Category: MIL-OSI

Speech by Permanent Secretary for Financial Services and the Treasury (Financial Services) at International Financial Week: Development & Innovation of AI & Digital Finance (English only)       
Distinguished Guests, Ladies and Gentlemen,
 
     It’s my great pleasure to join you all at this afternoon’s parallel event of the Asian Financial Forum.
      
     Financial stability and financial development are two sides of a coin, particularly in the digital age. Today’s event on “Development and Innovation of AI & Digital Finance”, organised by the Alliance for Financial Stability with Information Technology and the Hong Kong Institution for Infrastructural Finance, is most timely. Innovation drives our future, while a robust regulatory and security regime contributes to enduring progress.
      
     Thanks to the continuous market reforms in Hong Kong that benchmark global competitiveness, and our unique connection to the Chinese Mainland market made possible by the successful implementation of the “one country, two systems” principle, Hong Kong as a premier international financial centre now ranks third globally and first in Asia-Pacific in the Global Financial Centres Index. Among the specific areas, Hong Kong’s ranking in fintech has leapt to first in the world. Last year, funds raised through IPOs reached $285.8 billion, an increase of 225 per cent over that of 2024, and we regained our number one ranking for IPOs funds raised in 2025. The average daily turnover was near $250 billion, an impressive increase of 90 per cent over 2024. All these testify to the resilience of the Hong Kong financial market against all odds.
      
     In growing further the liquidity and breadth of our capital markets, Hong Kong stands ready to harness the potential brought about by technology advancement and innovations. In the financial services area, the Hong Kong SAR Government has issued three rounds of tokenised government green bonds for sustainable development over the past three years, proving with success the digitally native form of multi-currency green bonds and utilisation of central bank e-money and, in this case, e-CNY and e-HKD, in the settlement process. We have introduced legislation that allows the licensing of virtual assets trading exchanges. There are now 11 of these exchanges operating in Hong Kong, and there are more in the application process. At the moment, we are formulating legislation for the licensing regimes for the dealing and custodian services of virtual assets, after doing in-depth public consultation. Last year, as you may be aware, we also introduced and enacted the Stablecoin Ordinance that establishes a licensing regime for fiat-referenced stablecoin issuers.
      
     One fundamental principle that applies in these innovative initiatives is “same activity, same risk, same regulation”, with clear and transparent rules on capital requirements, fit and properness for management personnel, and the segregation treatment of client and firm money. The aim is to enable the healthy and responsible development of the digital asset sector, with solid regulation and a robust ecosystem. The Policy Statement on the Responsible Application of AI in the Financial Market that the HKSAR Government issued in October 2024 carries the same spirit. In the same vein, the Hong Kong Monetary Authority launched two cohorts of the Generative AI Sandbox in August 2024 and April last year, providing a risk-managed framework for banks to test AI-use cases in a responsible manner.
      
     Again, financial stability is at the core of financial market development and innovation. With the impressive list of speakers today, I am sure we shall all benefit from their insights and wisdom. I wish the event every success and, with a warm welcome, I wish guests travelling from afar will have a good time in Hong Kong. Enjoy our vibrant city. Thank you.
Issued at HKT 17:20

NNNN

Annual adjustment to social security payment rates proposal submitted      
     In accordance with the established mechanism, based on the annual movement of the Social Security Assistance Index of Prices, the Government has proposed an increase of 2.2 per cent to the standard payment rates under the CSSA Scheme and the rates of allowances under the SSA Scheme, effective from February 1, 2026. The details of the proposal are contained in the paper submitted to the Panel on Welfare Services of the Legislative Council.
      
     The Government will consult the Finance Committee (FC) of the Legislative Council on the proposed adjustment as early as possible. If approved by the FC, the adjusted rates will take retrospective effect from February 1, 2026.
      
     In addition, the Government has planned to adjust the maximum rent allowance under the CSSA Scheme in accordance with the relevant mechanism, with the adjustment retrospectively effective from February 1, 2026.
      
     CSSA and SSA recipients may contact their respective social security field units or call the SWD hotline at 2343 2255 for enquiries.
Issued at HKT 17:45

NNNN

Taxi Service Commendation Scheme accepts public nominations all year round 
     To recognise drivers and management teams providing quality services, a total of 24 awards will be granted under the Scheme, including 20 Quality Taxi Drivers, one Most Popular Taxi Driver, two Good Driver, Good Service awards, and one Quality Taxi Service Management Team.
 
     The Scheme is open for nominations throughout the year. Members of the public can nominate quality taxi drivers and service management teams, and share their Good Driver, Good Service riding experiences via the CTSQ’s webpage (www.ctsq.org.hk/voting 
     The TD will issue letters to the taxi trade and introduce the Scheme in the Taxi Newsletter. Promotional materials will be displayed in taxi compartments, on other public transport vehicles, and on service information boards at taxi stands. In addition, the TD will enhance promotion on its website and the HKeMobility mobile application. It will also collaborate with the Hong Kong Tourism Board to promote the Scheme, encouraging members of the public and visitors to nominate outstanding drivers and management teams.
Issued at HKT 12:25

Labour Department launches special enforcement operation targeting construction sites of new works      
     To enhance enforcement efficiency, the LD also uses small unmanned aircraft to conduct aerial remote surveillance of construction sites. Upon detecting unsafe work practices, photos and videos will be taken immediately for evidence collection to support inspections and enforcement actions. 
      
     Under the general duty provisions of the Occupational Safety and Health Ordinance, employers are obligated to provide safe working environments, plant and systems of work for their employees. Those who contravene relevant provisions are liable to a maximum fine of $10 million and imprisonment for two years.
       
     The LD reiterates that concerted efforts of employers and employees are essential for safeguarding the OSH of construction workers and building a safety culture. Apart from conducting the SEO, the LD will continue to adopt a multipronged strategy to foster an OSH culture and prevent accidents through regular inspections, publicity and promotion, education and training as well as the use of new technologies.
Issued at HKT 12:38

NNNN

Company fined $100,500 for contravening Employment Ordinance      
     The company wilfully and without reasonable excuse contravened the requirements of the EO, failing to pay 11 employees’ wages and payment in lieu of notice within seven days after the expiry of the wage periods and termination of employment contracts, as well as annual leave pay to two employees within the statutory time limit, totalling about $231,000. The company also failed to pay the awarded sums of about $268,000 in total to six employees within 14 days after the date set by the Labour Tribunal (LT).
      
     “The ruling will disseminate a strong message to all employers that they have to pay wages, termination payments and sums awarded by the LT or the Minor Employment Claims Adjudication Board to employees within the statutory time limit stipulated in the EO,” a spokesman for the LD said.
      
     “The LD will not tolerate these offences and will spare no effort in enforcing the law and safeguarding employees’ statutory rights,” the spokesman added.
Issued at HKT 17:58

NNNN

Remarks by SFST at 19th Asian Financial Forum media session 
Reporter: You have mentioned about keeping the communication with the Chinese Mainland IPOs. What concrete measures are being prioritised to ensure robust and sustained trading activity for new listings companies in Hong Kong, and how to make sure their quality?
 
Secretary for Financial Services and the Treasury: I think one of the key things that we have tried to do is to ensure the continued quality of our own market. So you can see that in the coming year, there are a number of things that we will be pursuing.

     First of all, in terms of the listing requirements, we will enhance our listing requirements to see how we can further our competitiveness in the capital market, in particular on the weighted voting rights, and the second one is on the secondary trading. We are also looking into how we can bring our clearing cycle from the current T+2 into T+1 with the market. At the same time, we are now reviewing our board lot size, and also the minimum spread of our stock market, with a view to enhancing the overall liquidity of our capital market.
 
(Please also refer to the Chinese portion of the remarks.)
Issued at HKT 13:04

NNNN

OFCA and TRC sign MOU to strengthen collaboration in tackling scam and spam communications (with photo) 
     Signed by the Director-General of Communications, Mr Chaucer Leung, and the Chairman of the TRC, Mr Chenda Thong, at a bilateral meeting, the MOU seeks to strengthen strategic collaboration, support and exchange of information between Hong Kong and Cambodia in areas including regulatory practices, public awareness education and development of technical solutions to address and mitigate issues relating to scam and spam communications (including telephone calls and Short Message Service (SMS) messages).
 
     “The MOU represents a significant milestone for both jurisdictions to collaborate and share expertise and experiences in the fight against scam and spam communications. It facilitates the timely exchange and sharing of insights on emerging market trends and developments, enabling both regulators to effectively identify and address evolving scam and spam threats in Hong Kong and Cambodia. The MOU also demonstrates our joint commitment to continuously devise and enhance measures to tackle scam and spam communications effectively,” Mr Leung said.
 
     To safeguard effective operation of Hong Kong’s communications system and to protect telecommunications users against frauds, OFCA has been collaborating with telecommunications service providers (TSPs) and various government departments in implementing a range of measures to tackle scam and spam communications from the perspective of telecommunications services, including requiring TSPs to promptly block phone numbers and websites suspected to be involved in fraudulent cases, blocking suspicious calls from outside Hong Kong prefixed with “+852”, implementing the SMS Sender Registration Scheme, ensuring the effective implementation of the Real-name Registration Programme for Subscriber Identification Module Cards, etc.
Issued at HKT 18:38

NNNN