Author: MIL-OSI Publisher

Source: Hong Kong Government special administrative region – 4

Hong Kong Customs on June 27 detected a suspected smuggling case involving a river trade vessel. A large batch of suspected smuggled goods with a total estimated market value of about $34 million was seized.

Through intelligence analysis and risk assessment, a river trade vessel departing from Hong Kong for Macao was selected for inspection on June 27. Upon examination, Customs officers onboard the vessel found a large batch of suspected smuggled goods, including about 570 000 suspected pharmaceutical products, about 1 500 kilograms of dried shark fins, about 47kg of shisha tobacco, about 42kg of bird’s nests, about 38kg of cigars and 1 380 mobile phones.

An investigation is ongoing. The likelihood of arrests is not ruled out.

Being a government department primarily responsible for tackling smuggling activities, Customs has long been combating various smuggling activities on all fronts. Customs will keep up its enforcement action and continue to resolutely combat sea smuggling activities through proactive risk management and intelligence-based enforcement strategies, and carry out targeted anti-smuggling operations at suitable times to crack down on relevant activities.

Smuggling is a serious offence. Under the Import and Export Ordinance, any person found guilty of importing or exporting unmanifested cargo is liable to a maximum fine of $2 million and imprisonment for seven years upon conviction.

Members of the public may report any suspected smuggling 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:

[PRESS RELEASE] – Samoa’s national women’s cricket team are travelling to Port Moresby to compete in the Inaugural PacificAus Sports Cricket Invitational. The team will be battling against an Australian Indigenous team and teams from Papua New Guinea and Vanuatu from Saturday 15 June – Saturday 21 June in an action-packed draw.

Captain Tuaoloa Helen Semau of Vailuutai, Falelatai and Iva Savaii said the team is “incredibly excited and honoured to be part of the Pacific Invitational Tournament. Competing against strong teams like the Australian Indigenous Women’s Team, Papua New Guinea, and Vanuatu is both a challenge and a privilege we embrace wholeheartedly.

This is an amazing opportunity for us to test ourselves and grow as a team. We’ve been training hard, and the spirit within the squad is strong. We’re not just here to participate – we’re here to compete, represent Samoa with pride, and show the progress we’ve made in our cricket journey.”

The Samoa national women’s team is currently ranked 45 th , and prior to COVID-19 it had been ranked 16th in the world. The Invitational presents an opportunity for the team to face up against old rivals PNG and Vanuatu. Coach Perelini Mulitalo said “I’m really happy about the squad we’ve assembled for this Pacific Invitational, especially with the inclusion of our young talents from the U19 Women’s Team – Avetia Mapu, Olive Lefaga Lemoe, Angel Sootaga So, Masina Faimafili Tafea and Norah Jade Salima. These girls have shown great potential, composure, and hunger to compete at the senior level.

“This tournament will be an invaluable experience for them, and it is a big step forward in our pathway for women’s cricket in Samoa. Bringing in youth adds fresh energy, and it also signals the growth and future of our program. We are not only building for now—we are building for sustained success in the years to come.

“It is going to be a tough competition, but these young players bring new strengths and fearless intent that will boost our team. I am proud of how far they’ve come and excited to see them rise to this challenge.

“These types of tournaments are so important for women’s cricket in the Pacific. They push us to raise our standards and inspire the next generation back home. Win or lose, we’ll leave everything on the field and carry our flag with pride.”

Carol Agafili, a fresh addition to the team is feeling calm and confident ahead of the matches and will be another strong addition to the team.

The T20 tournament is supported through the Australian Government’s PacificAus Sports program, which creates opportunities for Pacific athletes, coaches, officials and administrators to access high performance training and elite competition.

Australia’s High Commissioner to Samoa, HE Will Robinson said, “the Australian Government is proud to partner with the Samoa International Cricket Association to help the Samoan team to attend the inaugural PacificAus Sports Cricket Invitational. Manuia le fa’amoemoe Samoa!”

The Invitational builds on previous investment in Samoa cricket from the Australian Government, with PacificAus Sports supporting a visit to Samoa from Australian cricket legend Cathryn Fitzpatrick last year to support the U19 women’s team prepare for the T20 World Cup.

The competition is set to be fierce, with Cricket Australia’s CEO Todd Greenberg expecting “this tournament will showcase high-performance cricket while continuing to strengthen shared cultural connections”. Mr Greenberg also added that “the Australian Women’s Indigenous squad brings together skill, determination, and a proud legacy of Indigenous cricket”. Mr Greenberg is looking forward to seeing the Australian team perform their at their best in PNG.

The tournament is being played in Papua New Guinea as part of the celebration of the nation’s 50th anniversary of independence, Cricket Papua New Guinea will be the hosts for the tournament, with support from Cricket Australia.

END.

July 8, 2025

Source:

[JOINT PRESS RELEASE, 13 June 2025] – A handover ceremony was held earlier today (13 June) to mark the completion of installation of 10 water stations in the National University of Samoa (NUS) and provide 1300 reusable water bottles, funded under UK’s International Development Programme.

The project, valued at a grant of £ 29,631 (approximately SAT104,350), has provided the students at the National University of Samoa with access to free, cool, filtered drinking water and an opportunity to change mindsets of immediate family members and promoting environmental benefits through the reduction of single use plastics.

Apart from the “Changing Mindsets: Removal of Single Use Plastics in the National University of Samoa” project, the acting High Commissioner officially handover a selection of books from Her Majesty the Queen for the National University of Samoa’s library.

Following the wonderful visit to the NUS during CHOGM, Her Majesty the Queen has sent five books for the library at NUS. Her Majesty the Queen is an avid reader and is an advocate to celebrate and promote the power and benefits of reading, Reading Room | The Duchess of Cornwall’s Reading Room.

The Acting High Commissioner of the British High Commissioner, Mr. Daniel Garlick spoke about the significance of this project in continuing the ongoing relationship and collaboration between the National University of Samoa and UK.

“We are proud of the UK’s on-going collaboration with the National University of Samoa. A year ago, we were preparing for the visit of Their Majesties to NUS as part of CHOGM. Our project in partnership with Pure Pacific Water in providing water stations and reusable water bottles to NUS is tangible example of how we can work together to change mindsets and protect the fragile environment in Samoa”.

“We hope that students at the NUS will be able to access and enjoy the books sent by Her Majesty the Queen. The books will foster a lifelong love of literature and connect students with that special magic that can only be found in the leaves of a book.”

The Vice-Chancellor of the National University of Samoa, Tuifuisa’a Dr. Patila Malua Amosa delivered a remark acknowledging the donation by UK for the behalf of the University.

“On behalf of the University, I extend our heartfelt gratitude for your generous donation of water stations and water bottles and also books to our university community and that contribution is significant towards enhancing the learning environment and especially the wellbeing of our students”.

“The books also will enrich our library resources, providing invaluable knowledge and fostering culture of learning and academic excellence”, said Professor Tuifuisa’a.

UK’s International Development Programme Fund is designed to meet the diverse needs and supporting community-based projects that directly benefit local population.

This project assured to continue to strengthen bilateral relations between Samoa and the United Kingdom during by focusing on our shared goals of social and economic development.

END

SOURCE – UK in Samoa, The National University of Samoa

July 8, 2025

Source:

[PRESS RELEASE] – The U.S. Coast Guard and U.S. Embassy conducted a Maritime Boarding Officer Course from June 9 – 20, 2025, designed to strengthen maritime law enforcement operations and U.S. Coast Guard collaboration with partners in Oceania.

The course covered a broad spectrum of essential topics, including professional communication, international maritime law, boarding procedures, arrest and detention protocols, high-risk search techniques and practical boarding scenarios. Participants from the Samoa Police and Fisheries collaborated with members from the U.S. Coast Guard Mobile Training Team and Fourteenth Coast Guard District in a combination of classroom instruction and hands-on exercises, ensuring the application to realistic operational environments.

“Our goal is to enhance the proficiency and safety of boarding teams as they carry out vital maritime security missions,” said Lt. Channing Meyer, a lead Operation Blue Pacific planner for the Fourteenth District. “This training will prepare personnel to handle a wide range of scenarios with professionalism and confidence, ultimately helping to protect Samoa’s maritime borders and ensure the safety of our shared waterways.”

The Maritime Boarding Officer Course is part of the U.S. Coast Guard’s ongoing commitment to operational safety and maritime security. Key participants of this course were maritime police, fisheries compliance officers and other personnel who carry out maritime law enforcement, border security, and patrols at sea.

“This is the first U.S. Coast Guard Mobile Training Team that has been deployed to Samoa in recent years, but it is one of 20 other courses that have been executed throughout the Pacific Islands since 2023,” said Lt. Rebecca Edmonds, Oceania and North Asia program manager at U.S. Coast Guard Headquarters. “The program is synchronized and aligned with Australia’s Pacific Maritime Security Program and provides tailored law enforcement, engineering, and small boat operations support to each recipient of a Guardian Class Patrol vessel.”

This course also complements the bilateral maritime law enforcement, commonly known as the “shiprider” program where Samoa Police and Fisheries officers patrol the Samoan exclusive economic zone onboard U.S. Coast Guard and U.S. Navy vessels.

“The Boarding Officer Course is part of an ongoing cooperation to strengthen maritime security, improve coordination between agencies and build operational capacity for our Samoan counterparts,” said U.S. Chargé d’Affaires Daniel Tarapacki, U.S. Embassy Apia, Samoa. “The course is designed to provide Samoa’s boarding team members with classroom instruction and numerous practical exercises to confidently conduct maritime law enforcement boardings at sea.”

About the U.S. Coast Guard Mobile Training Team:

The U.S. Coast Guard Mobile Training Team (MTT) is a deployable unit that fosters international cooperation and strengthens maritime partnerships by providing specialized training and technical assistance to partner nations around the globe. Every year, they train over 1,000 international partners in more than 40 countries.

END.

SOURCE – US Embassy Apia, Samoa

July 8, 2025

Source: Hong Kong Government special administrative region – 4

     Following is the speech by the Chief Executive, Mr John Lee, at the South China Morning Post China Conference 2025 today (July 8):

Ms Catherine So (Chief Executive Officer of the South China Morning Post), Ms Tammy Tam (Editor-in-Chief of the South China Morning Post), Mr Steve Finch (President and Chief Executive Officer of Manulife Asia), distinguished guests, ladies and gentlemen, 

Good morning. It’s a pleasure to join you here, once again, at the South China Morning Post’s annual China Conference – the 11th edition.

More than 700 of you are here for this year’s gathering. Some 300s are joining us, virtually, at this forum for business, trade, finance, investment and technology. All of you keen on getting the latest intelligence and insights, developments and business opportunities – in Hong Kong, throughout China and beyond. 

The theme of this China Conference is “Where Capital Meets Innovation” – an apt description of the strengths of China, our country, and how Hong Kong contributes to its rise. That provides the world with much-needed certainty, especially in this difficult time.

This year’s international trade uncertainties, and chaos, may well continue amidst the rise of protectionism and unilateralism. The global economy is grappling with profound instability, escalating geopolitical risks and the wholesale reshaping of long-existing trading systems.

In spite of a damaged global trade order, the expanding trade and capital flows of China, our country, help buoy the economy of the region and the world.

The Mainland economy has sound fundamentals, a vast domestic market and the robust policies in place to withstand external challenges. In the first quarter of this year, the country’s GDP (Gross Domestic Product) grew by 5.4 per cent, and key economic indicators have kept improving since the beginning of the second quarter – simply said, China, our country, is well on its way to achieving the official growth target of around 5 per cent for 2025.

As for Hong Kong, our economy expanded solidly by 3.1 per cent in the first quarter of 2025, supported by visible increases in exports and the resumption of moderate growth in overall investment expenditure. We forecast real GDP growth of 2 per cent to 3 per cent in this year.

Last week, we celebrated the 28th anniversary of the Hong Kong Special Administrative Region’s establishment. That happy occasion was a welcome opportunity to thank our country for championing Hong Kong through the “one country, two systems” principle, as well as the national strategies and made-for-Hong Kong initiatives it supports us with.

Last month, the World Competitiveness Yearbook ranked Hong Kong third in the world in global competitiveness, up two places from the previous year, and up four places from 2023.

It marks Hong Kong’s return to the global top three for the first time since 2019, reflecting our commitment to change in face of today’s rising challenges.

There’s a lot more to be grateful for. In April and May, Hong Kong’s merchandise exports showed double-digit, year-on-year growth, while visitor arrivals also brought double-digit, year-on-year increases in the second quarter.  

And Hong Kong, in the first half of this year, has been the world’s largest IPO (initial public offering) fundraising market, raising over US$13 billion. That’s up a whopping 22 per cent, compared with the full-year figure last year.

It speaks of Hong Kong’s long-standing appeal as a safe haven for Chinese and international capital and a bridge for global investors. 

Hong Kong is, after all, the most internationalised city in the country. We offer the world a market-friendly business environment underpinned by the rule of law. We are the only common law jurisdiction in our country, with a legal system and regulatory regime similar to most global financial hubs. And we present business and investment advantages unmatched by any other city in the world.

Last year, the total number of local registered companies reached its record high, surpassing 1.46 million. And the total number of non-local companies registered here also reached a record high, and was over 15 000. Both figures continue to show encouraging growth this year. 

Since January 2023, Invest Hong Kong, our dedicated investment promotion agency, has assisted more than 1 300 Mainland and overseas companies in setting up or expanding their business in Hong Kong. These companies bring in foreign direct investment of over US$21 billion to our economy, creating over 19 000 jobs.

When I assumed office as Chief Executive three years ago, I established the Office for Attracting Strategic Enterprises. My aim is to offer, through this Office, one-stop facilitation services and  tailor-made incentives to attract strategic enterprises to our city and foster innovation and economic growth. 

The Office has brought in 84 strategic companies, from such high-tech industries as advanced manufacturing and new energy technology, AI and data science, fintech and life and health technology. The strategic companies will invest about US$6.4 billion in the next few years, creating over 20 000 jobs. 

We also launched a new scheme in May this year to create a company re-domiciliation regime to attract companies to Hong Kong. It provides a convenient, safe and secure pathway for companies to re-domicile to Hong Kong. Different companies have already expressed their interest to the regime and two international insurance giants – as Mr Finch is surely aware – have announced they will officially re-domicile to Hong Kong. Good business always makes right decisions.

These companies all gave their strong vote of confidence in the development of Hong Kong and the country, and will help attract a wealth of partners and related companies to this part of the globe.

Another strong advantage Hong Kong offers to overseas companies here, old or new, is our easy access to the Mainland market. We are certainly a front runner in this regard. 

That’s in no small part thanks to the Mainland and Hong Kong Closer Economic Partnership Arrangement, or CEPA, our de facto free trade agreement with the Mainland that provides preferential treatment to Hong Kong companies, facilitating smoother access to the Mainland’s vast market.

A new amendment agreement under the CEPA Agreement on Trade in Services entered into force this March. It includes the removal of the qualifying period requirement on Hong Kong service suppliers in most sectors, meaning our many new companies can also benefit from the arrangement’s facilitation measures in accessing the Mainland market.

Together with new initiatives that allow Hong Kong-invested enterprises to adopt Hong Kong law and choose Hong Kong as the seat for arbitration in their operation in a range of Mainland cities, CEPA provides a wide range of innovative enhancements that help a world of investors better capitalise on China’s growth opportunities, with the help of Hong Kong’s world-class professional services.

Then there’s technological innovation, including artificial intelligence. AI advancements are transforming production, business and consumption patterns. They are redefining the core competitiveness of economies.

These trends create new opportunities for Hong Kong, particularly in our deepening integration with the Guangdong-Hong Kong-Macao Greater Bay Area, a cluster city development that brings together Hong Kong, Macao, and nine southern cities on the Mainland.

With a population exceeding 87 million and a GDP of more than US$2 trillion last year, similar to the size of the 10th largest economy in the world, the Greater Bay Area is among the most open and economically vibrant regions in the country. 

The Shenzhen-Hong Kong-Guangzhou science and technology cluster, which includes three of the Greater Bay Area’s core cities, has been ranked second, globally, for five consecutive years in the Global Innovation Index, published by the World Intellectual Property Organization. 

Drawing together Hong Kong’s research capabilities and business competitiveness, as well as the Mainland’s innovation and advanced manufacturing prowess, the Greater Bay Area endeavours to become a world-leading I&T (innovation and technology) hub.

One spectacular example is the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone, an area that straddles our boundary with Shenzhen. It will develop into a cutting-edge advanced technology centre that converges the strengths of Hong Kong and Shenzhen. Last November, the HKSAR (Hong Kong Special Administrative Region) Government published the Development Outline for the Hong Kong Park in the co-operation zone.

The Park’s first three buildings have been completed, and the Greater Bay Area International Clinical Trial Institute opened last November at Hong Kong Park.

That’s just the beginning. Artificial intelligence, new energy vehicles, the low-altitude economy, fintech, and more, are thriving in the Greater Bay Area. And as the Park enters into the operational phase this year, more of these companies will be joining us.

Beyond I&T, we have seen the successful introduction of a wide variety of policy initiatives with the Greater Bay Area, including measures for the two-way flow of talent, schemes for supporting youth innovation, entrepreneurship and employment, and policies to facilitate mutual travel.

And the promise of further co-operation between Hong Kong and the rest of the Greater Bay Area and the Mainland is boundless.

Ladies and gentlemen, when we talk of China’s might, many of us immediately look to the maiden visit to Hong Kong over the past weekend of the first domestically built aircraft carrier of China, our country, the Shandong. Although the fleet has just bid us farewell yesterday, the awe and pride it drew among the people of Hong Kong over its five-day visit will be long-lasting.

More than a display of maritime strength, the fleet showcases our country’s commitment to peacekeeping and regional stability. And much like how the Shandong docked in our safe harbour, Hong Kong is where the country anchors its trust.

In this era of fogged horizons, China does not just project power – it radiates investible stability. And Hong Kong is the “super connector” and “super value-adder” that links the world with opportunities from China’s growth and certainties. A link you can always bank on.

Amid an ever changing geopolitical landscape and constantly escalating uncertainties, Hong Kong is the place that promises security and development. This certainty of security and development is precisely what a world of investors need and thirst for. 

Together, we will fully seize development opportunities, keep boosting our competitiveness, undertake reforms for progress, and foster innovation. The wisdom and wealth of experience of the people of Hong Kong will help the Pearl of the Orient shine brighter than ever on the world stage.

My thanks to the South China Morning Post for organising this essential, always eventful, annual gathering. 

I wish you all a rewarding conference. And the best of business in the second half of 2025, a year that will surely be full of opportunities and rewards. Thank you.

Source: Hong Kong Government special administrative region – 4

     The Secretary for Justice, Mr Paul Lam, SC, began his European visit in Amsterdam, the Netherlands, on July 6 (Amsterdam time). He met with international organisations, judges from the International Court of Justice (ICJ), government officials and the local business community to promote Hong Kong’s legal system and services, and its development as an international legal and dispute resolution centre in the Asia-Pacific region.
 
     Upon his arrival, Mr Lam met with Hong Kong people and overseas Chinese organisation representatives living in the Netherlands and Luxembourg to learn about their work and life, and shared with them the latest developments of Hong Kong in various areas.
 
     After arriving at The Hague on July 7, Mr Lam visited the Hague Conference on Private International Law (HCCH) and met with the Secretary General of the HCCH, Dr Christophe Bernasconi. Mr Lam thanked the HCCH for its support for the secondment programme of legal professionals of the Department of Justice (DoJ) and exchanged views on further strengthening the co-operation between the DoJ and the HCCH, including hosting an international conference about the Hague Conventions during the DoJ’s flagship event – Hong Kong Legal Week in December this year.
 
     Mr Lam then met with the Secretary General of the Ministry of Justice and Security of the Netherlands, Ms Anneke Van Dijk, and officials to introduce the latest developments of Hong Kong and discuss issues such as the development and direction of international legal co-operation.
 
     Afterwards, Mr Lam had a lunch meeting with the Ambassador Extraordinary and Plenipotentiary of the People’s Republic of China to the Kingdom of the Netherlands, Mr Tan Jian. Mr Lam thanked the Central Government for supporting the Hong Kong Special Administrative Region to actively participate in meetings of international organisations as part of the Chinese delegation, providing opportunities for Hong Kong legal talent from the public and private sectors to take part in various projects of the HCCH. He said that the DoJ will continue to strengthen international legal talent training, as well as exchanges and co-operation with international organisations to contribute to the promotion of the country’s contribution to the development of international rule of law.
 
     In the afternoon, Mr Lam visited the ICJ of the United Nations and met with the President of the ICJ, Mr Yuji Iwasawa, to exchange views on the latest developments in international dispute resolution, including the establishment of the International Organization for Mediation with its headquarters in Hong Kong. They also shared views on the training of international legal experts and professionals. Mr Lam then visited the Permanent Court of Arbitration (PCA) and met with the Secretary-General of the PCA, Dr Marcin Czepelak, to discuss the co-operation between the DoJ and the PCA in the fields of capacity building and international law.
 
     In the evening, Mr Lam attended a business seminar and dinner organised by the Netherlands Hong Kong Business Association with the support of the Hong Kong Economic and Trade Office in Brussels and Invest Hong Kong. Speaking at the seminar, Mr Lam shared with about 100 participants Hong Kong’s distinctive advantage of enjoying the strong support of the motherland while being closely connected to the world under the “one country, two systems” principle. He stressed that Hong Kong’s legal system is credible and reputable, user-friendly, and closely tied with Mainland China and other parts of the world. These elements make Hong Kong’s legal system exceptional among other common law peers.
 
     Mr Lam will go to Paris for the second leg of his European visit today (July 8, Amsterdam time).

Source: Hong Kong Information Services

The Government today published in the Gazette the Legislative Council (Powers & Privileges) (Amendment) Bill 2025, which aims to improve the system on the performance of duties by Legislative Council members.

The bill, which will be introduced into LegCo for first reading tomorrow, amends the Legislative Council (Powers & Privileges) Ordinance to provide for imposing financial penalties on members suspended under the Rules of Procedure (RoP) from LegCo service due to a breach of the Code for Members of the Legislative Council.  

The bill is being introduced in accordance with LegCo’s proposal, in light of its improvement to the system on the performance of duties by members, the introduction of the code, and corresponding amendments to be made to the RoP.

The Government noted that at present, the deprivation of LegCo members’ remuneration and allowance in respect of the period of suspension provided under the ordinance is only applicable to cases of engaging in grossly disorderly conduct.

According to LegCo’s proposal, in future, members who have breached the code and are suspended under the RoP will also be subject to the same deprivation of remuneration and allowance.

The amendments will also provide flexibility to LegCo to cater for deprivation of remuneration and allowance of members suspended from LegCo service for other reasons under the RoP as approved by LegCo in future.

Once the Bill is passed it will take effect starting from the Eighth-Term LegCo in tandem with the code and the amended RoP. 

The Government emphasised that it fully appreciates the initiatives taken by LegCo to enhance self-regulation and self-improvement as well as transparency of its operation.

The amendments to the ordinance will facilitate LegCo in striving for continual improvement, thereby optimising the contribution of “patriots administering Hong Kong”, the Government added.

Source: Hong Kong Government special administrative region

The following is issued on behalf of the Legislative Council Secretariat: 

     The agenda of the Legislative Council (LegCo) meeting, scheduled for tomorrow (July 9) at 11am in the Chamber of the LegCo Complex, has been revised.

     The Legislative Council (Powers and Privileges) (Amendment) Bill 2025 will be introduced into the Council for the First Reading and the Second Reading. The Second Reading debate on the Bill will be adjourned.

     For the latest agenda items of tomorrow’s LegCo meeting, please refer to the LegCo Website: www.legco.gov.hk/yr2025/english/counmtg/agenda/cm20250709.htm.

Source: Hong Kong Government special administrative region

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

The Hong Kong Monetary Authority (HKMA) announced today (July 8) enhancements to the offshore RMB bond repurchase (repo) business (Note 1), to facilitate the participation of Northbound Bond Connect investors in repo business. In particular, the enhancements include:

1. Supporting the rehypothecation of bond collaterals during the repo period (Note 2):

The offshore RMB repo business has been well received by the market since its official launch on February 10, 2025. In this initial phase, the bond collaterals acquired by participating institutions are locked and managed by the Central Moneymarkets Unit (CMU) platform and cannot be re-used during the repo period. In consultation with relevant Mainland authorities and taking into account industry feedback, we will allow rehypothecation of bond collateral during the repo period, bringing this into alignment with international market practice. The enhancement will facilitate more efficient use of collaterals, reduce the financing costs for market participants, and enhance the efficiency of liquidity management.

In particular, bond collaterals can be re-used during the repo period in four specific use cases: a) for re-use in offshore repo transactions; b) as collateral for the HKMA’s RMB Liquidity Facility; c) as margin collateral at OTC Clearing Hong Kong Limited (OTCC); and d) for cash bond trading through Northbound Bond Connect. Participating institutions shall follow relevant policies and operational rules for the respective use cases when re-using the collateral (for instance, if the collateral is re-used in a new offshore repo transaction during the repo period, the participating institution should follow the latest arrangements of offshore RMB repo business as set out further below).

2. Supporting cross-currency repo (including HKD, USD and EUR):

At present, offshore RMB repo can only be settled in RMB. With the enhancement, settlement in other currencies (including HKD, USD and EUR) will be supported, with a view to facilitating participating institutions’ multi-currency funding activities by collateralising onshore RMB bond holdings, enriching their liquidity management tools, and hence increasing the attractiveness of onshore bonds.

These two enhancement measures aim to adopt international market best practices and enhance operational efficiency. They will further expand the depth and breadth of the offshore repo market, improve the market-based mechanism for offshore RMB liquidity management, and broaden the use of onshore RMB bonds as collateral in the offshore market.

The above arrangements will be officially launched on August 25, 2025.

Latest Arrangements of Offshore RMB Repo Business

To facilitate the smooth implementation of the enhancement measures, the latest arrangements for offshore RMB repo transactions (including repo transactions conducted using bond collateral acquired through a repo transaction) are set out as follows:

1. Participating Institutions:

All existing Northbound Bond Connect investors, including CMU members and offshore investors with CMU sub-accounts opened through Hong Kong custodian banks that are CMU members.

2. Eligible Bonds:

Bonds held by participating institutions under Northbound Bond Connect, and bond collaterals acquired through offshore repo transactions, regardless of bond type.

3. Market Maker Arrangement:

The 11 Primary Liquidity Providers designated by the HKMA (Note 3) will serve as market makers. Each repo transaction must involve at least one of these market makers as a counterparty.

4. Transaction and Settlement Arrangements:

(a) Master Agreement: Participants may choose their own repo agreement template (e.g., Global Master Repurchase Agreement (GMRA) or National Association of Financial Market Institutional Investors (NAFMII)’s Bond Repurchase Master Agreement, etc.).

(b) Trading Arrangement: Transactions may be conducted:
 

1. bilaterally over-the-counter;
2. in the same manner as existing Northbound Bond Connect transactions, and via the linkage between the infrastructures in the onshore and offshore markets;
3. through offshore electronic trading platforms; or
4. through onshore electronic trading platform.

(c) Settlement Arrangement: Settlement will be completed under the Repo Service by CMU. Settlement currencies include RMB, HKD, USD and EUR.

5. Data Reporting:

Market makers are required to report repo transaction data (Note 4) to the HKMA on the same day of the transaction for market monitoring purpose. The HKMA will further communicate with the market makers to finalise the reporting requirements and submission channels.

The operational details for bond transfer and settlement will be announced by CMU separately. The HKMA will continue to closely monitor market conditions to ensure orderly market operations. The HKMA will also maintain communication with the industry and review and adjust the arrangements as appropriate to support the robust and sustainable development of offshore RMB business.

Note 1: The HKMA announced the launch of offshore RMB bond repo business on January 13, 2025 (please refer to the HKMA press release). This measure was implemented on February 10, 2025.

Note 2: Operational details will be announced by CMU later. Currently, the rehypothecation of bond collateral is only applicable to repo transactions settled in the Delivery versus Payment model. The timeline for CMU’s tri-party repo service to support the rehypothecation of bond collateral will be notified separately in due course.

Note 3: Including 1) Agricultural Bank of China Limited, 2) Bank of China (Hong Kong) Limited, 3) Bank of Communications Co., Ltd., 4) BNP Paribas, 5) China CITIC Bank International Limited, 6) China Construction Bank (Asia) Corporation Limited, 7) Citibank, N.A., 8) Hang Seng Bank Limited, 9) The Hongkong and Shanghai Banking Corporation Limited, 10) Industrial and Commercial Bank of China (Asia) Limited and 11) Standard Chartered Bank (Hong Kong) Limited.

Note 4: The specific information to be reported includes: names of the trading institutions (including both the repo party and the reverse repo party), total amount of funds borrowed by the repo party, bond name, bond code, repo term, total face value, repo rate, transaction/first settlement date, settlement amount, trading platform/means, default-related information etc.

Source: Republic of China Taiwan

MOFA response to EU expressing concern over cross-strait status quo during 13th EU-China Strategic Dialogue

July 3, 2025  

On July 2, European Union High Representative for Foreign Affairs and Security Policy Kaja Kallas and Chinese Foreign Minister Wang Yi cochaired the 13th EU-China Strategic Dialogue in Brussels. When elaborating on Taiwan in a statement issued after the meeting, the European Union reaffirmed its commitment to its “one China policy” and expressed opposition to any unilateral attempts to alter the status quo, including by force or coercion. In addition, the European Union voiced concerns about human rights in China as well as hybrid threats in Europe coming from China.
 
In response to each of China’s three large-scale military drills targeting Taiwan since May 2024, the European External Action Service (EEAS) promptly issued statements expressing concern. In these statements, the EEAS stressed that peace and stability across the Taiwan Strait were of strategic importance for regional and global security and prosperity and that the European Union had a direct interest in the preservation of the status quo across the Taiwan Strait. The fact that EU High Representative Kallas has once again reiterated this position in a meeting with high-level Chinese officials demonstrates that the European Union pays close attention and attaches great importance to the cross-strait status quo. The Ministry of Foreign Affairs (MOFA) appreciates and welcomes such statements. 
 
Moving forward, MOFA will continue to strengthen cooperative relations with the European Union and other like-minded partners to jointly safeguard shared values of freedom and democracy, uphold the rules-based international order, preserve the status quo across the Taiwan Strait, and ensure peace and stability in the Indo-Pacific region.