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Source: Hong Kong Government special administrative region

Source: Hong Kong Government special administrative region – 4

     Following is a question by the Hon Jonathan Stuart Lamport and a written reply by the Secretary for Commerce and Economic Development, Mr Algernon Yau, in the Legislative Council today (June 17):
 
Question:
 
     In recent years, the Hong Kong Special Administrative Region Government has vigorously promoted Hong Kong as a hub to assist Mainland enterprises in joining forces to go global and expand into overseas markets such as the Belt and Road and the Global South. There are views that many local small and medium enterprises (SMEs) also wish to expand their businesses overseas; yet at present, the enterprises which have successfully gone global are mostly medium and large Mainland enterprises and leading innovation and technology enterprises, while in Hong Kong only large professional services enterprises in sectors such as financial services, legal services and accounting are able to participate therein. Due to the lack of dedicated interfacing channels, relatively high thresholds of the industry chains, restricted flow of information and the absence of a breakdown of business opportunities into micro-segments, the vast majority of local SMEs have difficulties in integrating into the “going global” industry and service chains, and are unable to benefit from the policy dividends. In this connection, will the Government inform this Council:
 
(1) whether it will request relevant organisations such as the Hong Kong Trade Development Council to compile market information specifically tailored for the SMEs going global and formulate strategies for the SMEs to go global, so as to assist the SMEs in grasping the opportunities to join forces to go global;
 
(2) whether it will, in view of the fact that local SMEs are small in scale, short of resources and weak in international networks, establish a dedicated “SME service matching” mechanism, and through measures such as segmenting the “going global” industry chains, opening up niche business opportunities, simplifying the thresholds for participation, providing one-to-one matching and offering quotas for participation in government trade delegations, enable local SMEs across various industries to integrate into the “going global” ecosystem of Mainland enterprises in a more down-to-earth manner and at lower thresholds; and
 
(3) whether it will enhance the existing Dedicated Fund on Branding, Upgrading and Domestic Sales by setting up a dedicated programme to subsidise the SMEs’ participation in joining forces to go global, covering expenses on market visits, business matching, product certification, brand promotion and participation in exhibitions, so as to assist local SMEs in grasping the business opportunities of going global?
 
Reply:
 
President,
 
     The Government is committed to assisting companies of various sizes in Hong Kong to expand overseas, including local and Mainland multinational corporations, small and medium-sized enterprises (SMEs), and startups. In doing so, we will develop go global services in Hong Kong into new drivers for economic growth, while fostering the robust development of Hong Kong professional and commercial services (including relevant SMEs), bringing unlimited business opportunities to the city.
 
     Our reply to the question raised by the Hon Jonathan Stuart Lamport is provided below:
 
(1) and (3) To support local SMEs in developing businesses overseas, the Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund) has been providing funding support to the trade since its commencement in 2012 by encouraging non-listed Hong Kong enterprises to develop more diversified markets and to enhance competitiveness through branding, upgrading and restructuring, and promoting sales. Since 2018, the Government has launched several rounds of enhancements under the BUD Fund, including injections of a total of $9.38 billion. As at end-May 2026, more than 13 000 applications have been approved under the BUD Fund, demonstrating the trade’s strong demand for the BUD Fund. The funding scope of the BUD Fund is broad and covers a wide array of measures to assist enterprises in developing markets and businesses, including participation in exhibitions in economies covered by the geographical scope of the BUD Fund, placement of advertisements, application for trademarks and conduct of testing or certification, as well as production or enhancement of company websites. Moreover, the Government has further enhanced the BUD Fund on June 15, 2026, to increase the funding ceiling per “Easy BUD” application to $150,000 and to expand the geographical scope of the BUD Fund to cover a total of 48 economies (Note), including Belt and Road countries, with a view to assisting local SMEs to harness the business opportunities of going global.
 
     Regarding dissemination of market information, the Support and Consultation Centre for SMEs under the Trade and Industry Department, the SME Centre under the Hong Kong Trade Development Council (HKTDC), the SME One under the Hong Kong Productivity Council and the TecONE under the Hong Kong Science and Technology Parks Corporation (HKSTPC) will continue to provide “four-in-one” integrated services and co-organise “four-in-one” seminar series, such as organising seminars on topics like exploration of emerging markets for the SMEs, to equip them to address relevant business development needs. In light of the SMEs’ general lack of overseas networks and resources to conduct in-depth research on overseas investment strategies, the HKTDC conducts economic and trade research on different regions from time to time, covering information on the business environment, policies and regulations, latest industry opportunities, economic data, and relevant practical resource links of various overseas markets. The relevant research reports are published on the HKTDC’s Research portal (research.hktdc.com) for the SMEs’ reference, enabling them to better grasp go global opportunities and formulate corresponding strategies. The HKTDC will continue to strengthen its economic and trade research efforts to better support enterprises in developing their overseas businesses.
 
     In addition, the Commerce and Economic Development Bureau has set up the functional platform of Economic and Trade Express (ETE) to strengthen trio-coordination among overseas Economic and Trade Offices (ETOs), Invest Hong Kong and the HKTDC in supporting local SMEs and start-ups by proactively organising overseas business missions, assisting Hong Kong enterprises in exploring business opportunities in overseas markets, while assisting more enterprises to invest and establish operations in Hong Kong. Since the first quarter of 2026, we have organised outbound business missions for local SMEs and start-ups through the ETE. These include a mission of 60 tech companies led by the HKSTPC in collaboration with the HKTDC to participate in the Consumer Electronics Show in Las Vegas, United States, along with events under the ETE in January 2026, to facilitate exchanges and networking between Hong Kong start-ups and local companies; and a business mission organised by the HKTDC in March 2026 and comprised 18 Hong Kong service enterprises from sectors such as construction, engineering, smart city development, etc, to Bangkok, Thailand, where participants took part in the “GreenBiz HK” promotional activities organised by the ETE. We will take into account enterprises’ needs and interests, as well as other relevant factors such as target markets and appropriate timing for the missions, to continue planning overseas missions to assist Hong Kong enterprises in expanding their business abroad.
 
     On export credit insurance, to support the SMEs in expanding new businesses, the Hong Kong Export Credit Insurance Corporation will launch the “SME Protect Plus” pilot scheme in July to provide protection for the SMEs exporting to higher-risk buyers.
 
(2) The HKTDC officially launched the cross-sectoral professional services platform GoGlobal Connect in April this year, bringing together eight groups of Hong Kong professional service providers, including financial services; legal services; accounting, tax and business advisory services; design, marketing and brand management services; logistics and transportation services; telecommunications and information technology services; infrastructure and real estate-related services; as well as testing and certification services, thereby precisely matching the service needs of go global Mainland enterprises and providing them with professional consultation services. At present, the platform comprises more than 200 Hong Kong professional service providers, including not only large corporations, but also small and medium-sized professional service providers, offering more diversified and tailored services for enterprises seeking to go global.
 
     The Chief Executive led a delegation comprising high-level business representatives from the Mainland and Hong Kong to visit Kazakhstan and Uzbekistan in June this year, yielding fruitful results and reaching 96 co-operations, with over US$1.65 billion involved. The Belt and Road Office will invite relevant organisations to bring their signature projects to Hong Kong for roadshows, making project information more accessible to Hong Kong enterprises (including SMEs), and tapping opportunities for them to participate in the projects.
 
     The Government will continue to assist local and Mainland enterprises in going global and to enhance relevant measures in order to meet the needs of enterprises of different types and scales. We will proactively consider the various suggestions proposed by the Hon Lamport.
 
Note: The 48 economies include the Mainland, 10 Association of Southeast Asian Nations member states (comprising Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam), Australia, Chile, the four member states of the European Free Trade Association (i.e. Iceland, Liechtenstein, Norway and Switzerland), Georgia, Macao, New Zealand, Japan, Korea, Austria, the Belgo-Luxembourg Economic Union, Canada, Denmark, Finland, France, Germany, Italy, Mexico, the Netherlands, Sweden, the United Kingdom, Kuwait, the United Arab Emirates, Türkiye, Bahrain, Peru, Saudi Arabia, Bangladesh, Egypt, Hungary, Pakistan, Kazakhstan, Mongolia and Brazil.

Source: Hong Kong Government special administrative region – 4

Following is a question by the Hon Lau Ka-keung and a reply by the Under Secretary for Transport and Logistics, Mr Liu Chun-san, in the Legislative Council today (June 17):

Question:

It has been reported that a fatal accident involving an elderly taxi driver occurred in Ngau Tau Kok last month, raising public concerns about the driving safety of elderly professional drivers. In this connection, will the Government inform this Council:

(1) as it has been reported that the authorities will strive to present enhanced legislative proposals to this Council in the second half of this year to lower the age threshold for commercial vehicle drivers to submit medical examination certificates to the age of 65 and amend the validity period of their driving licences, which will be subject to an annual medical check-up, of the latest progress of the work concerned; whether they will study, apart from medical examinations, requiring drivers to undergo regular actual or simulated road driving assessments;

(2) whether the authorities will, by making reference to the practices of some countries and regions, study implementing tiered driving permissions for elderly drivers according to their age and medical examination results (e.g. by restricting the types of vehicles they may drive and driving periods); if so, of the details; if not, the reasons for that; and

(3) as there are views that the problem of the ageing of commercial vehicle drivers is severe and that setting a blanket mandatory retirement age will have a significant impact on the manpower in the trade, of the effectiveness of the authorities’ current measures to attract young people to join the trade; whether they will study introducing more targeted policies, such as improving salary packages and enhancing the working environment, to attract more young people to join the trade?

Reply:

President,

The Government has always attached great importance to road safety and is making sustained efforts in reviewing the arrangements related to the requirements for medical certification of commercial vehicle (CV) drivers in order to enhance the safety protection for the drivers themselves and other road users. The reply to the question raised by the Hon Lau Ka-keung is as follows:

(1) According to the Road Traffic (Driving Licences) Regulations (Cap. 374B) (the Regulations), a person aged 70 or above who applies for a full driving licence must provide a medical certificate completed and signed by a registered medical practitioner to prove that he/she is medically fit to drive. While general driving licences are valid for 10 years, persons aged 70 or above can only apply for driving licences with a validity period of one year or three years. Besides, if an applicant is suffering from a disease or physical disability specified in the First Schedule to the Regulations, such as epilepsy, the Commissioner for Transport shall refuse the application.

To further safeguard the safety of road users, the Government earlier reviewed the requirements under the Regulations, and proposed raising the medical certification requirements for drivers. The adjustments include amending the eyesight requirements to cover visual acuity and visual field, and imposing additional fitness requirements for CV drivers, such as hearing requirements. The Government also proposed lowering the age threshold for CV drivers to submit medical examination certificates from the age of 70 to 65, and shortening the validity period of their driving licences, to enable aged CV drivers to undergo medical examinations earlier and increase the frequency of such examinations to monitor their physical conditions. Meanwhile, a set of medical guidelines is being formulated for medical practitioners’ reference when conducting medical examinations for drivers.

The Government has been exchanging views with various stakeholders on the items to be covered by the medical examinations and their frequency, among others, to ensure that the legislative proposals meet the actual circumstances and needs. To assist frontline medical practitioners in fully grasping the content of the medical guidelines, and to enhance CV drivers’ understanding of the new assessment requirements, the Transport Department (TD) completed a trial health assessment in the fourth quarter of 2025 to solicit direct feedback from medical practitioners and CV drivers. The response of the trial assessment was positive. The result confirmed the feasibility and practicality of the proposed medical guidelines and medical examination certificates. With the experience gained, the TD is also further refining the content of the medical examination certificates and the assessment process to enhance the clarity of the content of the certificates while aligning with practical needs.

The Government is finalising the legislative details while proactively taking forward the law drafting and relevant preparatory work, with the target of reporting the latest progress of work in this respect to the Legislative Council Panel on Transport in July this year.

Apart from pursuing the aforesaid legislative amendments, the Government will also continue to explore ways to apply innovative technology and artificial intelligence to the assessment of the driving performance of aged drivers, drawing on the experiences across different regions. For example, we note that self-service medical examination kiosks in the Chinese Mainland provide basic physical checks for driving licence applicants, and that South Korea has launched a voluntary driving simulation test scheme for elderly drivers this year. The Government will closely monitor the development and efficacy of these technologies and explore the feasibility of introducing similar services in the future.

Meanwhile, we are maintaining close communication with the Health Bureau to explore how primary healthcare services can be leveraged to encourage CV drivers to understand and continuously monitor their own health conditions at an early stage.

(2) According to the Government’s current legislative proposal, if driving licence applicants or holders suffer from specified diseases applicable to CV drivers, they will no longer be permitted to drive a CV.

Regarding the implementation of age restrictions or tiered driving permissions for CV drivers, we understand that the circumstances of the transport industry vary across the world, with practices differ accordingly. For instance, no restrictions are imposed in Australia, Canada and the United Kingdom, whereas age restrictions are imposed on the types of vehicles allowed to be driven in the Chinese Mainland. Given that requiring aged drivers to undergo regular health assessments can help them gain a timely understanding of their physical conditions, thereby enabling them to prevent and seek treatment for illnesses that may affect their driving ability, and that this practice is more common in other places, we recommend first implementing the enhanced requirements for medical certification of CV drivers as soon as practicable. Building on this, the Government will comprehensively consider, on a risk-based principle, multiple factors including developments of the relevant trades, the traffic accident rates involving CVs and the latest practices in other places, while keeping an open mind in studying various suggestions and listening to public views.

(3) The Government has all along been keeping in view the manpower shortage and ageing situation of drivers in the transport industry. On general qualifications for driving, the Government has relaxed the eligibility requirements for the application of CV driving licences since October 1, 2020, shortening the minimum period required for a person to hold a valid driving licence to drive a private car or a light goods vehicle before applying for a CV driving licence from three years to one year.

The Government has also kept exploring with the trade appropriate measures to enhance service quality, and encouraging the creation of a desirable working environment. In this regard, franchised bus operators have in recent years introduced arrangements including part-time employment and flexible working hours to attract young drivers to join as employees. As for public light buses, the TD and the Employees Retraining Board launched in 2024 a placement-tied driving training scheme for the green minibus trade through training organisations to encourage locals to join the trade. In addition, the Government further enhanced the Taxi Written Test in November 2025. Following the enhancement, the average monthly number of candidates sitting the test has increased by 40 per cent, while the numbers of candidates taking and passing the test at the age of 29 or below have both recorded an increase. In recent years, the Government has also implemented a series of measures, such as introducing taxi fleets with systematic management and mandating taxi drivers to provide electronic payment methods, with a view to enhancing the service quality and overall image of the taxi trade, thereby attracting new blood to join the trade.

The Government will continue to maintain close liaison with the trade and actively review the latest manpower situation to attract more new blood to join the transport sector.

Thank you, President.

Source: Hong Kong Government special administrative region – 4

The Secretary for Financial Services and the Treasury, Mr Christopher Hui, and the financial delegation concluded their visit to Suzhou today (June 17) and departed in the afternoon for Shanghai, where they will attend the Lujiazui Forum in the evening. During their one-day stay in Suzhou, the delegation visited two enterprises and attended two networking events. They also met with the Secretary of the CPC Suzhou Municipal Committee and the Governor of the Jiangsu Branch of the People’s Bank of China.

Upon arrival in Suzhou yesterday (June 16) at noon, Mr Hui and the delegation proceeded to a networking luncheon organised by the Financial Services and the Treasury Bureau and engaged in in-depth discussions with representatives from 14 enterprises on how Hong Kong’s investment and financing environment can support Chinese Mainland enterprises in going global as well as issues of concern to Mainland enterprises in the journey of going global. The discussion spanned a wide range of topics, such as cross-boundary financial support, international compliance requirements, cross-boundary tax planning, and the protection set-up for overseas industrial chains by establishing captive insurers. Member of the Standing Committee of the CPC Suzhou Municipal Committee and Executive Vice Mayor of the Suzhou Municipal People’s Government, Jiangsu Province, Mr Gu Haidong, and officials from the Financial Commission Office of the CPC Suzhou Municipal Committee also attended.

In his welcoming remarks, Mr Hui said, “Suzhou stands as a prominent manufacturing hub in the Yangtze River Delta. As the city launches its initiative to encourage Suzhou enterprises to go global, Hong Kong is undoubtedly your most reliable partner. We have the capabilities, expertise and global vision. We will work side by side with Suzhou enterprises in addressing challenges when they face risks or lack clear pathways in the journey of going global, supported by our wealth of professionals in finance, accounting, insurance, and legal services who are well versed in international markets and regulations. Hong Kong is well positioned to steer Suzhou enterprises through the waves as they expand overseas.”

     On the afternoon of the same day, the delegation visited Jiangsu Jinfu Digital Tech Group Company Limited and toured its key laboratories on digital finance and AI-driven financial applications in the company of its Chairman of the Board, Ms Qiu Xiaolan. They then went to Innovent Biologics Inc and met with its Senior Vice President, Mr Daniel Ding, to exchange views. The company has been listed in Hong Kong and was included in the Hang Seng Index.

In the evening, Mr Hui and the delegation attended a dinner hosted by Mr Gu.

The delegation continued its visit to Suzhou this morning. Mr Hui and the Permanent Secretary for Financial Services and the Treasury (Financial Services), Mrs Angelina Cheung, called on the Secretary of the CPC Suzhou Municipal Committee, Mr Fan Bo. They discussed and exchanged views on the needs of Suzhou enterprises expanding their businesses overseas and the support that the Hong Kong financial sector can offer.

They then joined the rest of the delegation to take part in a breakfast networking meeting with the Chairman of the Group Board, Zhongyifeng Holding Group Co Limited, Mr Gong Changyi, and Director of Zhongyifeng Holding Group, Mr Mo Lyuqun, ‎to learn about the company’s development. The company has materialised the plan to establish in Hong Kong a holding subsidiary, which will engage in integrated energy management as well as the development of related software and hardware applications. 

Before leaving Suzhou, the delegation met with the Governor of the Jiangsu Branch of the People’s Bank of China, Mr Zhou Chengjun. They engaged in discussions on fintech and e-CNY (digital renminbi), and gained hands-on experience of distinctive use cases of e-CNY.

Mr Hui and the delegation departed for Shanghai at noon today and will attend the Lujiazui Forum this evening.

Source: Hong Kong Government special administrative region

Source: Hong Kong Government special administrative region – 4

     Following is a question by the Hon Christine Fong and a reply by the Secretary for Security, Mr Tang Ping-keung, in the Legislative Council today (June 17):

Question:

     There are views that the fragmented ownership of certain industrial buildings make it difficult to co-ordinate the implementation of fire safety improvement works. In this connection, will the Government inform this Council:

(1) of the number of industrial buildings in each of the 18 districts across the territory at present, and among these industrial buildings, the number of those which are used for depositing dangerous goods;

(2) in view of the slow progress of fire safety improvement works in industrial buildings due to fragmented ownership and co-ordination difficulties, whether the Government will set up a interdepartmental “one-stop” support mechanism (e.g. a coordination task force) to proactively intervene and assist owners in resolving technical issues and tender disputes; for cases in which consensus cannot be reached for an extended period and the fire safety risks are extremely high, whether the Government will adopt an “improve first, pay later” arrangement (i.e. the Government will implement the works on behalf of the owners and then recover the costs from them), so as to safeguard public safety; and

(3) as there are views that the cost of the Internet of Things Fire Detection System (IoT FDS) capable of real-time fire monitoring is lower than that of traditional systems and that its installation is subject to fewer restrictions in terms of building structure or spatial conditions, whether the Government will consider replacing traditional fire service installations in industrial buildings with IoT FDS or other feasible solutions, and providing relevant subsidies, so as to expedite fire safety improvement works in industrial buildings?

Reply:

President,

     The Government is committed to upgrading the fire safety standards of old industrial buildings to meet modern fire safety requirements, such as requiring the buildings to install automatic sprinkler systems to provide better protection for occupants, users and visitors of the buildings. For this, the Fire Safety (Industrial Buildings) Ordinance (Cap. 636) (the Ordinance) came into operation on June 19, 2020. As the enforcement authorities (EAs) for the Ordinance, the Fire Services Department (FSD) and the Buildings Department (BD) will conduct in an orderly manner joint inspections of old industrial buildings constructed before March 1, 1987, or with the building plans first submitted to the Building Authority for approval before that day (target industrial buildings), and issue Fire Safety Directions (Directions) based on the actual conditions of the buildings and require the owners and/or occupants to upgrade the fire service installations and equipment and fire safety construction of the buildings concerned to the required standard.

     Having consulted the Development Bureau, the reply to the questions raised by the Hon Christine Fong is as follows:

(1) The number of industrial buildings and the number of industrial buildings storing dangerous goods in the 18 districts across the territory, according to the records of the FSD and the BD, are provided in the Annex. 

(2) To assist owners and occupants of old buildings to comply with the statutory requirements for fire protection, the FSD has developed a “one-stop” support network. The FSD established the first Building Improvement Support Centre (BISC) in Kowloon in December 2023, and one BISC each on Hong Kong Island and in the New Territories in June 2025, so as to provide one-stop support and consultation services. Starting from the issuance of the Directions up till the improvement works are completed and the legislative requirements are fully met, the BISCs provide end-to-end support. The services being offered include the explanation of the legislative requirements, facilitation of plan approval and arrangement of acceptance inspections, assistance in applying for subsidies and loans, as well as referral of cases to relevant departments for follow-up. These services enable owners to understand the options and procedures for complying with the Directions, making it easier for them to come up with a suitable compliance plan among the owners themselves.  Taking the target industrial buildings as an example, the BISCs can help the owners apply for the BD’s Building Safety Loan Scheme if they need financial support for the required fire safety improvement works.

     As for defaulted works, unlike the situation where owners of some old composite and domestic buildings find it difficult to comply with the Directions due to the lack of co-ordination capacity, industrial buildings are mostly operated on a business basis, and their owners are predominantly registered companies and business investors who have handled contracts, finance and project management in daily operations with organisational capacity generally higher than that of minority property owners of residential buildings. In fact, since the implementation of the Ordinance in 2020, fire safety improvement works in target industrial buildings have generally made good progress. As at the end of May 2026, 91 per cent of the Directions issued by the FSD to individual units in target industrial buildings had been complied with. Therefore, the Government considers that there is currently no urgent need to introduce defaulted works for the target industrial buildings.

     Moreover, if the Directions are not complied with without any reasonable excuse, the EAs may apply to a magistrate for a Fire Safety Compliance Order to compel the completion of the works within a specified period. If compliance is yet to be found by the deadline, the EAs may further apply for a Prohibition Order to prohibit the use of the building or part thereof.

     On the other hand, if the FSD identifies an imminent fire hazard in an industrial building, it may issue a Fire Hazard Abatement Notice to require the abatement of the fire hazard within a specified period. If the requirement is not complied with, the FSD may take direct action to abate the fire hazard and recover the costs so incurred, or apply to a magistrate for a Fire Hazard Order to compel the party concerned to abate the fire hazard within a specified period, or even apply for a Prohibition Order to prohibit the use of the building or part thereof.

     The Government will continue to closely monitor the implementation of the Ordinance and adopt a multi-pronged approach to encourage the owners to comply with the relevant requirements as soon as possible. 

(3) The FSD launched the Pilot Scheme on the Internet of Things Fire Detection System (IoT FDS) at the end of 2025 and installed the IoT FDS in 10 selected old composite buildings of six or less storeys across the territory, with a view to assessing its feasibility and effectiveness. The buildings concerned are exempted from the installation of fire service equipment such as fire hose reels, fire water tanks and water pumps, thereby assisting owners to comply with the Directions more readily. During the trial period, the IoT FDS demonstrated reliable performance and stable operation, with no false alarm recorded. In view of the satisfactory results that met the expectations, the FSD has accepted the IoT FDS and portable fire extinguishers as an alternative solution in lieu of hose reels and manual fire alarm systems in composite and domestic buildings of six or less storeys regulated under the Fire Safety (Buildings) Ordinance. 

     Meanwhile, the FSD is exploring the technical feasibility of extending the system to composite and domestic buildings of seven or more storeys regulated under the Fire Safety (Buildings) Ordinance.

     As for target industrial buildings, since their fire risks are higher and their fire safety requirements differ from those of composite and domestic buildings, such as the mandatory installation of an automatic sprinkler system throughout the entire building, the IoT FDS therefore cannot be used as an alternative solution at this stage. Nevertheless, the FSD will encourage voluntary installation of the system in industrial buildings and other suitable buildings to further enhance the overall fire safety standards. The FSD will also continue to explore other facilitation measures to assist owners of target industrial buildings in complying with the Directions.

Source: Hong Kong Government special administrative region

Source: Hong Kong Government special administrative region – 4

     Following is a question by the Hon Robert Lee and a written reply by the Acting Secretary for Financial Services and the Treasury, Mr Joseph Chan, in the Legislative Council today (June 17):
 
Question:
 
     There are views pointing out that in order to strengthen Hong Kong’s role as an international risk management centre and enhance its global competitiveness, Hong Kong needs to elevate the status of its futures and derivatives, thereby enabling the market to better hedge risks across different asset types within investment portfolios, as well as to strengthen the existing financial infrastructure and enhance the efficiency of market capital utilisation. In this connection, will the Government inform this Council:
 
(1) how the Government and relevant regulatory bodies will further promote and deepen the development of the futures and derivatives markets to achieve world-leading standards; whether specific measures will include: exploring the introduction of relevant incentive schemes; enriching products and services to better manage risks associated with futures, such as exchange rates, currencies, agriculture, energy and precious metals, in the real economy; and attracting and nurturing relevant talents;
 
(2) of the progress of the Government’s current discussions with the Mainland on the establishment of a mutual access mechanism for futures and derivatives;
 
(3) whether the Government will encourage the Hong Kong Exchanges and Clearing Limited (HKEX) to establish a legal and operational framework for “cross-product and cross-clearing house” among its clearing houses, enabling market participants to hedge risks across positions in different products, thereby reducing the duplication of margin payments and enhancing the overall efficiency of capital utilisation and liquidity of the market; if not, of the Government’s alternative proposals; and
 
(4) whether the Government will consider the International Monetary Fund’s recommendation in 2021 to enhance the efficiency of market capital utilisation by merging the three clearing houses currently under the HKEX, namely Hong Kong Securities Clearing Company Limited, HKFE Clearing Corporation Limited and The SEHK Options Clearing House Limited; if not, of the reasons for that?
 
Reply:
 
President,
 
     The National 15th Five-Year Plan outline supports Hong Kong in consolidating and enhancing its status as an international financial centre, strengthening its role as a global offshore Renminbi business hub, an international asset management centre and a risk management centre as well as calling for the orderly advancement of mutual access between the Mainland and Hong Kong financial markets. The Government, together with the regulators and the Hong Kong Exchanges and Clearing Limited (HKEX), have been proactively taking forward measures in these areas, including deepening the development of the derivatives market continuously, strengthening market infrastructure and enriching investment choices, so as to meet the diverse asset allocation and risk management needs of both Mainland and international investors.
 
     In consultation with the Securities and Futures Commission (SFC) and the HKEX, the reply to the four parts of the question is as follows:
 
(1) The Government, the SFC and the HKEX have been working closely to promote the development of the derivatives market through introducing a wide range of products and enhancing trading services. At present, the Hong Kong market offers a diversified suite of derivatives instruments, including futures, options and other structured products, covering equity indices, single stocks, foreign exchange, interest rates and commodities-related assets, catering to the needs of different investors. The rapid growth of innovative technology enterprises in recent years has also led to the launch of various new products successively, including the Hang Seng TECH Index futures and options, Hang Seng Biotech Index futures, Asia’s first batch of leveraged and inverse products on single stocks, and the first batch of US Dollar denominated derivative warrants on US equities, providing investors with more diversified choices. In addition, the HKEX issued a circular in May this year announcing trading fee waivers and incentive programmes for liquidity providers and active traders of US Dollar gold futures contract, with a view to stimulating its trading volume in line with the development of Hong Kong’s gold trading market. The arrangements will take effect from July this year.
 
     On trading services, building on the introduction of after-hours trading in the derivatives market in 2013, the HKEX has progressively extended the trading hours to 3am on the following day in phases. The HKEX has also implemented holiday trading for derivatives, and has included all currency futures and options to facilitate investors to conduct risk management during overseas trading hours and Hong Kong public holidays. In addition, the Government and the SFC have enhanced the position limit regime for derivatives, raising the position limits for futures and options and removing the limits for international asset-related derivatives. To further promote market development, the Government has amended legislation to exempt option market makers from fixed-rate stamp duty on jobbing business, thereby reducing transaction costs and enhancing market liquidity and risk management efficiency for investors.
 
     Driven by various measures implemented, trading in Hong Kong’s derivatives market has continued to grow. In 2025, the average daily turnover of futures and options reached 1.66 million contracts, up 7 per cent from 2024 and marking a record high. As of end-May this year, the average daily turnover of futures and options further increased to over 1.78 million contracts.
 
     Looking ahead, the Government will continue to support the SFC and the HKEX in enhancing the development of the derivatives market. The HKEX is developing a next-generation derivatives trading platform to facilitate the introduction of new products and strengthen market functions in future. On product development, we will continue to broaden the ecosystem of the derivatives market and step up related market education and promotion, thereby fostering talent development in the industry and encouraging greater investor participation in the securities and futures markets.
 
(2) The Government, regulators and the HKEX are committed to deepening and expanding mutual access between the Mainland and Hong Kong capital markets. With strong support from the Central People’s Government, various enhancements and new products were introduced under the mutual market access mechanism in recent years, fostering integration and concerted development of the two markets. Notably, Northbound trading of Swap Connect was officially launched in 2023, marking the first mutual access arrangement in the derivatives space. This enables overseas investors to participate in onshore Renminbi interest rate swaps through a convenient and secure channel, meeting their demand for managing Renminbi interest rate risk through derivatives.
 
     We will continue to maintain close communication with the Mainland authorities and actively pursue and implement mutual access initiatives supported by regulators of the two places, including the introduction of offshore treasury bond futures in Hong Kong, so as to provide effective offshore risk management tools for treasury bond investment in Hong Kong. Meanwhile, we will follow up with the Mainland authorities on further expansion and enhancement proposals, exploring measures to promote two-way capital flows between the two places and broadening the product scope under mutual access. Specific enhancements will be announced in a timely manner once they are ready for implementation.
 
(3) and (4) The International Monetary Fund (IMF) conducted an assessment of Hong Kong’s financial system in 2021 under the Financial Sector Assessment Program. Overall, the IMF affirmed Hong Kong’s position as a major international financial centre, recognising its resilient financial system, robust regulatory and supervisory frameworks as well as sound macroeconomic and prudential policies. Meanwhile, the IMF made recommendations to further strengthen the resilience of Hong Kong’s financial system, including enhancing the governance structure of the HKFE Clearing Corporation Limited (HKFE Clearing). It also suggested that, under an appropriate governance framework, the HKEX could consider consolidating its clearing houses, namely the Hong Kong Securities Clearing Company Limited (HKSCC), HKFE Clearing and the SEHK Options Clearing House Limited (SEOCH), to improve efficiency. To this end, the HKEX conducted an independent review of its overall risk management and related governance in 2021 and fully implemented the recommendations in 2023 after consulting the SFC to strengthen its overall governance and risk management.
 
     At present, the HKSCC, the HKFE Clearing and the SEOCH under the HKEX provide participants with integrated clearing, settlement, custody and nominee services for securities, futures and options products respectively. Although these services are delivered through separate legal entities, the HKEX has been pursuing operational and technological integration to enhance capital efficiency across markets. For instance, the HKEX is developing the Orion Derivatives Platform to facilitate the introduction of new products, improve market microstructure, and further strengthen trading, clearing and risk management functions in future. The new platform will offer clients an enhanced trading and clearing experience, including the potential to support near 24-hour trading, additional order types, industry-aligned interfaces, and improved testing and connectivity. Furthermore, the HKEX optimised its collateral arrangements under its clearing houses and the cross-product margin arrangements of its futures market clearing house in October 2025 and April 2026 respectively, including adjustments to the calculation of interest paid on cash collateral to participants and reduction in accommodation charges for non-cash collateral.
 
     The Government will continue to support the SFC and the HKEX in enhancing market efficiency. In particular, we have invited the HKEX to study ways to reduce the funding costs of collateral provision by market participants, fully taking into account different factors such as Hong Kong’s international competitiveness and market risks. This includes exploring expansion of eligible collateral types and cross-margining arrangements across clearing houses, with a view to further improving collateral efficiency. The SFC and the HKEX will announce the enhancement measures in due course.

Source: Hong Kong Government special administrative region

Note: A local company refers to a company formed and registered under the Companies Ordinance (Cap. 622).

(2) to (4) Relevant bureaux and departments of the Government have been, through various funding schemes and measures, providing support to individuals interested in starting a business and promoting diversified development of Hong Kong enterprises (including one-person companies).
 
Support for small and medium enterprises (SMEs) and start-ups
 
     The Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund) under the Trade and Industry Department (TID) provides funding support for non-listed Hong Kong enterprises to develop more diversified markets and to enhance competitiveness through branding, upgrading and restructuring, and promoting sales. All non-listed enterprises (including one-person companies) registered in Hong Kong under the Business Registration Ordinance (Cap. 310) with substantive business operations in Hong Kong are eligible to apply for funding support. As the funding support is applicable to all enterprises meeting the funding criteria, the Hong Kong Productivity Council (HKPC), the Programme Secretariat of the BUD Fund, does not maintain breakdown regarding applications made by one-person companies under the BUD Fund.
 
     The four SME centres, namely the Support and Consultation Centre for SMEs under the TID, the SME Centre under the Hong Kong Trade Development Council, the SME One under the HKPC, and the TecONE under the Hong Kong Science and Technology Parks Corporation (HKSTPC), provide four-in-one integrated consultation services for SMEs. The SME ReachOut operated by the HKPC also helps SMEs, including one-person companies, identify suitable government funding schemes and offer capacity building services to them. As the services are applicable to all SMEs in Hong Kong, we do not maintain breakdown regarding services utilised by one-person companies.
 
     In addition, Invest Hong Kong has been promoting policies and measures conducive to the development of start-ups to the start-up community, supporting them to set up or expand businesses in Hong Kong. For example, the department organises the annual Hong Kong FinTech Week x StartmeupHK Festival, which brings together exhibitors as well as Mainland and international delegations and promotes the development of Hong Kong’s start-up ecosystem and entrepreneurship.
 
Support for youth entrepreneurs
 
     Under the Youth Development Fund, the HYAB and the Youth Development Commission have implemented the HYAB Funding Scheme for Youth Entrepreneurship in the Guangdong-Hong Kong-Macao Greater Bay Area (Entrepreneurship Scheme), which subsidises non-governmental organisations (NGOs) to implement youth entrepreneurship programmes for a duration of one to three years, providing entrepreneurial support and incubation services as well as start-up capital to young people intending to start their businesses locally and in Mainland cities of the Greater Bay Area. Under the latest round of the Entrepreneurship Scheme, a total of 264 youth start-up teams were recruited, of which 82 teams are one-member teams. Each eligible start-up team may receive a government grant capped at $480,000, with an additional matching fund of $120,000 provided by the NGO; the start-up team may therefore receive a total funding of at most $600,000.
 
Support for innovation and technology enterprises
 
     The Innovation and Technology Commission (ITC) under the ITIB is committed to supporting projects that could contribute to the innovation and technology (I&T) upgrading in our manufacturing and service industry through the Innovation and Technology Fund (ITF). ITF funding schemes in general have not set requirements on the scale and capital of enterprise applying for funding. There are established electronic channels for applicants (including one-person companies) to submit applications, reports, change requests, etc, for all ITF funding schemes through the Innovation and Technology Commission Funding Administrative System. The ITF website also provides comprehensive information, with a one-stop enquiry hotline and email.
 
     Furthermore, various I&T parks have been providing high-quality basic infrastructure and support services for I&T development. They offer start-ups (including one-person companies) research and development spaces and ancillary facilities, funding, technical and management guidance, investor matching, mentorship, marketing and business development support, etc. Depending on their business needs, the I&T parks also help these companies connect with service providers offering cloud computing resources, AI tools, as well as legal and accounting consultancy services, etc.
 
     Focusing on incubation programmes, the HKSTPC offers a diverse range of support schemes for start-ups at different stages of development. Among these, HKSTPC’s Ideation Programme provides a seed funding of $100,000 to assist early-stage entrepreneurs (including one-person companies) in transforming innovative ideas into viable businesses with market potential. Over the past three years, a total of 960 one-person companies have been approved under this programme.
 
     In addition, the Hong Kong-Shenzhen Innovation and Technology Park (HSITP) in the Loop has also launched the incubation programme in the first quarter of 2026 and held the HSITP Incubation Programme Launch Ceremony cum Technology Day Exhibition on March 30, 2026, providing incubation and acceleration support for the start-ups concerned (including one-person companies). The first incubation programme focuses on the two major industries of life and health technology, as well as AI and data science. Under the programme, more than 10 one-person companies have been approved.
 
     Besides, Cyberport provides comprehensive start-up support to young innovators and start-ups (including one-person companies) through a series of entrepreneurial programmes, including funding, business matching, and mentorship, with a full commitment to nurturing digital technology talent. Over the past three years, more than 10 one-person companies have been approved under the Cyberport Creative Micro Fund and the Cyberport Incubation Programme. Cyberport will also launch the OPC Hub to provide dedicated workspace and other support, such as cloud services, model usage quotas and AI inference resources, to one-person companies and small teams focusing on AI, intelligent agents, blockchain or related digital technologies. This initiative aims to reduce the cost of early-stage product development and testing for AI start-ups (including one-person companies).
 
     The Government will keep in view the implementation and effectiveness of various funding schemes and support measures, with a view to understanding the development of and challenges faced by enterprises (including one-person companies), as well as introducing enhancements/adjustments, thereby responding flexibly to the evolving operational and development needs of enterprises.

Source: Hong Kong Government special administrative region