Category: MIL-OSI

Source: Hong Kong Government special administrative region

Following is a question by the Hon Lau Kwok-fan and a reply by the Secretary for Transport and Logistics, Ms Mable Chan, in the Legislative Council today (July 30):

Question:

In recent years, the Government has repeatedly indicated its plan to enact legislation to regulate electric mobility devices (EMDs). In this connection, will the Government inform this Council:

(1) of the details and latest progress of the aforesaid legislative exercise, and the expected timeline for the relevant legislation to come into effect; given that according to government information, the number of persons arrested in traffic accidents involving EMDs had been continuously increasing in the past five years, whether the Government will impose in the relevant bill heavier penalties on non-compliance involving such traffic accidents, with a view to enhancing the deterrent effect;

(2) given that while the sale of EMDs is not an illegal activity under the existing legislation, there are views that the quality of the batteries of such products is questionable and the risk of accidents is high, whether the Government has plans to regulate the online and physical stores selling such products, so as to ensure that the products on sale comply with the proposed technical and safety requirements; if so, of the details of the plans; if not, the reasons for that; and

(3) as it has been reported that at present, EMDs are widely used in different districts, and quite a number of takeaway food couriers and elderly people use EMDs as a mode of everyday transport, whether the Government will, upon striking a balance among factors such as safety, technical standards, feasibility of law enforcement and situation of usage, provide more areas and road sections for the use of EMDs, in addition to opening up cycle tracks, so as to ensure the relevant regulatory arrangements to better align with the practical circumstances?

Reply:

President,

The Government has always adopted an open attitude towards new technologies for promoting green commuting, whilst attaching great importance to road safety. As electric mobility devices (EMDs) are mechanically propelled, they fall within the definition of “motor vehicles” under the Road Traffic Ordinance (Cap. 374) (the Ordinance) and must be licensed before use on roads or private roads. We note that EMDs are becoming increasingly popular around the world. However, given the dense population and high passenger and vehicular flow in Hong Kong, we consider that EMDs should be properly regulated before they can be used to provide effective and safe short-distance commuting options.

In consultation with the Transport Department (TD), my comprehensive reply to the different parts of the question raised by the Hon Lau Kwok-fan is as follows:

EMDs mainly include two categories: (a) motorised personal mobility devices such as electric scooters, electric unicycles and electric hoverboards; and (b) power assisted pedal cycles (PAPCs). The Government is actively looking into the regulation of EMDs along the following directions.

Firstly, regarding the locations for use, EMDs can serve as commuting means for short-distance travel and first-mile/last-mile connectivity to and from railway stations and stations, etc, providing the general public with more options of active transport modes. The TD has been proactively discussing with relevant departments the construction of comprehensive cycle track networks in new development areas such as the Hung Shui Kiu New Development Area, and will select suitable cycle tracks in other areas that can accommodate the safe co-use of bicycles and EMDs, except on individual basis, those cycle tracks which do not fulfil the particular requirements (e.g. insufficient width or frequent crossings with pedestrian footpath and vehicular roads). As for power assisted pedal cycles, we propose allowing them to be used on all cycle tracks since their operating mode is similar to that of bicycles.

Furthermore, given the ongoing changes in the design and operating mode of EMDs, the TD carried out a trial scheme on the shared use of power assisted pedal cycles in Pak Shek Kok from 2023 to 2024. The implementation of the trial scheme was smooth in general and the results indicate that suitable ancillary facilities (e.g. charging facilities and frequency of charging) will be needed for the operation of the shared mode. The Government will make reference to such experience when planning for the road sections for use of EMDs.

With regard to whether it is possible to open locations other than cycle tracks, the Government understands that public acceptance of EMDs varies. In previous surveys, over 60 per cent of the respondents supported the use of properly regulated EMDs on cycle tracks, while the remaining 30-odd per cent of the respondents expressed reservation, with the main concerns being the potential risks of EMDs as well as the limited space of existing cycle tracks. The Government will carefully consider the differing views to ensure road safety.

Secondly, regarding product regulation, to ensure product safety, the TD is formulating technical and safety requirements for EMDs, and plans to require third-party accredited certification bodies to test the technical specifications as well as the electrical and mechanical requirements of the various products. Manufacturers or agents of EMDs will be required to apply to the certification bodies for certification of products, and certified products will be affixed with a QR code certification label for easy identification by the public and enforcement officers. With regard to the batteries and electronic devices mentioned in the question, we consider that it is necessary for them to be certified according to international standards, e.g. over-charging or discharging control, short-circuit and overheating protection, vibration and mechanical shock tests, to ensure product safety.

To ensure that the product certification is practical in the Hong Kong market, the TD has been consulting the trade, who generally finds the proposed arrangements reasonable. The TD is identifying certification bodies that possess the relevant capabilities and is working in collaboration with the Hong Kong Productivity Council to formulate the details of the relevant certification arrangements, and will continue to give careful consideration to the roles and responsibilities of different stakeholders with a view to regulating product safety, so that members of the public can feel confident when purchasing EMDs and use them properly.

Thirdly, regarding users, EMDs users must be at least 16 years old and wear a helmet. The Government has set up a working group, comprising representatives from the trade and Government departments, to formulate a code of practice to set out the technical details, operating rules, as well as safety advice and guidelines etc, regarding EMDs. The TD will continue its work on publicity and education, instilling into EMD users proper driving attitude to ensure the safe and responsible use of EMDs.

Fourthly, regarding the issue of penalties, we consider that the penalties should be proportionate to the risks of using EMDs. For violations similar to those of cycling such as reckless driving, reference can be made to the penalties related to cycling. As for certain more serious offences such as illegal modifications, reference can be made to the penalties related to motor vehicles.

Considering the aforementioned four aspects, the Government is undertaking the relevant law drafting work, and will take into consideration the actual experience to ensure the practicality of the proposal. As the topic has a wide coverage, we plan to report the progress to the Legislative Council Panel on Transport shortly, with the aim of introducing the Bill for amending the Ordinance and the new subsidiary legislation into the Legislative Council for scrutiny next year.

Thank you, President.

Source: Hong Kong Government special administrative region

     Following is a question by Dr the Hon Wendy Hong and a written reply by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, in the Legislative Council today (July 30):
 
Question:
 
     The Inland Revenue (Amendment) (Tax Concessions for Family-owned Investment Holding Vehicles) Ordinance 2023 (the Amendment Ordinance) commenced operation on May 19, 2023 upon its gazettal, providing profits tax concessions for family-owned investment holding vehicles managed by single family offices in Hong Kong. In this connection, will the Government inform this Council:
 
(1) for the two years of assessment 2022-2023 and 2023-2024, of the following information on the single family offices eligible for the profits tax concession under the Amendment Ordinance in each year: (i) the number, (ii) the average number of full-time employees, (iii) ‍the average operating expenditure, as well as (iv) the average amount and (v) the total amount of tax reduction received, and set out in the table below with a breakdown by the size of asset under management (AUM) (i.e. (a) $240 million to below $390 million, (b)‍ ‍$390 ‍million to below $780 million, and (c) $780 million or above);
 
Year of assessment:

AUM size of family offices	(i)	……	(v)
(a)
(b)
(c)

 
(2) of the latest number of family offices in Hong Kong at present, and whether the Government has studied the growth trend of family offices in recent years; whether the Government has collected data or conducted surveys to gain an understanding on the office space demand and trends of family offices in Hong Kong (e.g. size and types of office space required, including traditional offices, co-‍working spaces and other types of facilities), as well as the key challenges they face in recruiting professional talent;
 
(3) of the number of family offices that have been established in Hong Kong with the assistance or facilitation of the dedicated FamilyOfficeHK team of Invest Hong Kong (InvestHK) since 2021, and the respective numbers of inquiries and follow-up cases handled; among these cases, of the common concerns of individuals who are interested in or have already established family offices in Hong Kong (set out by key areas of concern); and
 
(4) as the Government has earlier on indicated that it would further enhance the preferential tax regime for family offices, will the Government consider expanding the scope of the preferential tax regime to cover multi-family offices?
 
Reply:
 
President,
 
     Family office (FO) business is an important segment of the asset and wealth management (WAM) sector in Hong Kong. According to the research findings of the consultant commissioned by Invest Hong Kong (InvestHK), there were around 2 700 single FOs operating in Hong Kong as of end-2023. The number is expected to exceed 3 000 in the near future. As of end-2024, the size of private banking and private wealth management business attributed to FOs and private trusts clients reached HK$1,551 billion, providing significant business opportunities for the WAM sector and other related professional services. In consultation with the Inland Revenue Department and InvestHK, the reply to various parts of the question is as follows:
 
(1) The Government issued the Policy Statement on Developing Family Office Businesses in Hong Kong in March 2023 to set out eight measures with a view to creating a conducive and competitive environment for the businesses of global FOs and asset owners to thrive in Hong Kong. As one of the support measures, the Inland Revenue (Amendment) (Tax Concessions for Family-owned Investment Holding Vehicles) Ordinance 2023 came into operation on May 19, 2023, and applies in respect of a year of assessment commencing on or after April 1, 2022. Family-owned investment holding vehicles (FIHVs) managed by single FOs in Hong Kong fulfilling the minimum asset threshold of HK$240 million and substantial activities requirement can enjoy profits tax exemption for qualifying transactions.
 
     The FO sector has responded positively to the measures set out in the Policy Statement, including the preferential tax regime, the New Capital Investment Entrant Scheme (New CIES) and the Hong Kong Academy for Wealth Legacy (HKAWL). The number of FOs interested in setting up or expanding their business in Hong Kong has also increased. That said, a relatively small number of applications for tax concession for FIHVs have been received in the years of assessment 2022/23 and 2023/24 as the tax concession regime is still at its early stage. In this light, it may not be appropriate to disclose relevant data to avoid disclosing the information of the taxpayers. Furthermore, since the industry needs time to adjust their operations in order to meet the eligibility requirements for tax concession, the current number of applications may not be an appropriate indicator of the effectiveness of the tax concession regime.
 
(2) and (3) The Government actively promotes the development of FO business and strengthens advantages in developing the WAM industry and related professional service sectors in Hong Kong. The Government has maintained close communication with the FO sector to understand the development needs of FOs. The dedicated FamilyOfficeHK team of InvestHK has already assisted 50 FOs to set up or expand their business in Hong Kong in the first five months of 2025, representing a 19 per cent increase compared with the same period last year. Separately, around 150 FOs have indicated that they are preparing or have decided to set up or expand their business in Hong Kong. The statistics since the establishment of the dedicated team in June 2021 are summarised as follows:
 

	Enquiries / Follow-up cases	FOs assisted by the dedicated team to set up or expand business in Hong Kong
2021 (June to December)	46	9
2022	55	12
2023	649	26
2024	648	95
2025 (January to May)	306	50
Total	1 704	192

     For those who intend to or have set up FOs in Hong Kong, the dedicated team understands from the FO sector that their general areas of concern include compliance requirements, tax incentives and the availability of professionals, etc. However, the dedicated team does not maintain relevant statistics of the office space of FOs. Generally speaking, individual FOs have different requirements for the location, privacy and supporting facilities of their office space, and may also consider the operating costs and proximity to professional service firms, etc.
 
     In response to the industry’s view and to enhance the synergy between the New CIES and the establishment of FOs in Hong Kong, the Government has implemented enhancement measures with effect from March 1, 2025, including allowing applicants to make investments under the New CIES through an eligible private company managed by an eligible single FO as defined in Section 2 of Schedule 16E to the Inland Revenue Ordinance (IRO) and wholly owned by the applicant. These investments can be counted towards the applicant’s eligible investment.
 
     To meet the needs by FOs for professional talents, the Government is committed to expanding the talent pool in wealth management and FOs. We have since 2016 implemented the Pilot Programme to Enhance Talent Training for the Asset and Wealth Management Sector to nurture more industry talents. To date, over 4 800 applications for reimbursement of eligible professional training course fees have been approved, and the Programme has provided internship opportunities for over 1 100 tertiary students, supporting the industry to offer more professional training and learning opportunities, thereby enhancing the professional standards of practitioners. Besides, we have included “management professionals in WAM” and “professionals in compliance in WAM” under the Talent List since 2018 and 2021 respectively, so as to facilitate high-quality talents in these professions to pursue development in Hong Kong. The Government has also established the HKAWL in 2023 to provide a platform for collaboration, networking, knowledge sharing and talent development, and to provide relevant training for asset owners, wealth inheritors and the FO sector.
 
(4) The Government has announced in the 2025-26 Budget proposals to further enhance the preferential tax regime for single FOs, including increasing the types of qualifying transactions eligible for tax concessions for single FOs, such as transactions in emission derivatives/allowances, insurance-linked securities, loans and private credit investments, and digital assets, to attract more FOs to establish a presence in Hong Kong. The Government has completed the industry consultation on the enhancement measures on the preferential tax regimes, and is formulating the relevant enhancement measures in consultation with financial regulators based on the feedback received. The Government targets to work out the details by this year and submit the legislative proposals to the Legislative Council for consideration in 2026. If approved, the relevant measures will take effect from the year of assessment 2025/26.
 
     The current preferential tax regime for FOs does not cover FIHVs managed by multi-FOs as they are generally independent service providers which are not owned by the relevant families. Multi-FOs may engage in the provision of investment management services or other financial services for third parties, which are essentially no different from the business of banks, private banks and WAM companies. Furthermore, if FIHVs of different families are managed by multi-FOs, there may also be difficulties in ascertaining whether the minimum asset threshold and substantial activities requirement of the FIHVs concerned are met. We need to critically examine the actual effectiveness and related fiscal implications of further extending the tax incentives to multi-FOs.
 
     On the other hand, where an FIHV meets the definition of “fund” under the IRO and the qualifying transactions are carried out or arranged in Hong Kong by a licensed corporation of the Securities and Futures Commission (including multi-FOs), currently the relevant transactions are already eligible for tax exemption under the unified tax regime for funds.

Source: Hong Kong Information Services

The Working Guidelines on the Panel of Guangdong-Hong Kong-Macao Greater Bay Area (GBA) Arbitrators, jointly promulgated by the legal departments of Guangdong, Hong Kong and Macau came into effect today, the Department of Justice (DoJ) said.

The nomination exercise for GBA arbitrators (Hong Kong), conducted according to the working guidelines, also commenced today.

The legal systems, as well as the arbitration models, systems and development among Guangdong, Hong Kong and Macau within the GBA are different.

To promote the complementary advantages of arbitration resources and facilitate the interface of the arbitration mechanisms of the three places, the trio jointly agreed to establish the panel of GBA arbitrators.

The sixth GBA Legal Departments Joint Conference endorsed the working guidelines on November 18 last year, setting out the operational details such as the criteria for the nomination of GBA arbitrators, nomination procedures for GBA arbitrators, the use of the panel and the supervisory regulations.

Email the DoJ’s Alternative Dispute Resolution Team for enquiries.

Source: Hong Kong Government special administrative region

Source: Hong Kong Government special administrative region

     Following is a question by the Hon Doreen Kong and a reply by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, in the Legislative Council today (July 30):

Question:

     There are views pointing out that the economic downturn in recent years has led to rising vacancy rates of non-residential properties (e.g. shops and offices), thus exerting heavy operational pressure on property owners. In this connection, will the Government inform this Council:

(1) whether it will consider allowing owners of non-residential properties to pay the stamp duty on such property transactions by instalments, so as to alleviate their financial pressure;

(2) whether the Government will consider introducing policy incentives and initiatives, such as suitably relaxing the restrictions on investment in non-residential properties by foreign investors or applicants under the New Capital Investment Entrant Scheme, lowering the stamp duty rates for non-residential properties, as well as providing financing incentives or streamlining the investment approval process, so as to attract international capital and enhance the level of transaction activity in the market; and

(3) given that some owners of non-residential properties have reflected that despite the downward adjustments in the rental values of the properties held by them in recent years, they still need to pay high rates and Government rent, whether the Government will draw reference from the practices in places such as the United Kingdom and Australia and consider introducing temporary rates concession measures for non-residential properties, so as to assist property owners in coping with the pressure of the economic downturn?

Reply:

President,

     Before responding to the Hon Doreen Kong’s questions, I would first provide an overview of Hong Kong’s latest economic situation and the market conditions of non-residential properties.

     Hong Kong’s economy continues to grow steadily. Real gross domestic product rose by 2.5 per cent in the full year of 2024 and expanded by 3.1 per cent year-on-year in the first quarter of 2025, picking up from the 2.5 per cent growth in the preceding quarter. Meanwhile, according to the Rating and Valuation Department (RVD), the overall vacancy rates for private offices and private commercial premises stood at 16.3 per cent and 11.8 per cent respectively at the end of 2024, representing increases of 1.4 per cent and 1.5 per cent compared to 2023. This indicates that vacancy rates for non-residential properties are not solely determined by Hong Kong’s overall economic performance. Other contributing factors include the supply of properties, operation and development situation of individual enterprises, shift in consumption patterns of local residents and tourists, etc. Besides, property owners would also consider various factors when deciding whether to lease out vacant properties, such as market trends, their asset management strategies and financial positions, rental level, etc.

     The Government has been closely monitoring the situation and developments in the non-residential property market. In light of the vacancy rate of offices in recent years and the relatively ample supply of non-residential properties in the next few years, the Government has not put up commercial sites for tender since 2023/24, so as to allow the market to absorb the existing supply. In addition, the Government has been actively attracting investments. For example, from January 2023 to June 2025, Invest Hong Kong assisted over 1 300 overseas and Mainland enterprises in setting up or expanding their businesses in Hong Kong, which helps stimulate demand in the local non-residential property market.

     My responses to the three questions raised by the Hon Kong are as follows:

(1) We currently have no plan to allow payment of stamp duty on non-residential property transactions by instalments, based on three primary considerations:

     First, the stamp duty for non-residential property transactions currently ranges from $100 to a maximum rate of 4.25 per cent, constituting only a very small portion of the transaction cost. The maximum rate only applies to a transaction with an amount or value of consideration exceeding about $21.74 million. As stamp duty is usually borne by buyers, we do not consider that its current payment arrangement would impose financial pressure on non-residential property owners.

     Second, according to the Stamp Duty Ordinance, the Collector of Stamp Revenue should stamp an instrument upon payment of stamp duty. In other words, the instruments cannot be stamped before payment of all instalments. Generally speaking, instruments that are not stamped cannot be received in evidence in civil proceedings, nor can they be registered at the Land Registry.

     Third, the volume of the non-residential property market has been relatively stable over the past year. According to the statistics of the Inland Revenue Department, the first quarter of 2025-26 recorded approximately 3 600 stamping applications for non-residential properties, representing a year-on-year increase by about 17 per cent. Total transaction value also increased by more than 30 per cent to about $20 billion. Therefore, we do not see a need to change the payment arrangement of stamp duty on non-residential properties.

(2) As I mentioned earlier, the Government has been promoting inward investment and closely monitoring the situation and developments in the non-residential property market.

     Regarding the suggestions mentioned in the question, I would briefly respond as follows:

     The Hong Kong Monetary Authority currently does not impose any restriction on the mortgage-to-income ratio nor loan-to-value ratio for investors outside Hong Kong. When considering loan applications, each bank takes into account a range of factors, including the bank’s business strategy, the purpose of the loan, the customer’s credit history and repayment ability, to comprehensively assess whether to approve the loan and its terms. Whether a bank offers mortgage loan incentives (such as cash rebates) to applicants is its commercial decision.

     Currently, the New Capital Investment Entrant Scheme allows applicants to invest in both residential and non-residential properties. The amount that is counted towards the total capital investment is subject to a cap of HK$10 million, already representing one-third of the scheme’s minimum investment requirement. The Government will continue to review the investment patterns of applicants and evaluate the arrangements as necessary.

     In end February 2023, the Government has raised the maximum value of properties chargeable to $100 stamp duty from $2 million to $3 million and adjusted other value bands of stamp duty. In end February 2025, the Government has further raised the maximum value of properties chargeable to $100 stamp duty to $4 million. These measures help reduce the stamp duty of some residential and non-residential property transactions. We currently have no plan to further adjust stamp duty to promote inward investments.

(3) Currently, rates for non-residential properties are charged at 5 per cent of the rateable values of the properties, which is the same as that for residential properties with rateable values of or below $550,000. The RVD conducts annual general revaluation for all properties, including non-residential properties, so as to ensure that the rateable values for charging rates and government rent are assessed based on the latest market rental level. According to the statistics of RVD, rental indices and rateable values of private offices decreased by about 18 per cent and 16 per cent respectively in the five years between October 2019 and October 2024. These figures show that the RVD’s valuation has properly reflected the change in market rental level in recent years, which reduces the rates for non-residential properties. Furthermore, the progressive rating system implemented since 2025 does not apply to non-residential properties, with the rates percentage charge for which maintaining at 5 per cent. We therefore consider the current rates percentage charge for non-residential properties reasonable, and the annual revaluation of rateable values responsive to the latest market dynamics.

     Thank you, President.

Source: Hong Kong Government special administrative region

Source: Hong Kong Government special administrative region

Following is a question by the Hon Lam So-wai and a reply by the Secretary for Transport and Logistics, Ms Mable Chan, in the Legislative Council today (July 30):

Question:

Source: Hong Kong Government special administrative region