamism, Chubby Hearts have inspired a variety of creative exchanges, between global designers such as Ms Hindmarch and Hong Kong’s own high-flying talent.

 

Let me add that Chubby Hearts will be with us until February 24, which is the 15th day of the Lunar New Year and the Lantern Festival, known by many as the Chinese Valentine’s Day. It will be a heartfelt and lovely day to celebrate Hong Kong’s East-meets-West culture.

 

I wish you all the best of health, and love, in the year to come. Thank you.

 

Chief Executive John Lee gave these remarks at the launch of Chubby Hearts Hong Kong on February 14.

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Welcome to HK’s world party

To our friends and visitors from around the world, Happy Chinese New Year! Welcome to Hong Kong’s International Chinese New Year Night Parade.

 

I am thrilled to be here, with you, for one of the most spectacular, most anticipated, Chinese New Year celebrations in the world. 

 

We are all here to welcome the Year of the “Loong”. In Chinese culture, the “loong” – people usually call it the dragon – symbolises nobility, good fortune and vitality. It is going to be a year of auspicious opportunities, and dragon-sized blessings for us all!

 

And there is no better way to celebrate this first day of the year than with Hong Kong’s world party, a night parade filled with fantastic floats, alongside more international performing groups and stars than this sparkling extravaganza has ever seen before.

 

And as dazzling, as unforgettable, as this evening promises, it is only the beginning! 

 

Tomorrow night, it is the annual Lunar New Year fireworks spectacular, lighting up our Victoria Harbour. And Hong Kong’s vibrant, East-meets-West culture, will keep you dragon-dancing, day and night.

 

Chief Executive John Lee gave these remarks at the 2024 International Chinese New Year Night Parade on February 10.

via Moroccan Trader Welcome to HK’s world party

New vitality, prosperity ahead: CE

The Lunar New Year is a time for reunions, a time for families and friends to get together and cherish the joy and warmth of the festive season. We share our wishes for children to grow strong and healthy and for grown-ups to be blessed with good fortune.

 

The dragon is an auspicious symbol signifying nobility and good luck. As we welcome the Year of the Dragon, Hong Kong is nurturing fresh vitality and prosperity. We will seize each and every new opportunity, showcase the charm of our city, and write a bright new chapter for Hong Kong.

 

My wife and I wish the people of Hong Kong a full house of happiness and harmony in the Year of the Dragon. May all your wishes come true and may good health be with you. We wish you all the best in the Year of the Dragon!

 

This is a translation of the Lunar New Year message delivered by Chief Executive John Lee on February 9.

via Moroccan Trader New vitality, prosperity ahead: CE

‘Virtual asset regulation on right path’

Since our announcement of the Policy Statement on the Development of Virtual Assets in Hong Kong in October 2022, the virtual asset (VA) market has been developing rapidly. While product offerings have kept evolving, we also saw volatile price fluctuations in certain cryptocurrencies. International organisations and regulators all over the world expressed their intention to strengthen the regulation of VAs. All these led some to believe that we had entered a “crypto winter”, and questions were raised on whether the Government would change its policy position on VA, especially in the wake of the JPEX incident last year.

 

Our response is clear: Hong Kong’s approach to VAs focuses on risk-based, prudent regulation. By adhering to the principle of “same activity, same risk, same regulation” and implementing comprehensive regulation, we seek to address the risks associated with VA activities in terms of investor protection and money laundering and terrorist financing. We firmly believe that encouraging financial innovation is only possible through providing a robust and transparent regulatory environment.

 

Based on these principles, we have established a licensing system and regulatory requirements for Virtual Asset Service Providers (VASP), which commenced operation on June 1 last year. Currently, two licensed VA trading platforms, through licence upgrades, are able to offer Bitcoin and Ethereum (ETH) trading services to retail investors. Licensed platforms are subject to rigorous regulation by the Securities & Futures Commission (SFC) to provide substantial protection for investors. Considering that some VASPs were already operating in Hong Kong before the licensing system came into effect, a transitional period was set up to assist these existing service providers in transitioning to the new system. If these service providers would like to continue their operations in Hong Kong, they have to submit their licence applications by February 29 this year. The SFC will consider whether the applicants can meet the regulatory requirements and whether they had substantial operations in Hong Kong before the commencement of the licensing system, before deciding whether to allow these existing service providers to be deemed as licensed from June 1 this year, until a final decision is made on their licence applications.

 

If the SFC considers that some existing service providers could not meet the relevant requirements of the transitional arrangement, a “no-deeming notice” will be issued to these applicants. All existing service providers which have not submitted their application by February 29, or have received a “no-deeming notice”, must begin ceasing operations and complete the process by May 31 this year, or within three months since the issuance of the notice. 

 

As the deadline for existing service providers to submit licence applications to meet the transitional arrangements will approach at the end of this month, the SFC is actively preparing for enforcement work (including issuing a “no-deeming notice” to unqualified service providers), and will step up publicity efforts. The SFC will in a timely manner inform the public about, and provide updates to, the online lists of VA trading platforms, to ensure that the public can clearly know whether these service providers are licensed. I would also like to remind investors again that many VAs have no intrinsic value, and that the prices are highly volatile. Before engaging in related investments, it is essential to understand the details and consider the risks involved. For VA transactions, only platforms officially licensed by the SFC should be used. Operations of unlicensed providers and operators which have not applied for a licence may not be compliant with statutory regulatory requirements, and some unlicensed platforms may also have been involved in fraud, leading to losses for investors.

 

On the other hand, the VA ecosystem also includes some over-the-counter (OTC) venues, often in the form of physical shops or online platforms, and are easily accessible to the general public. In fact, OTC venues played a certain role in some of the fraud cases involving some unlicensed VA trading platforms last year, having misled investors to channel funds to these unlicensed platforms. Therefore, we believe that it is necessary to bring OTC venues under regulation, and we will launch a consultation very soon on the proposed regulatory framework. We hope that members of the public and stakeholders will actively express their opinions.

 

Those who have been following the development of VAs will know that, together with the Hong Kong Monetary Authority (HKMA), we are consulting the public on the legislative proposal on a regulatory regime for stablecoin issuers. The proposed regulatory system requires all qualified fiat-referenced stablecoin (FRS) issuers to obtain a licence issued by the HKMA. Regulating FRS issuers in a risk-based manner, and providing transparent and suitable guardrails, the system seeks to manage the potential monetary and financial stability risks. The HKMA will also introduce a “sandbox” arrangement, conveying regulatory expectations and providing compliance guidance to issuers planning to issue FRS in Hong Kong. At the same time, the arrangement will gather their opinions on the proposed regulatory requirements, facilitating the implementation of subsequent regulatory regimes, and ensuring that the system meets the regulatory objectives. As the two-month consultation period will end at the end of this month, please submit your opinions in time.

 

As the transitional period for the VASP licensing system enters its final stage, we are gradually enhancing measures on VA regulation. With clearer regulatory and market development standards emerging at the international level, investors trading VA on licensed platforms should enjoy enhanced protection and have elevated confidence in the market. We will continue to use a multipronged approach comprising comprehensive public education, enhancing enforcement and timely information dissemination, to facilitate the robust and responsible development of the market.

 

Secretary for Financial Services & the Treasury Christopher Hui wrote this article and posted it on his blog on February 2.

via Moroccan Trader ‘Virtual asset regulation on right path’