Source: Hong Kong Government special administrative region
LCQ18: Review of the bus-only lane arrangement on Tuen Mun Road
Question:
The Transport Department’s arrangement of designating a bus-only lane (BOL) on Tuen Mun Road (TMR) between So Kwun Wat and Sham Tseng Interchange (TMRBOL) has been in place for over 30 years. Some members of the public have relayed that, following the commissioning of the Tuen Mun-Chek Lap Kok Tunnel in December 2020 and the Government’s takeover of the Tai Lam Tunnel in May 2025, the authorities should review the overall traffic conditions on TMR and make adjustments accordingly. In this connection, will the Government inform this Council:
(1) given that in its reply to a question raised by a Member of this Council on June 4, 2025, the Government indicated that in light of changes in traffic flow and bus operation of TMR after the implementation of new toll plans at the Tai Lam Tunnel, the Transport Department would review the arrangement of TMRBOL in a timely manner, of the current progress of the review (e.g. whether the length and operating hours of the BOL will be shortened), and whether it has plans to conduct a comprehensive review of the overall traffic conditions on TMR; if so, of the specific plans; if not, the reasons for that;
(2) as the current design of TMRBOL is inconsistent with those in other districts in Hong Kong (e.g. on major roads such as Nathan Road and Hennessy Road) (generally speaking, where a road exit is located outside a BOL, continuous broken lines or arrow markings are usually provided before the exit to facilitate safe lane changes by vehicles), whether the authorities will review the design of the roads associated with TMRBOL and add continuous broken lines or arrow markings to accommodate the needs of drivers heading to Siu Lam and Sham Tseng; if so, of the specific plans; if not, the reasons for that; and
(3) as some members of the public have relayed that the authorities’ arrangement of BOLs in various locations across the territory has caused impacts on other lanes of the same road sections and adjoining roads, leading to traffic congestion or tailbacks, whether the authorities will conduct a study on the impact of BOLs in various districts on traffic and adjust the arrangement of BOLs across the territory in light of the actual circumstances; if so, of the specific plans; if not, the reasons for that?
Reply:
President,
Under the policy of giving priority to public transportation, the Transport Department (TD) has implemented Bus-only Lanes (BOLs) to give buses with high carrying capacity priority in road usage. This helps reduce delays caused by traffic congestion and encourages the public to choose convenient public transportation for travel. BOLs (including bus lanes and designated bus gates), as mentioned in the question, are traffic lanes designated for use only by “franchised buses” or by both “franchised and non-franchised buses” during prescribed times. My response to the question raised by Professor the Hon Lau Chi-pang is as follows:
(1) Following the Government’s takeover of the Tai Lam Tunnel on May 31, 2025, and the subsequent reduction in tolls, traffic flow through the tunnel has increased. According to preliminary data, and in line with the Government’s expectations, traffic flow on the relevant section of Tuen Mun Road has decreased during weekday peak hours. However, it still exceeds road capacity, resulting in congestion. To balance the needs of different road users and ensure smooth public transport services, the TD considers it necessary to maintain the existing BOL arrangement. Specifically, the left lane of Tuen Mun Road (towards Kowloon), between Harrow International School Hong Kong and the Sham Tseng Interchange, will remain designated as a BOL from 7.30am to 9am (excluding public holidays).
(2) The current BOL arrangements help maintain stable travel times and service levels for franchised buses, thereby encouraging more members of the public to use bus services. This, in turn, reduces the use of Tuen Mun Road by other vehicles with lower passenger capacity and helps alleviate heavy traffic congestion on the road.
Outside the designated BOL operating hours, vehicles traveling along Tuen Mun Road towards Kowloon may use the BOL (leftmost lane) and access Castle Peak Road – Tai Lam Section and Sham Tseng Section via Exits 22 and 23, respectively, in accordance with the guidance provided on directional signs and the deceleration lanes before the exits, depending on travel needs. If the morning peak BOL arrangement is cancelled, the operational efficiency of bus services may be affected, and other drivers may be drawn to use Tuen Mun Road during the morning peak, which would further exacerbate congestion. To remind motorists of the BOL arrangements, appropriate road signs have been installed along the road.
As for other BOL locations, such as Nathan Road and Hennessy Road, these junctions are generally more densely concentrated. Taking into account the travel needs of other vehicles and the availability of alternative routes, the length of BOL setups on these roads is typically shorter. Continuous dotted lines or arrow markings are provided at appropriate locations to allow other vehicles to safely merge at relevant junctions, turn into side streets, or access nearby buildings, thereby supporting the operational needs of the road network.
(3) The current BOL arrangements across Hong Kong have been designed with careful consideration of actual road and traffic conditions, including road and junction design, the number of traffic lanes, the number and frequency of bus routes, traffic volumes of other vehicles, the availability of alternative routes, and the impact on vehicle movement. The TD will continue to closely monitor the operation of BOLs in all districts, as well as prevailing road and traffic conditions, and will optimise the arrangements as necessary. This ensures an appropriate balance under the policy of giving priority to public transportation, thereby supporting the smooth operation of the transport network.
Issued at HKT 12:15
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LCQ10: Training programmes offered by Civil Service College
Source: Hong Kong Government special administrative region
Following is a question by the Hon Hung Kam-in and a written reply by the Secretary for the Civil Service, Mrs Ingrid Yeung, in the Legislative Council today (March 18):
Question:• focuses on broadening participants’ international perspectives, holistic views about our country and strategic thinking to help them support the national development strategies and the development needs of Hong Kong when formulating policies;
(b) Leadership In Action Programme for senior officers at Master Pay Scale Points 45-49 (3 weeks)
• focuses on strengthening participants’ capabilities in leadership and strategy execution, and their ability to think from multiple perspectives for effective formulation and implementation of public policies;• focuses on enhancing participants’ capabilities of promoting service innovation and keeping frontline officers abreast of the times for delivery of people-oriented services; and• focuses on enhancing participants’ capabilities in team management and collaboration, and fostering the “one government” mindset in the provision of services.
LCQ2: Supporting sustainable development of securities industry
Source: Hong Kong Government special administrative region
LCQ2: Supporting sustainable development of securities industry
Question:
There are views that with the securities industry (especially small and medium securities dealers) facing the pressure of persistently increasing compliance and operating costs in recent years, the Government should introduce targeted support policies to assist small and medium securities dealers in adapting to and meeting new requirements, as well as enhancing their competitiveness. In this connection, will the Government inform this Council:
(1) to assist the securities industry in smoothly implementing the uncertificated securities market regime to be launched within this year, whether the Government will consider introducing funding schemes for securities dealers (especially small and medium securities dealers), so as to support the upgrading of the overall industry; if not, of the means by which the Government will assist securities dealers in catering for the relevant requirements of the regime;
(2) it is learnt that over the past years, securities dealers have incurred additional operating costs due to their custody of large quantities of delisted company stocks, how the authorities will assist such securities dealers in handling the issue of custody of delisted company stocks; and
(3) whether it will explore the setting up of a dedicated fund to provide funding support for the system upgrades undertaken by the securities industry to meet the new requirements, thereby mitigating their compliance costs; if not, of the reasons for that?
Reply:
President,
With Hong Kong being an international financial centre, the Government has all along been driving the Securities and Futures Commission (SFC) and the Hong Kong Exchanges and Clearing Limited (HKEX) to leverage the unique advantages under “one country, two systems” to pursue reforms in different aspects of the securities market, introducing various enhancements to the listing regime and promoting high-quality development of the market.
Driven by a series of reforms, Hong Kong’s primary market welcomed 119 newly listed companies in 2025, with initial public offering funds raised exceeding HK$286.9 billion, ranking first globally. In the first two months of this year, 24 companies were newly listed, more than doubling the number in the same period last year. The average daily turnover in 2025 was HK$249.8 billion, representing a 90 per cent increase over 2024. In the first two months of this year, the average daily turnover was HK$260.9 billion, up 17 per cent year-on-year. While the stock market is buoyant, we must not rest on our laurels. We must continue to seek breakthroughs to enhance the efficiency and competitiveness of Hong Kong’s securities market.
In consultation with the SFC and the HKEX, my reply to the three parts of the question is as follows:
(1) The uncertificated securities market (USM) regime seeks to dispense with the need to use paper documents to evidence and transfer legal title to securities. By reducing reliance on paper and manual processes, it will facilitate straight‑through processing and strengthen the efficiency and competitiveness of Hong Kong’s securities market. Under the USM regime, the existing nominee structure in the Central Clearing and Settlement System will be retained. This will preserve investors’ choice of holding securities through brokers, maintain the current role of brokers, and reduce the impact on their existing operating models.
Following multiple rounds of extensive public consultation, the Legislative Council passed in 2021 the Securities and Futures and Companies Legislation (Amendment) Ordinance 2021, which sets out the principal legal framework for the regime. Six pieces of subsidiary legislation providing for the detailed arrangements of the regime were also made in 2025 under the negative vetting procedure of the Legislative Council. In the 2026-27 Budget, the Financial Secretary indicated that the Government, together with the SFC and the HKEX, will work with the industry to implement the regime within the year.
The SFC and the HKEX have been maintaining close communication with the industry on the implementation of the USM regime. A number of measures are already in place to assist stakeholders, including brokers, in making a smooth transition. These include:
(i) The USM adopts a phased implementation strategy, under which prescribed securities will gradually become participating securities by batches within five years from the commencement date. This will ensure market readiness, steady inclusion, and uninterrupted daily operations.
(ii) As the existing nominee structure will be retained, many current processes will remain unchanged, with manual and paper‑based procedures progressively replaced by electronic processes. From the brokers’ perspective, the main changes will be the process in the deposit and withdrawal of securities. These will be achieved through the HKEX’s system enhancements, while the system changes required of brokers will be relatively limited, facilitating a smoother transition to the USM regime by the industry.
(iii) The SFC and the HKEX have been working closely to provide brokers with sufficient information and technical support. The HKEX published information papers in 2024 and 2025 setting out detailed technical guidance for market participants including brokers, and organised three briefing sessions to familiarise brokers with the relevant processes and facilitate their preparations together with eight seminars and continuing training courses held by market stakeholders. The HKEX will continue to provide updated information and organise briefing sessions, and will also arrange market rehearsals to enable market participants to familiarise themselves with the operation of the upgraded infrastructure and operational procedures.
(iv) To help the market better understand and adapt to the new regime, the SFC and the industry will jointly conduct investor education, including further enhancements to the dedicated website providing one-stop information and a series of frequently asked questions. Publicity efforts on different fronts will be strengthened including through videos and briefing sessions to help investors understand the operation of the new mechanism and the steps for participation, thereby raising investor awareness and reducing brokers’ workload.
As certain existing fees will no longer be applicable under the USM regime, the HKEX will adjust its fee structure to make it simpler, more direct and predictable, and more aligned with the fee models of other major markets. This will ensure that market’s operating costs are commensurate with digitalised operations and support sustainable market development. After extensive consultation with the industry, the HKEX has made multiple adjustments to the fees to minimise the financial burden on small brokers, including (i) raising the threshold for the lowest membership fee rate tier to cover more small brokers; (ii) lowering the membership fee rate for relevant brokers; (iii) granting a one-year waiver of membership fee for small brokers; and (iv) adjusting the stock custody fee rate. According to the HKEX’s assessment, about 88 per cent of small brokers (i.e. Category C brokers) will pay lower relevant fees in the first year of USM implementation compared with before. From the second year onwards, about 65 per cent of small brokers will continue to pay lower fees.
(2) The Government is aware that brokers may incur costs in relation to the custody of shares of delisted companies. The 2026-27 Budget has indicated that the Government will continue to explore with the market the provision of an over-the-counter (OTC) trading platform for delisted stocks or those requiring special handling. The SFC and the HKEX have previously conducted preliminary consultation with market participants, and heard diverse views from the market. On the one hand, some consider that an OTC trading platform would provide shareholders of delisted companies with an exit opportunity, and that retail investors should be allowed to participate with market makers introduced to address liquidity concerns. On the other hand, some believe that if the platform only allows shareholders of delisted companies to sell their shares, the volume would be insufficient to sustain an OTC market. In addition, the fundamental conditions of relevant companies may lack transparency and make comprehensive assessment difficult, so retail investors may bear higher risks while the attractiveness to institutional investors would be limited. Whether the platform can provide brokers with a channel to dispose of such shares therefore remains uncertain. The HKEX will continue to consolidate views from different stakeholders and announce specific arrangements in due course, followed by further market consultation.
(3) With the buoyant stock market, we are pleased to see an increase in brokers’ revenue. According to the latest Financial Review of the Securities Industry published by the SFC, Hong Kong’s securities industry maintained steady growth in the first half of 2025, with net profit rising by 14 per cent to HK$28.9 billion compared with the preceding six months, driven by increasing trading volume. Notably, the aggregate net profit of exchange participants totalled HK$15.6 billion, up 34 per cent compared with the preceding six months, while Category C brokers’ net profit doubled to HK$2.5 billion. Trading volume continued to grow in the second half of 2025 and the first two months of this year, and we expect that brokers’ revenues and profits may continue to rise. The Government will continue to monitor brokers’ operating conditions and maintain close communication with the industry.
The Government understands that whenever new measures are introduced, the industry may have certain concerns, as was the case with the trading arrangements under severe weather implemented in 2024. Experience has shown that with comprehensive and candid communication, concerted efforts, and thorough preparation, we can successfully implement the USM regime together, thereby enhancing the overall efficiency and competitiveness of Hong Kong’s securities market and benefiting the development of the securities industry.
Thank you, President.
Issued at HKT 12:30
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LCQ6: Regulation and development of AI technology
Source: Hong Kong Government special administrative region
Following is a question by the Hon Elizabeth Quat and a reply by the Acting Secretary for Innovation, Technology and Industry, Ms Lillian Cheong, in the Legislative Council today (March 18):
Question:
(3) In respect of educational courses, the EDB has been in close communication with universities funded by the University Grants Committee (UGC), encouraging them to further strengthen their measures in AI and cyber technology applications. In 2023, the UGC allocated $100 million to establish the Fund for Innovative Technology-in-Education which aims to encourage universities to leverage technology to advance teaching innovation and enrich learning experience, fostering a new generation of well-rounded talent for the digital economy. Among the funding scope of the Fund is promoting technological social responsibilities and academic integrity, which includes legal and ethical topics such as academic integrity, and data privacy and security.
LCQ19: Studying the re-launch of the Tenants Purchase Scheme
Source: Hong Kong Government special administrative region
Following is a question by the Hon Tam Chun-kwok and a written reply by the Secretary for Housing, Ms Winnie Ho, in the Legislative Council today (March 18):
Question:
It has been reported that the Government has identified sufficient land for construction of public rental housing (PRH) units to meet the housing demand in the coming decade. There are views that it is now an opportune time for re-launching the Tenants Purchase Scheme (TPS), and the Government has also indicated its plans to conduct the related studies this year. In this connection, will the Government inform this Council:
Reply:
President,
The Tenants Purchase Scheme (TPS) was first introduced by the Hong Kong Housing Authority (HA) in 1998 to allow the sitting tenants of public rental housing (PRH) to purchase their flats at extremely low prices (12 per cent to 21 per cent of the original price) so as to achieve home ownership. Following a comprehensive review of the housing policy by the Government in 2002, the HA then decided not to roll out new TPS estates after the sale of TPS Phase 6B in August 2005. While sitting tenants in the 39 TPS estates can still opt to purchase their flats, the HA also puts up recovered TPS flats for sale in the Home Ownership Scheme (HOS) and Green Form Subsidised Home Ownership Scheme (GSH) sale exercises to eligible Green Form (GF) applicants.
In fact, under the prevailing mechanism, PRH applicants who have passed the detailed vetting may choose to apply for a Green Form Certificate (GFC) to purchase various types of subsidised sale flats (SSF) of HA, including HOS, GSH and recovered TPS flats. In recent years, the supply of SSF for sale has increased significantly. In the next five-year period (2026/27 to 2030/31), the supply of HOS flats is expected to reach nearly 59 000, representing a significant increase of nearly 50 per cent compared to the first five-year period when the current-term Government took office (2022/23 to 2026/27). The HA has also introduced various measures to assist PRH tenants and GFC holders in home purchase, including adjusting the ratio of GF and White Form from 40:60 to 50:50 starting from “HOS 2025”. It is believed that these measures will help parties concerned achieve their home ownership aspirations.
Note: Multiple reasons could be selected.
Hongkong Post to issue “Old Master Q II” special stamps
Source: Hong Kong Government special administrative region
Hongkong Post to issue “Old Master Q II” special stamps
Old Master Q comics have entertained generations in Hong Kong. Mr Alfonso Wong Chak (1925–2017), creator of the first edition of the Old Master Q comics, started publishing his works in local newspaper columns in 1962 under the pen name Wong Chak, the name of his eldest son. Seeing his father getting on in years, Mr Joseph Wong Chak resolutely took up the baton of the Old Master Q comics in 1995 to carry forward the spirit of Old Master Q. He continues to produce the comics to this day. Simple and easy to understand, Old Master Q comics often feature humorous plot lines that bring knowing smiles to readers. The comic characters, such as Old Master Q, Big Potato, Mr Chin and Miss Chen, have all taken root in people’s hearts.
Following the release of the “Old Master Q” special stamps in 2019, Hongkong Post will issue a new set of special stamps themed “Old Master Q II” featuring various festive celebrations, including the Lunar New Year, Valentine’s Day, Easter, the Dragon Boat Festival, Mid-Autumn Festival and Christmas. Characters from the Old Master Q comics are depicted immersed in a rich festive atmosphere, showcasing Hong Kong’s unique charm and vibrancy. In addition, Hongkong Post will specifically launch a souvenir pack printed in invisible ink. It includes a souvenir sheet, a $10 stamp sheetlet, a $20 stamp sheetlet and a UV light torch. Under the UV light torch, hidden graphics on the souvenir pack will be revealed – a must-have for Old Master Q fans.
Official first day covers for “Old Master Q II” will be on sale at all post offices and on Hongkong Post’s online shopping platform ShopThruPost (shopthrupost.hongkongpost.hk
A hand-back date-stamping service will be provided on April 2 at all post offices for official first day covers/souvenir covers/privately made covers bearing the first day of issue indication and a local address.
Information about this set of special stamps and associated philatelic products is available on the Hongkong Post Stamps website (stamps.hongkongpost.hkIssued at HKT 16:15
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Unemployment and underemployment statistics for December 2025 – February 2026
Source: Hong Kong Government special administrative region
According to the latest labour force statistics (i.e. provisional figures for December 2025 – February 2026) released today (March 18) by the Census and Statistics Department (C&SD), the seasonally adjusted unemployment rate decreased from 3.9% in November 2025 – January 2026 to 3.8% in December 2025 – February 2026. The underemployment rate remained unchanged at 1.7% in the two periods.
Comparing December 2025 – February 2026 with November 2025 – January 2026, the unemployment rate (not seasonally adjusted) decreased in many major economic sectors, with more distinct decreases observed in the retail sector, accommodation services sector, and foundation and superstructure sector. Movements in the underemployment rate in different industry sectors varied, but the magnitudes were generally not large.
LCQ4: Management of countryside campsites
Source: Hong Kong Government special administrative region – 4
Following is a question by the Hon Chirs Ip and a reply by the Secretary for Environment and Ecology, Mr Tse Chin-wan, in the Legislative Council today (March 18):
Question:
It has been reported that during the Lunar New Year (LNY) holidays this year, quite a number of visitors camped in Hong Kong’s countryside, leaving substantial amounts of litter on nearby beaches and in public toilets, and some were even suspected of illegally lighting fires. In this connection, will the Government inform this Council:
(1) as an environmental group has estimated that more than 10 000 people visited the Sai Kung Country Park (including Ham Tin Wan and Sai Wan) via Pak Tam Chung during this year’s LNY holidays, and over 1 200 tents were pitched at campsites, whether the Government has compiled statistics on the numbers of tents and overnight visitors at various designated government-managed campsites in the Sai Kung District between the first and the seventh days of LNY this year, and of the highest figures recorded;
(2) of the total number of enforcement operations conducted by the Agriculture, Fisheries and Conservation Department (AFCD) at various designated campsites in the Sai Kung District during the first seven days of LNY this year, and the respective numbers of Hong Kong residents and inbound visitors prosecuted in those operations; and
(3) given the Government’s previous indication that it would study the introduction of a booking or fee-charging system for scenic spots in the countryside, of the preliminary details of such a system; whether, prior to the implementation of any new system, special measures will be taken during festive holidays to prevent a recurrence of crowding and disorder at campsites; if so, of the details; if not, the reasons for that?
Reply:
President,
Our country has been stressing “lucid waters and lush mountains are invaluable assets”, and advances the visionary initiative of harmonious coexistence between humanity and nature. To implement the country’s principle and protect Hong Kong’s irreplaceable biodiversity, the Government has been attaching great importance to ecological conservation, with a view to contributing to the building of a “Beautiful China” and a “Beautiful Hong Kong”. In December 2025, Hong Kong’s Mirs Bay was selected as an “Outstanding Example of Beautiful Bays” with an excellent overall score, reflecting the Government’s efforts and achievements in protecting, planning, managing, and restoring the natural ecology.
In recent years, Hong Kong’s beautiful countryside has attracted many visitors, in particular, the Sai Kung East Country Park has become a favourable destination for hiking and camping for many people. Before the start of this year’s Chinese New Year Golden Week, the Government had already made arrangements for designated camp sites in the Sai Kung district, including erecting promotional and educational banners and signs at prominent locations in the campsites, formulating management measures, as well as conducting patrol, cleaning, litter collection, and public education. Since February 14, the AFCD had deployed staff at hotspots, including Ham Tin Wan, Sai Wan, and Long Ke Wan, to patrol and remind campers to observe camping etiquette and code. The Food and Environmental Hygiene Department had also assigned toilet attendants to be on duty at the Ham Tin Wan public toilet during the Golden Week on a daily basis, and installed network cameras to monitor the cleanliness of the areas outside the public toilet.
During the Chinese New Year Golden Week, while the number of camping tents was significantly higher than usual with intense atmosphere of camping, the Government had implemented various measures, and the overall usage, hygiene, and order of the Sai Kung district campsites were largely in line with the plan. During the period, the AFCD had released photos a number of times showing the actual conditions of the campsites after the campers had left, and there had been no severe damage to the ecological environment of Ham Tin Wan, Sai Wan, and Long Ke Wan. Regarding another hotspot, namely the East Dam, under inter-departmental collaboration, public transport services and traffic management had been enhanced. The AFCD had also published crowd information of the East Dam on the “Enjoy Hiking” website, arranged cleaning services, added fencing and erected warning signs at the Po Pin Chau viewing platform, and conducted patrols as planned. The overall situation was also largely in line with the plan, and visitor activities were generally smooth.
On where camping and lighting fires are permitted, according to the Country Parks and Special Areas Regulations, campers may erect tents or camps in designated areas within country parks and special areas. The Country Parks and Special Areas Regulations also allow campers and visitors to light and use fires in designated campsites or designated barbecue sites. The entire beach areas of Ham Tin Wan and Long Ke Wan have been designated as campsites, where visitors are permitted to light and use fires. Additionally, campers should keep the countryside clean, and the fixed penalty for littering offences within country parks is $3,000.
In response to the question raised by the Hon Chris Ip, my reply is as follows:
(i) The AFCD has established a total of 41 designated campsites in country parks across Hong Kong, of which nine are located in the Sai Kung district, including Ham Tin Wan Campsite, Sai Wan Campsite, Long Ke Wan Campsite, and Pak Lap Campsite. For campers’ reference, the AFCD classifies the campsites into large, medium, and small sizes. One that can accommodate over 50 tent spaces is a large campsite. Ham Tin Wan Campsite and Sai Wan Campsite are classified as large campsites, and because their areas are significantly larger than other typical large campsites, they can accommodate a much higher number of tents than others. Currently, except for the Twisk Campsite which requires reservation, all other designated campsites are available for visitors on a “first-come, first-served” basis. Therefore, the AFCD does not keep records of the maximum number of tents or overnight visitors for these campsites, though it is roughly estimated that Ham Tin Wan Campsite had around 300 tents at the peak.
(ii) During the Chinese New Year Golden Week period, i.e. from February 14 to 23, the AFCD took enforcement actions against 32 suspected offenders at popular countryside locations within the Sai Kung district’s country parks. Among these, 27 were non-local residents, with 16 involved in littering, eight spitting, and three lighting fires outside designated campsites or designated barbecue sites. Five were local residents, with one involved in littering, one lighting fires outside designated campsites or designated barbecue sites, and three illegal bicycle activities. The above violations mainly occurred along Sections 1 and 2 of the MacLehose Trail and the East Dam area.
(iii) To better manage popular hiking sites under the AFCD’s purview and to support the development of the tourism industry, the Environment and Ecology Bureau and the AFCD are examining the feasibility of introducing a reservation and fee-charging system at some popular countryside locations and campsites. The review will fully consider the conditions of different sites, ecological protection, visitor safety, access control and various details of practical implementation, such as reservation arrangements, how to collect fee, whether to adopt real-name reservation system, corresponding enforcement and management arrangements, necessary supporting facilities and promotional plans. As the reservation and fee-charging system differs from the current management measures applicable to most of the countryside sites managed by it, the AFCD plans to conduct trials to test different management methods and measures prior to implementation. This aims to gain experience and evaluate the pros and cons of different approaches and help formulate a long-term implementation plan.
At the same time, the AFCD will continue to formulate management measures and make preparation for its popular countryside and camping sites during holiday periods, closely monitor the situation at popular countryside locations, and execute the plan of conducting various cleaning and management works, patrols and enforcement, as well as wider publicity and education on countryside etiquette. The department will also collaborate with other departments and organisations to promote different countryside attractions across Hong Kong to diverse visitor flow.
Thank you, President.
LCQ7: Financial co-operation with Middle East and Global South economies
Source: Hong Kong Government special administrative region
Following is a question by the Hon Lau Ka-keung and a written reply by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, in the Legislative Council today (March 18):
Question:
There are views that while the recent dramatic changes in the Middle East situation have heightened geopolitical risks and brought uncertainties to international financial markets, energy prices and global supply chains, they have also presented new opportunities to Hong Kong for co-operation with Middle East economies and other Global South economies. In this connection, will the Government inform this Council:
(1) whether it has assessed the respective aggregate asset sizes and risk exposures of Hong Kong’s banks and major licensed financial institutions in Middle East economies and other Global South economies in each of the past three years; if it has assessed, set out the data in tabular form by jurisdiction and asset type; if not, whether it will conduct an assessment;
(2) whether it has compiled statistics on the values of bilateral trade (including imports and total exports) between Hong Kong and Global South economies, their year-on-year rates of change, and the proportions of Global South economies in Hong Kong’s total external trade value in each of the past three years; if it has compiled, set out the data in tabular form by jurisdiction and service type; if not, whether it will compile such statistics;
(3) whether it knows if the Hong Kong Monetary Authority and the Securities and Futures Commission have taken specific measures to assess and monitor the risks assumed by Hong Kong’s banks and financial institutions for their investments in the Middle East (such as requiring the relevant banks and financial institutions to undergo targeted stress tests or step up risk monitoring); if so, of the details; if not, the reasons for that;
(4) as there are views that geopolitical tensions may cause fluctuations in energy and commodity prices, thereby affecting inflation and business operations, whether a cross-departmental alert and response mechanism will be formulated to reduce the potential impact of such fluctuations on the economic and financial stability of Hong Kong; if it will, of the details; if not, the reasons for that;
(5) as there are views that the Government has actively promoted co-operation with Middle East economies and other Global South economies in the areas of finance, economy and trade in recent years, and yet the current geopolitical risks may impact the advancement of such co-operation and the exploration of new markets, how the authorities assess and manage the risks involved and provide ongoing support to Hong Kong’s financial institutions and enterprises interested in exploring those markets, thereby assisting relevant bodies in seizing development opportunities, subject to compliance with laws and regulations; and
(6) as there are views pointing out the pressing demands from Middle East economies and other Global South economies in areas such as Islamic finance and green sustainable finance, whether timely deployment has been made in light of the current international turmoil to further strengthen Hong Kong’s institutional advantages in such areas so as not to miss development opportunities, and, where risks are controllable, develop Hong Kong into a key hub connecting capital and projects between China and the Global South; if so, of the details; if not, the reasons for that?
Reply:
President,
The tensions in the Middle East have brought volatility to global energy supply, financial markets and trade. Geopolitical uncertainties have highlighted the importance of Hong Kong as an international financial centre in providing security, stability, and certainty. With the free flow of capital, merchandise and talent into and out of Hong Kong, coupled with the stability of the Hong Kong dollar under the Linked Exchange Rate System, as well as Hong Kong’s comprehensive capital markets, robust financial infrastructure and quality professional services and talent, Hong Kong is well-positioned to play the role of a “safe haven” amidst these changes. Notably, as co-operation between Hong Kong and the Middle Eastern financial markets continues to deepen in recent years, some Middle East funds may flow into Hong Kong to avert risk. At the same time, the Government and financial regulators will closely monitor market conditions and put in place contingency plans to properly manage geopolitical risks while seizing the opportunities that arise.
After consulting the Commerce and Economic Development Bureau, the Environment and Ecology Bureau, the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC), our reply to the six parts of the question is as follows:
(1) The exposure of the local banking sector to the Middle East is very small, accounting for less than 3 per cent of the total assets of the banking industry over the past three years. Besides, the exposure of Hong Kong banks to other major Global South economies (excluding Chinese Mainland) over the past three years also accounted for only about 3 per cent of the total assets of the banking industry.
The SFC has been closely monitoring the operation of the market, and has not detected any significant risks relating to the recent situation in the Middle East, nor has it identified any major issues arising from the Middle East situation in the operation or risk management of licensed corporations.
(2) The Government has been proactively expanding into the emerging markets in the Global South, including the Association of Southeast Asian Nations (ASEAN) and the Middle East, to promote the long-term economic development of Hong Kong.
Taking ASEAN as an example, in 2025, ASEAN as a bloc was Hong Kong’s second largest trading partner in the world. The bilateral trade in goods between Hong Kong and ASEAN amounted to HK$1,668.5 billion (US$214.0 billion), representing 15.3 per cent of Hong Kong’s global merchandise trade and registering an average annual growth rate of 7.6 per cent in the past five years.
In 2025, the Middle East as a bloc was our 10th largest trading partner in the world. The bilateral trade in goods between Hong Kong and the Middle East amounted to HK$192.8 billion (US$24.7 billion), representing 1.8 per cent of Hong Kong’s global merchandise trade and registering an average annual growth rate of 5.8 per cent in the past five years.
Hong Kong and the emerging markets in the Global South have significant room for trade and economic development. Hong Kong is committed to giving full play of our role as the functional platform for the Belt and Road Initiative, and stepping up efforts to deepen co-operation with the Global South markets.
(3) In view of the escalation of the situation in the Middle East and geopolitical risks, the HKMA has stepped up its monitoring of market conditions, including conducting stress tests, and maintaining close communication with banks. Banks have also enhanced their risk monitoring and management, and have been formulating appropriate contingency measures for different risk scenarios. Overall, as pointed out in part (1) of the reply, the exposure of Hong Kong banks to the Middle East is very small. The Hong Kong banking sector remains stable, with ample capital and liquidity levels that are well above international standards. The HKMA will closely monitor the developments and continue to guide Hong Kong banks in adopting prudent risk management measures to properly manage the risks arising from financial market volatility and external uncertainties. On the monetary front, Hong Kong’s foreign exchange reserves are substantial, exceeding US$430 billion, which is about 1.7 times the size of the Hong Kong monetary base, ensuring the smooth functioning of the Linked Exchange Rate System at all times. Hong Kong’s money market continues to operate in an orderly manner, and the Hong Kong dollar exchange rate has been maintained within the convertibility zone of 7.75 to 7.85 against the US dollar.
The SFC has also been closely monitoring the operation of the local stock market, exchanges and the over-the-counter derivatives market. The SFC conducts regular stress tests based on the financial information reported by brokers to assess their financial resilience. During periods of relative market volatility, the SFC also pays particular attention by inquiring with major investment banks and hedge funds about their short positions in heavyweight stocks, as well as seeking to understand the trading strategies, overall positions and risk management measures of market participants. The SFC has not detected any significant risks relating to the recent situation in the Middle East.
The Government and financial regulators will continue to closely monitor market changes to maintain the stability of Hong Kong’s monetary and financial markets.
(4) In response to the recent developments, the Government has strengthened communication with the two power companies and major energy companies, closely monitoring the inventory levels and supply status of major fuels. The Government has in place a mechanism that sets minimum stockpile requirements for major fuels and contingency plans to deal with potential supply tightness. The Government will remain vigilant, closely monitoring geopolitical developments, international energy price trends and the local fuel supply situation to ensure the stability of Hong Kong’s energy supply.
The financial market is operating smoothly with regard to the trading of other commodities. The Government and financial regulators will continue to closely monitor the situation to ensure its effective functioning.
(5) and (6) The Government has been actively promoting enhanced co-operation between Hong Kong and emerging markets in the Global South, including the Middle East and ASEAN, in areas such as finance and trade, and is committed to developing and providing products and services that meet the needs of these markets to seize relevant opportunities.
In the area of finance, as an international financial centre, Hong Kong is dedicated to providing investors and issuers with a diverse range of products and services. Islamic financial products, in particular, can offer issuers additional financing channels and broaden their investor base. The Government amended the laws in 2013 and 2014 to provide a tax framework for issuing sukuk that is comparable to that for conventional bonds, and to allow the issuance of sukuk under the Government Bond Programme. Thereafter, the Government issued three sukuk, totalling US$3 billion, under the Government Bond Programme, demonstrating that Hong Kong’s legal, regulatory and taxation framework can readily support sukuk issuances of different structures, making it a suitable platform for raising funds through sukuk.
In addition, an array of Islamic financial products and services have been rolled out in Hong Kong, including the listing of global sukuk on the Hong Kong Exchanges and Clearing Limited (HKEX), Shariah-compliant equity indices tracking Hong Kong stocks, and Islamic banking windows. Hong Kong and Saudi Arabia have also achieved continuous breakthroughs in developing new financial products in recent years. Following the listing of Asia’s first exchange-traded fund (ETF) investing in Saudi-listed stocks on the HKEX in November 2023, two ETFs tracking Hong Kong stock indices were listed on the Saudi Exchange via master-feeder structure in October 2024. Asia’s first government sukuk ETF was also listed on the HKEX in May 2025.
At the same time, financial regulators are actively promoting the strengths of Hong Kong’s financial system and market through market development efforts, with a view to further strengthening co-operation with Islamic markets such as the Middle East and ASEAN.
In recent years, the HKMA has held multiple bilateral meetings and signed Memoranda of Understanding (MOUs) with central banks in the United Arab Emirates (UAE), Saudi Arabia, Qatar, etc., discussing topics of financial infrastructure development, sustainable finance, fintech, market connectivity and Islamic finance, etc. Notably, the Central Bank of the UAE officially joined the HKMA’s Central Moneymarkets Unit in February 2026, enabling the Central Bank of the UAE and investors in the UAE to fully utilise Hong Kong’s mature financial infrastructure to access the Mainland Chinese capital market and invest in related financial assets. Furthermore, the HKMA and the Dubai Financial Services Authority have co-organised the Joint Climate Finance Conference for two consecutive years since 2024 and, in 2025, initiated a joint study exploring the role of sustainable debt instruments in scaling up climate finance for the emerging markets in the Global South, subsequently publishing a research report titled Scaling Sustainable Debt in Emerging Markets.
In addition, the SFC has also been actively forging greater connectivity with the Middle East region to further reinforce Hong Kong’s role as Asia’s premier capital intermediary. In 2025, the SFC has signed four MOUs with financial regulators in the Middle East region, strengthening co-operation between Hong Kong and the Middle East on the areas of market regulatory oversight, supervision of collective investment scheme managers, cross-border regulatory co-operation on digital assets and the establishment of Mutual Recognition of Funds arrangement.
The Government and financial regulators will continue to advance relevant market development efforts, seeking further co-operation with emerging markets in the Global South, including the Middle East and ASEAN, in the financial field. This will better leverage Hong Kong’s advantages as an international financial centre to connect markets and capital between China and the Global South.
In the area of trade, the Government has been actively seeking to conclude free trade agreements and investment agreements (IAs) with economies in the Middle East and the Global South. The Government has concluded negotiations of IAs with Qatar, Bangladesh and Peru respectively, and is exploring new IAs with Saudi Arabia and Egypt. These agreements require long-term negotiations and have consistently received support from the governments of both sides. The recent situation in the Middle East does not affect the authorities’ intentions regarding these agreements. The Government will continue to actively advance this work. At the same time, the Government will strengthen its role as the functional node for the Belt and Road Initiative, collaborating with industry players to further develop the ASEAN, Middle East and Global South markets, and explore the potential of markets in Central Asia, South Asia and North Africa.
LCQ14: Operating situation of hotel industry
Source: Hong Kong Government special administrative region
LCQ14: Operating situation of hotel industry
Question:
The Government has resumed the collection of hotel accommodation tax (HAT) with effect from January 1, 2025. Regarding the operating situation of the hotel industry, will the Government inform this Council:
(1) of the following information regarding hotels and guesthouses in Hong Kong in each month since July 2025: (i) the number of hotels and guesthouses and (ii) the total number of rooms provided (broken down by whether or not HAT has been charged), as well as (iii) the amount of HAT collected by the Government (set out in a table);
(2) given that HAT has been in effect for one year, whether the Government has reviewed if the revenue from HAT meets expectations; if it has not, the reasons for that;
(3) of the number of hotel or guesthouse projects currently proposed or under construction with building plans approved by the Building Authority; among such projects, of (i) the number of projects currently under construction and the number of rooms involved (broken down by the anticipated year of completion), (ii) the number of projects which have been shelved or without expected completion dates, and (iii) the number of new projects with building plans approved in the past two years, as well as the total number of rooms expected to be provided;
(4) whether an assessment will be conducted and targets will be set for the supply of hotel and guesthouse rooms over the next five years; if so, of the measures put in place to achieve the relevant targets;
(5) whether it has compiled statistics on the number of hotels or guesthouses that applied for change of use in the past three years, as well as their modified uses and the number of rooms involved;
(6) given that the Government indicated in its reply to my written question on September 10, 2025 that HAT formed part of the Government’s general revenue and that the Government would consider the needs of different policy areas and holistically consider how to allocate resources, while some members of the hotel industry have relayed that the industry faces intense competition, whether the authorities will consider using the revenue from HAT to introduce targeted measures to promote the upgrading and transformation of the hotel and guesthouse industry (such as subsidising smart hotel facilities or green certification) and enhance the industry’s long-term competitiveness; if so, of the details of the plan; if not, the reasons for that; and
(7) given that the Government indicated in its written reply mentioned in (6) that it currently had no plan to adjust the HAT rate, while some members of the hotel industry have relayed that the operating environment is very difficult, will the Government reconsider the industry’s proposal to reduce or suspend the collection of HAT; if so, of the details; if not, the reasons for that?
Reply:
President,
The hotel accommodation tax (HAT) is imposed on hotels and guesthouses under the Hotel Accommodation Tax Ordinance (Cap. 348) (the Ordinance). To tie in with the Government’s fiscal consolidation programme, we resumed the collection of HAT at a rate of 3 per ceent of the accommodation charge with effect from January 1, 2025.
Upon consultation with the Culture, Sports and Tourism Bureau, the Development Bureau, the Inland Revenue Department (IRD) and the Home Affairs Department, my reply to the Hon Yiu Pak-leung’s question is as follows:
(1) The number of hotels and guesthouses in Hong Kong and the total number of rooms provided by them by month from July 2025 to February 2026 are as follows:
| Month(Number of rooms)^(Number of rooms)(86 420)(3 253)(6 482)(9 573)(92 902)(12 826)(85 735)(3 259)(7 345)(9 537)(93 080)(12 796)(86 243)(3 504)(7 435)(9 535)(93 678)(13 039)(86 284)(3 515)(7 387)(9 551)(93 671)(13 066)(86 345)(3 515)(7 387)(9 546)(93 732)(13 061)(86 093)(3 498)(7 639)(9 544)(93 732)(13 042)(86 097)(4 245)(7 639)(9 592)(93 736)(13 837)(86 201)(4 220)(7 135)(9 217)(93 336)(13 437) # Including hotels or guesthouses exempted from paying HAT under the Ordinance, i.e. (a) the rate of the accommodation charge is less than $15 per day; (b) the accommodation is provided by societies not established or conducted for profit; or (c) the hotel or guesthouse contains less than 10 rooms normally available for lodging guests. Under the Ordinance, HAT is levied quarterly and hotel and guesthouse proprietors should pay the tax to the IRD within 14 days after quarter-end. The HAT collected by the Government for the third and fourth quarters of 2025 amounted to about $180 million and $240 million respectively. (2) and (7) The Government fully took into account the impact of the tax on visitors and the industry when it decided to resume the collection of HAT. Since HAT only constitutes 3 per cent of hotel/guesthouse room rates and is levied on an ad valorem basis, it only accounts for a small portion of the total spending of overnight visitors in Hong Kong. We do not consider that it will affect visitors’ interest to visit Hong Kong as a travel destination. According to the statistics of the Hong Kong Tourism Board (HKTB), the average hotel occupancy rate and the number of overnight visitors for 2025 increased by around 2 per cent and 6 per cent respectively when compared to 2024. The revenue from HAT is affected by multiple factors, including the number of hotels and guesthouses subject to HAT, occupancy rates and room rates and whether long-term accommodation is provided. The HAT provides a stable source of Government revenue without affecting the general public. The Government considers that the collection of HAT was smooth in the past year and is in line with the policy objectives. Hence, the Government currently has no plan to adjust the HAT rate. (3) The information on hotel projects with building plans approved and consent to the commencement of works given by the Building Authority in the past two years is as follows:
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