Source: Hong Kong Government special administrative region
LCQ17: Improving situation of road signs being blocked Question:
It has been reported that road signs in Hong Kong are blocked by the foliage of roadside trees from time to time, rendering important traffic signs not clearly visible and posing potential risks to road safety. In this connection, will the Government inform this Council:
Year Both HyD and LCSD have carried out trimming work in a timely manner upon receiving the above cases. None of these cases involved traffic accidents caused by delayed trimming.
In addition, if the HyD discovers during regular road maintenance inspections or receives reports stating that there are overgrown roadside posing imminent danger to road users (e.g. branches and leaves extending into the carriageway seriously obstructing traffic signs), it will immediately arrange urgent trimming to ensure the safety of road users even if the trees concerned are not under its maintenance. Over the past three years, the HyD received two cases each year concerning traffic signs being seriously obstructed by roadside trees under the jurisdictions of other departments or private lot owners requiring immediate arrangement of urgent trimming.
(2) The HyD engages contractors through term contracts to conduct regular inspections of roadside trees under its jurisdiction at specified frequencies (generally once every three to six months), and to trim trees obstructing traffic signs, traffic lights, and street lights as soon as possible according to the inspection findings. The HyD also requests its contractors to identify slopes/planting areas that require more frequent tree trimming, and arrange at least three trimming operations at these locations between April and October each year. Meanwhile, the LCSD also conducts regular inspections of trees under its jurisdiction, including checking for protruding branches to the carriageway that obstruct vehicle passage, impair drivers’ visibility, affect traffic signs, or pose potential risks to vehicles.Issued at HKT 11:10
Source: Hong Kong Government special administrative region
LCQ8: Application for Hong Kong permanent resident status Question:
Under the existing legislation, Chinese citizens who have ordinarily resided in Hong Kong for a continuous period of not less than seven years, and persons not of Chinese nationality who have entered Hong Kong with valid travel documents, have ordinarily resided in Hong Kong for a continuous period of not less than seven years and have taken Hong Kong as their place of permanent residence, are eligible for the right of abode in Hong Kong. Such persons may apply to the Immigration Department (ImmD) for Hong Kong permanent resident status. A person is regarded as ordinarily resident in Hong Kong if he or she remains in Hong Kong legally, voluntarily and for a settled purpose. In this connection, will the Government inform this Council:
(1) since the incumbent Government assumed office, of (i) the number of applications for Hong Kong permanent resident status that were rejected due to failure to meet the requirement of having ordinarily resided in Hong Kong for a continuous period of not less than seven years, and (ii) the number of applications approved by the Director of Immigration exercising discretion, together with the respective percentages these figures represent of the total number of applications;
(2) given that the Government currently provides seven talent admission schemes for professionals intending to work and settle in Hong Kong (namely the Top Talent Pass Scheme, the General Employment Policy (for non-Mainland residents), the Admission Scheme for Mainland Talents and Professionals (for Mainland residents), the Quality Migrant Admission Scheme, the Technology Talent Admission Scheme, the Immigration Arrangements for Non-local Graduates, and the Admission Scheme for the Second Generation of Chinese Hong Kong Permanent Residents), all of which have different patterns of limit of stay and requirements, whether the authorities have reviewed the impact of these patterns and requirements on applications for Hong Kong permanent resident status by such persons; if so, of the details; if not, the reasons for that; and
(3) whether, in order to further attract diverse talent from around the world to come to Hong Kong and remain here for long-term development, with a view to developing Hong Kong into an international hub for high-calibre talent, the Government will consider, with reference to the experience of other regions, undertaking a comprehensive review and refinement of the definition of and assessment criteria for “ordinary residence in Hong Kong”, including allowing applicants a longer continuous period of absence from Hong Kong (e.g. more than 180 days) without having to provide an explanation to the ImmD, and granting ImmD officers greater discretion in handling such applications; if so, of the details; if not, the reasons for that?
Reply:
President,
In consultation with the Labour and Welfare Bureau and the Immigration Department (ImmD), my reply to the question of the Hon Michelle Tang is as follows:
Article 24 of the Basic Law and Paragraph 2 of Schedule 1 to the Immigration Ordinance (Cap. 115) stipulate that the following persons are Hong Kong permanent residents who have the right of abode in Hong Kong:
(a) a Chinese citizen born in Hong Kong before or after the establishment of the Hong Kong Special Administrative Region;
(b) a Chinese citizen who has ordinarily resided in Hong Kong for a continuous period of not less than seven years before or after the establishment of the Hong Kong Special Administrative Region;
(c) a person of Chinese nationality born outside Hong Kong before or after the establishment of the Hong Kong Special Administrative Region to a parent who, at the time of birth of that person, was a Chinese citizen falling within category (a) or (b);
(d) a person not of Chinese nationality who has entered Hong Kong with a valid travel document, has ordinarily resided in Hong Kong for a continuous period of not less than seven years and has taken Hong Kong as his place of permanent residence before or after the establishment of the Hong Kong Special Administrative Region;
(e) a person under 21 years of age born in Hong Kong to a parent who is a permanent resident of the Hong Kong Special Administrative Region in category (d) before or after the establishment of the Hong Kong Special Administrative Region if at the time of his birth or at any later time before he attains 21 years of age, one of his parents has the right of abode in Hong Kong;
(f) a person other than those residents in categories (a) to (e), who, before the establishment of the Hong Kong Special Administrative Region, had the right of abode in Hong Kong only.
Any person claiming to be a Hong Kong permanent resident under paragraph (b) or (d) above may submit, in accordance with established procedures, application for verification of eligibility for permanent identity card to the ImmD, if he meets the requirement of “having ordinarily resided in Hong Kong for a continuous period of not less than seven years” under the law and other relevant requirements. The ImmD will process the applications in accordance with the law.
(1) and (3) Any person who remains in Hong Kong legally, voluntarily and for a settled purpose (such as for education, employment or residence, etc), whether of short or long duration, is considered as being ordinarily resident in Hong Kong. In determining whether an applicant has ceased to have ordinarily resided in Hong Kong or is only temporarily absent from Hong Kong, the ImmD will take into consideration the circumstances of the person and the absence in accordance with section 2(6) of the Immigration Ordinance, including: Nonetheless, if the person concerned does not meet the requirements for becoming a Hong Kong permanent resident as stipulated in Article 24 of the Basic Law and Schedule 1 to the Immigration Ordinance, the ImmD has no discretion to establish his status as a Hong Kong permanent resident.
According to the the ImmD’s record, the statistics of applications for verification of eligibility for permanent identity card from July 1, 2022 to February 28, 2026 are as follows:
Applications received The ImmD does not maintain a breakdown of other statistics mentioned in the question.
(2) The Government has been implementing various talent admission schemes to proactively trawl for talents with different academic and professional backgrounds to come to Hong Kong to enrich Hong Kong’s talent pool. Persons admitted under the various talent admission schemes who have ordinarily resided in Hong Kong for a continuous period of not less than seven years may, in accordance with established procedures, apply to the ImmD for verification of eligibility for permanent identity card. Given the different positioning and target groups of the various schemes, the prescribed limits of stay, conditions of stay and requirements for application for extension of limit of stay also vary accordingly. Individuals admitted under employment-based talent admission schemes (such as the General Employment Policy or the Admission Scheme for Mainland Talents and Professionals) are permitted to stay in Hong Kong on employment condition, while those admitted on the basis of their academic qualifications or other credentials (such as under the Top Talent Pass Scheme or the Quality Migrant Admission Scheme) are only subject to the limit of their permitted stay. The Government will dynamically monitor manpower changes in Hong Kong and in light of such actual circumstances as the demand for talents, continue to refine the details of the talent admission schemes, including the eligibility criteria, quotas, limits of stay, and conditions of stay, etc, in order to attract talents to Hong Kong and encourage suitable individuals to remain in Hong Kong for long-term development. Issued at HKT 11:15
Source: Hong Kong Government special administrative region
LCQ12: Operation of Designated Hotline for Carer Support
Nature of call (Note 2)(As at end-January 2026)Note 2: If a call involves multiple inquiries, the Hotline social worker will determine the principal nature of the call based on specific circumstances of the case.
The Hotline service does not maintain breakdown of all callers’ residential areas, categories of carers, or whether they are high-risk families. When answering calls, Hotline social workers will first assess the caller’s real-time situation and immediate needs, evaluate their welfare needs and crisis factors. Social workers will provide the caller with relevant information and recommend suitable support services based on the actual circumstances, and make service referrals as and when necessary upon obtaining the caller’s consent. Caller’s personal data, such as family background or residential address, is collected mainly for the purpose of making service referrals. For cases not involving service referrals, the Hotline does not collect caller’s personal data.
Type of service referred(2) In addition to handling proactive calls from carers, the Hotline also assists in handling cases identified from the pilot scheme on Carer Support Data Platform. Under this pilot scheme, the SWD identifies, through an inter-departmental notification mechanism, cases where carers of high-risk households (including doubleton elderly persons, carers of the elderly, and carers of persons with disabilities) are hospitalised, giving rise to care risks. Hotline social workers will proactively contact the care recipients in these cases and provide emergency support as needed, so as to achieve early intervention. The pilot scheme commenced in July 2025, and as at end-January 2026, the Hotline had assisted with over 3 900 cases identified by the Data Platform, with three cases requiring emergency support.
(4) The SWD will regularly assess the performance and service effectiveness of service providers through its existing service performance monitoring system, and closely communicate with them to keep optimising service content and model. The SWD will announce key statistical data on the operation and service utilisation of the Hotline to the public through various channels as and when appropriate. Issued at HKT 11:15
Source: Hong Kong Government special administrative region – 4
The Commissioner of Police, Mr Chow Yat-ming, led a Hong Kong delegation, as part of the national delegation, to attend the Global Fraud Summit 2026 held in Vienna, Austria, on March 16 and 17 (Vienna time). The Hong Kong delegation shared Hong Kong’s experiences, innovative measures, and achievements in cross-sector collaboration in combating fraud, and discussed with law enforcement agencies from other countries/regions to explore ways to strengthen co-operation in cross-border fraud investigations, and to promote the establishment of a closer global anti-fraud network.
Co-organised by the United Nations Office on Drugs and Crime (UNODC) and INTERPOL, the summit brought together representatives from law enforcement agencies, international organisations, the private sector and academia from around the world to engage in in-depth discussions on combating cross-border fraud, international co-operation, and the use of technology to counter fraud, with a view to building consensus and collectively addressing the increasingly complex global fraud threats. The national delegation was led by the Deputy Director General of the Criminal Investigation Department of the Ministry of Public Security, Mr Zhu Lei. Members of the delegation included representatives from the Ministry of Public Security, the Hong Kong Police Force (HKPF), and the Macao Judiciary Police.
Mr Chow was invited as a guest speaker of a forum on public-private collaboration alongside representatives from the UNODC, European Union Agency for Law Enforcement Cooperation, and a cryptocurrency analytics firm. At the forum, Mr Chow gave a detailed overview of the various collaborative initiatives established by the HKPF in recent years to combat fraud, including the Anti-Deception Coordination Centre (ADCC), the Anti-Deception Alliance, “Scameter”, etc. He also cited related enforcement accomplishments and statistics to demonstrate the Police’s effectiveness in preventing and tackling scams, and intercepting crime proceeds. The other speakers at the forum noted that the HKPF’s measures on this front are valuable to share and promote internationally. The speakers unanimously agreed that co-operation across all sectors of society is essential to effectively curb fraudulent activities.
At another panel discussion of the summit, Chief Superintendent of Police Commercial Crime Bureau, Mr Wong Chun-yue, shared Hong Kong’s successful experience in establishing the ADCC, outlining the challenges and opportunities encountered from its inception to its expansion. He also discussed with other panelists on how anti-deception centres worldwide can adapt to evolving fraud tactics by continuously developing and gradually expanding their functions, such as enhancing data analysis and cross-sector collaboration. He noted that through sharing the HKPF’s forward‑looking strategies, could assist other countries/regions in carrying out more efficient anti‑fraud work.
At the summit, the national delegation showcased the country’s significant achievements in combating and curbing telecom and online fraud in recent years, including the successful dismantling of the four major organised telecom fraud syndicates through collaboration with Southeast Asian partners. As part of the national delegation, the HKPF fully supported the nation’s anti-fraud efforts and actively promoted the relevant achievements, thereby contributing to consolidating the country’s leadership in international law enforcement efforts.
Mr Chow stated that the summit brought together senior officials of law enforcement officials across the globe, providing the HKPF with an international platform to exchange experiences with partners, whilst supporting the nation’s effort to establish a global anti‑fraud alliance. The HKPF will continue to promote innovative measures and align with national strategies to work alongside the international community to tackle challenges posed by cross‑border fraud, and spare no effort in protecting the public’s property, and safeguarding Hong Kong’s social stability and financial order.
Mr Chow will conclude his visit and depart for Hong Kong on March 18 (Vienna time).
Source: Hong Kong Government special administrative region
LCQ11: Attracting companies located outside Hong Kong to establish operations in Hong Kong Question:
According to the 2025 Annual Survey of Companies in Hong Kong with Parent Companies Located outside Hong Kong announced by the Government in January this year, the total number of companies in Hong Kong with parent companies located outside Hong Kong (the Companies) reached 11 070 in 2025, representing an annual increase of 11 per cent, while the number of people employed reached 509 000, recording an annual increase of 3 per cent. In this connection, will the Government inform this Council:
(1) as the numbers of the Companies are concentrated in the three traditional pillar industries of the import/export trade, wholesale and retail sector, the financial and banking sector, and the professional, business and education service sector (accounting for approximately 83.5 per cent of the total), how will the Government encourage more companies located outside Hong Kong engaged in emerging industries (such as the innovation and technology industries) to establish operations in Hong Kong, thereby optimising Hong Kong’s current industrial structure;
(2) among the Companies, those from the Chinese Mainland account for the largest proportion, followed by companies from the United States and Japan (together accounting for approximately 55.9 per cent of the total), how will the Government attract and encourage more companies located outside Hong Kong from emerging markets (particularly the Middle East and Association of Southeast Asian Nations countries) to establish operations in Hong Kong;
(3) as the number of people employed by the Companies has only increased by 3 per cent year on year, how will the Government encourage these companies to hire more local staff; and
(4) according to the World Investment Report 2025 published by the United Nations Trade and Development, Hong Kong rose to third globally in terms of foreign direct investment in 2024, of the specific measures to be implemented by the Government in the coming year to maintain Hong Kong’s competitive edge?
Reply:
President,
The current-term Government is committed to attracting investment and attracting companies outside Hong Kong to establish a presence in Hong Kong. According to the latest “Report on Annual Survey of Companies in Hong Kong with Parent Companies Located outside Hong Kong” conducted by Invest Hong Kong (InvestHK) and the Census and Statistics Department, there were a record high of 11 070 Hong Kong-based companies from the Chinese Mainland and overseas in 2025, representing a year-on-year increase of 11 per cent. The number of people employed reached 509 000, representing a year-on-year increase of 3 per cent. The results of the surveys fully display international business community’s confidence in the business environment of Hong Kong.
In response to the Hon Jonathan Stuart Lamport’s question, my reply is as follows:
(1) As an investment promotion agency of the Hong Kong Special Administrative Region Government, InvestHK has been proactively attracting and assisting overseas and Chinese Mainland enterprises to set up or expand their businesses in Hong Kong. In 2025, InvestHK assisted 560 overseas and Chinese Mainland enterprises in setting up or expanding their businesses in Hong Kong, setting a new record high and representing a year-on-year increase of over 4 per cent. The top five sectors of these enterprises are financial services and fintech (117 companies), innovation and technology (115 companies), family offices (80 companies), tourism and hospitality (65 companies), and consumer products (54 companies). It is expected that these enterprises will create more than 10 700 jobs and bring in direct investment of around $69.4 billion in total within the first year of their establishment or expansion. This demonstrates that, in addition to traditional sectors, InvestHK has successfully attracted many enterprises from emerging sectors such as fintech, innovation and technology, and family offices to Hong Kong in recent years.
(2) InvestHK has been leveraging its global investment network, including 17 Dedicated Teams for Attracting Businesses And Talents (Dedicated Teams) in the Mainland Offices and overseas Hong Kong Economic and Trade Offices (ETOs), as well as 17 overseas consultant offices, to proactively explore different emerging markets for attracting businesses and investments. Specifically, to expand the markets of the Association of Southeast Asian Nations (ASEAN) and the Middle East, InvestHK has established Dedicated Teams under four ETOs in Jakarta, Bangkok, Singapore and Dubai respectively. A Dedicated Team under the Kuala Lumpur ETO newly established last December is also expected to be set up in the first half of this year to further deepen co-operation in the ASEAN region. In addition, InvestHK set up consultant offices in Cairo, capital of Egypt and Izmir, Türkiye’s third-largest city in 2024-25, with a view to attracting capital and enterprises from high-potential emerging countries in the Middle East and North Africa. These are the third and fourth consultant offices set up by the current-term Government since taking office, following those in Nairobi, Kenya, and Almaty, Kazakhstan. Other consultant offices in emerging markets include Istanbul, Türkiye; Lima, Peru; Santiago, Chile; Rio de Janeiro, Brazil; Mexico City, Mexico; and Mumbai, India. Through the aforesaid global investment network, InvestHK visits various emerging markets (such as ASEAN, Africa, Central Asia, Eastern Europe, South Asia and South America) to meet with different enterprises and investment institutions, and to organise and sponsor a series of investment promotional activities to attract local businesses to Hong Kong.
(3) In addition to proactively attracting new enterprises to Hong Kong, InvestHK also places great importance on providing aftercare support services to enterprises assisted by the department and other non-local enterprises (such as assisting in their expansion of new business types, upgrading their Hong Kong offices to function as regional headquarters, setting up physical offices or stores, listing or establishing corporate treasury centres, expanding their overseas business bases, etc.). InvestHK also assists the enterprises to explore and evaluate new growth areas and opportunities ahead and supports them to expand their operations in Hong Kong, thereby creating more local job opportunities.
(4) According to the World Investment Report 2025 published by the United Nations Trade and Development, Hong Kong rose to third place globally in terms of foreign direct investment inflows in 2024, confirming Hong Kong’s status as a world-renowned international business and investment hub. The 2025 Policy Address announced several policy initiatives to further strengthen the investment promotion work, including strengthening the support for Chinese Mainland enterprises to go global through Hong Kong. The Commerce and Economic Development Bureau has set up a cross-bureau, cross-departmental and cross-agency Task Force on Supporting Mainland Enterprises in Going Global (GoGlobal Task Force) by mobilising Hong Kong offices abroad, including those under InvestHK and the Hong Kong Trade and Development Council as well as the Hong Kong offices on the Chinese Mainland. It also coordinates various bureaux, departments and agencies to proactively encourage Chinese Mainland enterprises to go global via Hong Kong and provide them with customised and comprehensive support services based on their needs. The GoGlobal Task Force will focus on attracting key or strategically valuable Chinese Mainland enterprises to set up businesses in Hong Kong. We will also follow the strategies outlined in Part (2) above to attract and encourage more overseas companies from emerging markets to expand their businesses to Hong Kong and explore the vast Chinese Mainland market, fully leveraging our role as a two-way platform between China and the world.
In addition, the Financial Secretary leads the relevant policy bureaux, departments, and public organisations in formulating packages of preferential policies including land grants, land premiums, financial subsidies, and tax incentives. InvestHK provides support for the relevant policies and will proactively use the preferential policy packages to attract high value-added industries and high-potential enterprises to set up in Hong Kong, thereby promoting high-quality development and bringing economic contributions and employment opportunities to Hong Kong.
Looking ahead, we will step up our efforts to attract direct investment from emerging markets and support Chinese Mainland enterprises to go global via Hong Kong, while consolidating our investment promotion efforts in traditional markets, thereby attracting more non-local companies to set up in Hong Kong. Issued at HKT 12:05
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
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.
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.
Source: Hong Kong Government special administrative region
LCQ21: Promoting cross-boundary carbon trading and settlement Question:
In December 2025, the Central Economic Work Conference included “following the dual-carbon goals and driving a comprehensive green transition” in the eight key tasks to be pursued for the economic work in 2026. The carbon market is an important tool that utilises market mechanisms to address climate change and promote green and low-carbon development, and the international carbon trading platform Core Climate launched by the Hong Kong Exchanges and Clearing Limited (HKEX) in 2022 (Core Climate) is the world’s only carbon marketplace offering settlement in both Hong Kong dollars and Renminbi for international voluntary carbon credits at present. In this connection, will the Government inform this Council:
(1) whether it knows the respective annual numbers of transactions, transaction volume and transaction value of the Core Climate platform since its establishment;
(2) whether the Government will discuss with HKEX the introduction of blockchain technology to the listing and trading processes of carbon credits on the Core Climate platform, so as to leverage blockchain technology’s characteristics of immutability, traceability, transparency and security to avoid double counting and reduce transaction costs;
(3) in addition to introducing international carbon credits to the Core Climate platform, whether the Government will support HKEX in developing local “carbon avoidance” (e.g. energy efficiency enhancement and the use of alternative clean energy) and “carbon removal” (e.g. direct air carbon capture) projects to generate more local carbon credits and enrich buyers’ choices; if so, of the details; if not, the reasons for that;
(4) whether the Government will motivate HKEX to establish mutual access and assurance standard alignment mechanisms between the Core Climate platform and the “National Voluntary Greenhouse Gas Emission Reduction Trading Market” to enhance the liquidity of the Core Climate platform, promote cross-boundary carbon trading and settlement, and facilitate the internationalisation of the Mainland carbon market; if so, of the details; if not, the reasons for that; and
(5) given that HKEX signed a Memorandum of Understanding with Guangzhou Emissions Exchange, Shenzhen Green Exchange and Macao International Carbon Emission Exchange in September 2025, whether the Government will, under this co-operation framework, expeditiously explore with HKEX the joint establishment of a unified carbon trading platform in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), and formulate comprehensive and unified assurance standards and pricing, trading and assurance rules to enhance the overall liquidity and influence of the GBA carbon market; if so, of the progress; if not, the reasons for that?
Reply:
President,
The National 15th Five-Year Plan outlines the acceleration of comprehensive green transformation and the orderly advancement of innovation in carbon finance products and derivatives. The Hong Kong Exchanges and Clearing Limited (HKEX) launched an international carbon marketplace Core Climate in October 2022, offering dual-currency settlement services in Hong Kong dollars and Renminbi for the trading of international voluntary carbon credits. It aims to establish Hong Kong as an international carbon market to connect opportunities across the Mainland, Asia, and the rest of the world, with a view to enhancing green development momentum and assisting in promoting global net-zero transition.
In consultation with the HKEX and the Hong Kong Monetary Authority (HKMA), my reply to the five parts of the question is as follows:
(1) As of March 2026, Core Climate’s cumulative carbon credit transaction volume has exceeded 1 million tonnes, with over 130 registered participants. Since the carbon projects and carbon credits traded and settled through Core Climate are diverse in nature and have a very wide price range, with sensitive commercial information involved, relevant nominal volumes or information of the transactions cannot be disclosed. However, it can be noted that Core Climate participants include large corporations. For example, Cathay Pacific settled 50 000 tonnes of voluntary carbon credits through Core Climate in December 2024, demonstrating Core Climate’s ability in assisting companies to achieve their sustainability goals.
(2) Actively exploring the application of financial technology is a crucial part of promoting the innovative development of carbon credit products. To this end, in 2025, the HKMA and the HKEX successfully completed the testing of a tokenised carbon credit transaction use case under Project Ensemble, with a view to leveraging emerging technologies such as blockchain to facilitate cross-boundary transactions and improve the transparency and efficiency of carbon credit traceability. The HKMA and the HKEX will publish a report on the testing results in due course, summarising the findings and hoping to provide valuable experience and solid foundation for future financial innovation products for promoting low-carbon economy.
(3) Since its launch in 2022, Core Climate has continuously expanded its product range. By the end of 2025, the number of carbon reduction projects on the platform had increased to over 60, including forestry, solar, wind, and biomass projects in Asia, South America, and Africa. In addition to Verified Carbon Standard (VCS) from Verra, the HKEX incorporated Gold Standard Verified Emission Reductions (GS-VER) into Core Climate in August 2024, further diversifying the scope of tradable climate projects. The HKEX will continue to actively expand relevant products and services to support decarbonisation locally, regionally, and internationally.
(4) and (5) Our country is striving to build a more effective, dynamic, and internationally influential national carbon market to promote green and low-carbon transformation and help achieve the goals of carbon peaking and carbon neutrality. To this end, the Hong Kong SAR (Special Administrative Region) Government is actively working with relevant Mainland regulatory authorities and institutions to explore assisting our country’s participation in the international carbon market, including the formulation of voluntary carbon credit standards and methods, as well as the registration, trading, and settlement of carbon emission reductions. Leveraging Hong Kong’s advantages of enjoying our nation’s strong support and being closely connected to the world, the Government aims to serve our country’s dual-carbon strategy and help build a carbon market which is well integrated with the international market.
Besides, the HKEX signed a Memorandum of Understanding (MOU) in September 2025 with the Guangzhou Emissions Exchange, Shenzhen Green Exchange and Macao International Carbon Emission Exchange to work together in promoting the development of the carbon markets and green finance ecosystem across the Guangdong-Hong Kong-Macao Greater Bay Area (GBA). Under the MOU, the four exchanges will explore new co-operation opportunities in carbon market and green finance, and facilitate experience exchange and knowledge sharing in order to enhance the professional capabilities of relevant institutions and personnel in carbon market operations and green finance, and promote in-depth development of the regional carbon market. Currently, the HKEX is working closely with carbon exchanges in the GBA to actively explore the testing of cross-boundary carbon trade settlement, with a view to completing the pilot and summarising experience within 2026 to provide reference for our country’s future cross-boundary carbon trading. Issued at HKT 12:35
Source: Hong Kong Government special administrative region – 4
Following is a question by the Hon Lee Kwong-yu and a written reply by the Acting Secretary for Innovation, Technology and Industry, Ms Lillian Cheong, in the Legislative Council today (March 18):
Question:
In the 2026-2027 Budget, the Government announced that it would launch the $10 billion Innovation and Technology Industry-Oriented Fund within this year, and at the same time put forward the goal of “AI training for all”. There are views that in addition to hardware upgrades and software development, enterprise change management (i.e. cultivating the mindset and skills among in-service employees to accept, learn and apply the relevant emerging technologies) is also key to driving the successful digital transformation of employees, but many small and medium enterprises have limited resources and budgets, making it difficult to promote technological training for employees. In this connection, will the Government inform this Council:
(1) whether it currently provides any relevant funding schemes targeted at the “technological transformation” of general employees to support them in undergoing digital upskilling training during the period of technological transformation; if so, of the details; if not, whether it will formulate such schemes in the future; and
(2) whether it will consider including an express clause in the funding schemes related to technological transformation that requires enterprises applying for funding to set aside a certain proportion of funding specifically for upgrading the skills of in-service employees, so as to ensure that training resources can seamlessly meet the needs of actual posts; if so, whether the Government will consider developing monitoring standards (such as the number of employees receiving training and the hours of relevant training courses completed by such employees) in the future to monitor the compliance of the relevant enterprises with the clause; if not, whether the Government has formulated other measures to ensure that when using public funds to take forward technological transformation, enterprises can utilise the relevant funding to provide training and support to employees?
Reply:
President,
The National 15th Five-Year Plan emphasises promoting the full integration between technological innovation and industrial innovation, developing new quality productive forces, and building a modern industrial system. Innovation and technology (I&T) is the key engine for accelerating high-quality economic development in the future of Hong Kong, and Hong Kong is formulating strategies that suit the local conditions and its own development needs. While supporting the development of industries with strategic significance and in which we enjoy clear advantages, the Government has been assisting local enterprises in their technological transformation through various funding schemes and initiatives, as well as supporting employees in undergoing digital and other I&T upskilling training, thereby generating new quality productive forces to contribute to Hong Kong’s economy.
Having consulted the Labour and Welfare Bureau (LWB), my consolidated reply to the question raised by the Hon Lee Kwong-yu is as follows:
The Innovation, Technology and Industry Bureau has launched a series of supportive programs through its relevant organisations and platforms to assist local enterprises in leveraging technology to upgrade and transform. With regard to funding schemes, the “Digital Transformation Support Pilot Programme” assists small and medium-sized enterprises (SMEs) in adopting off-the-shelf digital solutions to accelerate their digital transformation through providing subsidies on a matching basis. The Government will enhance the Programme by incorporating artificial intelligence (AI) and cybersecurity solutions to further encourage SMEs (including their employees) to adopt the latest technologies and enhance their competitiveness. The Government is currently examining ways to enhance the Programme, with a view to launching it in the second half of this year following consultation with the Legislative Council.
For the New Industrialisation Acceleration Scheme and New Industrialisation Funding Scheme under the Innovation and Technology Fund, the two schemes will support manufacturers in setting up new smart production lines, and also provide funding to such enterprises for training their employees on operating the relevant smart production lines. The New Industrialisation and Technology Training Programme subsidises local enterprises on a 1 (Government): 1 (enterprise) matching basis to train their staff in advanced technologies, especially those related to new industrialisation.
Regarding the aforementioned schemes, the focus of transformation and employee training arrangements of different enterprises may vary depending on factors such as industry, scale, and actual operational circumstances, and could not be generalised. Currently, the Government has no plan to include an express clause requiring applicants to set aside a certain proportion of funding specifically for the training of in-service employees. All approved funding must be used appropriately in accordance with the relevant program guidelines and approval conditions.
Besides, the Hong Kong Productivity Council (HKPC) assists enterprises in developing and implementing technical solutions across various technology fields based on their pain points and needs, thereby supporting their digital transformation. On supporting technological transformation for employees, the HKPC is committed to providing various upskilling training courses to employees of enterprises undergoing digital transformation, equipping them with knowledge in different technology areas. The courses focus on “FutureSkills”, covering AI, cybersecurity, robotics, drones and various soft skills. The HKPC also introduced a free one-stop digital transformation solutions platform “Digital DIY Portal” and the “InnoPreneur Network” platform, bringing together digital transformation solutions, digital and innovation information and successful cases of digital transformation in industries, in order to assist local SMEs in embarking on digital transformation. Moreover, through the adoption of big data consultancy, service robots, Internet of Things, smart operation and system integration, etc, the HKPC assists SMEs in streamlining work processes, minimising labour-intensive processes and enhancing operational efficiency; it also organises online forums to help enterprises adapt to new modes of business operation through digital technologies and online business, and explore new clientele despite geographic constraints.
Meanwhile, the LWB stated that, Hong Kong residents aged 18 or above are eligible to claim for subsidy under the Continuing Education Fund (CEF) up to a ceiling of $25,000 upon successful completion of a CEF reimbursable course (CEF course). At present, CEF courses cover different subjects, including I&T. As at end-January 2026, over 420 CEF courses are related to such I&T areas as AI, big data analytics and smart cities, assisting learners in acquiring relevant emerging skills. The Government will continue to encourage course providers to design and offer new courses and apply for registration under the CEF to meet market development and needs.
In addition, employees can receive training related to I&T through various channels. For example, the Employees Retraining Board (ERB) also provides training courses across different areas, including I&T, to assist the local workforce to continuously enhance their skills and competitiveness. Eligible persons can apply for course fee waiver or reduction. The ERB will continue to strengthen relevant services after being upgraded as Upskill Hong Kong.