Source: Hong Kong Government special administrative region
DH investigates Serious Untoward Event involving day procedure centre “Heal Fertility Limited” and requests that it stop accepting new cases for reproductive technology procedures
The concerned DPC is located in One Chinachem Central, 22 Des Voeux Road, Central. The incident involved two couples preparing to undergo reproductive technology procedures. The embryo biopsy specimens they provided for testing were suspected to be replaced by other embryo biopsy specimens. The testing centre discovered the error during the genetic testing process and coordinated with the DPC to repeat the sampling and testing.
The DPC had earlier reported the incident to the Council, the Council notified the DH on the evening of July 3 following an investigation. The DH immediately sent staff to the DPC on the morning of July 4 to conduct an inspection and investigation, and to thoroughly review the relevant workflows and safety measures according to the Ordinance. The investigation revealed that the incident involved misidentification of the test specimens, which constitutes a Serious Untoward Event under the Code of Practice. However, the DPC did not report the incident to the DH within 24 hours upon identification, which constituted a non-compliance to the Code of Practice. According to information provided by the DPC, genetic testing subsequently confirmed that the two couples were biologically related to the embryos stored at the DPC, indicating that the embryos themselves had not been mixed up. The incident involved an error with the biopsy specimens sent for testing, and there is currently no evidence to suggest that any embryos were mixed up or incorrectly implanted.
In view of the preliminary investigation findings, human factors may be involved. To ensure public safety, the DH issued a requirement notice to the DPC on July 6 and required the DPC to take the following measures:
The DH has provided the Council with the preliminary findings of its investigation. The DH will continue to take the necessary follow-up actions in accordance with the Ordinance and maintain close liaison with the Council to safeguard public safety.
Issued at HKT 23:10
NNNN
Council on Human Reproductive Technology suspends most reproductive technology procedures of “Heal Fertility Limited”
Source: Hong Kong Government special administrative region
Council on Human Reproductive Technology suspends most reproductive technology procedures of “Heal Fertility Limited”
The Council convened a special meeting today (July 7) to discuss an incident involving a mix-up in embryo biopsy specimens at a licensed human reproductive technology centre in Central, “Heal Fertility Limited” (Heal Fertility). The Council passed a resolution to vary the treatment licence of the licensee, suspending 14 treatment services out of 17 that can be provided. The premises can continue to provide three services, including the storage services for gametes or embryos, until the Council and the Police complete their investigation.
The Council received notifications on June 17 separately from Heal Fertility and the Pre-implantation Genetic Diagnosis Centre of the Chinese University of Hong Kong at the Prince of Wales Hospital (diagnosis centre), which provides laboratory testing services for Heal Fertility, that embryo biopsy specimens sent by Heal Fertility to the diagnosis centre for genetic testing are suspected to be replaced by other embryo biopsy specimens. The diagnosis centre discovered the mistake in time during the genetic testing process.
The Council immediately set up an investigation committee on June 18, and assigned a clinical embryologist under the support of the Council’s secretariat staff to conduct a surprise investigation at Heal Fertility, followed by two follow-up on site investigation. Based on information gathered from the investigation, Heal Fertility was suspected of having contravened the requirements under the Code of Practice on Reproductive Technology and Embryo Research, as well as other statutory requirements. The Council subsequently reported the incident to the Department of Health and the Police on July 3 and 6 respectively.
According to the information provided by Heal Fertility, parentage had been established through testing between the two couples involved in the incident and the embryos stored at Heal Fertility, indicating no mix-up in the embryos. The incident involved a mix-up in the biopsy specimens sent for testing, and there is currently no evidence to suggest that any embryos had been mixed up or wrongly implanted into human body.
Initial findings suggested that incident may be caused by human factor. Heal Fertility, while co-operating with the Council’s investigation, has implemented measures to enhance access control on handling of embryo and specimens on the premises.
To protect all clients who have undergone reproductive treatment at Heal Fertility, the Council has also required the licensee:
The Secretariat for Council has also set up a hotline (2125 1188) for public inquiries. The hotline will operate from 9am to 11pm starting today, and from 9am to 9pm daily starting tomorrow, until further notice.
According to the Human Reproductive Technology Ordinance (Cap. 561) (Ordinance), healthcare institutions providing reproductive technology procedures must hold licences issued by the Council. Currently, a total of 13 public and 21 private healthcare institutions have been licensed by the Council (including 15 artificial insemination by husband licences and 19 treatment licences).
The Council will send a letter to all other licensees in Hong Kong who provide reproductive technology procedures, reminding them to strictly comply with the licensing requirements regarding the handling of embryos used in reproductive technology procedures.
The Council, in collaboration with law enforcement agencies, will continue follow-ups on the incident seriously and take appropriate actions. The Council is committed to ensuring that all parents seeking reproductive technology procedures can continue to receive safe and high-quality services.
Established in 2001 under the Human Reproductive Technology Ordinance, the Council is tasked with regulating reproductive technology activities, including regulating the provision of reproductive technology procedures and embryo research, in Hong Kong through a licensing system, and formulating the Code of Practice for the relevant sectors.
Issued at HKT 23:00
NNNN
Government responds to media enquiries on operation of fishponds within area of planning Sam Po Shue Wetland Conservation Park
Source: Hong Kong Government special administrative region
Government responds to media enquiries on operation of fishponds within area of planning Sam Po Shue Wetland Conservation Park
The SPS WCP is positioned with the theme “Biodiversity and Aquaculture in Harmony”. By restoring and enhancing existing wetland habitats, the project aims to enhance the ecological functions of the wetland systems in the Deep Bay area and protect bird flight corridors and habitats. At the same time, it will provide citizens and visitors with a rich eco-tourism experience and introduce modernised aquaculture facilities and techniques, and thus achieve triple objectives of wetland conservation, eco-education, recreation and tourism development, and the modernisation of the aquaculture industry.
With regard to spatial planning, the majority of the area within the SPS WCP (approximately 253 hectares (ha)) is planned to be managed as “Ecologically Enhanced Fishponds” (EEF) that serve the dual functions of nature conservation and pond fish culture. Through proactive conservation measures such as physical modification, reprofiling and management planning of the fishponds, the habitat quality and biodiversity of the wetland habitats can be enhanced, thereby increasing the overall ecological function of the wetlands. These EEF will also adopt eco-friendly aquaculture practices, with suitable adoption of modernised aquaculture technologies, which can improve the production efficiency and quality while reducing pollution and carbon emissions.
In addition, approximately 35 ha within the SPS WCP is planned to be managed as “Enhanced Freshwater Wetland” habitats, where proactive conservation measures such as establishing areas of varying water depth, providing dense vegetation cover, maintaining seasonal wetlands, etc., will be implemented to provide birds and other wildlife species with diverse micro-habitats.
Furthermore, to promote the use of technology in aquaculture, a “Fisheries Enhancement Area” (FEA) of approximately 40 ha will be established within the SPS WCP area adjacent to the San Tin Technopole, where the ecological value is lower. The FEA will introduce modernised, high-yield aquaculture facilities and technologies, implement modernised aquaculture management practices, and adopt high-density culture operations for pond fish farming. It will utilise existing fishponds, abandoned fishponds, and brownfield areas as far as possible. Indoor and outdoor facilities (such as recirculating aquaculture systems, outdoor sheltered ponds, purging ponds/facilities etc.) will be set up, thereby enhancing the quantity, quality, and value of local fisheries produce.
The Agriculture, Fisheries and Conservation Department, together with the Civil Engineering and Development Department, are moving full steam ahead with the phased establishment of the SPS WCP. Clearance of the land within the Phase 1 Stage 1 area of the SPS WCP has been completed. Construction works for Phase 1 of the SPS WCP are expected to commence in late 2026 or early 2027 the earliest, and completed by 2031.
During the interim period, uses within the proposed park area will remain subject to regulation. The relevant departments will continue to enforce regulations and take forward prosecutions against unauthorised developments, illegal waste dumping and other related illegal activities within the proposed SPS WCP area under relevant ordinances, including the Town Planning Ordinance (Cap. 131), the Waste Disposal Ordinance (Cap. 354) and the Land (Miscellaneous Provisions) Ordinance (Cap. 28). Relevant departments will step up inspections, such as utilising new technologies (for instance drones) to assist in monitoring and investigations, and prioritise cases related to this area.
Issued at HKT 20:41
NNNN
LCSD appeals to public to remain vigilant to fraudulent “SmartPLAY” website
Source: Hong Kong Government special administrative region
LCSD appeals to public to remain vigilant to fraudulent “SmartPLAY” website
The LCSD stresses that SmartPLAY has no connection with the fraudulent website, and has reported the case to the Police. The LCSD reiterates that there is only one official SmartPLAY website (www.smartplay.lcsd.gov.hk
Members of the public should stay alert when receiving any unidentified emails or messages, and should not provide any personal information at suspicious websites, including their SmartPLAY account information and passwords. Any persons having provided their personal information to the fraudulent website concerned, or suspecting that they may have become victims of fraudulent acts, should contact the Police. For enquiries about SmartPLAY, please call the hotline at 3954 5150.
Issued at HKT 20:40
NNNN
MOFA strongly refutes false claims regarding Taiwan in statement by Laos
Source: Republic of China Taiwan
MOFA strongly refutes false claims regarding Taiwan in statement by Laos
Date：2026-05-27
Data Source：Department of East Asian and Pacific Affairs
May 27, 2026
No. 240
The Ministry of Foreign Affairs (MOFA) strongly refutes the false claims made in a statement by the Foreign Ministry of the Lao People’s Democratic Republic. The statement, issued on May 20, wrongly stated that Taiwan was an inalienable part of China. It also expressed opposition to any attempt at separatism or interference in China’s internal affairs. Not only are such sentiments baseless, they encourage the use of force against Taiwan, thus affecting regional peace and stability.
Taiwan recently marked the second anniversary of the inauguration of President Lai Ching-te. MOFA strongly condemns China’s efforts at this particular point in time to press countries deferring to its stance to repeat claims that seriously undermine Taiwan’s sovereignty and cloud international understanding. In view of the Laotian government’s false statements undermining Taiwan’s sovereignty, MOFA cautions Laos that appeasement of authoritarianism can only be a prelude to aggression and that Laos’s accommodation will not help it escape from the debt trap that has been the result of the Belt and Road Initiative.
MOFA solemnly reiterates that neither the Republic of China (Taiwan) nor the People’s Republic of China is subordinate to the other, and that the PRC has never governed Taiwan. No country has the right or ability to deny the objective fact of Taiwan’s existence.
MOFA also stresses that countries concerned should not act in line with China’s distortions of the truth to make statements that undermine Taiwan’s sovereignty or justify attempts at authoritarian expansionism. Taiwan is willing to collaborate with all nations that support freedom, democracy, and human rights and work to curb authoritarian expansionism, staunchly safeguard the peace and security of the Taiwan Strait, and uphold the freedom, prosperity, and stability of the Indo-Pacific region. (E)
Embryo specimen mix-up probed
Source: Hong Kong Information Services
The Council on Human Reproductive Technology has launched an investigation into an incident involving a mix-up of embryo biopsy specimens at Heal Fertility Limited (Heal Fertility), a licensed human reproductive technology centre in Central.
Following the incident, the council passed a resolution to vary the licensee’s treatment licence, suspending 14 out of 17 treatment services permitted at the centre. The premises may only continue to provide three services, including storage services for gametes or embryos, until the council and the Police complete the investigation.
The council received separate notifications on June 17 from Heal Fertility and the Pre-implantation Genetic Diagnosis Centre of the Chinese University of Hong Kong at the Prince of Wales Hospital. The diagnosis centre, which provides laboratory testing services for Heal Fertility, reported that embryo biopsy specimens sent by the company for genetic testing were suspected to have been replaced by other specimens.
An investigation committee was immediately established by the council, which subsequently reported the matter to the Department of Health (DH) and the Police on July 3 and 6 respectively.
Information provided by Heal Fertility indicates there was no mix-up actual embryos. The incident involved a mix-up of the biopsy specimens sent for laboratory testing.
Currently, there is no evidence to suggest that any embryos had been mixed up or wrongly implanted into patients. Initial findings suggest the incident may have been caused by human error.
The DH noted that Heal Fertility failed to report the incident within 24 hours upon identification, constituting a non-compliance with the Code of Practice of the Private Healthcare Facilities Ordinance. The department has issued a requirement notice directing Heal Fertility to submit an investigation report within four weeks, detailing a root cause analysis, immediate corrective actions and long-term improvement measures.
Heal Fertility has since implemented measures to enhance access control for handling embryos and specimens on its premises.
The centre is contacting all clients who have undergone reproductive treatment at the facility to provide updates and follow-up support. It will also provide free pre-implantation genetic testing, parental testing and counselling to affected clients and has established a hotline at 3703 3608 to handle enquiries.
MOFA response to media report concerning alleged pro-China remarks by US scholar at Eswatini cabinet meeting
Source: Republic of China Taiwan
MOFA response to media report concerning alleged pro-China remarks by US scholar at Eswatini cabinet meeting
June 12, 2026 The Ministry of Foreign Affairs (MOFA) and the Embassy of the ROC (Taiwan) in Eswatini are fully aware of related reporting and the political situation in Eswatini following an online media report by South Africa-based Swaziland News that in April, Eswatini Prime Minister Russell Dlamini invited US economist Jeffrey Sachs to participate in a cabinet retreat, during which Mr. Sachs allegedly asserted that Eswatini should establish diplomatic relations with the People’s Republic of China on the grounds of economic interests.
The opinion allegedly articulated by Mr. Sachs is merely the personal view of an overseas academic. It prompted strong expressions of concern and questions from a number of Taiwan-friendly members of the Eswatini Parliament, clearly demonstrating that the solid diplomatic ties between Taiwan and Eswatini enjoy extensive recognition and high levels of support from all quarters of Eswatini society.
The ROC (Taiwan) and the Kingdom of Eswatini established diplomatic ties more than half a century ago, and the two nations have long maintained close cooperation in a range of fields. Bilateral relations advanced further when President Lai Ching-te visited Eswatini in May, traveling there aboard King Mswati III’s official jet.
In remarks made in the international arena and domestically, King Mswati has continued to staunchly endorse bilateral ties. Diplomatic relations between Taiwan and Eswatini remain stable and cordial. Furthermore, in displays of close friendship with Taiwan, Prime Minister Dlamini and his wife visited Taiwan in 2024, and Prime Minister Dlamini personally greeted President Lai at the airport during his visit to Eswatini in May.
The government of Taiwan is closely monitoring China’s use of zero tariffs and other economic sweeteners as bait as it attempts to divide Taiwan and its diplomatic allies and suppress Taiwan’s international space. MOFA strongly condemns such actions. China has long made exaggerated and false economic commitments in its coercion of other nations, not only conspiring to undermine unity within nations maintaining diplomatic ties with Taiwan but also making associated promises that have proven to be worthless.
Long-term cooperation between Taiwan and Eswatini in such areas as agriculture, healthcare, infrastructure, ICT, energy, and economics and trade has generated abundant results, yielding genuine benefits for the vast majority of Eswatini citizens. This is the consensus of King Mswati and Eswatini society.
Building upon this foundation and giving full play to the spirit of integrated diplomacy, Taiwan will continue to promote the development of cooperative, mutually beneficial bilateral ties, working with Eswatini to safeguard the welfare of both peoples and the friendship between both nations.
Conservation park rules remain
Source: Hong Kong Information Services
The Government announced today that land use within the proposed area of the Sam Po Shue Wetland Conservation Park (SPS WCP) will remain strictly regulated during the interim period.
Responding to media enquiries regarding the operation of fishponds within the planned SPS WCP area, the Government highlighted that the park serves as a key demonstration project. The initiative integrates the creation of ecosystem value with the modernisation of the agriculture and fisheries industries.
The Agriculture, Fisheries & Conservation Department, alongside the Civil Engineering & Development Department, are moving ahead with the phased establishment of the park. Land clearance within the Phase 1 Stage 1 area of the SPS WCP has been completed. Construction works for Phase 1 are expected to commence in late 2026 or early 2027 at the earliest, with completion targeted for 2031.
The Government noted that relevant departments will continue to enforce regulations and pursue prosecutions against unauthorised developments, illegal waste dumping and other related unlawful activities within the proposed park area. Enforcement actions will be carried out under respective legislation, including the Town Planning Ordinance, the Waste Disposal Ordinance and the Land (Miscellaneous Provisions) Ordinance.
To strengthen these efforts, departments will step up inspections by utilising new technologies to assist in monitoring and investigations, while prioritising enforcement cases related to this area, it added.
Speech by CE at South China Morning Post China Conference 2026 (English only)
Source: Hong Kong Government special administrative region
Following is the speech by the Chief Executive, Mr John Lee, at the South China Morning Post China Conference 2026 today (July 7):
Ms Tammy Tam (Publisher of the South China Morning Post), Mr Steve Finch (President and Chief Executive Officer of Manulife Asia), distinguished guests, ladies and gentlemen,
Good morning. I am very pleased to join you, once again, for the South China Morning Post’s China Conference, the 12th edition of this forum on our country’s development.
A week ago, we marked the 29th anniversary of the establishment of the Hong Kong Special Administrative Region (HKSAR). We proudly celebrated the anniversary, and the achievements of the “one country, two systems” principle, which continues to fuel the long-term stability and prosperity of our economy, and power our community long down the road.
The theme of today’s conference -“Intelligence at Scale: Hong Kong’s AI-Powered Future” – is all about Hong Kong’s commitment to innovation. And rightly so.
China, our country, is fast becoming a global powerhouse of innovation and modern industries. And with Hong Kong’s “one country, two systems” advantages and dedication to innovation and technology, we are well-placed to connect the world to the wide range of opportunities of this AI-powered future.
Hong Kong is recognised worldwide for its openness, deep international networks and role as a vital bridge between the Chinese Mainland and the rest of the world.
We have long been the world’s number one in economic freedom. In the latest World Competitiveness Ranking, released three weeks ago, Hong Kong’s position rose one spot to rank second, globally. We are the world’s fifth-largest merchandise trading entity, and one of the world’s three global financial centres.
Hong Kong’s prowess as a two-way bridge between our country and the world is recognised by not only rankings, but also companies from around the globe. Hong Kong is the preferred location for international companies establishing regional headquarters.
The numbers underline that statement. Last year, Invest Hong Kong, our investment promotion agency, assisted 560 Mainland and overseas companies in setting up or expanding their businesses in Hong Kong – up 4 per cent, year on year.
In addition, 124 strategic enterprises have settled in Hong Kong since the Office for Attracting Strategic Enterprises was established in late 2022. The companies come from high-tech industries such as advanced manufacturing and new energy technology, AI and data science, fintech, and life and health technology.
These strategic enterprises will invest some HK$73 billion in the years to come, while creating some 25,000 jobs. And there’s more. Their presence is drawing a wave of complementary businesses, reinforcing Hong Kong’s status as a global hub, where innovation, investment and continuing opportunities converge. Where Mainland Chinese companies can better connect to the world, and foreign investors could more easily tap into the Chinese market.
It helps that Hong Kong is a core city of the Guangdong-Hong Kong-Macao Greater Bay Area.
The Greater Bay Area is a national strategy, designed to harness the complementary strengths of nine cities in Guangdong, plus Hong Kong and Macao, and in doing so, build a world-class region for innovation and technology – and a lot more.
Hong Kong strives to work with other cities in the Greater Bay Area to develop an international I&T (innovation and technology) centre. Last year, the Shenzhen-Hong Kong-Guangzhou innovation cluster topped the world’s 100 leading innovation clusters in the World Intellectual Property Organization’s Global Innovation Index.
The cluster has demonstrated exceptional strength in mobilising capital to transform innovative ideas into tangible, market-ready outcomes.
And we will fully utilitse the Northern Metropolis, which takes up one-third of Hong Kong’s land area and is adjacent to Shenzhen, to provide the much-needed space for innovation and research developments.
Straddling the Shenzhen River, the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone promotes I&T collaboration between Hong Kong and the Mainland. The Hong Kong Park in the Zone, and very much part of the Northern Metropolis, now boasts tenants from life and health technology, AI, microelectronics and other pillar industries. We welcome more global companies to establish a presence in the Hong Kong Park, and the wider Northern Metropolis, to capitalise on our I&T ambitions.
Hong Kong is drawing up its First Five-Year Plan. It will mark a historic milestone, as the strategic road map aligning Hong Kong with the National 15th Five-Year Plan. Hong Kong’s Five-Year Plan will feature, prominently, our vision in accelerating the development of the Northern Metropolis, as well as Hong Kong’s finance, shipping, trade, innovation, technology and other industries.
I’m also preparing my annual Policy Address, which sets out the Government’s policy agenda. Together, the two documents will guide our high-quality economic progress, and the livelihood of our people. One obvious area of importance is further developing Hong Kong as an international innovation and technology centre.
In that development, artificial intelligence is a central plank.
It’s why, 18 months ago, Cyberport established the Artificial Intelligence Supercomputing Centre, providing high-performance computing power to industry, R&D (research and development) centres and local institutions.
The three-year, HK$3 billion Artificial Intelligence Subsidy Scheme was set up to help enterprises take advantage of Cyberport’s AI Supercomputing Centre. As of March this year, nearly 30 projects had been approved.
The Digital Transformation Support Pilot Programme has been supporting small and medium-sized enterprises (SMEs) in adopting digital solutions. We are upgrading the scheme and will launch, later this year, an enhanced programme that will give SMEs subsidies, on a matching basis, to help them take advantage of AI’s far-reaching promise.
The Hong Kong AI R&D Institute will also commence operation in the second half of 2026. It will help to promote our R&D efforts, as well as the commercialisation of AI technology.
Just last week, the Committee on AI+ and Industry Development Strategy held its first meeting. Made up of senior representatives from the business and professional sectors, the Committee will formulate strategies for Hong Kong’s AI-driven industrial transformation, innovation and development.
Beyond I&T, Hong Kong’s world-class financial services will drive development of the Greater Bay Area. The Cross-boundary Wealth Management Connect Scheme has steadily expanded financial opportunities, further opening up the financial markets of the Mainland.
Then there’s the issuance of offshore Renminbi government bonds by the Shenzhen Municipal Government and the Guangdong Provincial Government in Hong Kong, which has reinforced our role as the world’s largest offshore Renminbi business hub.
Earlier this morning, I announced the trial launch of Hong Kong’s central clearing system for gold. We will work closely with the Shanghai Gold Exchange, as well as other stakeholders in and outside of Hong Kong, to build a comprehensive gold trading ecosystem.
Ladies and gentlemen, the HKSAR Government is determined to open up new opportunities for global business and talent, helping them access, engage with and thrive in the Greater Bay Area and the Chinese Mainland, with Hong Kong as their trusted gateway and strategic partner.
My thanks to the South China Morning Post for organising this illustrious event. I wish you all an inspiring conference, and the best of business and investment through the rest of this challenging, endlessly promising, year.
Thank you.
Issued at HKT 11:07
Speech by CE at Hong Kong FIC & Bond Connect Summit (English only)
Source: Hong Kong Government special administrative region
Following is the speech by the Chief Executive, Mr John Lee, at Hong Kong FIC & Bond Connect Summit today (July 7):
Honourable Governor Pan Gongsheng (Governor of the People’s Bank of China), Deputy Director Zhang Yong (Deputy Director of the Liaison Office of the Central People’s Government in the Hong Kong Special Administrative Region (HKSAR)), Mr Yu Wenjian (Chairman of the Shanghai Gold Exchange), Mr Kelvin Wong (Chairman of the Securities and Futures Commission), Mr Eddie Yue (Chief Executive of the Hong Kong Monetary Authority), Ms Bonnie Chan (Chief Executive Officer of Hong Kong Exchanges and Clearing Limited (HKEX)), distinguished guests, ladies and gentlemen,
Good morning. It gives me great pleasure to join you today for the Hong Kong Fixed Income and Currency and Bond Connect Summit.
A very warm welcome to Hong Kong. You are gathered here to explore new opportunities for growth in our city, the Chinese Mainland and the world.
Hong Kong has long maintained an enviable position in international financial services. In the most recent Global Financial Centres Index, we ranked third, globally, and first in Asia. We are the world’s largest offshore Renminbi service hub, and was recently recognised as the world’s largest cross-boundary wealth management centre.
The National 15th Five-Year Plan offers clear support for enhancing our status as an international financial centre, and establishing a commodity trading ecosystem in our city. Hong Kong is pressing ahead with preparing our own First Five-Year Plan. It will align with the national plan and provide fresh opportunities in our contribution to the national development.
Under the unique “one country, two systems” principle, our long-standing advantages – strategic location, competitive taxation, common law system and more – continue to ensure we serve as a multilevel bridge between China, our country and the rest of the world. It creates continuing opportunities for Hong Kong. And for the economies and companies that do business with Hong Kong.
Today, I am pleased to share with you two of those opportunities – both significant market updates that showcase Hong Kong’s diverse and dynamic financial service offerings.
Allow me to begin with our favourite colour: gold. I am delighted to announce that the central clearing system for gold in Hong Kong officially begins its trial operation today. The Government-owned Hong Kong Precious Metals Central Clearing Limited will offer a comprehensive suite of services, ranging from gold deposits and withdrawals, to transaction settlements for the over-the-counter market in Hong Kong.
The initial gold deposits and the first transaction settlements have been completed. They involve multiple banks, as well as their clients, including mining companies, refiners, jewellers and other investors.
This milestone could not have been achieved without the support of our country, and the essential collaboration between the HKSAR Government, the Shanghai Gold Exchange, and the 11 financial institutions sitting on the board of the Central Clearing Limited.
In a world beset with geopolitical crises and macroeconomic volatility, gold is becoming one of the key pillars for liquidity and risk management. The launch of Hong Kong’s central clearing system for gold will create the solid foundation, allowing us to take the next major step – and that’s building a comprehensive gold trading ecosystem in Hong Kong, one that benefits a world of investors and institutional capital seeking safe-haven assets.
Under this new clearing system, we are introducing the initial phase of Delivery Connect in partnership with the Shanghai Gold Exchange. It creates a streamlined mechanism for participants, allowing them to use gold holdings to settle transactions in both the Hong Kong and Shanghai markets.
The initiative will effectively bridge the physical liquidity pools of both markets. Three banks are already participating in the initiative, and the two-way transfer will be completed today.
The new infrastructure is creating fresh opportunities in the market. Among them, HKEX has revitalised its US Dollar gold futures contract, which is attracting broad market attention.
Hong Kong is also considering development of a new Renminbi gold futures contract, with delivery support from the Shanghai Gold Exchange. In collaboration with Bloomberg, a new gold price ticker, called HAU, has also been introduced for gold traded and settled in Hong Kong.
HAU will ensure that Hong Kong gold prices are fully accessible to global market participants. It will also help lay the groundwork for Hong Kong to contribute a global reference rate for the gold trading market.
The goal, of course, is to build a highly sophisticated, institutional gold trading market in Hong Kong.
That includes significantly strengthening our gold storage and refining facilities in the coming years. The HKSAR Government is also considering offering tax incentives for eligible institutions conducting gold trading and settlement in Hong Kong.
With our united efforts, Hong Kong’s gold trading ecosystem will become one that the world could bank on. It will provide a golden opportunity for investors, as well as a wide range of professional services concerned.
Because, after all, if gold is the world’s safe haven, then Hong Kong will be its safe harbour – with a clearing system that makes every trade shipshape, and every trust bankable.
Let me turn now to my second important update – our thriving bond market. Over the past two months, Hong Kong has welcomed announcements on the issuance of 6 billion Renminbi in sovereign green bonds, and a five-year bond futures contract by the Central Government.
Later this morning, Governor Pan and I will witness the signing of an MOU between HKEX and the Cross-Border Interbank Payment System, the primary channel for cross-boundary Renminbi payment and clearing under the People’s Bank of China.
The new collaboration will help propel the development of fixed income and currency in Hong Kong, strengthening Hong Kong’s role as a premier offshore Renminbi centre.
Ladies and gentlemen, these promising market developments would not be possible without your dedication and support. For that, I am very grateful.
My thanks to the Securities and Futures Commission, the Hong Kong Monetary Authority, HKEX and Bond Connect Company Limited for organising today’s Summit, and for your critical roles, and continuing support, in promoting the development of the Hong Kong market.
I wish you all a rewarding Summit and the best of business in the second half of this promising year for finance – and Hong Kong.
Thank you.
Issued at HKT 10:04