HKMCA launches “Panda Mode ON!” public education campaign

Source: Hong Kong Government special administrative region – 4

The following is issued on behalf of the Hong Kong Monetary Authority:

     HKMC Annuity Limited (HKMCA), a wholly-owned subsidiary of The Hong Kong Mortgage Corporation Limited, announced today (June 25) the launch of a six-month “Panda Mode ON!” public education campaign, which uses the joyful, worry-free lifestyle of pandas as a metaphor to showcase retirement financial planning concepts and encourage retirees to achieve a stable and prosperous “Panda Mode” retirement through the creation of a lifelong income stream.
 
The HKMCA is launching a series of promotional activities including television commercials, outdoor, online and social media advertising across multi-media channels starting this month. Public education and outreach activities will also be held across Hong Kong, including a booth at the “10th Golden Age Expo and Summit 2025”, five “Well-Planned for Life. Stable for Life” roving exhibitions at the Ocean Park Hong Kong and major shopping malls in various districts, together with a promotional truck and information panels, to help promote the importance of retirement financial planning. For details of the outreach activities, please refer to the annex.
  
To reinforce public understanding of the HKMC Annuity Plan (Plan) and longevity risk management, the HKMCA is also expanding the “Mr. Well-Planned” series. In addition to utilising relatable day-to-day scenarios to highlight the key features of the Plan through television commercials, a new “Answer with One Click” webpage (www.hkmca.hk/eng/QnA) has been launched to provide the public with a convenient way to access answers to frequently asked questions.
 
For more information, please visit the HKMCA website (www.hkmca.hk) or the Facebook page (www.facebook.com/HKMCAnnuity). For enquiries, please call the HKMCA customer service hotline at (852) 2512 5000.

Occupational therapists and physiotherapists participating in primary healthcare programmes must be enlisted in Primary Care Directory and join eHealth from July 2

Source: Hong Kong Government special administrative region – 4

The Primary Healthcare Commission (PHC Commission) under the Health Bureau announced today (June 25) that, starting from July 2, occupational therapists (OTs) and physiotherapists (PTs) participating in government-subsidised primary healthcare programmes (including the Elderly Health Care Voucher Scheme, and the allied health services of the Chronic Disease Co-care Pilot Scheme and District Health Centres) must first be enlisted in the Primary Care Directory (PCD) and join eHealth. To allow sufficient time for the professions to complete the enrolment process, a two-month grace period until September 1 will be provided. The PHC Commission encourages OTs and PTs to register as early as possible, so that they can continue to provide relevant government-subsidised services to members of the public.

The Primary Healthcare Blueprint recommended expanding the PCD to cover more healthcare professionals and developing sub-directories for allied health professionals, including OTs and PTs, with a view to ensuring their participation in continuing medical education or continuing professional development programmes relevant to their disciplines, thereby enhancing the quality of primary healthcare services. In addition, the Blueprint recommended requiring all primary healthcare service providers to use eHealth to promote continuity of healthcare services and cross-sector collaboration.

To minimise the impact on citizens enjoying the subsidised services concerned, the PHC Commission has maintained close communication with the OT and PT professions through different channels since March to introduce them to the details of the new requirements and assist them in enlisting in the PCD and/or joining eHealth. Those OTs and PTs currently participating in relevant government-subsidised programmes but who are yet to be enlisted in the PCD and join eHealth by the end of the grace period (i.e. from September 2 onwards) will no longer be able to offer those government-subsidised primary healthcare services to their patients.

Members of the public may enquire with their OTs or PTs or visit the PCD website (apps.pcdirectory.gov.hk/Public/EN) to confirm whether they are enlisted in the PCD, to ensure that they can continue receiving the relevant subsidised services from the same OT or PT after the grace period.

The PCD is a web-based database containing practice information and professional qualifications of primary healthcare service providers in the community. It enables members of the public to look for service providers’ information, such as their practice addresses, telephone numbers, consultation hours, and service provisions, as well as their participation in various government-subsidised programmes, and to choose a suitable primary healthcare service provider according to their personal needs. Subsequent to the establishment of sub-directories for OTs and PTs, the Government will continue to develop sub-directories for other healthcare professionals in phases, with a view to promoting multidisciplinary collaboration in providing comprehensive primary healthcare services to members of the public.

Hong Kong’s innovation and technology sector to benefit from Mainland’s expedited patent pre-examination service starting June 30

Source: Hong Kong Government special administrative region

Hong Kong’s innovation and technology sector to benefit from Mainland’s expedited patent pre-examination service starting June 30 
     Under the enhanced measure, Hong Kong’s I&T sector (including innovative entities such as enterprises, higher education institutions and research institutions) seeking patent protection on the Mainland may submit patent pre-examination requests to the Shenzhen Intellectual Property Protection Center if they meet the relevant criteria (e.g. the inventions in their applications fall within the specified industry sectors). Upon passing the pre-examination, their patent applications can enter the expedited examination channel of the China National Intellectual Property Administration (CNIPA), significantly shortening the period of examination.
 
     The Director of Intellectual Property, Mr David Wong, said, “This cross-boundary facilitation measure for patent applications can effectively accelerate the legal protection and commercialisation of research outcomes in the vast Mainland market by Hong Kong’s I&T sector. The Hong Kong Special Administrative Region Government expresses its gratitude to the CNIPA for supporting Hong Kong in the advancement of I&T and IP trading, which enables Hong Kong to seize the opportunities brought by the national development of new quality productive forces and contribute to the high-quality development of the Guangdong-Hong Kong-Macao Greater Bay Area.”
 
     For details of the measures, please refer to the Intellectual Property Department’s website 
     The Commerce and Economic Development Bureau and the Authority of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone of Shenzhen Municipality jointly promulgated the 16 Co-operation Measures in February 2023, aiming to advance IP development in Hong Kong and Shenzhen, foster cross-boundary IP and innovation, exchange and co-operation, and support Hong Kong’s development into a regional IP trading centre.
Issued at HKT 17:00

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Tender results of re-opening of 5-year HKD HKSAR Institutional Government Bonds

Source: Hong Kong Government special administrative region – 4

The following is issued on behalf of the Hong Kong Monetary Authority:

The Hong Kong Monetary Authority (HKMA), as representative of the Hong Kong Special Administrative Region Government (HKSAR Government), announced that a tender of 5-year HKD institutional Government Bonds through the re-opening of existing Government Bond (issue number 05GB3005002) under the Infrastructure Bond Programme was held today (June 25).
 
A total of HK$1.25 billion 5-year Government Bonds were offered today. A total of HK$6.855 billion tender applications were received. The bid-to-cover ratio, i.e. the ratio of bonds applied for to bonds issued, is 5.48. The average price accepted is 101.37, implying an annualised yield of 2.415 per cent.
 

HKSAR Institutional Government Bonds Tender Results
 
Tender results of 5-year HKD HKSAR Institutional Government Bonds:
 

Tender Date : June 25, 2025
Issue Number : 05GB3005002 (Re-open)
Stock Code : 4293 (HKGB 2.70 3005)
Issue and Settlement Date : June 26, 2025
Tenor : 5 years
Maturity Date : May 15, 2030
Coupon Rate : 2.70 per cent
Amount Applied : HK$6.855 billion
Amount Allotted : HK$1.25 billion
Bid-to-Cover Ratio* : 5.48
Average Price Accepted (Yield) : 101.37 (2.415 per cent)
Lowest Price Accepted (Yield) : 101.21 (2.450 per cent)
Pro-rata Ratio : About 15 per cent
Average Tender Price (Yield) : 100.78 (2.544 per cent)

* Calculated as the amount of bonds applied for over the amount of bonds issued.

LCQ10: Promoting the development of the popular artistic toy industry

Source: Hong Kong Government special administrative region – 4

Following is a question by the Hon Jeffrey Lam and a written reply by the Secretary for Culture, Sports and Tourism, Miss Rosanna Law, in the Legislative Council today (June 25):
 
Question:
 
It has been reported that in recent years, the popular artistic toy industry and the “goods economy” (i.e. economic activities relating to intellectual property (IP) peripheral products of animation, comics, games, idols, etc) have expanded rapidly worldwide. Last year, the global market of “blind boxes” (i.e. sealed boxes whose IP peripheral products are not made known to consumers in advance) reached US$14.5 billion (approximately HK$113.1 billion), with some IP merchandise created by Hong Kong designers generating hundreds of millions of dollars in value in the international market. However, there are views that the popular artistic toy industrial chain in Hong Kong is not yet mature and requires precise policy support. In this connection, will the Government inform this Council:
 
(1) whether it has compiled statistics for the period between 2022 and 2024 on (i) the number of companies registered in Hong Kong that were involved in the design, production or sale of popular artistic toys, (ii) the contribution of the popular artistic toy industry to Gross Domestic Product, (iii) the number of professional practitioners in the popular artistic toy industry, and (iv) among the projects approved under the Government’s funding schemes or funds for driving the development of the cultural and creative industries (e.g. the CreateSmart Initiative), the proportion of projects related to the popular artistic toy industry and the total amount of funding involved; if such data is unavailable, whether the Government will review if this emerging industry is outside the scope of the existing policy;
 
(2) whether it has compiled statistics on the number of registrations filed with the Intellectual Property Department by local designers for artistic toy character designs from 2022 to 2024, and the number of cases in which Hong Kong enterprises have successfully turned local IP into mass-produced merchandise;
 
(3) of the number of pop-up stores or exhibitions relating to the theme of popular artistic toys that were approved to be held in public venues (e.g. the West Kowloon Cultural District and galleries of the Leisure and Cultural Services Department) in the past year, and the average duration of such exhibitions;
 
(4) among the events supported by the Mega Events Coordination Group last year, of the proportion of mega events that had the theme of popular artistic toys (e.g. designers’ autograph and sale sessions and blind box bazaars), as well as the data on the number of people who attended such events; and
 
(5) as the Financial Secretary pointed out earlier on in a blog post that some IP with Hong Kong elements created by Hong Kong designers has generated hundreds of millions of dollars in value, and there are views that this reflects that the calibre of the local creative industry is of an international standard, whether the Government has formulated specific measures to assist in the development of the industrialisation of Hong Kong’s IP and to promote the maximisation of the value of local IP; if so, of the details; if not, the reasons for that?

Reply:
 
President,
 
Art toy refers to toys designed by designers and artists, and infused with rich cultural connotations and fashionable creativity. It can be traced back to figures in the 1960s of the 20th century which were mostly derivative models of anime characters for the purposes of appreciation and collection. Noting the emergence and development of art toy in recent years which bring in opportunities for the creative industries in Hong Kong, the Cultural and Creative Industries Development Agency (CCIDA) under the Culture, Sports and Tourism Bureau (CSTB) has been actively supporting projects related to Hong Kong’s art toy industry, including setting up Hong Kong pavilions at exhibitions in the Mainland and overseas to support the industry in the promotion of art toys originated in Hong Kong.

My reply to the various parts of the question raised by the Hon Jeffrey Lam’s question, in consultation with the Census and Statistics Department (C&SD) and the Intellectual Property Department (IPD), is as follows:
 
(1) The cultural and creative industries (CCI) form an integral part of creating a diversified economy in Hong Kong. CCI covers the design sector whereas art toy design is grouped under this sector. According to the C&SD’s latest statistics, the value added by the design sector reached over $4.2 billion in 2023, accounting for over 0.1% of Gross Domestic Product in Hong Kong, and 3.1% of that of CCI. The number of establishments and practitioners engaged in the design sector were around 7 490 and 18 650 respectively.
 
From 2022 till now, the CCIDA funded and fostered eight Hong Kong art toy-related projects through the CreateSmart Initiative (CSI). Overseas projects included driving the industry to participate in “Promote Hong Kong Designer Toys through Thailand Exhibitions”, “Promote Hong Kong Designer Toys through Thailand Toy Expo 2024”, “Promote Hong Kong Art Toys through Indonesia Exhibition 2024” and “Promote Hong Kong Art Toys through Thailand Toy Expo 2025”. These four projects facilitated over 20 business deals and more than 370 business enquiries and contacts, and ideal selling records were made for individual participating designers. For example, a Hong Kong art toy designer sold art toys of over $0.5 million and successfully reached out an Indonesian toy agent to expand his retail business in Indonesia. In the Mainland, the CSI funded the industry to participate in “Hong Kong Creative Pavilion@China (Shenzhen) International Cultural Industry Expo and Trade Fair plus Hong Kong@Shenzhen Cultural Industry Expo”, “Hong Kong Creative Pavilion@2024 Hangzhou Cultural & Creative Industry Expo”, “China International Cartoon & Animation Festival (Hangzhou)” and “China International Animation Copyright Fair (Dongguan)”. The CCIDA set up Hong Kong pavilions in these exhibitions to promote Hong Kong’s art toy, animation, game and related industries. These four Hong Kong pavilions attracted a total of over 160 000 participants, reaching out over 1 300 business deals and more than 120 business enquiries and contacts. The eight projects obtained about $38 million of the CSI funding.

In fact, Hong Kong creators made great achievements in the global art toy industries in recent years. Their art toy characters designed and the products generated by their intellectual properties (IPs) successfully occupy a remarkable market share in markets of Hong Kong, the Mainland and overseas. Among them, Hong Kong renowned designers Lung Ka-sing and Kenny Wong created iconic art toy products, making great profits for the art toy industries. Lung also won an illustration award in Belgium, being the first Chinese designer to win this prize. Besides, Wong’s designs have collaborations with various international trendy brands for rolling out IP products.
 
(2) According to the IPD, the Locarno classification published by the World Intellectual Property Organization is the system adopted for classifying articles under the local registered designs system. There is no specific class for “artistic toy characters”, which are instead classified under Class 21 (sub-class 01) – “games and toys”. The numbers of applications and registrations under this sub-class from 2022 to 2024 are as follows:
 

  2022 2023 2024
Number of applications
(Number of designs involved (Note 1))
31
(66)
39
(79)
59
(82)
Number of registrations (Note 2) 78 76 41

Note 1: Each design application may contain one or more designs.
Note 2: Since it takes time to process applications, the number of registrations shown may not equal to the number of applications received in a particular year.
 
Other than obtaining protection for the design of an article under the registered designs system, the same may also be considered as a sign for registration under the trade marks system, or as an original artistic work protected by the copyright system (registration not required). Rights holders need to consider their overall IP protection and utilisation strategy, as well as the relevant legal requirements.

Over the years, there have been numerous examples of Hong Kong businesses transforming local cultural and creative IPs into mass-produced products. This may be done by various ways such as sales and licensing, and it also depends on the types of IPs being utilised. The Government does not have statistics in this regard.
 
(3) and (4) Different types of mega events in Hong Kong cover various areas, among which many of the events with profound IP elements are well received by the public. Events in 2024 include “100% DORAEMON & FRIENDS” Tour, Pokémon GO City Safari, PANDA GO! FEST HK, ComplexCon Hong Kong, Hypefest Hong Kong, and the annual Ani-com & Games Hong Kong that gathers animation, comics and figurines, etc. The CSTB supported these activities in different ways. As an estimate, these events attracted over five millions of participants.
 
In 2024, there were nine art toy-related projects exhibited in venues of the West Kowloon Cultural District and the Leisure and Cultural Services Department. Their average exhibition period was about 17 days. In addition, there were lots of activities relating to the theme of art toy held in different government and private venues (such as shopping malls).
 
(5) The Government has been promoting the development of the trading and commercialisation of local IPs, including various measures related to CCI.
 
In strengthening IP protection, the copyright system is an essential component of the IP regime, offering protection for original works including those in the literary and artistic fields, and is crucial to the development of the local creative industries and a knowledge-based economy. The Copyright (Amendment) Ordinance 2022 came into effect in May 2023 to enhance copyright protection in the digital environment. The IPD is also conducting a comprehensive review of the local registered design system and plans to launch a public consultation within this year to ensure that the system remains up-to-date, aligns with current international standards, and meets the needs of Hong Kong’s future economic development. Besides, the CCIDA is actively supporting cultural IP projects (including those related to art toy mentioned above) through the CSI, and driving applicants to make applications for IP protection for their cultural and creative products, formulate IP agreements and manage IP portfolios, etc. so as to assist creators in exploring business opportunities.

In enhancing capacity building, the IPD has in recent years provided more comprehensive and in-depth IP training courses and practical workshops for practitioners across various sectors, including those in the cultural and creative industries, with a target to benefit 5 000 practitioners across different industries within the current term of the Government. Besides, in collaboration with the Law Society of Hong Kong, the IPD has been providing free IP consultation services for small and medium enterprises through practising lawyers on a pro bono basis.

On promotion effort, the Hong Kong Trade Development Council (HKTDC) continues to enrich large-scale activities such as the Hong Kong International Film and TV Market, the Hong Kong International Licensing Show and the Hong Kong Book Fair in order to support local original works to exploit the Mainland and international markets. The CCIDA has also funded the HKTDC to enhance the Asia IP Exchange portal, adding a database for arts, cultural and creative IPs to facilitate potential buyers in searching for relevant information, and introducing more elements of market transaction, such as business matching events, market information and professional service packages on IP trading to foster cross-sectoral collaboration. The CCIDA will facilitate more registration of local and non-local cultural and creative products on the Asia IP Exchange portal to promote the transactions of cultural IPs. 

LCQ8: White Form Secondary Market Scheme

Source: Hong Kong Government special administrative region

     Following is a question by the Hon Gary Zhang and a written reply by the Acting Secretary for Housing, Mr Victor Tai, in the Legislative Council today (June 25):

Question: (2) of the percentage of completed transactions under WSM in the total number of flats with premium unpaid in the HOS Secondary Market in each of the past 10 years (set out in a table);

(3) of the number of Certificate of Availability for Sale issued by the HA, and the actual transaction volume of Green Form and White Form flats in the HOS Secondary Market in each of the past 10 years (set out in a table);

Immigration Department to revise fees

Source: Hong Kong Government special administrative region

Immigration Department to revise fees 
     “The Government sets and reviews various fees and charges according to the ‘cost recovery’ and ‘user pays’ principles, while fees charged by the Government should in general be set at levels adequate to recover the full cost of providing the goods or services,” the spokesman said.
 
     The latest costing review showed that the fees payable for services including the issuing of visas/entry permits and travel documents and despatch services for delivering travel documents to places outside Hong Kong are not adequate to recover the full cost of providing those services.
 
     “Taking into consideration that it is impractical to recover the full cost of all fees in one go, the fees of the services concerned will be increased by 3 per cent to 51 per cent with a view to achieving full cost recovery gradually. The fees will have little impact on the daily lives of most people and limited impact on general business activities,” the spokesman added.
 
     The Immigration Department regularly reviews the arrangements for handling various types of applications and services with a view to improving the cost-effectiveness as well as the quality of services. Measures are in place to control the cost of providing the services.
 
     The proposed legislative amendments related to the fee revisions will be tabled at the Legislative Council for negative vetting on July 2 this year. The fee revisions will take effect after completion of the necessary legislative procedures. A table setting out the existing and revised fees is in the Annex.
Issued at HKT 16:00

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Government welcomes passage of Post Secondary Colleges (Amendment) Bill 2025

Source: Hong Kong Government special administrative region – 4

The Government welcomed the passage of the Post Secondary Colleges (Amendment) Bill 2025 by the Legislative Council today (June 25), which aims to enhance the regulatory and quality assurance mechanisms of self-financing post-secondary institutions, with a view to facilitating the healthy and sustainable development of the self-financing post-secondary education sector.

The Bill amends the Post Secondary Colleges Ordinance (Cap. 320). Its three key features are: (i) reforming the regulatory regime for the self-financing post-secondary education sector to improve governance, ensuring the quality, transparency and accountability of self-financing institutions; (ii) removing barriers suitably, including rationalising the arrangements for self-financing institutions to award degrees, to enhance efficiency and effectiveness; and (iii) forging a unified regulatory framework to promote coherence in quality assurance, governance, positioning and overall co-ordination.

The Secretary for Education, Dr Choi Yuk-lin, said, “Self-financing post-secondary institutions form an integral part of the post-secondary education sector in Hong Kong. The Government has long supported the parallel development of the self-financing and publicly funded post-secondary education sectors. The passage of the Bill signifies an important milestone for the development of the self-financing sector. We envisage that the enhanced regulatory framework can further support the capacity expansion and quality enhancement of the self-financing sector, with a view to harnessing its advantages in terms of flexibility and diversity to cultivate talent for the country and Hong Kong, and make more proactive contributions towards Hong Kong’s development into an international post-secondary education hub and building China into a leading country in education.”

The Post Secondary Colleges (Amendment) Ordinance 2025 will be gazetted on July 4. Save for clauses relating to the delegation of authority to approve the award of degrees from the Chief Executive in Council to the Secretary for Education, which will come into operation on August 1, 2025, the commencement date of the other major provisions will be August 1, 2026. For relevant institutions that are not currently registered under Cap. 320, there will be a transitional period of around three years, until July 31, 2028, to complete the registration procedures. 

The Education Bureau, in collaboration with the Hong Kong Council for Accreditation of Academic and Vocational Qualifications, will continue to maintain close liaison with self-financing institutions to ensure the smooth implementation of the enhanced regulatory framework and relevant transitional arrangements.

LCQ5: Family offices

Source: Hong Kong Government special administrative region

LCQ5: Family offices 
Question:
 
     According to a consultancy study commissioned by Invest Hong Kong (InvestHK), it was estimated that around 2 700 single family offices were operating in Hong Kong as at end-2023. However, it has recently been reported that quite a number of “fake family offices” have emerged in the market and some of them may even be involved in money laundering or illegal fund-raising activities. In this connection, will the Government inform this Council:
 
(1) whether it will consider drawing up a clear official definition and establishing a regulatory regime for family offices, and stepping up regulation through legislation or administrative measures to prevent money laundering and other financial crimes; if so, of the specific details; if not, the reasons for that;
 
(2) whether it has developed corresponding monitoring mechanisms or regulatory measures when considering enhancing the preferential tax regimes for family offices and funds, so as to prevent the relevant regimes from being abused as tax avoidance tools; if so, of the specific details; if not, the reasons for that; and
 
(3) whether it has plans to provide more systematic training and accreditation schemes for professional talents to meet the demand from family offices for multi-disciplinary professionals, and whether it will regularly assess the effectiveness of the implementation of the policies relating to family offices, including market responses, economic contributions and potential risks; if so, of the specific details; if not, the reasons for that?
 
Reply:
 
President,
 
     As an international financial centre and the freest economy in the world, Hong Kong maintains an open market environment. Meanwhile, we also attach great importance to safeguarding the integrity of our financial systems by implementing international standards on anti-money laundering and counter-terrorist financing to deter and detect inward and outward flows of illicit funds.
 
     In consultation with Invest Hong Kong (InvestHK), the Inland Revenue Department (IRD), the Securities and Futures Commission (SFC) and the Hong Kong Academy for Wealth Legacy (HKAWL), my reply to the various parts of the question is as follows:
 
(1) The Government welcomes all lawful and rule-compliant family offices (FOs) to set up in Hong Kong and respects the private financial arrangement of single FOs. Regarding the regulation of investment activities of FOs, the licensing regime under the Securities and Futures Ordinance is activity-based. Generally speaking, a single FO refers to an arrangement established by members of a single family to manage the family’s assets, investments, and long-term interests. A single FO is required to apply for a licence under the Securities and Futures Ordinance if it carries on a business of regulated activity in Hong Kong, for example, providing asset and wealth management services to clients other than members of the relevant family, and to fulfil relevant code of conduct and statutory requirements applicable to licensed corporations. The above requirements are also applicable to investment companies or multi-FOs. To facilitate the industry’s understanding of the regulatory regime in Hong Kong, the SFC has issued circular on the licensing obligations of FOs and quick reference guides to provide additional guidance.
 
     In addition, professionals of various sectors providing services concerned to FOs will conduct necessary due diligence in compliance with the statutory requirements and relevant guidelines. Among others, the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615) provides that financial institutions (including banks, SFC-licensed corporations, insurance companies, money services operators, etc.) and designated non-financial businesses and professions (including solicitors, accountants, estate agents, and trust or company service providers) shall conduct customer due diligence, including identifying and verifying the identity of beneficial owners, continuously monitoring the business relationships with customers, as well as maintaining records. When service providers identify any suspicious transactions, they are also under the legal obligation to report to law enforcement agencies.
 
     Our systems and measures for combating money laundering and terrorist financing have all along adhere to international standards and best practices. We will closely monitor the risks related to money laundering and terrorist financing, as well as the developments in international standards, and will keep our systems and measures under constant review so as to safeguard the integrity and stability of Hong Kong’s financial system.
 
(2) Family-owned investment holding vehicles (FIHVs) managed by single FOs in Hong Kong fulfilling the minimum asset threshold of HK$240 million and substantial activities requirement can enjoy profits tax exemption for qualifying transactions. Currently, a series of anti-avoidance measures have been put in place for the preferential tax regimes for single FOs and funds. For example, a business undertaking for general commercial or industrial purpose is not eligible for tax concessions with a view to avoiding abuse. The tax regimes also contain the anti-round tripping provisions to prevent abuse or round-tripping by resident persons to take advantage of the profits tax exemption via a fund or FIHV. Meanwhile, the general anti-avoidance provisions of the Inland Revenue Ordinance (IRO) are also applicable to the preferential tax regimes for single FOs and funds. Through these provisions, the IRD can address any artificial or fictitious transaction, disposition that is not in fact given effect to and transaction entered into for the sole or dominant purpose of enabling a person to obtain a tax benefit.
 
     To attract more FOs and high-net-worth individuals to choose Hong Kong as a destination for wealth management, we will enhance the preferential tax regimes for funds, single FOs and carried interest, including expanding the scope of “fund” under the tax exemption regime, increasing the types of qualifying transactions eligible for tax concessions for funds and single FOs, enhancing the tax concession arrangement on the distribution of carried interest by private equity funds, etc.
 
     The Government also proposes to introduce a tax reporting mechanism under the enhanced tax regime for funds to ensure that the funds and special purpose entities meet the relevant tax exemption conditions under the IRO. The Government will continue to closely communicate with the industry on formulating the details of the tax reporting regime, and minimise the compliance burden on funds and special purpose entities under the tax reporting regime.
 
(3) The Government is committed to expanding the talent pool for wealth management and FOs to support the long-term development of the industry. We have since 2016 implemented the Pilot Programme to Enhance Talent Training for the Asset and Wealth Management Sector to nurture more industry talents. To date, over 4 700 applications for reimbursement of professional training course fees have been approved, and the Programme has provided internship opportunities for over 920 tertiary students, supporting the industry to offer more professional training and learning opportunities, thereby enhancing the professional standards of practitioners. Besides, we have included “management professionals in asset and wealth management (WAM)” and “professionals in compliance in WAM” under the Talent List since 2018 and 2021 respectively, so as to facilitate high-quality talents in these professions to pursue development in Hong Kong.
 
     The Government has also established the HKAWL in 2023 to provide a platform for collaboration, networking, knowledge sharing and talent development, and to provide relevant training for asset owners, wealth inheritors and the FO sector. In 2024-25, the HKAWL organised, co-organised, and participated in over 20 events, enabling asset owners, wealth inheritors and FO practitioners to engage in discussions and exchanges. These events brought together over 3 100 participants.
 
     The Government will maintain close communication with FOs to understand their needs, evaluate the effectiveness of relevant policies and introduce enhancements in a timely manner. For example, the New Capital Investment Entrant Scheme (New CIES) has been well-received by the industry since its launch. As of end-May this year, the New CIES has received over 1 370 applications. The current applications are expected to bring an investment amount of over HK$41 billion into Hong Kong. The Government has also implemented enhancement measures with effect from March 1 this year, allowing investment under the New CIES to be made through an eligible private company wholly owned by the applicant, creating synergy with the tax concession regime for FOs.
 
     According to the research findings of the consultant commissioned by InvestHK and publicised in March 2024, there were around 2 700 single FOs operating in Hong Kong as of end-2023. The number is expected to exceed 3 000 in the near future. Separately, since its establishment in June 2021 up to end-May this year, the dedicated FamilyOfficeHK team of InvestHK has assisted over 190 FOs to set up or expand their business in Hong Kong, and around 150 FOs have indicated that they are preparing or have decided to set up or expand their business in Hong Kong. The performance indicator to attract no less than 200 FOs to establish or expand their operations in Hong Kong by end-2025 as set out in the 2022 Policy Address is likely to be achieved.
 
     Thank you, President.
Issued at HKT 14:58

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LCQ20: Members of government advisory and statutory bodies

Source: Hong Kong Government special administrative region – 4

​Following is a question by the Hon Mrs Regina Ip and a written reply by the Secretary for Home and Youth Affairs, Miss Alice Mak, in the Legislative Council today (June 25):
 
Question:

There are views that the current practice of the Government repeatedly appointing the same group of individuals to its advisory and statutory bodies (ASBs) has failed to engage new members, including foreign nationals who are Hong Kong permanent residents. This approach runs counter to the principle stated by the State President in 2022 at the meeting to celebrate the 25th anniversary of Hong Kong’s return to the motherland and the inaugural ceremony of the sixth-term Government of the Hong Kong Special Administrative Region that everyone in Hong Kong who genuinely supports the principle of “one country, two systems”, loves Hong Kong, and abides by the Basic Law and the laws of the special administrative region, can do his or her bit for the region’s development. In this connection, will the Government inform this Council:

(1) of the respective numbers of non-official members serving on various government ASBs in each of the past 10 years, together with a breakdown by ASB;
 
(2) of (i) the number of non-official members appointed by the Government in each of the past 10 years and, among them, the respective numbers of those who were (ii) re-appointed and (iii) appointed for the first time;

(3) of the respective numbers of (i) foreign nationals being Hong Kong permanent residents, (ii) ethnic minorities holding Chinese nationality, and (iii) other foreign nationals being non-Hong Kong permanent residents who were appointed by the Government as non-official members of ASBs in each of the past 10 years, together with a breakdown by the ASB to which they belonged;
 
(4) as there are views that foreign nationals who are Hong Kong permanent residents have unique advantages (e.g. enhancing the Government’s understanding of the Islamic culture so as to attract Islamic tourists to visit Hong Kong, etc.) in assisting the Government in taking forward policy initiatives under specific portfolios, but such persons are often excluded from the lists of candidates for non-official members due to their illiteracy in Chinese, what specific measures the Government has put in place to enhance the participation of such persons in ASBs;

(5) given that the Government has all along been adopting the “six-year rule” (i.e. a non-official member should not serve on the same ASB in the same capacity for more than six consecutive or cumulative years) and the “six-board rule” (i.e. a non-official member should not serve on more than six ASBs at any one time), so as to ensure a reasonable turnover of members and distribution of work, yet as at June 30 last year, 12 non-official members have been appointed to more than six ASBs and 227 non-official members have served in the same capacity of an ASB for over six years, of (i) the average number of ASBs to which such persons have been appointed as non-official members, (ii) the highest number of appointment as non-official members made to such persons, (iii) the average duration of such persons serving in the same capacity in an ASB, and (iv) the maximum duration of such persons serving in the same capacity in an ASB; whether the Government has assessed if the appointments concerned have violated the six-year rule; and
 
(6) given that in its reply to a question raised by a Member of this Council on 3 July, 2024, the Government indicated that some non-official members also possessed experiences in other professional areas and these diverse experiences enhanced and broadened the discussion at ASBs, but there were views that these diverse experiences might constitute potential conflicts of interest, how the Government ensures that the business undertaken by such persons in their professional areas does not constitute a direct conflict of interest with the duties of the relevant ASBs when appointing non-official members to ASBs?

Reply:
 
President,

Advisory and statutory bodies (ASBs), being an integral part of public administration, play a significant role in assisting the Government in the consultation with stakeholders, formulation of policy objectives and performance of functions. There are currently 525 ASBs in Hong Kong, including advisory boards and committees, appeal boards, public bodies and regulatory bodies, etc.
 
In response to the question raised by the Hon Mrs Regina Ip, the reply is as follows:
 
(1) From 2015 to 2024, the number of non-official members appointed by the Government to ASBs is as follows:
 

Year Number of Appointed Non-official Members
(by post)
2015 6 433
2016 6 407
2017 6 653
2018 6 939
2019 7 030
2020 7 135
2021 7 195
2022 7 099
2023 7 281
2024 7 480

Note: Figures for 2015 to 2023 are as of December 31, and the figure for 2024 is as of June 30.

​Given that the functions or work of individual ASBs may be dissolved, merged or reorganised in response to the development needs of different policy areas, the number of ASBs varies each year. Besides, the scope of functions of some ASBs may be adjusted, making it difficult to ensure that long-term comparisons based on individual ASBs could accurately reflect the overall changes in the Government’s appointment of non-official members. In light of the above, the number of non-official members by ASBs since the current term of the Government from 2022 to 2024 is provided (at Annexes 1 to 3) for more timely reference.

(2)  Furthermore, as the composition and appointment of members of individual ASBs are taken care of by the respective bureaux and departments (B/Ds), we do not compile and maintain breakdown figures for non-official members reappointed and those newly appointed.
 
(3) The Central Personality Index maintained by the Home and Youth Affairs Bureau (HYAB) contains personal information of most members of ASBs. Since personal information is voluntarily provided by individual members and we do not mandatorily require them to provide nationality details, the HYAB is unable to provide figures on the nationality and ethnicity of non-official members of ASBs.

(4) The basic principle of the appointments of individuals by the Government as non-official members to ASBs is “merits”, so as to ensure that the appointed members are the most suitable candidates who are capable of meeting the specific requirements of the ASBs and will actively participate in their work. When making an appointment, the relevant B/Ds will take into account the candidate’s ability, expertise, experience, integrity and commitment to public service, with due regard to the functions and nature of the business of the ASB concerned. For statutory bodies, it is also necessary to take into account the relevant statutory requirements. Since the objectives, functions and nature of individual ASBs are different, the respective B/Ds are responsible for taking care of the composition, operation and appointment of members of respective ASBs. In addition to taking into account the operational needs of the ASBs under their purview, B/Ds will also consider appointing individuals with diverse backgrounds and experiences, including Hong Kong permanent residents of foreign nationalities, ethnic minorities, or those familiar with Islamic culture, to ensure that the ASBs can effectively fulfil their duties while providing opportunities for individuals from different sectors of the community to participate in public service.

(5) According to relevant government guidelines, under the principle of appointment based on “merits”, B/Ds should, as far as possible, avoid non-official members to serve on more than six ASBs at any one time, or to serve in the same ASB for more than six years whether continuously or cumulatively in the same capacity, so as to ensure a reasonable distribution of workload and turnover of membership. Generally, B/Ds will adhere to these guidelines as far as possible when making appointments. However, there are instances where, based on actual needs, individuals may serve on more than six committees or have their terms extended beyond six years. As at June 30, 2024, 12 non-official members who were appointed to more than six ASBs served in approximately seven ASBs on average, with the highest number of appointments being eight ASBs. As for 227 non-official members who had served in the same capacity in ASBs for more than six years, the average tenure in the same capacity is 8.5 years, with the longest tenure being 37 years. It is worth noting that the appointment arrangement is based on the background of the establishment of relevant statutory body, which is related to commemorating the late husband of the member, representing a special exception.
 
(6) The Government has established a mechanism for handling situations involving conflicts of interest which may be faced by members of ASBs. While some statutory bodies have a declaration of interest system which is specified in their enabling legislation, two different systems for declaring interests, namely a “one-tier reporting system” and a “two-tier reporting system” are in place for ASBs. Under the “one-tier reporting system”, it is the responsibility of each member to judge and decide whether he/she should declare his/her interests, and members should declare interests in the meetings of the boards or committees during which the matters concerned are discussed and determined. For the “two-tier reporting system”, members should declare their interests on appointment to those boards and committees, in addition to the declaration of interests in meetings. Such declarations should be recorded. The B/Ds concerned should decide which system of declaration of interests is to be adopted having regard to the terms of reference of the ASBs concerned.
 
The HYAB has issued guidelines on declaration of interests on the recommendation of the Independent Commission Against Corruption for adoption by ASBs, and reminds B/Ds now and then that it is necessary to introduce a system of declaration of interests for each of the ASBs under their purview and to review from time to time the systems of declaration of interests adopted by the bodies concerned, in order to ensure that the systems meet their needs.
 
Appointing individuals of different professional areas to various ASBs under the principle of merits has, over the years, provided the Government with valuable insights in formulating various policies and measures, which have proven effective in practice. We believe that the aforementioned mechanism can effectively address actual or potential conflict of interest.