Month: June 2026

Record of discussion of meeting of Exchange Fund Advisory Committee Currency Board Sub-Committee held on May 4 
Report on Currency Board Operations (December 30, 2025 – April 22, 2026)
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     The Currency Board Sub-Committee (Sub-Committee) noted that the Hong Kong dollar (HKD) traded within a range of 7.7818 – 7.8387 against the US dollar (USD) during the review period. The HKD eased in early 2026 as HKD interbank rates (HIBORs) softened upon the fading of year-end funding demand, thereby increasing the incentive for carry trade activities. With uncertainty arising from the Middle East conflict in early March, investors unwound short HKD positions and drove the HKD stronger. Nonetheless, carry trade activities incentivised by HKD interest rates moving lower than their USD peers had brought the HKD weaker, and the thin liquidity due to global risk-off sentiment had exaggerated the spot price movements. Towards the quarter end, the HKD rebounded slightly due to the unwinding of short positions as short-dated interest rates firmed. While HIBORs generally tracked their USD counterparts under the Linked Exchange Rate System, they were also influenced by the local supply and demand of HKD funding. Capital market-related HKD funding demand subsided amid the escalating geopolitical risk in the Middle East. HKD short-dated interest rates eased gradually in response, before firming again towards the quarter end and remaining firm thereafter. The Convertibility Undertakings were not triggered and the Aggregate Balance was stable at around HK$54 billion. No abnormality was noted in the usage of the Discount Window. Overall, the HKD exchange and interbank markets continued to trade in a smooth and orderly manner.
 
     The Sub-Committee noted that the Monetary Base increased to HK$2,061.37 billion at the end of the review period. In accordance with the Currency Board principles, all changes in the Monetary Base had been fully matched by changes in foreign reserves. ————————————————— 
     The Sub-Committee noted that in Hong Kong, the economy continued to expand in early 2026, supported by strong growth of merchandise exports, inbound tourism and retail sales. However, the energy shock triggered by the military conflict in the Middle East had shown early signs of impact on certain sectors. Meanwhile, the housing market maintained its upward momentum amid positive market sentiment, while the commercial real estate markets remained under pressure but with some signs of improvement in the Grade A offices in prime districts observed. Looking ahead, downside risks to the economic outlook included elevated uncertainty surrounding the ongoing geopolitical tensions, the sustainability of the AI investment boom, evolving global trade policies and the US policy rate path.
 
Review of External Demand for HKD Currency
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June 2026 issue of “Hong Kong Monthly Digest of Statistics” now available                
     Apart from providing up-to-date statistics, this issue also contains a feature article entitled “The Cultural and Creative Industries in Hong Kong”.
      
“The Cultural and Creative Industries in Hong Kong”
      
     The cultural and creative industries are among the most dynamic economic sectors in Hong Kong, contributing to both economic growth and job creation. They comprise a set of knowledge-based activities that deploy creativity and intellectual capital as primary inputs and deliver goods and services with cultural, artistic and creative contents. This feature article provides the statistics of the cultural and creative industries in Hong Kong for 2020 to 2024.
      
     For enquiries about this feature article, please contact the Construction and Miscellaneous Services Statistics Section of the C&SD (Tel: 3903 6962; email: asps@censtatd.gov.hk      
     Published in bilingual form, the HKMDS is a compact volume of official statistics containing about 130 tables. It collects up-to-date statistical series on various aspects of the social and economic situation of Hong Kong. For selected key statistical items, over 20 charts depicting the annual trend in the past decade and quarterly or monthly trend in the recent two years are also available. Users can download the Digest at the website of the C&SD (www.censtatd.gov.hk/en/EIndexbySubject.html?pcode=B1010002&scode=430      
     Following a recent review conducted by the C&SD, the publication of HKMDS will be suspended. The June 2026 issue is the last issue of this Digest. Updates of the statistical series in the Digest will remain accessible through the relevant statistical tables or web links provided on the website of the C&SD as detailed in the “Summary of data sources” webpage (www.censtatd.gov.hk/en/hkmds_ctable.html      
     Enquiries can be directed to the Statistical Information Dissemination Section (1) of the C&SD (Tel: 3863 2532; email: gen-enquiry@censtatd.gov.hkIssued at HKT 16:00

Government announces review results of Enhanced Supplementary Labour Scheme and enhanced measures 
ESLS
 
     Facing the challenges of an ageing population and economic transformation, the local labour force is expected to continue to shrink, and the structural challenge of a manpower mismatch will persist in the short to medium term. Having holistically examined the implementation of the ESLS and considered the results of the Manpower Projection and views of stakeholders, the Government considers that on the premise of ensuring employment priority for local workers, employers with genuine recruitment difficulties and manpower shortages should be allowed to suitably import workers to support the social and economic development of Hong Kong. Therefore, in the overall interest of society, the ESLS should continue to be implemented under the current coverage.
 
Enhanced measures
 
     To better protect employment priority for local workers and sustain the manpower supply to support social and economic developments, the Labour Department (LD) will implement the following enhanced measures under the ESLS with effect from tomorrow (June 16):
 
(i) The Government will implement a tiered vetting mechanism for labour importation after taking account of and analysing relevant factors and data, including the economic and labour market situation, the manpower supply and demand in individual sector(s) and post(s), the application and vetting situations of the ESLS and its operational experience, the proportion of imported workers to the employment population in relevant sectors and the views of stakeholders. Compared with the basic vetting requirements (Tier 1) including the manning ratio of 2:1 of full-time local employees to imported workers and a four-week local recruitment period, applications vetted under Tier 2 shall be subject to more stringent manning ratio and local open recruitment requirements, or other suitable sector-specific requirement(s). 
 
(ii) Taking the latest situation as an example, the LD will include in the Tier 2 vetting mechanism posts in the food and beverage services sector including cook, junior cook, barbecue cook, drink maker and bar supervisor (collectively known as “posts in the production section”), as well as posts including waiter/waitress, restaurant supervisor, receptionist and cashier (collectively known as “posts in the table service section”). Employers will need to observe a more stringent manning ratio requirement of 3:1 when applying for imported workers of relevant posts, and the basis of calculating the manning ratio will change to all posts within the section. At the same time, the local recruitment period for all posts under application in these two sections will be aligned to six weeks and employers will be required to attend a job fair at a job centre assigned by the LD once every two weeks during the period.
 
(iii) With a view to promoting the employment of persons with disabilities, if employers employ local persons with disabilities to take up full-time jobs and apply for imported workers, the manning ratio of local employees with disabilities to imported workers will be calculated at 1:1.
 
(iv) Applicant employers of the ESLS must accord priority to employing qualified local workers to fill job vacancies at a salary not lower than the median monthly wage of a comparable position in the market. Employers approved to import workers must also enter into a Standard Employment Contract (SEC) with imported workers and pay a salary not lower than the median monthly wage of a comparable position. To prevent the imported workers from becoming “cheap labour” and undermining the employment opportunities of local workers, the LD will maintain the median monthly wage requirement, and continue to refine the arrangements for updating the median wage statistics to reflect the labour market situations.
 
(v) On the premise of maintaining the median wage requirement, the Government will raise the ceiling of the amount deductible for the accommodation cost from 10 per cent to 20 per cent of the wages (excluding overtime pay) of imported workers, or the actual cost of accommodation, whichever is the less.
 
(vi) On the principle that the imported workers are directly employed by the same employers for taking up the specified posts and performing specified duties in accordance with the SEC, the LD will suitably relax the workplace restriction of imported workers, allowing employers to apply to arrange for imported workers to work at business locations in no more than five administrative districts listed in the District Councils Ordinance. Employers must provide vacancies of relevant posts in those designated districts during local recruitment under the ESLS for application by local job seekers. 
 
(vii) The LD will strengthen administrative sanctions imposed on employers with serious breaches. For a case involving more than one breach item, the period of barring the employer from participating in the ESLS will be counted cumulatively, up to a maximum of five years. To strengthen deterrence, the LD will also publish the identity of all employers who have been subject to administrative sanctions.
 
Implementation arrangements
 
     Except for measure (iv) which remains the same as the current arrangement, measures (i), (ii), (iii), (vi) and (vii) above will apply to applications with the notice of preliminary screening issued by the LD on or after June 16; while applications with the previously issued notice of preliminary screening will continue to be processed according to the current vetting parameters. Measure (v) will apply to the signed SECs pursuant to the approvals-in-principle (AIPs) to import workers issued by the LD on or after June 16. Previously issued AIPs and existing employment contracts will not be affected.
 
     The Government will continue to closely monitor the developments in the labour market, dynamically adjust the implementation arrangements of the ESLS and promptly respond to changes in labour market. Members of the public can browse the website of the ESLS (www.labour.gov.hk/eng/plan/iwESLS.htmIssued at HKT 15:00

LegCo to consider Inland Revenue (Amendment) (Automatic Exchange of Information) Bill 2026 
     Meanwhile, the Banking Legislation (Miscellaneous Amendments) Bill 2026 will be introduced into the Council for the First Reading and the Second Reading. The Second Reading debate on the Bill will be adjourned.
 
     Mr Jimmy Ng will move a motion on “Nurturing internationalized vocational and professional talents to drive innovation and technology development”. The motion is set out in Appendix 1. Mr Ken Lee, Mr Cheung Pui-kong and Mr Ng Wun-kit will move separate amendments to Mr Ng’s motion.
 
     On other Members’ motions, Ms Nixie Lam, Mr Tang Ka-piu, Mr Lam Chun-sing and Dr Chan Han-pan will move four separate proposed resolutions under section 34(4) of the Interpretation and General Clauses Ordinance to extend the period for amending subsidiary legislations. The proposed resolutions are set out in Appendices 2 to 5.
 
     During the meeting, Mr Ng will present the “Finance Committee Report on the examination of the Estimates of Expenditure 2026-2027” and address the Council.
 
     Members will also ask the Government 22 questions on various policy areas, six of which require oral replies.
 
     The agenda of the above meeting is available on the LegCo Website (www.legco.gov.hkIssued at HKT 12:30

Special traffic and transport arrangements in Southern District and Tai Po before and during Tuen Ng Festival holiday 
(i) Road closures 
(ii) Adjustment of pedestrian precinct effective period
 B. Public transport arrangements

     The following adjustments will be implemented for the public transport services on June 19: 
B. Public transport arrangements     
     KMB route No. 72A (Tai Wai Station – Tai Po Industrial Estate) (both bounds) will omit Dai King Street, Dai Hei Street and the section of Dai Kwai Street south of Dai Cheong Street from 6pm on June 18 to 5pm on June 19. Concurrently, the bus stops on the above road sections will be suspended.  
     For details of the special traffic and public transport arrangements, members of the public may refer to the TD’s website (www.td.gov.hk      
     Due to road closures, the TD anticipates that traffic in the concerned areas will become significantly congested. Motorists are advised to avoid driving to the affected areas. In case of traffic congestion, motorists should exercise patience and drive with care, and follow the instructions of the Police on site.
      
     The TD appeals to the public to make use of public transport services as far as possible to avoid traffic congestion and unnecessary delay. The TD and the Police will closely monitor the traffic situation and implement appropriate measures when necessary. The Police may adjust the traffic arrangements, subject to the prevailing crowd and traffic conditions in the areas. The public should pay attention to the latest traffic news through radio, television or “HKeMobility”.
Issued at HKT 12:00

Appointment to Assessment Committee for the Funding Scheme to Support Transitional Housing Projects by Non-government Organisations      
     The membership of the Assessment Committee in the new term is as follows:

Chairperson
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Under Secretary for Housing
 
Non-official members
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Mr Cedric Chan Siu-chung (Representative of the Hong Kong Institution of Engineers)
Mr Kenneth Chan Kin-wang (Representative of the Hong Kong Institute of Architects)
Ms Christina Wong Wai-yee (Representative of the Hong Kong Institute of Surveyors)
Professor Kelvin Wang Man-ping
Ms Kelly Chan Yuen-sau
Mr Lau Chun-kong
 
Official member
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Director of Social Welfare (or representative)
 
     The Government has been actively promoting the development of transitional housing (TH) since 2020, through providing construction funding to non-government organisations to provide short-term accommodation to those in need, which also brings greater values to the short-term land and premises. The Government has taken forward TH projects providing over 21 000 units, exceeding the original target of 20 000 units. 
      
     The Secretary for Housing, Ms Winnie Ho, said that the TH projects under the Funding Scheme have been well received by various sectors of the community. The Government will continue to support new projects through the conversion of vacant residential or non-residential buildings in the urban area. She expressed her gratitude to all members of the current-term Assessment Committee for their contributions to the development of TH. She also looked forward to working with the new-term Assessment Committee closely on overseeing the implementation of the Funding Scheme and TH projects. The terms of reference of the Assessment Committee are available on the Housing Bureau website (www.hb.gov.hk/eng/policy/housing/policy/transitional/scheme/assessmentcommittee.htmlIssued at HKT 11:00

Major Sports Events Committee awards “M” Mark status to four events      
     The Major Sports Events Committee (MSEC) has awarded “M” Mark status to the FIDE World Team Rapid and Blitz Chess Championships 2026 (June 17 to 21), the 2026 Sun Life Hong Kong International Dragon Boat Races (June 27 and 28), the Volleyball Nations League Hong Kong 2026 presented by China Life (Overseas) (July 8 to 12) and the Kerry Fencing World Championships 2026 Hong Kong, China (July 22 to 30).

     The Chairman of the MSEC, Mr Wilfred Ng, said today (June 15), “We are very pleased to award the ‘M’ Mark status to these four distinct events. The chess championships and dragon boat races held in June represent a perfect blend of stillness and motion – one featuring a deep sense of intellectual competition, and the other showcasing rich traditional Chinese culture and team spirit. In July, top-tier women’s national volleyball teams from around the world will once again engage in fierce battles at the Kai Tak Arena, and the first-ever Fencing World Championships will also be held in Hong Kong. The public and tourists will be able to witness the peak showdowns of world-class athletes up close. These four events will not only bring a diverse spectating experience to the public and visitors, but also fully demonstrate Hong Kong’s unique charm and capability as a centre for major international sports events.”      
     For details of “M” Mark events, please visit www.mevents.org.hkIssued at HKT 11:00

Coverage and statistics of “Total Domestic Expenditure on Innovation Activities” announced 
     Under the 15th Five-Year Plan, the Country has clearly supported Hong Kong’s development into an international innovation and technology (I&T) centre. Promoting I&T development has been one of the key policy areas of the current-term Government. To more comprehensively reflect the development trends and future strategic directions of Hong Kong’s I&T sector, the Innovation, Technology and Industry Bureau (ITIB), with reference to statistical methodologies adopted by other economies and after consulting the Census and Statistics Department (C&SD), has announced the coverage and statistics of “Total Domestic Expenditure on Innovation Activities”. “Total Domestic Expenditure on Innovation Activities” covers: (i) Gross Domestic Expenditure on Research and Development (R&D) (Note), which includes basic research, applied research and experimental development activities; and (ii) expenditure on application development and other innovation activities by local enterprises, mainly covering economic activities that transform R&D outcomes into products or services, such as product design, software development, process validation, pilot testing, product testing, and applications for intellectual property registration. According to the latest figures from the C&SD, Hong Kong’s “Total Domestic Expenditure on Innovation Activities” amounted to $51.714 billion in 2024, representing an increase of 9 per cent over 2023, with its ratio to Gross Domestic Product at 1.63 per cent.
　　 
     The Secretary for Innovation, Technology and Industry, Professor Sun Dong, said, “Both the 14th and 15th Five-Year Plans of the country clearly support Hong Kong’s development into an international I&T centre. The 2025 Policy Address has set out a clearer vision and roadmap for I&T development. While the Government continues to increase investment in I&T, it also actively encourages enterprises to serve as the main drivers of innovation, jointly promoting the deep integration of technological and industrial innovation. At present, building on the research capabilities of existing universities, Hong Kong’s I&T sector has basically formed a development framework underpinned by three major I&T parks and five major R&D institutions. In the next five years, the Government will align closely with the key technology areas prioritised by the country, strengthen research capabilities, and further encourage enterprises to invest in innovation activities, so as to empower economic transformation through technology, develop new quality productive forces, and realise the vision of developing Hong Kong into an international I&T centre.”
　　 　　 
     A spokesman for the C&SD said, “The C&SD will continue to keep abreast of relevant international guidelines and provide professional statistical advice to the ITIB and other stakeholders, with a view to compiling appropriate statistics that reflect the latest situation of innovation activities in Hong Kong.”
 
Note: Gross domestic expenditure on R&D refers to the total expenditure on in-house R&D activities performed in Hong Kong during the reference year. It includes expenditure on R&D activities performed within Hong Kong and funded from abroad but excludes payments made abroad for R&D activities.
Issued at HKT 10:13

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