Author: MIL-OSI Publisher

Source: Hong Kong Government special administrative region – 4

The Census and Statistics Department (C&SD) released today (September 19) the preliminary Balance of Payments (BoP) and International Investment Position (IIP) statistics of Hong Kong for the second quarter of 2025. This release also included the preliminary External Debt (ED) statistics of Hong Kong for the same period.

I. Balance of Payments

Hong Kong recorded a BoP surplus of $105.5 billion (13.4% of Gross Domestic Product (GDP)) in the second quarter of 2025. Reserve assets correspondingly increased by the same amount. This was against a BoP deficit of $85.4 billion (10.7% of GDP) in the first quarter of 2025.

Current account

The current account recorded a surplus of $92.6 billion (11.8% of GDP) in the second quarter of 2025. This reflects that Hong Kong’s savings was greater than its investment, enabling Hong Kong to accumulate external financial assets (such as equity securities or debt securities) as a buffer against global financial volatilities. Compared with the current account surplus of $98.5 billion (13.0% of GDP) in the second quarter of 2024, the decrease in surplus was mainly due to the increase in goods deficit, largely offset by the increase in net inflow of primary income.

The goods deficit increased to $38.0 billion in the second quarter of 2025, compared with $14.1 billion in the same quarter of 2024. Over the same period, the services surplus increased slightly from $27.5 billion to $30.0 billion. The primary income inflow and outflow amounted to $624.6 billion and $517.6 billion respectively, thus yielding a net inflow of $107.0 billion in the second quarter of 2025, compared with a net inflow of $90.2 billion in the same quarter of 2024.

Financial account

An overall increase in financial non-reserve assets amounting to $21.1 billion (2.7% of GDP) was recorded in the second quarter of 2025, compared with an overall increase of $245.8 billion (30.7% of GDP) in the first quarter of 2025. The overall increase recorded in the second quarter of 2025 was due to the net increase in portfolio investment, largely offset by the net decreases in other investment, direct investment and financial derivatives.

In the second quarter of 2025, reserve assets increased by $105.5 billion, as against a decrease of $85.4 billion in the first quarter of 2025.

II. International Investment Position

At the end of the second quarter of 2025, both Hong Kong’s external financial assets and liabilities stood at a very high level, amounting to $57,244.3 billion (17.7 times of GDP) and $38,879.7 billion (12.0 times of GDP) respectively, a typical feature of a prominent international financial centre.

Hong Kong’s net external financial assets (i.e. assets minus liabilities) amounted to $18,364.7 billion (5.7 times of GDP) at the end of the second quarter of 2025, compared with $16,922.9 billion (5.3 times of GDP) at the end of the first quarter of 2025. Hong Kong’s net external financial assets to GDP ratio is one of the largest in the world, which provides the economy with a strong cushion against sudden external shocks.

III. External Debt

At the end of the second quarter of 2025, Hong Kong’s gross ED amounted to $15,463.6 billion (4.8 times of GDP). Compared with $14,948.8 billion (4.7 times of GDP) at the end of the first quarter of 2025, gross ED increased by $514.8 billion. This was attributable to the increases in ED of all sectors, in particular the banking sector, intercompany lending in direct investment and other sectors.

As one of the world’s major financial centres, Hong Kong has a significant amount of ED held against the local banking sector arising through normal banking businesses. At the end of the second quarter of 2025, 53.1% of Hong Kong’s ED was attributable to the banking sector. Other ED mainly consisted of ED of other sectors (29.1%) and debt liabilities in direct investment (intercompany lending) (16.6%).

Further information

BoP is a statistical statement that systematically summarises, for a specific time period (typically a year or a quarter), the economic transactions of an economy with the rest of the world (i.e. between residents and non-residents).

IIP is a balance sheet showing the stock of external financial assets and liabilities of an economy at a particular time point. The difference between the total value of external financial assets and liabilities is the net IIP of the economy, which provides a measure of net financial claims on non residents plus gold bullion held as monetary gold.

Gross ED, at a particular time point, is the outstanding amount of those actual current, and not contingent, liabilities that are owed to non-residents by residents of an economy and that require payment of principals and/or interests by the debtors at some time points in the future.

Table 1 presents Hong Kong’s BoP. Table 2 presents the detailed current account and capital account, while Table 3 presents the detailed financial account. Table 4 shows Hong Kong’s IIP, and Table 5 shows Hong Kong’s ED.
 
Statistics on BoP, IIP and ED for the second quarter of 2025 are preliminary figures, which are subject to revision upon the availability of more data.

The latest statistical tables of BoP (including seasonally adjusted current account), IIP and ED can be downloaded at the website of the C&SD (www.censtatd.gov.hk/en/scode260.html). Analysis of the statistics, together with the conceptual and methodological details, are presented in the publication Balance of Payments, International Investment Position and External Debt Statistics of Hong Kong, Second Quarter 2025 published by the C&SD. Users can download the publication at the website of the C&SD (www.censtatd.gov.hk/en/EIndexbySubject.html?pcode=B1040001&scode=260).

For enquiries about the BoP, IIP and ED statistics, please contact the Balance of Payments Section of the C&SD (Tel: 3903 6979 or email: bop@censtatd.gov.hk).

Source: Hong Kong Government special administrative region – 4

     Hong Kong Customs, based on a smuggling case involving endangered species detected in 2022, conducted a follow-up financial investigation and discovered that a local man connected with the case had used his personal bank accounts to conduct numerous suspicious transactions with over 700 counterparties between April 2021 and September 2023, laundering approximately $6.7 million of crime proceeds, in violation of the Organized and Serious Crimes Ordinance (OSCO). Customs earlier successfully applied for an enhanced sentence in court, and the 37-year-old local man was convicted of money laundering at the District Court yesterday (September 18) and sentenced to 40 months’ imprisonment.
 
     Customs welcomed the sentence. The custodial sentence has imposed a considerable deterrent effect and reflects the seriousness of money-laundering offences.
 
     Under the OSCO, a person commits an offence if he or she deals with any property knowing or having reasonable grounds to believe that such property in whole or in part directly or indirectly represents any person’s proceeds of an indictable offence. The maximum penalty upon conviction is a fine of $5 million and imprisonment for 14 years while the crime proceeds are also subject to confiscation.
 
     Members of the public may report any suspected money laundering activities to Customs’ 24-hour hotline 182 8080 or its dedicated crime-reporting email account (crimereport@customs.gov.hk) or online form (eform.cefs.gov.hk/form/ced002).

Source: Hong Kong Government special administrative region – 3

Source: Hong Kong Government special administrative region – 4

     Hong Kong Customs on September 9 detected the largest online sale of counterfeit goods case on record, seizing about 9 200 suspected counterfeit items, including health products, leather goods, skincare products, watches, and medicines containing suspected Part 1 poison, with an estimated market value of about $15 million.

     Customs earlier received information from members of the public and trademark owners, alleging the sale of suspected counterfeit health products through links on social media. After a comprehensive investigation, Customs officers took enforcement action on September 9 and searched three industrial units in Yuen Long, including two logistics company storages and one express logistics company operation centre. About 7 500 suspected counterfeit items were seized, and four men and three women, aged between 24 and 57, were arrested.

     After a follow-up investigation, Customs officers on September 12 further seized 1 700 suspected counterfeit items from the transit hub of the express logistics company.

     The investigation is ongoing. All arrested persons have been released on bail pending further investigation, and further arrests are not ruled out.

     The suspected counterfeit health products seized in the operation have been sent to the Government Laboratory for safety testing.

     Customs reminds consumers to purchase goods at reputable shops or online shops and to avoid conducting transactions with suspicious traders. They should check with the trademark owners or their authorised agents if the authenticity of a product is in doubt.

     Under the Trade Descriptions Ordinance, any person who sells or possesses for sale or for any purpose of trade any goods with a forged trademark commits an offence. The maximum penalty upon conviction is a fine of $500,000 and imprisonment for five years.

     Members of the public may report any suspected counterfeiting activities to Customs’ 24-hour hotline 182 8080 or its dedicated crime-reporting email account (crimereport@customs.gov.hk) or online form (eform.cefs.gov.hk/form/ced002).

Source: Hong Kong Government special administrative region

     In view of the continued increase in influenza activity, the Centre for Health Protection (CHP) of the Department of Health (DH) announced today (September 19) that the Vaccination Subsidy Scheme (VSS) under the 2025/26 Seasonal Influenza Vaccination (SIV) Programmes will be advanced to commence three days earlier. Eligible high-risk groups could visit private doctors participating in the VSS and receive a free or subsidised SIV from next Monday (September 22). Other public vaccination venues, including DH’s Maternal and Child Health Centres (MCHCs), District Health Centres (DHCs) and District Health Centre Expresses (DHCEs) and their service outlets, general outpatient clinics and public hospitals of the Hospital Authority (HA), as well as SIV School Outreach Programme and the Residential Care Home Vaccination Programme, will remain to provide SIV starting from September 25.
 
Influenza activity continues to rise
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     “Hong Kong has entered the summer influenza season and the influenza activity continues to rise. The CHP’s latest surveillance data showed that the percentage of respiratory specimens testing positive for seasonal influenza viruses during the past week (September 7 to 13) was 8.31 per cent, higher than the 6.97 per cent recorded during the preceding week. The influenza admission rate in public hospitals is 0.44 cases per 10 000 population, higher than the 0.42 cases recorded during the preceding week. Outbreaks of influenza-like illness (ILI) in schools and residential care homes have significantly increased in the past two weeks. As of yesterday (September 18), there have been 131 ILI outbreaks involving schools since the start of the school year, including kindergartens/child care centres (17 cases), primary schools (70 cases) and secondary schools (44 cases). There were seven cases of severe paediatric influenza A infection recorded in the same period, three of whom were unvaccinated in the previous season,” the Controller of the CHP, Dr Edwin Tsui, said.
 
VSS to advance commencement on Monday
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     “In view of the influenza activity further increased, the number of infected patients and outbreaks is expected to remain at a high level in the near term. The Government will inform all private doctors participating in the VSS that starting from Monday, eligible persons could receive a free or subsidised SIV. We appeal to your support on SIV. Get vaccinated once a year and sooner is better than later,” Dr Tsui said.
 
     Over 1 700 doctors have applied to join the VSS. The Government will provide a subsidy of $260 per dose of vaccination. To facilitate members of the public in searching for doctors who offer vaccines without any co-payment, or vaccination venues for different types of seasonal influenza vaccines, the website providing information on private doctors participating in the VSS has also been optimised. This includes the enhanced search function and allowing doctors to update their details in real time.
 
Public vaccination venues to commence influenza vaccination services from September 25
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     To make vaccinations more accessible, the Government will open all 29 of the DH’s MCHCs for all children aged 6 months to under 2 years. Moreover, the 25 DHCs and DHCEs and their service outlets under the Primary Healthcare Commission, and 74 general outpatient clinics and 38 public hospitals of the HA to provide more choices for the public. For a list of vaccination venues, please refer to the CHP’s Vaccination Schemes page. Starting from 9am next Monday, parents of eligible children may book an appointment for their children to receive vaccinations at designated MCHCs via the online booking system.
 
     For more information on the SIV programmes, please visit the Vaccination Schemes page or call the CHP during office hours at 2125 2125.

Source: Hong Kong Government special administrative region

​Two incoming passengers were both sentenced to eight months’ imprisonment, with one passenger fined $500 and the other passenger fined $1,500, at the West Kowloon Magistrates’ Courts today (September 19) for importing duty-not-paid cigarettes and failing to declare them to Customs officers, as well as for importing alternative smoking products, in contravention of the Dutiable Commodities Ordinance (DCO) and the Import and Export Ordinance (IEO).

Customs officers intercepted a 26-year-old incoming male passenger and a 25-year-old incoming female passenger at Hong Kong International Airport on June 9. About 41 100 duty-not-paid cigarettes and about 81 000 alternative smoking products, with an estimated market value of about $413,000 and a duty potential of about $136,000, were seized from their personal baggage. They were subsequently arrested.

The male passenger was sentenced to six months’ imprisonment and fined $1,500 in contravention of the DCO and was sentenced to eight months’ imprisonment in contravention of the IEO today. The sentences will run concurrently.

The female passenger was sentenced to six months’ imprisonment and fined $500 in contravention of the DCO and was sentenced to eight months’ imprisonment in contravention of the IEO today. The sentences will run concurrently.

Customs welcomes the sentence. The custodial sentence has imposed a considerable deterrent effect and reflects the seriousness of the offences. 

Under the DCO, tobacco products are dutiable goods to which the DCO applies. Any person who imports, deals with, possesses, sells or buys illicit cigarettes commits an offence. The maximum penalty upon conviction is a fine of $2 million and imprisonment for seven years. 

Under the IEO, any person who imports an alternative smoking product into Hong Kong commits an offence. The maximum penalty upon conviction is a fine of $2 million and imprisonment for seven years.

Members of the public may report any suspected illicit cigarette activities to Customs’ 24-hour hotline 182 8080 or its dedicated crime-reporting email account (crimereport@customs.gov.hk) or online form (eform.cefs.gov.hk/form/ced002).

Source: Hong Kong Government special administrative region

Source: Hong Kong Government special administrative region

Source: Hong Kong Information Services

Chief Executive John Lee attended a radio phone-in programme today to elaborate on his governing tenets and listen to citizens’ feedback about the 2025 Policy Address.

He highlighted that the Northern Metropolis is Hong Kong’s new growth engine, adding that the Government is accelerating the project to expedite its development.

“In the Policy Address, I have laid out the framework for simplifying administrative procedures and, at the same time, trying to create legislation so that we can fast-track some development.

“At the same time, I think I need to focus on several areas. So, under me there will be three working groups.”

The three working groups are under the newly-formed Committee on Development of the Northern Metropolis, which Mr Lee will chair. They include the Working Group on Devising Development & Operation Models, the Working Group on Planning & Construction of the University Town and the Working Group on Planning & Development.

During the programme, Mr Lee also responded to concerns about issues relating to the cost of land and labour.

“The land cost has been as it is for many years. And my policy on land cost is that I want it to (be) stabilised because going suddenly very high or very low will create big uncertainty,” Mr Lee said.

“So, whenever I make changes, I have to decide whether it will be a progressive change or a drastic change,” he added.

As for labour cost, Mr Lee said he needs to take care of the over three million workforce of Hong Kong, emphasising that he has no intention of using imported labour to reduce workers’ wages.

Moreover, Mr Lee announced in this latest Policy Address the extension of the double tax allowance for parents with newborns from one year to two years. The Chief Executive stressed that family is the nucleus of society.

“Because you need people to feel that this is their home. And then they will devote their efforts. So I (put an) emphasis on childbearing,” Mr Lee said.

“The trend of Hong Kong’s fertility rate being on the downward trend has been (seen) over many years. But since the roll out of policies, the figures of the years 2023 and 2024 have shown a reversion,” he added.

Furthermore, Mr Lee noted that the Government is striving to boost Hong Kong’s attractiveness, not just for businesses to prosper but also for its residents to have a better quality of life.

Source: Hong Kong Government special administrative region