Source: Hong Kong Government special administrative region
Exchange Fund Position at end-December 2025 The Exchange Fund recorded an investment income of HK$331.0 billion in 2025. The main components were: Fees on placements by the Fiscal Reserves and placements by the Hong Kong Special Administrative Region (HKSAR) Government funds and statutory bodies were HK$16.5 billion (Note 3) and HK$14.7 billion respectively in 2025, with the rate of fee payment at 4.4 per cent for 2025.
The Abridged Balance Sheet shows that the total assets of the Exchange Fund increased by HK$70.4 billion, from HK$4,081.0 billion at the end of 2024 to HK$4,151.4 billion at the end of 2025. Accumulated surplus stood at HK$936.1 billion at end-December 2025.
The Exchange Fund recorded an investment return of 8.0 per cent in 2025 (Note 4). Specifically, the Investment Portfolio achieved a rate of return of 12.4 per cent and the Backing Portfolio gained 5.2 per cent. The Long-Term Growth Portfolio (LTGP) recorded an annualised internal rate of return of 11.2 per cent since its inception in 2009 up to the end of September 2025.
Commenting on the performance of the Exchange Fund in 2025, the Chief Executive of the HKMA, Mr Eddie Yue, said, “The global financial markets experienced significant volatility in the first half of 2025 due to factors such as trade conflicts and geopolitical tensions. In particular, following the announcement of a series of tariff measures by the US Government in early April, global equity and bond markets fell sharply. As we entered the second half of the year, the investment environment improved notably, bolstered by the smaller-than-expected impact from trade conflicts as well as the swift advancement of artificial intelligence technology which attracted investment flows. Policy rate cuts by major central banks during the year also helped boost market sentiment.
“Overall, the global financial markets showed strong resilience in 2025. Major stock markets saw broad-based gains, with many of them setting record highs. The S&P 500 finished the year up 16 per cent. Benefitting from capital inflows into the Hong Kong stock market, the Hang Seng Index rose by 28 per cent in 2025. The US Treasuries also performed decently on the back of the US Federal Reserve’s rate cuts. On foreign exchange, the US dollar depreciated by approximately 9 per cent against other major currencies.
“Against this backdrop, the Exchange Fund’s investment income in 2025 was a record high. Its bond and equity holdings, and the LTGP all achieved positive returns. The Exchange Fund also registered a positive currency translation effect on its non-Hong Kong dollar assets due to the weakening of the US dollar.
“It is exceptional for all main components of the Exchange Fund to record positive returns in a single year. This has occurred only two times over the past 15 years in 2017 and 2020. In addition, the investment of the Exchange Fund entails costs and expenses, such as fees on placements by the Fiscal Reserves and by the HKSAR Government funds and statutory bodies, as well as interest payment on Exchange Fund Bills and Notes and other expenses.”
Mr Yue said, “The exceptional confluence of multiple favourable factors in the global financial markets in 2025 may not last for a long time. Looking ahead to 2026, factors such as global economic conditions, monetary policies of major central banks, developments in artificial intelligence, and geopolitical conflicts could affect the performance of financial markets. Should market conditions deteriorate, the financial markets could fluctuate significantly.
“In the face of the complex and volatile investment environment, the HKMA will continue to adhere to the principle of capital preservation first while maintaining long-term growth. We will continue to manage the Exchange Fund with prudence and flexibility, implement appropriate defensive measures, and maintain a high degree of liquidity. We will also continue our investment diversification to strive for higher long-term returns, and ensure that the Exchange Fund remains effective in achieving its purpose of maintaining monetary and financial stability of Hong Kong.”
Note 1: This is primarily the effect of translating foreign currency assets into Hong Kong dollar after deducting the portion for currency hedging. Note 2: This is the valuation change of investments held by investment holding subsidiaries of the Exchange Fund. This figure reflects the valuations at the end of September 2025. Valuation changes of these investments from October to December are not yet available. Note 3: This does not include the 2025 fee payment to the Future Fund because such amount will only be published when the composite rate for 2025 is available. Note 4: This return excludes the performance of the Strategic Portfolio and only includes the performance of LTGP up to the end of September 2025. The audited full year return will be published in the 2025 annual report. Issued at HKT 17:00
Source: Hong Kong Government special administrative region
LCQ8: Water seepage problems in public housing
Year Among the cases being processed as of 2025, 419 were received after November 2025 and are still being processed mainly because the property owners could not cater inspection arrangements or repair schedules. There are no cases remained unsolved for an extended period of time. Over 60 per cent of the cases were found in estates built over thirty years ago, with the source of leakage most commonly found on bathroom floor surfaces or walls. The primary causes include ageing of waterproofing layers, natural deterioration of building materials, or damage to waterproofing layers or pipes during renovations arranged by tenants. The HKHA will generally re-lay waterproofing layers to affected areas to resolve the issue. The HD will continue to actively co-ordinate inspection and repair arrangements and facilitate successful completion of cases by enforcement measures.
Furthermore, to facilitate the smooth handling of water seepage or leakage issues, the HD will enforce the Marking Scheme for Estate Management Enforcement against PRH tenants who refuse to co-operate with inspections or repairs. Under this Scheme, refusal to allow the HKHA or its authorised representatives to conduct leakage inspections or carry out works within their units will incur a deduction of seven points. Over the past three years, the HD has deducted points from 21 PRH tenants for the aforesaid reason.
Year The majority of the aforementioned cases about SSF involved minor issues, such as debris left in window frames during construction or adjustments to window hinges affecting the seal, leading to slight water seepage in winds and rains, etc. No serious problem was found, and all cases were resolved. Given the minor nature of the required repairs, over 90 per cent of the cases were completed within seven days after the arrangement of repairs was confirmed. The remaining individual cases were basically completed within 14 days.
(3) and (4) The HKHA has always placed great emphasis on the construction quality of public housing and maintains a rigorous system for monitoring contractors’ workmanship. The Specification Library issued by the HD stipulates the building materials and workmanship specifications; testing methods; and acceptance standards under new development works contracts. The HKHA requires contractors to complete works in accordance with approved quality standards and contractual provisions regarding workmanship and building materials prior to handover. For all newly completed public housing units, the HD conducts watertightness tests on windows by nozzles with pressure from the outside, as well as simulated shower spray tests on waterproof areas in bathrooms. In response to recent concerns about water seepage through pipe sleeves penetrating walls, we have enhanced the existing acceptance procedures by adding watertightness tests by nozzles with pressure for pipe sleeves and random inspections prior to project completion and handover. Furthermore, additional random inspections are conducted on pipe sleeves for each project to thoroughly inspect whether the packing around the sleeves is fully filled, thereby strengthening quality control and eradicating instances of water seepage.Issued at HKT 16:54
Source: Hong Kong Government special administrative region
Major Sports Events Committee awards “M” Mark status to “World Grand Prix 2026” The Major Sports Events Committee (MSEC) has awarded “M” Mark status to the “World Grand Prix 2026” to be held from February 3 to 8 at the Kai Tak Arena.
The Chairman of the MSEC, Mr Wilfred Ng, said today (January 28), “The ‘World Grand Prix’ is only open to the top 32 ranked professional players in the world, of which its level of play and excitement are beyond doubt. Hence, it has once again been awarded with ‘M’ Mark status. The event not only provides snooker enthusiasts with the opportunity to appreciate the performances of world-class players closely, but also further promotes the development of snooker in Hong Kong.” For details of “M” Mark events, please visit www.mevents.org.hkIssued at HKT 16:00
Source: Hong Kong Government special administrative region
Following is a question by the Hon Sunny Tan and a written reply by the Secretary for Commerce and Economic Development, Mr Algernon Yau, in the Legislative Council today (January 28):
Question:
In April last year, the Hong Kong Export Credit Insurance Corporation introduced three enhanced measures (which included (i) extending the free pre-shipment cover for holders of the Small Business Policy (SBP) which is tailor-made for small and medium enterprises until June 30, 2026; (ii) offering a 50 per cent discount on pre-shipment risks to cover premiums for non-SBP holders; and (iii) reducing the premium rates for new markets) to support the export trade in Hong Kong and help enterprises in expediting expansion into new markets. In this connection, will the Government inform this Council:
(1) whether it has assessed the effectiveness of the above three enhanced measures since their implementation (including the number of Hong Kong enterprises that have benefited); given that the validity period of support measure mentioned in (i) above expires on June 30 this year, whether the authorities will appropriately optimise and extend the implementation period of these support measures in light of the current global economic uncertainty; if so, of the details; if not, the reasons for that; President,
Source: Hong Kong Government special administrative region
Following is a question by Dr the Hon Johnny Ng and a written reply by the Secretary for Security, Mr Tang Ping-keung, in the Legislative Council today (January 28):
Question:
The fire at Wang Fuk Court in Tai Po resulted in serious casualties, prompting public concern over whether existing fire service facilities and firefighting equipment are adequate to tackle fires in high-rise buildings. In this connection, will the Government inform this Council:
(1) whether it has assessed the adequacy of existing firefighting equipment of the Hong Kong Fire Services Department (FSD) for tackling No. 5 alarm fires and fires in high-rise buildings, and of the respective types and quantities of such equipment;
(2) given that during the debate on “Motion on support and rebuilding work after the fire at Wang Fuk Court in Tai Po” in this Council on the 14th of this month, the Government indicated that it was conducting a comprehensive review of the provision of personal equipment of fire personnel and other fire service equipment, with a view to enhancing rescue efficiency through new technologies, of the specific measures and timetable of the work concerned; whether the authorities will consider increasing funding for the FSD’s acquisition of more technological equipment to respond to large-scale fires and other disasters; and
(3) given the view that, as FSD’s Aerial Ladder Platforms and Turntable Ladders struggle to reach higher floors, the tackling of fires in high-rise buildings should primarily rely on internal fire service equipment, supplemented by external disaster relief, and that internal firefighting equipment and evacuation facilities (including fire alarm systems, automatic firefighting equipment, manual firefighting equipment, planning of fire and smoke compartmentation and escape and refuge facilities) become even more crucial, how the authorities will enhance the specifications and requirements for fire prevention and disaster prevention equipment in high-rise buildings, and strengthen inspections and prosecutions?
Reply:
President,
The fire at Wang Fuk Court in Tai Po has left us with painful lessons. The Government immediately established the Task Force on Strengthening Fire Safety Governance (Task Force) in the wake of the fire, with the aim of preventing any recurrence of similar tragic events. The Task Force has implemented targeted immediate measures and formulated medium to long-term initiatives, including a comprehensive review of the deployment of the fire service equipment, and the effective use of technology to enhance fire safety. Meanwhile, the Fire Services Department (FSD) has set up a steering committee to conduct comprehensive review of major fire incidents, encompassing aspects such as the command regime, firefighting and rescue strategies, personnel gears, appliances and tools, applications of technology, and fire service installations and equipment in buildings, etc, with a view to continuously enhancing response mechanisms at both operational and systemic levels. (1) The FSD currently has about 700 operational fire appliances, including Hydraulic Platforms, Major Pumps, Light Rescue Units and Turntable Ladders, as well as other supporting vehicles, over 500 ambulances and 32 fire vessels, distributed among 86 fire stations, 45 ambulance depots, 4 fireboat stations, 2 fireboat bases, 2 sea rescue berths and 2 diving bases. Every type of fire appliance is fitted with different types of firefighting and rescue tools and equipment to respond to various building fires and special service incidents. The FSD also has four specialised teams provided with special appliances and equipment that can be dispatched to the scene to provide support based on different situations. The four specialised teams are Compartment Fire Behaviour Specialist Team, HazMat Team, Disaster Response and Rescue Team and High Angle Rescue Team. In general, the FSD dispatches fire appliances, personnel and various types of equipment to attend fire incidents in accordance with the pre-determined attendance (PDA) of a fire incident. For example, the FSD will deploy 26 fire appliances and ambulances under the PDA for a No. 5 alarm fire. In the fire incident at Wang Fuk Court, following an assessment of the situation at the fire scene, 221 firefighting vehicles were dispatched, equivalent to nine times the PDA for a No. 5 alarm fire. This demonstrated that there were sufficient personnel and equipment on site to handle the incident. Regarding personal equipment for fire personnel, the FSD introduced a new breathing apparatus in January this year. These new units are equipped with communication assistive devices that provide a short-range communication system and in-mask audio reception, improving communication clarity at fire scenes and strengthening team co-ordination. The new breathing apparatus also feature quick-release connectors, enabling faster replacement of compressed air cylinders and improving operational efficiency. In addition, they are equipped with a built-in air-sharing system, allowing team members to rapidly supply air to colleagues in need on the fire grounds without requiring additional tools, thus strengthening rescue capability.
Meanwhile, the FSD is studying the introduction of an electronic entry control board system to assist Entry Control Officers in managing the records of breathing apparatus teams entering and exiting the fire grounds more effectively. The system will digitise records and enhance data accuracy. Furthermore, the electronic control board will display real-time operational data of the breathing apparatus, enabling Entry Control Officers to monitor team status at all times, thereby further safeguarding frontline personnel and enhancing overall operational efficiency. The relevant operational data will be stored for use in post-incident analysis.
In terms of drone applications in fire incidents, the FSD’s Unmanned Aircraft System (UAS) Team currently deploys drones equipped with live-streaming and thermal imaging capabilities to analyse the fire scene situation. These drones are supplemented by artificial intelligence to identify individuals awaiting rescue. In addition, drones are used to provide high-altitude illumination during night time. This plays an important supporting role in frontline firefighting operations. Taking the fire at Wang Fuk Court as an example, the FSD deployed its own reconnaissance drones, supplemented by those borrowed from Guangdong Province, to gain real-time insights into the fire scene for analysis. Simultaneously, these drones provided additional high-altitude illumination during night time to assist firefighting operations.
Moreover, the FSD is actively exploring the relevant technologies and applications of firefighting drones. At present, both in Hong Kong and on the Mainland, firefighting drones remain in the experimental stage and have not yet developed to a point where they can be applied in actual fire scenes. The FSD is maintaining close contact with the Mainland fire services departments and drone manufacturers, and is actively conducting relevant field tests with drone manufacturers in Hong Kong. It is hoped that once the technology has matured and been proven safe and feasible, Hong Kong will be among the first to deploy drones for firefighting operations.
Moreover, the FSD actively introduces and utilises various smart firefighting equipment to enhance effectiveness in firefighting and rescue operations. Currently, the FSD has introduced a new lightweight firefighting robot, which is undergoing functional testing. This robot can access high-risk areas inaccessible to fire services personnel to carry out operations, with both its size and weight significantly reduced compared to existing models. It can be deployed flexibly in diverse environments, such as confined spaces, to effectively carry out firefighting operations.
In parallel, the Fire Services Department is trialing a new model of mini thermal imaging camera. This device enhances firefighters’ visibility within smoke-filled fire scenes, aiding in the clear identification of fire sources, trapped individuals and environmental hazards. Compared to previous equipment, its design is more lightweight and portable, significantly reducing operational strain on firefighters. This enables them to maintain greater mobility and endurance within fire scenes, thereby further enhancing operational efficiency and personnel safety.
The FSD will continue to actively monitor the latest trends in various advanced firefighting equipment, introducing relevant equipment that is technically mature, safe and feasible where appropriate, so as to enhance firefighting and rescue effectiveness. The FSD has set aside financial resources for this purpose and will seek funding from the Legislative Council in accordance with established procedures if necessary.
(3) In general, the FSD formulates requirements for fire service installations and equipment in buildings based on their intended use and height. Certain high-rise buildings (including hotels, high-rise commercial buildings, high-rise industrial/godown buildings, and high-rise hospitals and sanatoria) may be required to install a staircase pressurisation system depending on their design and intended use, to prevent the discharge of smoke into the staircase to ensure that residents have a safe means of escape. On the other hand, residential flats with open kitchen design must be equipped with sprinkler systems as automatic firefighting equipment. Where domestic buildings are inaccessible to fire service vehicles, sprinkler systems must also be installed to enhance their fire safety standards. The requirement for sprinkler systems also applies to most high-rise non-domestic buildings.
Furthermore, the Buildings Department stipulates that every building must be provided with sufficient means of access for firefighting and rescue. These include an adequate number of access staircases, fireman’s lifts and firefighting and rescue stairways capable of withstanding fire and smoke for a specified duration, enabling fire services personnel to access all floors of the building in the event of a fire.
Currently, Hong Kong’s specifications and requirements for fire prevention and disaster prevention equipment in high-rise buildings are on par with those of the Chinese Mainland or other advanced countries. To enhance firefighting and rescue efficiency, the FSD is reviewing the requirements for fire service installations and equipment in high-rise buildings with reference to the latest developments in the Chinese Mainland and around the world, ensuring timely updates to the relevant specifications and requirements, thereby enhancing the overall fire safety of high-rise buildings. For example, the FSD is actively considering requiring the provision of firefighting and rescue tools on refuge floors, such as delivery hoses, nozzles, light portable pumps, rescue breathing aids and smoke hoods.
On the other hand, the FSD is actively encouraging citizens to use portable fire equipment in domestic premises to enhance early fire warning and self-rescue capabilities, thereby enhancing home fire safety. The FSD has upgraded the existing “three treasures for fire protection” (i.e. fire extinguishers, fire blankets and stand-alone fire detectors) into the “disaster and emergency preparedness kit” by adding smoke hoods. It is estimated that 300 “disaster and emergency preparedness kits” will be distributed to each district in 2026.
Regarding inspections and enforcement, the FSD continues to strengthen risk-based inspection and enforcement operations, with particular focus on high-risk buildings, such as those with poor management. For example, since January 19, the FSD has launched the operation outpost of the first phase of the risk-based inspection programme for fire service installations in buildings, targeting approximately 1 500 high‑risk buildings. The operation will involve inspections and functional testing, with particular focus on the performance of fire alarm systems. If any fire service installations are found not to be in efficient working order, the FSD will require responsible persons to take immediate remedial measures and will take enforcement actions against the irregularities to ensure public safety.
The Department of Health announced today that it has referred to law enforcement agencies the case of a Dental House Officer (DHO) suspected of gaining unauthorised access to patients’ medical records.
The department revealed that an enquiry from a member of the public had been referred it by the Electronic Health Record Registration Office. The enquiry was prompted by an SMS notification about his electronic health records being accessed by a healthcare officer from the department despite the fact he had not used any of the department’s services recently.
Preliminary investigations by the department revealed that a DHO employed under non-civil service terms had repeatedly accessed the electronic medical records of 16 individuals without their consent. None of the individuals were the DHO’s patients, but he claimed to know them.
The department has reported the case to the Office of the Privacy Commissioner for Personal Data, the Commissioner for Electronic Health Record and the Dental Council of Hong Kong, and has notified the individuals affected. The DHO has been suspended from duty.
To prevent similar incidents from reoccurring, the department said it will review and optimise internal system security measures.
It has also reminded all staff and healthcare personnel to strictly observe internal guidelines on information technology security and the use of eHealth.
The department said it attaches great importance to the conduct and integrity of its staff, including contract staff. It elaborated that in cases where employees are suspected of misconduct, thorough investigations will be conducted, with all cases being impartially.
The event will be held from February 3 to 8 at the Kai Tak Arena.
Committee Chairman Wilfred Ng said the high level of cuemanship in store and the excitement around the event are not in doubt, as the World Grand Prix is only open to the 32 top-ranked snooker professional players in the world.
He added that the event not only gives snooker enthusiasts the opportunity to watch world-class players perform, but also promotes the further development of snooker in Hong Kong.
Director General David Cheng-Wei Wu and Mrs. Wu attended the Sydney event of Taiwan’s first cross-border ban-doh reality programme, Have a Seat, marking a milestone in the international promotion of Taiwanese culinary culture.
In his remarks, Director General Wu noted that while Taiwan is globally recognised for its world-class semiconductor industry, it also possesses strong soft power rooted in its people, cultural diversity, and vibrant food culture. He highlighted the event as an example of using cuisine as a cultural bridge to deepen Taiwan–Australia exchange and people-to-people engagement.
Ban-doh embodies the spirit of sharing through food and conversation. Held in Australia for the first time, the event took place at Sydney Harbour with the Sydney Opera House as its backdrop, offering Australian guests an authentic experience of Taiwanese cuisine in an iconic public setting and showcasing the openness and warmth of Taiwanese culture.
Director General David Cheng-Wei Wu welcomed the hosts and production team of the Taiwanese programme A Table for the World during their visit to Sydney, where they shared plans to engage with local communities in Australia through food, culture, and people-to-people exchange under the Sydney sky.
Director General Wu noted that culinary culture is an important vehicle for cultural diplomacy, fostering mutual understanding and friendship across borders. He welcomed initiatives that highlight Taiwan’s openness, creativity, and warmth, and expressed appreciation for the programme’s efforts to strengthen cultural connections between Taiwan and Australia through shared dining experiences.
The Trade & Industry Department announced today that the Investment Promotion & Protection Agreement (IPPA) signed between Hong Kong and Türkiye will enter into force on February 4.
Secretary for Commerce & Economic Development Algernon Yau said the IPPA will enhance investor confidence and expand investment flows between Hong Kong and Türkiye by providing additional assurance for investment protection, which will benefit the economic development of both places.
Under the IPPA, both governments commit to providing investors from the other side with fair, equitable and non-discriminatory treatment, compensation for expropriated investments, and the right to freely transfer investments and returns abroad.
The agreement also provides for the settlement of investment disputes under internationally accepted rules, including arbitration.
Mr Yau said the Government is dedicated to expanding Hong Kong’s global economic and trade networks. It has been actively seeking to sign IPPAs or free trade agreements with emerging markets including potential partners in the Middle East and other regions under the Belt & Road Initiative.
“We have largely concluded the IPPA negotiations with Qatar, and good progress has been made for the one with Peru. Meanwhile, we are exploring the signing of IPPAs with Bangladesh, Egypt and Saudi Arabia,” he added.
Hong Kong has so far signed 24 IPPAs with 33 foreign economies.