SFST and financial delegation conclude visit to Suzhou and depart for Shanghai

Source: Hong Kong Government special administrative region – 4

The Secretary for Financial Services and the Treasury, Mr Christopher Hui, and the financial delegation concluded their visit to Suzhou today (June 17) and departed in the afternoon for Shanghai, where they will attend the Lujiazui Forum in the evening. During their one-day stay in Suzhou, the delegation visited two enterprises and attended two networking events. They also met with the Secretary of the CPC Suzhou Municipal Committee and the Governor of the Jiangsu Branch of the People’s Bank of China.

Upon arrival in Suzhou yesterday (June 16) at noon, Mr Hui and the delegation proceeded to a networking luncheon organised by the Financial Services and the Treasury Bureau and engaged in in-depth discussions with representatives from 14 enterprises on how Hong Kong’s investment and financing environment can support Chinese Mainland enterprises in going global as well as issues of concern to Mainland enterprises in the journey of going global. The discussion spanned a wide range of topics, such as cross-boundary financial support, international compliance requirements, cross-boundary tax planning, and the protection set-up for overseas industrial chains by establishing captive insurers. Member of the Standing Committee of the CPC Suzhou Municipal Committee and Executive Vice Mayor of the Suzhou Municipal People’s Government, Jiangsu Province, Mr Gu Haidong, and officials from the Financial Commission Office of the CPC Suzhou Municipal Committee also attended.

In his welcoming remarks, Mr Hui said, “Suzhou stands as a prominent manufacturing hub in the Yangtze River Delta. As the city launches its initiative to encourage Suzhou enterprises to go global, Hong Kong is undoubtedly your most reliable partner. We have the capabilities, expertise and global vision. We will work side by side with Suzhou enterprises in addressing challenges when they face risks or lack clear pathways in the journey of going global, supported by our wealth of professionals in finance, accounting, insurance, and legal services who are well versed in international markets and regulations. Hong Kong is well positioned to steer Suzhou enterprises through the waves as they expand overseas.”

     On the afternoon of the same day, the delegation visited Jiangsu Jinfu Digital Tech Group Company Limited and toured its key laboratories on digital finance and AI-driven financial applications in the company of its Chairman of the Board, Ms Qiu Xiaolan. They then went to Innovent Biologics Inc and met with its Senior Vice President, Mr Daniel Ding, to exchange views. The company has been listed in Hong Kong and was included in the Hang Seng Index.

In the evening, Mr Hui and the delegation attended a dinner hosted by Mr Gu.

The delegation continued its visit to Suzhou this morning. Mr Hui and the Permanent Secretary for Financial Services and the Treasury (Financial Services), Mrs Angelina Cheung, called on the Secretary of the CPC Suzhou Municipal Committee, Mr Fan Bo. They discussed and exchanged views on the needs of Suzhou enterprises expanding their businesses overseas and the support that the Hong Kong financial sector can offer.

They then joined the rest of the delegation to take part in a breakfast networking meeting with the Chairman of the Group Board, Zhongyifeng Holding Group Co Limited, Mr Gong Changyi, and Director of Zhongyifeng Holding Group, Mr Mo Lyuqun, ‎to learn about the company’s development. The company has materialised the plan to establish in Hong Kong a holding subsidiary, which will engage in integrated energy management as well as the development of related software and hardware applications. 

Before leaving Suzhou, the delegation met with the Governor of the Jiangsu Branch of the People’s Bank of China, Mr Zhou Chengjun. They engaged in discussions on fintech and e-CNY (digital renminbi), and gained hands-on experience of distinctive use cases of e-CNY.

Mr Hui and the delegation departed for Shanghai at noon today and will attend the Lujiazui Forum this evening.

LCQ7: Strengthening promotion of aerospace popular science education

Source: Hong Kong Government special administrative region

     Following is a question by Professor the Hon Michael Ngai and a written reply by the Secretary for Culture, Sports and Tourism, Miss Rosanna Law, in the Legislative Council today (June 17):
      
Question:

     Following the accomplishment of the launch mission of the country’s Shenzhou-23 manned spaceship, the payload expert from Hong Kong successfully embarked on the journey into space and became the first Hong Kong person to enter space, sparking an upsurge of interest in aerospace in the local community. There are views pointing out that the Hong Kong Space Museum (Space Museum), as a base for aerospace popular science education in Hong Kong, has enjoyed wide popularity since its renovation. However, in the face of the rapid advancement of the country’s aerospace science and technology, there remains room for further enriching and enhancing its exhibition contents and popular science activities. In this connection, will the Government inform this Council: # Ticket prices of the Space Theatre shows have been adjusted since September 1, 2024.

     According to the questionnaire surveys conducted by the LCSD in 2025, the percentages of local, Mainland and overseas visitors to the Space Museum were approximately 57 per cent, 28 per cent and 15 per cent, respectively.

LCQ2: Supporting industrial building owners in implementing fire safety improvement works

Source: Hong Kong Government special administrative region – 4

     Following is a question by the Hon Christine Fong and a reply by the Secretary for Security, Mr Tang Ping-keung, in the Legislative Council today (June 17):

Question:

     There are views that the fragmented ownership of certain industrial buildings make it difficult to co-ordinate the implementation of fire safety improvement works. In this connection, will the Government inform this Council:

(1) of the number of industrial buildings in each of the 18 districts across the territory at present, and among these industrial buildings, the number of those which are used for depositing dangerous goods;

(2) in view of the slow progress of fire safety improvement works in industrial buildings due to fragmented ownership and co-ordination difficulties, whether the Government will set up a interdepartmental “one-stop” support mechanism (e.g. a coordination task force) to proactively intervene and assist owners in resolving technical issues and tender disputes; for cases in which consensus cannot be reached for an extended period and the fire safety risks are extremely high, whether the Government will adopt an “improve first, pay later” arrangement (i.e. the Government will implement the works on behalf of the owners and then recover the costs from them), so as to safeguard public safety; and

(3) as there are views that the cost of the Internet of Things Fire Detection System (IoT FDS) capable of real-time fire monitoring is lower than that of traditional systems and that its installation is subject to fewer restrictions in terms of building structure or spatial conditions, whether the Government will consider replacing traditional fire service installations in industrial buildings with IoT FDS or other feasible solutions, and providing relevant subsidies, so as to expedite fire safety improvement works in industrial buildings?

Reply:

President,

     The Government is committed to upgrading the fire safety standards of old industrial buildings to meet modern fire safety requirements, such as requiring the buildings to install automatic sprinkler systems to provide better protection for occupants, users and visitors of the buildings. For this, the Fire Safety (Industrial Buildings) Ordinance (Cap. 636) (the Ordinance) came into operation on June 19, 2020. As the enforcement authorities (EAs) for the Ordinance, the Fire Services Department (FSD) and the Buildings Department (BD) will conduct in an orderly manner joint inspections of old industrial buildings constructed before March 1, 1987, or with the building plans first submitted to the Building Authority for approval before that day (target industrial buildings), and issue Fire Safety Directions (Directions) based on the actual conditions of the buildings and require the owners and/or occupants to upgrade the fire service installations and equipment and fire safety construction of the buildings concerned to the required standard.

     Having consulted the Development Bureau, the reply to the questions raised by the Hon Christine Fong is as follows:

(1) The number of industrial buildings and the number of industrial buildings storing dangerous goods in the 18 districts across the territory, according to the records of the FSD and the BD, are provided in the Annex. 

(2) To assist owners and occupants of old buildings to comply with the statutory requirements for fire protection, the FSD has developed a “one-stop” support network. The FSD established the first Building Improvement Support Centre (BISC) in Kowloon in December 2023, and one BISC each on Hong Kong Island and in the New Territories in June 2025, so as to provide one-stop support and consultation services. Starting from the issuance of the Directions up till the improvement works are completed and the legislative requirements are fully met, the BISCs provide end-to-end support. The services being offered include the explanation of the legislative requirements, facilitation of plan approval and arrangement of acceptance inspections, assistance in applying for subsidies and loans, as well as referral of cases to relevant departments for follow-up. These services enable owners to understand the options and procedures for complying with the Directions, making it easier for them to come up with a suitable compliance plan among the owners themselves.  Taking the target industrial buildings as an example, the BISCs can help the owners apply for the BD’s Building Safety Loan Scheme if they need financial support for the required fire safety improvement works.

     As for defaulted works, unlike the situation where owners of some old composite and domestic buildings find it difficult to comply with the Directions due to the lack of co-ordination capacity, industrial buildings are mostly operated on a business basis, and their owners are predominantly registered companies and business investors who have handled contracts, finance and project management in daily operations with organisational capacity generally higher than that of minority property owners of residential buildings. In fact, since the implementation of the Ordinance in 2020, fire safety improvement works in target industrial buildings have generally made good progress. As at the end of May 2026, 91 per cent of the Directions issued by the FSD to individual units in target industrial buildings had been complied with. Therefore, the Government considers that there is currently no urgent need to introduce defaulted works for the target industrial buildings.

     Moreover, if the Directions are not complied with without any reasonable excuse, the EAs may apply to a magistrate for a Fire Safety Compliance Order to compel the completion of the works within a specified period. If compliance is yet to be found by the deadline, the EAs may further apply for a Prohibition Order to prohibit the use of the building or part thereof.

     On the other hand, if the FSD identifies an imminent fire hazard in an industrial building, it may issue a Fire Hazard Abatement Notice to require the abatement of the fire hazard within a specified period. If the requirement is not complied with, the FSD may take direct action to abate the fire hazard and recover the costs so incurred, or apply to a magistrate for a Fire Hazard Order to compel the party concerned to abate the fire hazard within a specified period, or even apply for a Prohibition Order to prohibit the use of the building or part thereof.

     The Government will continue to closely monitor the implementation of the Ordinance and adopt a multi-pronged approach to encourage the owners to comply with the relevant requirements as soon as possible. 

(3) The FSD launched the Pilot Scheme on the Internet of Things Fire Detection System (IoT FDS) at the end of 2025 and installed the IoT FDS in 10 selected old composite buildings of six or less storeys across the territory, with a view to assessing its feasibility and effectiveness. The buildings concerned are exempted from the installation of fire service equipment such as fire hose reels, fire water tanks and water pumps, thereby assisting owners to comply with the Directions more readily. During the trial period, the IoT FDS demonstrated reliable performance and stable operation, with no false alarm recorded. In view of the satisfactory results that met the expectations, the FSD has accepted the IoT FDS and portable fire extinguishers as an alternative solution in lieu of hose reels and manual fire alarm systems in composite and domestic buildings of six or less storeys regulated under the Fire Safety (Buildings) Ordinance. 

     Meanwhile, the FSD is exploring the technical feasibility of extending the system to composite and domestic buildings of seven or more storeys regulated under the Fire Safety (Buildings) Ordinance.

     As for target industrial buildings, since their fire risks are higher and their fire safety requirements differ from those of composite and domestic buildings, such as the mandatory installation of an automatic sprinkler system throughout the entire building, the IoT FDS therefore cannot be used as an alternative solution at this stage. Nevertheless, the FSD will encourage voluntary installation of the system in industrial buildings and other suitable buildings to further enhance the overall fire safety standards. The FSD will also continue to explore other facilitation measures to assist owners of target industrial buildings in complying with the Directions.

LCQ9: Promoting development of multi-destination tourism

Source: Hong Kong Government special administrative region

LCQ9: Promoting development of multi-destination tourism 
Question:
 
     The Development Blueprint for Hong Kong’s Tourism Industry 2.0 sets out the vision and mission for Hong Kong’s tourism industry and puts forward four positioning, including strengthening the role of Hong Kong as an international tourism hub and a core demonstration zone for multi-destination tourism. In this connection, will the Government inform this Council:
 
(1) of the following information about the non-Mainland visitor arrivals to Hong Kong totalling approximately 12.06 million in 2025: (i) the number of visitor arrivals entering Hong Kong via the Hong Kong International Airport (HKIA) and by cruise and their nationalities, and among which, the number of passenger trips to the Mainland via Hong Kong; and (ii) the number of non-Mainland visitor arrivals entering Hong Kong from the Mainland via the HKIA or the sea, land and air control points of the Mainland and their nationalities, and among which, the number of outbound passenger trips from the Mainland via Hong Kong;
 
(2) given that China has implemented the “240-hour visa-free transit” policy (the visa-free transit policy) for 55 countries with effect from November 5, 2025, and the Hong Kong-Zhuhai-Macao Bridge and the West Kowloon Station of the Guangzhou-Shenzhen-Hong Kong Express Rail Link have become the eligible ports for entry under the visa-free transit policy, of the respective numbers of outbound and inbound passenger trips made from and to the Mainland under the visa-free transit policy in each month since implementation of the policy and the nationalities of these passengers, and set out the relevant information in tabular form;
 
(3) to further facilitate visitors around the world to travel to and from the Mainland via Hong Kong, whether the Government has striven for the Mainland authorities’ inclusion of land boundary control points, such as the Shenzhen Bay Port, Huanggang Port and Luohu Port, as eligible ports under the visa-free transit policy; if so, of the details; if not, the reasons for that;
 
(4) given the optimised implementation of the 144-hour visa-exemption policy for foreign group tours entering Guangdong from Hong Kong under the Mainland and Hong Kong Closer Economic Partnership Arrangement since March 2025, whether the authorities have continuously explored ways to extend such facilitation arrangements to cities outside the Guangdong Province and studied the extension of the period allowed to stay to 240 hours to align with the visa-free transit policy; if so, of the details, if not, the reasons for that;
 
(5) there are views that given the absence of any convenient mechanism in the Mainland for purchasing group tickets of the Express Rail Link (XRL) at present, it is difficult for overseas travel agencies to plan the XRL trips and develop multi-destination tourism products, whether the authorities have proactively discussed with the National Railway Administration the establishment of a direct booking channel for the XRL group tickets for Hong Kong travel agencies to streamline the ticketing process; if so, of the details; if not, the reasons for that;
 
(6) whether the authorities have any plans to encourage the industry to “go global and bring in” by entering new source markets to engage with local governments and industry counterparts, and establishing government-to-government and industry-to-industry ties, with a view to jointly developing multi-destination tourism products; if so, of the details; if not, the reasons for that; and
 
(7) to promote multi-destination tourism, whether the authorities will strengthen co-operation with three core and prominent hubs, i.e. Beijing, Shanghai, and Guangzhou, to implement the multiple-entry visa arrangement; if so, of the details; if not, the reasons for that?
 
Reply:
 
President,
 
     Hong Kong’s tourism industry has been developing steadily in recent years. In 2025, visitor arrivals reached approximately 50 million, representing an encouraging year-on-year increase of 12 per cent. Moving into 2026, the tourism industry’s growth momentum has remained strong, with around 23 million visitor arrivals recorded in the first five months of the year, an increase of 14 per cent compared to the same period last year. We anticipate full-year visitor arrivals to reach 53.8 million, marking an 8 per cent year-on-year increase. Among the total overseas visitors to Hong Kong in 2025, around 20 per cent travelled onwards to Chinese Mainland via Hong Kong, underscoring Hong Kong’s continuous role in “bringing in” overseas visitors.
      
     In consultation with the Transport and Logistics Bureau, the Security Bureau and the Immigration Department (ImmD), the consolidated reply to the question raised by the Hon Yiu Pak-leung is as follows:
      
     According to the information provided by the ImmD and the Hong Kong Tourism Board (HKTB), in 2025, the number of non-Mainland visitor arrivals entering Hong Kong via Hong Kong International Airport (HKIA) or by cruise exceeded 7.3 million. These visitors originated from Taiwan, the Philippines, the United States, South Korea, Japan, Thailand, Australia, Singapore, India and the United Kingdom. In the same year, the number of non-Mainland visitor arrivals entering Hong Kong from Chinese Mainland via the HKIA, by sea, or by land exceeded 2.2 million. These visitors originated from Taiwan, the United States, Singapore, Malaysia, Canada, Australia, Japan, South Korea, India, and the United Kingdom. Since the “240-hour visa-free transit” policy is implemented by Chinese Mainland authorities at border control points under the jurisdiction of Chinese Mainland, the ImmD does not maintain information on the number of visitors departing from and entering Chinese Mainland under this policy.
      
     In recent years, the Central Government has successively introduced multiple supportive measures to benefit Hong Kong, injecting great impetus into Hong Kong’s tourism industry. These include enhancing the Individual Visit Scheme successively in 2024 to cover all provincial capitals in our country, resuming and expanding multiple-entry Individual Visit Scheme for Shenzhen, and implementing Hainan’s 144-hour visa-free policy for foreign tour groups from Hong Kong and Macao. Furthermore, in November 2025, four ports connecting Hong Kong (including Guangzhou Pazhou Ferry Terminal, Hong Kong-Zhuhai-Macao Bridge Port, Zhongshan Port, and the West Kowloon Station of Guangzhou-Shenzhen-Hong Kong Express Rail Link (XRL)) were added as entry ports under the “240-hour visa-free transit” policy, further facilitating overseas visitors to embark on multi-destination travel itineraries on Chinese Mainland via Hong Kong.
      
     To encourage the industry to “go out and bring in”, the Culture, Sports and Tourism Bureau (CSTB) has been actively supporting the Travel Industry Council of Hong Kong (TIC) in organising trade visits to Chinese Mainland and overseas to strengthen co-operation with local governments and trade counterparts. For instance, the CSTB provided funding in February, June and October 2025, to support trade visits to Harbin, Taiyuan, and Xi’an to explore tourism resources of these cities and promote the development of multi-destination travel itineraries between Hong Kong and these cities. In April 2026, the TIC organised a trade visit to Zibo, Qingdao, and Yantai in Shandong Province. The TIC will also organise a trade visit to Wuxi in Jiangsu Province in July this year to engage in business exchanges with local cultural and tourism authorities as well as representatives of trade associations, with a view to driving business co-operation between the tourism sectors of Hong Kong and these cities and jointly exploring market opportunities.
      
     Moreover, the HKTB collaborated with the Hong Kong Airlines and the China National Tourism Office in Paris to organise familiarisation trips for the travel trade from North America and France in May 2025. Starting from June 2025, the HKTB has been collaborating with industry partners in key source markets, such as North America and Europe, to launch various tourism products and offers related to the Greater Bay Area (GBA), encouraging visitors to embark on multi-destination travel itineraries. Furthermore, the HKTB has launched multi-destination products including “Hong Kong+GBA” and “Hong Kong+Chinese Mainland” specifically for the European market, enabling visitors to experience in a single trip the tourism appeal of Hong Kong, the GBA and various provinces and municipalities on Chinese Mainland. The HKTB will also launch initiatives jointly with airlines to encourage visitors to include Hong Kong in their itineraries when visiting Chinese Mainland. The HKTB plans to conduct overseas promotion in Malaysia in August 2026 to introduce the diverse tourism resources and development in the GBA, with a view to attracting overseas visitors to embark on multi-destination travel itineraries in the GBA.
      
     The MTR Corporation Limited (MTRCL) has all along been committed to supporting and facilitating the Hong Kong tourism sector in developing diversified cross-boundary XRL tourism products. To facilitate the promotion of cross-boundary XRL travel, the MTRCL co-ordinates with Chinese Mainland railway operators to assist the tourism sector (including various licensed travel agents and designated ticketing agents) in reserving group tickets to and from the Hong Kong West Kowloon Station. In addition, service counters operated by China Railway (Hong Kong) Holdings Limited are set up at the Hong Kong West Kowloon Station, providing convenience to the sector and passengers in purchasing Chinese Mainland domestic tickets (i.e. tickets with both departure and arrival stations in Chinese Mainland) in Hong Kong.
      
     The Hong Kong Special Administrative Region Government will continue to utilise supportive measures introduced by the Central Government, deepen collaboration with Chinese Mainland provinces and municipalities, and maintain discussions with relevant central ministries on more entry facilitations for international visitors, with a view to attracting more international visitors to take Hong Kong as their first stop or transit point in their multi-destination travel itineraries to our country, thereby underpinning Hong Kong’s role as an international tourism hub and a core demonstration zone for multi-destination tourism.
Issued at HKT 12:06

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LCQ10: Promoting development of futures and derivatives markets

Source: Hong Kong Government special administrative region – 4

     Following is a question by the Hon Robert Lee and a written reply by the Acting Secretary for Financial Services and the Treasury, Mr Joseph Chan, in the Legislative Council today (June 17):
 
Question:
 
     There are views pointing out that in order to strengthen Hong Kong’s role as an international risk management centre and enhance its global competitiveness, Hong Kong needs to elevate the status of its futures and derivatives, thereby enabling the market to better hedge risks across different asset types within investment portfolios, as well as to strengthen the existing financial infrastructure and enhance the efficiency of market capital utilisation. In this connection, will the Government inform this Council:
 
(1) how the Government and relevant regulatory bodies will further promote and deepen the development of the futures and derivatives markets to achieve world-leading standards; whether specific measures will include: exploring the introduction of relevant incentive schemes; enriching products and services to better manage risks associated with futures, such as exchange rates, currencies, agriculture, energy and precious metals, in the real economy; and attracting and nurturing relevant talents;
 
(2) of the progress of the Government’s current discussions with the Mainland on the establishment of a mutual access mechanism for futures and derivatives;
 
(3) whether the Government will encourage the Hong Kong Exchanges and Clearing Limited (HKEX) to establish a legal and operational framework for “cross-product and cross-clearing house” among its clearing houses, enabling market participants to hedge risks across positions in different products, thereby reducing the duplication of margin payments and enhancing the overall efficiency of capital utilisation and liquidity of the market; if not, of the Government’s alternative proposals; and
 
(4) whether the Government will consider the International Monetary Fund’s recommendation in 2021 to enhance the efficiency of market capital utilisation by merging the three clearing houses currently under the HKEX, namely Hong Kong Securities Clearing Company Limited, HKFE Clearing Corporation Limited and The SEHK Options Clearing House Limited; if not, of the reasons for that?
 
Reply:
 
President,
 
     The National 15th Five-Year Plan outline supports Hong Kong in consolidating and enhancing its status as an international financial centre, strengthening its role as a global offshore Renminbi business hub, an international asset management centre and a risk management centre as well as calling for the orderly advancement of mutual access between the Mainland and Hong Kong financial markets. The Government, together with the regulators and the Hong Kong Exchanges and Clearing Limited (HKEX), have been proactively taking forward measures in these areas, including deepening the development of the derivatives market continuously, strengthening market infrastructure and enriching investment choices, so as to meet the diverse asset allocation and risk management needs of both Mainland and international investors.
 
     In consultation with the Securities and Futures Commission (SFC) and the HKEX, the reply to the four parts of the question is as follows:
 
(1) The Government, the SFC and the HKEX have been working closely to promote the development of the derivatives market through introducing a wide range of products and enhancing trading services. At present, the Hong Kong market offers a diversified suite of derivatives instruments, including futures, options and other structured products, covering equity indices, single stocks, foreign exchange, interest rates and commodities-related assets, catering to the needs of different investors. The rapid growth of innovative technology enterprises in recent years has also led to the launch of various new products successively, including the Hang Seng TECH Index futures and options, Hang Seng Biotech Index futures, Asia’s first batch of leveraged and inverse products on single stocks, and the first batch of US Dollar denominated derivative warrants on US equities, providing investors with more diversified choices. In addition, the HKEX issued a circular in May this year announcing trading fee waivers and incentive programmes for liquidity providers and active traders of US Dollar gold futures contract, with a view to stimulating its trading volume in line with the development of Hong Kong’s gold trading market. The arrangements will take effect from July this year.
 
     On trading services, building on the introduction of after-hours trading in the derivatives market in 2013, the HKEX has progressively extended the trading hours to 3am on the following day in phases. The HKEX has also implemented holiday trading for derivatives, and has included all currency futures and options to facilitate investors to conduct risk management during overseas trading hours and Hong Kong public holidays. In addition, the Government and the SFC have enhanced the position limit regime for derivatives, raising the position limits for futures and options and removing the limits for international asset-related derivatives. To further promote market development, the Government has amended legislation to exempt option market makers from fixed-rate stamp duty on jobbing business, thereby reducing transaction costs and enhancing market liquidity and risk management efficiency for investors.
 
     Driven by various measures implemented, trading in Hong Kong’s derivatives market has continued to grow. In 2025, the average daily turnover of futures and options reached 1.66 million contracts, up 7 per cent from 2024 and marking a record high. As of end-May this year, the average daily turnover of futures and options further increased to over 1.78 million contracts.
 
     Looking ahead, the Government will continue to support the SFC and the HKEX in enhancing the development of the derivatives market. The HKEX is developing a next-generation derivatives trading platform to facilitate the introduction of new products and strengthen market functions in future. On product development, we will continue to broaden the ecosystem of the derivatives market and step up related market education and promotion, thereby fostering talent development in the industry and encouraging greater investor participation in the securities and futures markets.
 
(2) The Government, regulators and the HKEX are committed to deepening and expanding mutual access between the Mainland and Hong Kong capital markets. With strong support from the Central People’s Government, various enhancements and new products were introduced under the mutual market access mechanism in recent years, fostering integration and concerted development of the two markets. Notably, Northbound trading of Swap Connect was officially launched in 2023, marking the first mutual access arrangement in the derivatives space. This enables overseas investors to participate in onshore Renminbi interest rate swaps through a convenient and secure channel, meeting their demand for managing Renminbi interest rate risk through derivatives.
 
     We will continue to maintain close communication with the Mainland authorities and actively pursue and implement mutual access initiatives supported by regulators of the two places, including the introduction of offshore treasury bond futures in Hong Kong, so as to provide effective offshore risk management tools for treasury bond investment in Hong Kong. Meanwhile, we will follow up with the Mainland authorities on further expansion and enhancement proposals, exploring measures to promote two-way capital flows between the two places and broadening the product scope under mutual access. Specific enhancements will be announced in a timely manner once they are ready for implementation.
 
(3) and (4) The International Monetary Fund (IMF) conducted an assessment of Hong Kong’s financial system in 2021 under the Financial Sector Assessment Program. Overall, the IMF affirmed Hong Kong’s position as a major international financial centre, recognising its resilient financial system, robust regulatory and supervisory frameworks as well as sound macroeconomic and prudential policies. Meanwhile, the IMF made recommendations to further strengthen the resilience of Hong Kong’s financial system, including enhancing the governance structure of the HKFE Clearing Corporation Limited (HKFE Clearing). It also suggested that, under an appropriate governance framework, the HKEX could consider consolidating its clearing houses, namely the Hong Kong Securities Clearing Company Limited (HKSCC), HKFE Clearing and the SEHK Options Clearing House Limited (SEOCH), to improve efficiency. To this end, the HKEX conducted an independent review of its overall risk management and related governance in 2021 and fully implemented the recommendations in 2023 after consulting the SFC to strengthen its overall governance and risk management.
 
     At present, the HKSCC, the HKFE Clearing and the SEOCH under the HKEX provide participants with integrated clearing, settlement, custody and nominee services for securities, futures and options products respectively. Although these services are delivered through separate legal entities, the HKEX has been pursuing operational and technological integration to enhance capital efficiency across markets. For instance, the HKEX is developing the Orion Derivatives Platform to facilitate the introduction of new products, improve market microstructure, and further strengthen trading, clearing and risk management functions in future. The new platform will offer clients an enhanced trading and clearing experience, including the potential to support near 24-hour trading, additional order types, industry-aligned interfaces, and improved testing and connectivity. Furthermore, the HKEX optimised its collateral arrangements under its clearing houses and the cross-product margin arrangements of its futures market clearing house in October 2025 and April 2026 respectively, including adjustments to the calculation of interest paid on cash collateral to participants and reduction in accommodation charges for non-cash collateral.
 
     The Government will continue to support the SFC and the HKEX in enhancing market efficiency. In particular, we have invited the HKEX to study ways to reduce the funding costs of collateral provision by market participants, fully taking into account different factors such as Hong Kong’s international competitiveness and market risks. This includes exploring expansion of eligible collateral types and cross-margining arrangements across clearing houses, with a view to further improving collateral efficiency. The SFC and the HKEX will announce the enhancement measures in due course.

LCQ15: Measures to support one-person companies

Source: Hong Kong Government special administrative region

Note: A local company refers to a company formed and registered under the Companies Ordinance (Cap. 622).

(2) to (4) Relevant bureaux and departments of the Government have been, through various funding schemes and measures, providing support to individuals interested in starting a business and promoting diversified development of Hong Kong enterprises (including one-person companies).
 
Support for small and medium enterprises (SMEs) and start-ups
 
     The Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund) under the Trade and Industry Department (TID) provides funding support for non-listed Hong Kong enterprises to develop more diversified markets and to enhance competitiveness through branding, upgrading and restructuring, and promoting sales. All non-listed enterprises (including one-person companies) registered in Hong Kong under the Business Registration Ordinance (Cap. 310) with substantive business operations in Hong Kong are eligible to apply for funding support. As the funding support is applicable to all enterprises meeting the funding criteria, the Hong Kong Productivity Council (HKPC), the Programme Secretariat of the BUD Fund, does not maintain breakdown regarding applications made by one-person companies under the BUD Fund.
 
     The four SME centres, namely the Support and Consultation Centre for SMEs under the TID, the SME Centre under the Hong Kong Trade Development Council, the SME One under the HKPC, and the TecONE under the Hong Kong Science and Technology Parks Corporation (HKSTPC), provide four-in-one integrated consultation services for SMEs. The SME ReachOut operated by the HKPC also helps SMEs, including one-person companies, identify suitable government funding schemes and offer capacity building services to them. As the services are applicable to all SMEs in Hong Kong, we do not maintain breakdown regarding services utilised by one-person companies.
 
     In addition, Invest Hong Kong has been promoting policies and measures conducive to the development of start-ups to the start-up community, supporting them to set up or expand businesses in Hong Kong. For example, the department organises the annual Hong Kong FinTech Week x StartmeupHK Festival, which brings together exhibitors as well as Mainland and international delegations and promotes the development of Hong Kong’s start-up ecosystem and entrepreneurship.
 
Support for youth entrepreneurs
 
     Under the Youth Development Fund, the HYAB and the Youth Development Commission have implemented the HYAB Funding Scheme for Youth Entrepreneurship in the Guangdong-Hong Kong-Macao Greater Bay Area (Entrepreneurship Scheme), which subsidises non-governmental organisations (NGOs) to implement youth entrepreneurship programmes for a duration of one to three years, providing entrepreneurial support and incubation services as well as start-up capital to young people intending to start their businesses locally and in Mainland cities of the Greater Bay Area. Under the latest round of the Entrepreneurship Scheme, a total of 264 youth start-up teams were recruited, of which 82 teams are one-member teams. Each eligible start-up team may receive a government grant capped at $480,000, with an additional matching fund of $120,000 provided by the NGO; the start-up team may therefore receive a total funding of at most $600,000.
 
Support for innovation and technology enterprises
 
     The Innovation and Technology Commission (ITC) under the ITIB is committed to supporting projects that could contribute to the innovation and technology (I&T) upgrading in our manufacturing and service industry through the Innovation and Technology Fund (ITF). ITF funding schemes in general have not set requirements on the scale and capital of enterprise applying for funding. There are established electronic channels for applicants (including one-person companies) to submit applications, reports, change requests, etc, for all ITF funding schemes through the Innovation and Technology Commission Funding Administrative System. The ITF website also provides comprehensive information, with a one-stop enquiry hotline and email.
 
     Furthermore, various I&T parks have been providing high-quality basic infrastructure and support services for I&T development. They offer start-ups (including one-person companies) research and development spaces and ancillary facilities, funding, technical and management guidance, investor matching, mentorship, marketing and business development support, etc. Depending on their business needs, the I&T parks also help these companies connect with service providers offering cloud computing resources, AI tools, as well as legal and accounting consultancy services, etc.
 
     Focusing on incubation programmes, the HKSTPC offers a diverse range of support schemes for start-ups at different stages of development. Among these, HKSTPC’s Ideation Programme provides a seed funding of $100,000 to assist early-stage entrepreneurs (including one-person companies) in transforming innovative ideas into viable businesses with market potential. Over the past three years, a total of 960 one-person companies have been approved under this programme.
 
     In addition, the Hong Kong-Shenzhen Innovation and Technology Park (HSITP) in the Loop has also launched the incubation programme in the first quarter of 2026 and held the HSITP Incubation Programme Launch Ceremony cum Technology Day Exhibition on March 30, 2026, providing incubation and acceleration support for the start-ups concerned (including one-person companies). The first incubation programme focuses on the two major industries of life and health technology, as well as AI and data science. Under the programme, more than 10 one-person companies have been approved.
 
     Besides, Cyberport provides comprehensive start-up support to young innovators and start-ups (including one-person companies) through a series of entrepreneurial programmes, including funding, business matching, and mentorship, with a full commitment to nurturing digital technology talent. Over the past three years, more than 10 one-person companies have been approved under the Cyberport Creative Micro Fund and the Cyberport Incubation Programme. Cyberport will also launch the OPC Hub to provide dedicated workspace and other support, such as cloud services, model usage quotas and AI inference resources, to one-person companies and small teams focusing on AI, intelligent agents, blockchain or related digital technologies. This initiative aims to reduce the cost of early-stage product development and testing for AI start-ups (including one-person companies).
 
     The Government will keep in view the implementation and effectiveness of various funding schemes and support measures, with a view to understanding the development of and challenges faced by enterprises (including one-person companies), as well as introducing enhancements/adjustments, thereby responding flexibly to the evolving operational and development needs of enterprises.

Government to introduce resolution to adjust fees payable by banks and other financial institutions to Government prescribed in Second Schedule to Banking Ordinance

Source: Hong Kong Government special administrative region

Government to introduce resolution to adjust fees payable by banks and other financial institutions to Government prescribed in Second Schedule to Banking Ordinance      
     Under the Ordinance, authorized institutions (AIs) (including licensed banks, restricted licence banks and deposit-taking companies), LROs and AMBs are required to pay to the Director of Accounting Services the licence fees, registration fees, establishment fees for local and overseas branches or overseas representative offices, and approval fees, upon authorisation or approval by the Monetary Authority, and the relevant renewal fees upon the anniversary in each year of the date on which an AI was authorised (including the fees of relevant local and overseas branches and overseas representative offices), or the date on which an LRO or AMB was approved. The levels of the fees are specified in the Second Schedule to the Ordinance.

     As announced in the 2024-25 Budget, the Government will review different fees and charges in a timely manner. Following the adjustments in 2024, the Hong Kong Monetary Authority (HKMA) has recently completed a further review of the fees prescribed in the Second Schedule to the Ordinance, and proposes to raise the related fees.
      
     A Government spokesperson said, “In making the proposal, the HKMA has taken into consideration relevant factors, including general price inflation, corresponding fee levels in other jurisdictions, and the operating cost of the financial institutions. The impact on Hong Kong’s competitiveness as an international financial centre has also been assessed and taken into account. As the total licence fees account for an insignificant portion of the total operating expenses of AIs and AMBs, we expect that the impact on the affected financial institutions will be minimal. The financial competitiveness of Hong Kong will not be affected.”
      
     Subject to the legislative process, the Government will move the resolution in LegCo on July 8.
Issued at HKT 17:40

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LCQ19: Museums under Leisure and Cultural Services Department

Source: Hong Kong Government special administrative region

LCQ19: Museums under Leisure and Cultural Services Department 
Question:
 
     The National 15th Five-Year Plan emphasises its support for Hong Kong to develop into the East-meets-West centre for international cultural exchange. There are views that museums under the Leisure and Cultural Services Department (LCSD) play a vital role in collecting, conserving and exhibiting collections, thereby ensuring the preservation of these endowments. However, it is learnt that since the COVID-19 pandemic, attendances at these museums have shown signs of slowing down, and there are disparities in popularity between the various museums. In this connection, will the Government inform this Council:
 
(1) of the annual attendance of each museum under the LCSD since 2023 (set out in a table);
 
(2) of the respective latest progress of and timetable for setting up (i) a Pop Culture Centre and (ii) a museum to showcase the development and achievements of our country;
 
(3) as it is learnt that in recent years, Mainland cities of the Guangdong-Hong Kong-Macao Greater Bay Area have successively completed a number of sizeable and modern museums integrating the latest technology, of the specific strategies the Government will put in place to enhance the appeal and competitiveness of Hong Kong’s museums in the future;
 
(4) of the resources the LCSD has devoted and plans to devote for promoting “smart museums” and the adoption of technologies such as AI and augmented reality to enhance museum exhibition experience, and the relevant details; and
 
(5) as it is learnt that most museums under the LCSD currently operate on a model where each museum curates its own exhibitions independently, whether the authorities will consider reorganising or optimising the existing management structure and mode of operation of museums to enhance the efficiency of cross-museum resource allocation and the appeal of museums?
 
Reply:
 
President,
 
The reply to the question raised by the Hon Lee Chun-keung is as follows:
 
(1) The attendance figures for museums and art spaces under the Leisure and Cultural Services Department (LCSD) for the years 2023-24 to 2025-26 are set out in the table below: 
 

 MuseumNote 1: In 2024, the Hong Kong Museum of Art, the Hong Kong Heritage Museum and the Hong Kong Science Museum each organised well received exhibitions (including exhibitions of art collections, exhibitions to mark the birth anniversaries of notable figures, as well as exhibitions and programmes themed on national achievements), resulting in higher attendance for that year. The Hong Kong Heritage Museum also organised a well received commemorative exhibition of a notable figure in 2023.
 
Note 2: The permanent exhibition has been closed since October 19, 2020, to facilitate upgrading works, and has been reopened in phases with effect from November 27, 2024.
 
Note 3: The venue was closed from May 1, 2024, to November 6, 2025, to optimise the design and display content of the permanent galleries, and to carry out repair and improvement works.
 
(2) The Pop Culture Centre is currently in the site selection phase. Once the location is confirmed, we will consult with various stakeholders and expert advisors on its long-term planning, curatorial direction, and exhibition content to develop an appropriate plan to establish the centre as a cultural landmark and tourist attraction.
      
     The museum showcasing the development and achievements of our country will be located in the Kwu Tung North New Development Area of the Northern Metropolis. The Architectural Services Department is conducting feasibility studies for the construction project, and we are simultaneously discussing the curation of the museum with relevant national museums actively.
 
(3) Museums under the LCSD are committed to preserving, researching, and displaying Hong Kong’s diverse cultural resources, including history, art, science, film, intangible cultural heritage (ICH), and pop culture. Building on Hong Kong’s distinctive East-meets-West cultural character and its international connections as important foundations for enhancing appeal and competitiveness, efforts are made to strengthen the quality and influence of Hong Kong’s museums through exhibition planning, enhancement of visitor experience, application of technology, integration of culture and tourism, as well as regional and international collaboration.
 
     In terms of exhibitions and visitor experience, the LCSD will continue to organise large-scale and representative thematic exhibitions, introducing important collections and exhibits from the Chinese Mainland and overseas while making full use of local collections. More cross-museum exhibitions and activities tailored to the unique positioning and strength of individual museums will also be commissioned at the same time. For example, the Hong Kong Museum of Art is currently hosting Blooming: The Art of Gardens in East and West, which brings together over 100 selected artworks and artifacts for the first time in Hong Kong from the Palace Museum in Beijing, the Art Institute of Chicago, the Palace of Versailles in France, and the Hong Kong Museum of Art, fully demonstrating and leveraging Hong Kong’s important role as a window for cultural exchange between Eastern and Western civilisations. The LCSD will also continuously enhance its curatorial approach, educational activities, and interactive experiences, while enhancing the use of new technologies and social media to attract residents and tourists of all ages.
 
     Regarding integration of culture and tourism, the LCSD actively promotes the integrated development of culture, creativity, sports, and tourism. Different museums, cultural venues, ICH projects and community resources will be connected to support the planning of large-scale cultural events that appeal to both residents and tourists, including the Chinese Culture Festival, Hong Kong Pop Culture Festival, Hong Kong ICH Month, and Muse Fest HK. Through the international platform of the Museum Summit, efforts will be made to enhance the international influence and attractiveness of Hong Kong’s museums, further leveraging their role in enriching visitors’ cultural experiences and promoting cultural-tourism integration.
 
     LCSD museums will also continue to strengthen collaboration with Chinese Mainland and overseas museums in exhibitions, collections, academic research, and talent development. By combining the rich historical and cultural resources of the Chinese Mainland with Hong Kong’s international networks and multicultural perspectives, Hong Kong’s role as East-meets-West Centre for international cultural exchange will be further enhanced. For example, the 4th Museum Summit held in March 2025 brought together over 30 cultural leaders and professionals from renowned museums and institutions across 17 countries, as well as over 40 museum professionals from the Guangdong-Hong Kong-Macao Greater Bay Area Museum Alliance and the Association of Southeast Asian Nations, with over 7 000 registered participants sharing valuable professional experience, research findings, and innovative ideas.
 
(4) When planning exhibitions, LCSD museums have always actively explored the feasibility of applying innovative technologies and AI, taking into account the exhibition theme and venue conditions, to enhance curation quality and visitor experience. The “Glorious Voyage: Splendid Achievements of the People’s Republic of China in Its 75 Years” exhibition series, held from September 2024 to February 2025, featured a core theme of AI in its Era of Intelligence exhibition, aiming to popularise AI knowledge among the public through interactive exhibits that allow visitors to directly experience how technology integrates into daily life.
 
     The Hong Kong Science Museum launched its AI Gallery and Living Tech Gallery in February this year, combining generative AI and deep learning technologies to showcase AI’s integration with culture, art and science through interactive exhibits such as painting, music composing, chess playing, and rock-paper-scissors, enhancing the fun of science education. Additionally, current exhibitions such as The Hong Kong Jockey Club Series: Prosperity and Magnificence-Civilisation of the Sui and Tang Dynasties in Shaanxi Province at the Hong Kong Museum of History, Proudly from Canton: The Muwen Tang Collection of Cantonese and Export Art at the Hong Kong Museum of Art, and The Hong Kong Jockey Club Series: Meet Mona Lisa & Portraying the Renaissance at the Hong Kong Heritage Museum all apply AI, augmented reality, and virtual reality technologies to create interactive exhibits, enriching the visitor experience.
 
(5) The Blueprint for Arts and Culture and Creative Industries Development proposes to integrate and optimise the overall planning of museums, and to highlight their respective characteristics, content and positioning. In this connection, the Chinese Culture Promotion Office (CCPO), established in 2024, is responsible for co-ordinating museums and other venues under the purview of the LCSD relating to Chinese culture, promoting cross‑museum and cross‑disciplinary collaboration, and planning thematic exhibitions, educational activities, performing arts programmes, exchanges and co‑operation relating to Chinese culture, including two signature projects, namely the annual Chinese Culture Festival and the General History of China Exhibition Series co-organised with the Hong Kong Museum of History. Starting from 2025, the CCPO, in collaboration with various museums, has organised annual exhibitions on national development and achievements, taking themes such as history, ICH and technological development as entry points to introduce the latest developments of the country in various fields. The CCPO will continue to further promote Chinese history and culture in the community.
 
     In addition, the highlight programme held during this year’s Hong Kong ICH Month – The Journey of the Horse: A Legacy of Arts and Culture light show – integrates ICH and astronomical elements through collection items from various museums under the LCSD for the first time, and is currently being projected onto the dome façade of the Hong Kong Space Museum, fully demonstrating and putting into practice the concepts of inter-museum collaboration and the integration of culture and tourism.
      
     Held annually in November, Muse Fest HK leverages the 17 museums and art spaces under the LCSD as a foundation. Under the theme Hong Kong H.A.S. Museums (History, Art and Science), the festival promotes cross-museum and cross-disciplinary integration to offer a rich and diverse array of programmes. While showcasing the distinct and fascinating collections of individual museums, it also introduces the unique cultural history and vibrant artistic landscape of Hong Kong to both local citizens and visitors, effectively linking museums across various districts into an interconnected urban network for exploration.
Issued at HKT 17:32

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TD urges public and visitors to plan cross-boundary trips early before and after Tuen Ng Festival holiday

Source: Hong Kong Government special administrative region – 4

     The Transport Department (TD) today (June 17) said that the passenger and vehicle traffic at land-based boundary control points (BCPs) will significantly increase before and after the Tuen Ng Festival holiday, especially amid the inbound peak on Sunday (June 21) afternoon and evening, when waiting times for public transport (PT) services will be longer. Cross-boundary travellers are urged to plan their trips early and properly, allow sufficient travelling time and avoid travelling during peak hours as far as possible. They should heed the latest information broadcast at major stations and BCPs.

Enhancing services for travel convenience

     The TD has been steering local and cross-boundary public transport operators (PTOs) to strengthen their services before and after the Tuen Ng Festival for the convenience of residents and visitors, including:
 

  • The MTR Corporation Limited will enhance the train services of the East Rail Line between Admiralty and Lo Wu/Lok Ma Chau Stations at different times from June 18 to 21 based on passenger demand;
  • The train service of the Hong Kong Section of the Guangzhou-Shenzhen-Hong Kong Express Rail Link between Hong Kong West Kowloon and designated Mainland stations will operate additional temporary train trips on June 19 and June 21 (see details at the 12306.cn website);
  • The frequencies of the Hong Kong-Zhuhai-Macao Bridge (HZMB) shuttle bus (Gold Bus) and the Lok Ma Chau-Huanggang cross-boundary shuttle bus (Yellow Bus) will be increased to an average of about one minute and two minutes respectively during peak hours;
  • The quota of cross-boundary coaches will be increased to strengthen services; and
  • The frequency of local franchised bus B routes connecting various land-based BCPs will also be increased beyond the normal weekend level, and the operators concerned will reserve sufficient vehicles and manpower to meet passenger demand.

Travel during non-peak hours

     It is anticipated that the waiting time for PT services, including the Gold Bus and the franchised bus B routes, may be longer. Travellers should avoid travelling during peak hours as far as possible. Passengers are advised to maintain order while queuing and heed the advice of on-site Police and staff of PTOs concerned. Passengers planning to take cross-boundary coaches are also advised to reserve their coach tickets in advance.

     HZMB users travelling to Zhuhai should note that the temporary link bridge connecting the HZMB Zhuhai Port and Qinglu South Road has been closed to all traffic, and the traffic at Zhuhai Port and neighbouring roads has become very busy during holiday peak periods. They should use PT services as far as possible, plan their trips early, allow sufficient travelling time and remain patient while waiting.

     As for motorists of cross-boundary private cars, they are advised that special traffic arrangements may be implemented at the Lok Ma Chau Control Point and Shenzhen Bay Port, subject to actual traffic conditions, before and after the Tuen Ng Festival to secure smooth access for PT vehicles to the above BCPs. Cross-boundary private cars may experience longer waiting times for crossing the BCPs during peak periods. Motorists should pay extra attention to variable message signs and traffic signs along the roads. In case of traffic congestion, they should remain patient and follow the instructions of on-site Police.

Information dissemination

     To plan their journeys ahead, members of the public can make use of the TD’s HKeMobility mobile app or website (hkemobility.gov.hk/en/traffic-information/live/cctv) to access snapshots of traffic conditions at the inbound and outbound vehicle plazas of the HZMB Hong Kong Port. They can also check real-time situations of the vehicle clearance plaza of the Zhuhai Port through the WeChat official accounts “hzmbzhport” or “zhuhaifabu” (traffic-info.gzazhka.com:5015/#/) (Chinese only). Moreover, motorists are reminded to always comply with traffic control measures implemented by the Zhuhai authority when driving on the HZMB Main Bridge. Vehicles must not occupy the emergency lane unless instructed by the Zhuhai authority.

     The public and visitors may visit the one-stop information platform on immigration clearance “Easy Boundary” (www.sb.gov.hk/eng/bwt/status.html?type=outbound) of the Security Bureau or the HKeMobility for the latest information on various land-based BCPs more conveniently. The TD will provide information on the services and waiting times of the Gold Bus, the Yellow Bus and the MTR. Members of the public are advised to check the latest traffic news through radio and television broadcasts, the TD’s website (www.td.gov.hk) and the HKeMobility. PTOs and relevant departments of BCPs will also disseminate the latest information to passengers through public announcement systems or other channels at major stations and BCPs.

     The TD’s Emergency Transport Co-ordination Centre operates round the clock to closely monitor the traffic conditions and PT services across various districts, BCPs and major stations, and to implement contingency measures when necessary to meet service demand.

Government to implement new procedures for investigating water seepage in private buildings from July 16

Source: Hong Kong Government special administrative region – 4

     The Joint Office (JO), set up by the Food and Environmental Hygiene Department (FEHD) and the Buildings Department, announced today (June 17) that the new procedures for investigating water seepage in private buildings (new procedures) will be implemented from July 16 as a pilot scheme. Water seepage cases received by JO from that day onward will be handled in accordance with the new procedures.

     A spokesman for JO said, “Water seepage in buildings has been an issue of concern for many members of the public. The new procedures leverage technology and streamlined procedures to enhance investigation efficiency, thereby resolving water seepage problems more expeditiously. For relatively simple and straightforward cases, a Notification Letter can be issued to the relevant owner about 14 working days upon receipt of a report, which is about 57 working days earlier as compared with the previous practice of issuing a Nuisance Notice only after completing all investigations.

     “Under the new procedures, JO will recover examination costs from owners who fail to fulfil their responsibilities. This arrangement can encourage owners to proactively liaise with occupants of the affected units and promptly carry out inspection and repair works,” the spokesman added.

     The Government has earlier consulted the Panel on Food Safety and Environmental Hygiene and the Panel on Development of the Legislative Council on the new procedures, and has submitted papers or briefed the District Councils. JO has also introduced the new procedures to the public through the media, seminars and other means. Given the generally positive response, the Government will implement the new procedures as a pilot scheme from July 16. Under the new procedures, infrared thermography will be introduced at the Stage I investigation and be used with electronic moisture meters simultaneously to assess seepage conditions and preliminarily identify the source of the seepage. If there is reason to believe that the source of water seepage is the upper unit, JO will promptly issue a Notification Letter to the owner of the upper unit, requiring the owner to carry out inspection and repair works within 28 calendar days.

     If seepage persists after the period specified in the Notification Letter, JO will conduct Stage II and Stage III investigations in parallel, and under the Public Health and Municipal Services Ordinance (Cap. 132), issue a Nuisance Notice according to the investigation results, requiring the abatement of the seepage nuisance within a specified period. Upon expiry of the period, JO will conduct a review as well as a confirmatory test as necessary. For cases of non-compliance, JO will institute prosecution based on evidence and further apply to the court for a Nuisance Order, and recover the examination costs of not less than $17,000 from owners of upper units failing to fulfil their responsibilities.

     To dovetail with the implementation of the new procedures, the Government will provide technical and financial support and assist owners of upper units in need to carry out inspection and repair works on their own. Members of the public can visit the dedicated water seepage webpage for the list of professionals and contractors interested in providing seepage investigation and repair services, a list of mediators, and information on financial assistance schemes. Moreover, the Government will also provide reference prices for seepage investigations and repairs on the thematic water seepage webpage before the implementation of the new procedures.

     Moreover, the Government has been actively promoting the resolution of water seepage disputes through co-ordination and mediation. At present, property management companies of 330 housing estates have joined the Scheme of Participation by Property Management Agents in Tackling Water Seepage in Residential Building of the FEHD. Over the past three years, about 70 per cent of water seepage cases in participating estates were resolved by property management companies effectively through mediation, co-ordination, or by carrying out improvement works in common areas of the estates. The Environment and Ecology Bureau and the FEHD, together with the Department of Justice, have been implementing the Pilot Scheme on Community Mediation, offering mediation skills training free of charge to more than 200 property management personnel so far.

     Water seepage cases received by JO from July 16 onward will be handled in accordance with the new procedures, while the cases received before that day will be processed under the existing procedures. Upon receipt of a water seepage complaint, JO will assign a case manager to follow up and notify the complainant. Complainants who have any questions about the handling process may contact the case manager, or JO at 2868 0000. For more information, please visit the dedicated water seepage webpage (www.waterseepage.gov.hk/en/water_seepage/pilot_scheme.html).