Source: Hong Kong Government special administrative region
Following is a question by the Hon Elaine Chik and a written reply by the Secretary for Commerce and Economic Development, Mr Algernon Yau, in the Legislative Council today (May 13):
Question:
Source: Hong Kong Government special administrative region
Following is a question by the Hon Adrian Ho and a written reply by the Secretary for Environment and Ecology, Mr Tse Chin-wan, in the Legislative Council today (May 13):
Question:
Source: Hong Kong Government special administrative region
Following is a question by the Hon Vincent Cheng and a written reply by the Acting Secretary for Culture, Sports and Tourism, Mr Raistlin Lau, in the Legislative Council today (May 13):
Question:
Source: Hong Kong Government special administrative region – 4
The Secretary for Culture, Sports and Tourism, Miss Rosanna Law, concluded her visit to Bordeaux, France, during which she reinforced Hong Kong’s position as Asia’s premier events capital, and as a key partner in wine trading and tourism.
On May 12 (Bordeaux time), Miss Law met with representatives of the Bordeaux Chamber of Commerce and Industries to learn about the latest developments of the Great Wine Capitals Global Network, an exclusive alliance of 11 renowned international cities and wine regions. The two sides exchanged views on best practices for organising international events and wine tourism in the new era. Miss Law reiterated that Hong Kong remains a unique East-meet-West centre, enabling the city to be the hub and the bridge for winemakers to reach the burgeoning markets of the Chinese Mainland and the wider Asia-Pacific region.
Miss Law also visited the Museum of Decorative Arts and Design (MADD) in Bordeaux’s historic district. Much like Tai Kwun in Hong Kong, MADD is housed in two historic monuments, an 18th-century mansion and a 19th-century former municipal prison, providing visitors with a unique experience. MADD is one of the few French museums to devote its entire programme to decorative arts, crafts, and design.
Miss Law will depart for Hong Kong on the morning of May 13 (Bordeaux time).
Source: Hong Kong Government special administrative region – 4
Following is a question by the Hon Robert Lee and a written reply by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, in the Legislative Council today (May 13):
Question:
There are views that although the initial public offering (IPO) market has been buoyant recently, the success rate in subscribing for IPO shares by retail investors remains on the low side, and that there is room for further improvement in the pricing and allocation mechanisms for new listings. In this connection, will the Government inform this Council:
(1) given that the Hong Kong Exchanges and Clearing Limited (HKEX) implemented in August 2025 a series of optimisation measures regarding IPO price discovery and open market, which included adjusting the clawback allocation to the public subscription tranche, whether the authorities are aware if the HKEX has conducted a comparative analysis of the post-listing share price volatility and performance, as well as the proportion of IPO shares allocated to retail investors before and after the implementation of the new requirements; if not, of the reasons for that;
(2) whether the authorities will urge the HKEX to review the effectiveness of the optimised clawback mechanism for IPO shares, and study the introduction of an open competitive bidding mechanism for IPO shares to allow all investors (except cornerstone investors) to participate in bidding before the listing of IPO shares, so as to enhance the fairness of IPO allocation; if not, of the reasons for that;
(3) in reply to my question on November 15, 2023, the authorities indicated that the Securities and Futures Commission (SFC) had advised the Hong Kong Institute of Certified Public Accountants to provide guidelines to its members on the accounting method of IPO subscription and the computation of liquid capital where necessary; whether the authorities have since co-ordinated with the SFC and accounting professional bodies to provide clear and uniform guidance to the industry; if so, of the progress of the relevant work; and
(4) whether it knows if the relevant regulatory bodies will, by comparing the regulatory regimes of other markets, review Practice Note 21 of the Listing Rules concerning the due diligence performed by sponsors and avoid overly stringent regulations, so as to reduce unnecessary due diligence work, thereby lowering the listing costs of enterprises; if not, of the reasons for that?
Reply:
President,
With Hong Kong being a major global listing platform, the Government has been driving the Securities and Futures Commission (SFC) and Hong Kong Exchanges and Clearing Limited (HKEX) to enhance Hong Kong’s listing regime continuously, with a view to maintaining international competitiveness and attracting more quality enterprises to list in Hong Kong.
In consultation with the SFC and the HKEX, the reply to the four parts of the question is as follows:
(1) and (2) To strengthen the robustness of the pricing and allocation mechanism for new shares, the HKEX implemented the enhanced initial public offering (IPO) allocation and pricing mechanism in August 2025 following market consultation. Notably, the HKEX requires issuers to allocate at least 40 per cent of the initial allocation of offer shares to the bookbuilding placing tranche at IPO, while issuers may select the allocation mechanism for the public subscription tranche (i.e. Mechanism A or Mechanism B (Note 1)) according to their needs. The arrangement aims to increase the participation of price-setting investors, thereby improving the price discovery process and ensuring that the regime aligns with international market standards, while accommodating the business characteristics and funding needs of different issuers as well as market conditions to attract more quality companies to list in the capital market in Hong Kong. In addition, the proportion of institutional investors in market trading has risen significantly in recent years as compared with the 1990s when the clawback mechanism was introduced. Taking into account the evolving investor composition participating in the market, the new arrangement also balances the demand of different types of local and international investors in subscribing for IPO shares.
Since the implementation of the new requirements in August 2025, as at end April 2026, more than 80 out of the 109 IPOs recorded share prices that either rose or remained unchanged on the first trading day, representing close to 80 per cent of the total which is higher than around 70 per cent prior to the implementation of the new requirements. Apart from 12 cases adopting the bespoke mechanism applicable to Specialist Technology Companies (Note 2), two adopted Mechanism A (with final allocation to the public subscription tranche at 35 per cent), while 95 adopted Mechanism B (with an initial allocation of 10 per cent to the public subscription tranche, and final allocation ranging between 10 per cent and 15 per cent (Note 3)). As issuers may determine the allocation mechanism for public subscription having regard to their business circumstances, industry characteristics and prevailing market conditions under the new mechanism, the arrangements for individual issuers’ IPOs vary. The overall allocation ratio at different times is therefore not directly comparable.
In implementing the enhanced IPO pricing and allocation mechanism, the HKEX has taken into account the needs of different investors (including those in the public subscription tranche). The new mechanism strikes a reasonable balance between ensuring meaningful participation by price-setting investors in IPOs and maintaining retail investor involvement, including ensuring a bookbuilding placing tranche of a meaningful size that helps enhance price discovery to benefit all investors participating in IPOs. As the participation of independent institutional investors can contribute to more robust price discovery, we note that major global markets generally adopt the bookbuilding placing mechanism for IPOs and public offerings conducted by way of open bidding are very limited. The Government, together with the SFC and the HKEX, will continue to closely monitor the implementation of the new requirements as well as the effectiveness of the relevant pricing and allocation mechanisms, and will keep track of international market developments and local market needs to ensure the healthy development of the local market.
(3) Regarding the accounting treatment of IPO subscriptions and calculation of liquid capital, the Government has co-ordinated the SFC and the Hong Kong Institute of Certified Public Accountants (HKICPA) to actively engage with the securities industry to understand brokers’ arrangements in relation to IPO subscription business, including workflow, funding preparation and financial calculations. Notably, the SFC raised issues concerning accounting treatment of IPO subscriptions with its Securities Regulatory Advisory Panel at a meeting with the HKICPA in October 2023, and acknowledged that licensed corporations have different operating models resulting in variations in accounting treatment. The SFC issued a circular in November 2023 reminding licensed corporations to record all assets and liabilities in accordance with generally accepted accounting principles in a manner that reflects the actual transactions and arrangements, and to calculate liquid capital based on such records in compliance with the Securities and Futures (Financial Resources) Rules (the Rules).
The SFC subsequently issued another circular on IPO matters in March 2025, introducing the requirement of collecting a minimum of 10 per cent upfront subscription deposits. Generally speaking, when a licensed corporation provides IPO financing to clients and collects the minimum upfront subscription deposits in accordance with the circular, the receivable arising from such financing may be included as liquid assets under section 21(5) of the Rules.
If individual licensed corporations and their accountants or auditors have any questions regarding the calculation of liquid capital or other relevant provisions in the circular, the SFC may communicate and follow up on their specific circumstances.
(4) As an international equity market, both market facilitation and quality are equally important. In respect of listing applications, the primary role of sponsors is to ensure that listing applicants comply with the Listing Rules and other applicable laws and regulatory requirements, and that listing documents provide sufficient details and information to enable investors to fully understand the listing applicants’ business, financial position, profitability and associated risks. The gatekeeping role of sponsors in the listing process is crucial to maintaining the quality of Hong Kong’s market and investor confidence in the IPO market. Under the requirements of the Hong Kong laws, only licensed corporations that are licensed by the SFC to carry out Type 6 regulated activity (advising on corporate finance) and meet the eligibility criteria set out in the Sponsor Guidelines may act as listing sponsors.
To gain a thorough understanding of listing applicants and ensure compliance with the regulatory requirements, sponsors should adopt reasonable due diligence procedures in respect of listing applications. In conducting due diligence inquiries, sponsors must have regard to paragraph 17 of the Code of Conduct for Persons Licensed by or Registered with the SFC (the Code of Conduct) and the Practice Note 21 of the Listing Rules (the Practice Note). The Code of Conduct provides guidance that sponsors should exercise reasonable judgement, having regard to all relevant facts and circumstances, on the nature and scope of due diligence based on the facts and circumstances. To this end, the HKEX sets out its expectations of sponsors’ general due diligence practices in the Practice Note. However, as each listing applicant is unique, sponsors must determine the appropriate scope and extent of due diligence for each case.
In fact, with the significant increase in new listing applications in 2025, the SFC and the HKEX have observed a decline in the quality of draft listing documents. Accordingly, they issued a joint letter to relevant sponsors in December 2025 highlighting matters requiring attention (including the quality of listing application documents and sponsors’ resources). The SFC subsequently issued a circular in January 2026 expressing concern over serious deficiencies in certain listing documents and sub-standard conduct by some sponsors. The SFC is currently reviewing the documents and information submitted by sponsors pursuant to the circular, and has commenced thematic inspections of sponsors.
The SFC and the HKEX will continue to closely review sponsors’ work and the quality of listing applications, and will take appropriate regulatory action where necessary to uphold Hong Kong’s reputation as a leading international fundraising centre.
Note 1: Under Mechanism A, issuers will set the initial allocation ratio to the public subscription tranche at 5 per cent. If over-subscription for the public tranche reaches 15 times or above, the allocation ratio is 15 per cent; if over-subscription for the public tranche reaches 50 times or above, the allocation ratio is 25 per cent; if over-subscription is 100 times or above, the allocation ratio is 35 per cent. Under Mechanism B, issuers pre-select an allocation percentage to the public subscription tranche with a minimum of 10 per cent (and a maximum of 60 per cent) of the offer shares, but without a clawback mechanism.
Note 2: Under the bespoke mechanism for Specialist Technology Companies, the initial allocation ratio to the public subscription tranche is 5 per cent. If over-subscription for the public tranche reaches 10 times or above, the allocation ratio is 10 per cent; if over-subscription reaches 50 times or above, the allocation ratio is 20 per cent.
Note 3: Final allocation percentages are calculated based on the total number of shares initially on offer.
Source: Hong Kong Government special administrative region
LCQ17: Supporting the elderly in using eHealth
| Function The Government has been actively promoting and facilitating citizens’ registration with and use of eHealth, with special arrangements made through various online and offline channels to assist the elderly and other persons in need. At present, Hong Kong residents can register with eHealth online and use “iAM Smart” for identity verification to set up their eHealth accounts. Citizens can also register in person at 63 registration centres under the HA or the Department of Health (DH), or set up their eHealth accounts at designated post offices in 18 districts across Hong Kong. We have also deployed mobile registration teams to visit hospitals and clinics under the HA or the DH to assist citizens in registering with and using eHealth.
To support elderly persons who have limited mobility or are less accustomed to using online services, we have partnered with various units to help them download the eHealth App and understand the relevant functions. Among others, we collaborated with the District Services and Community Care Teams across 18 districts under the Home Affairs Department to set up “e+Support Stations” at community events and conduct home visits. We also provided technical support and training through the “Smart Silver” Digital Inclusion Programme for Elders under the Digital Policy Office (DPO). Furthermore, we plan to launch the eHealth+ Intergeneration Inclusion Pilot Scheme this year in collaboration with non-governmental organisations, secondary schools, and elderly centres, under which students will serve as mentors to teach the elderly how to use the eHealth App.Issued at HKT 12:20 NNNN LCQ1: Developing Hong Kong into an aircraft parts processing and trading centreSource: Hong Kong Government special administrative region LCQ1: Developing Hong Kong into an aircraft parts processing and trading centre NNNN LCQ14: Fibre-based network services in remote areasSource: Hong Kong Government special administrative region Following is a question by the Hon Tam Chun-kwok and a written reply by the Secretary for Commerce and Economic Development, Mr Algernon Yau, in the Legislative Council today (May 13): Question: LCQ12: Combating the illegal sale of controlled anti-obesity drugsSource: Hong Kong Government special administrative region – 4 Following is a question by the Hon Nixie Lam and a written reply by the Secretary for Health, Professor Lo Chung-mau, in the Legislative Council today (May 13): Question: It has been reported that the illegal sale of drugs commonly known as “slimming injections” (glucagon-like peptide-1 (GLP-1) class injectable prescription drugs) has recently persisted on social media platforms, online shopping channels and messaging application groups. It is learnt that many members of the public have purchased the relevant unregistered drugs or parallel-imported drugs through illegal channels without undergoing professional assessment by a doctor or without a valid doctor’s prescription, posing significant risks to their health. In this connection, will the Government inform this Council: (1) of the respective numbers of reports received, arrests made and prosecutions instituted by the authorities in relation to the illegal online sale or supply of weight-loss injection-type prescription drugs in the past 12 months; and of the respective numbers of enforcement operations launched by the Department of Health, the Customs and Excise Department and the Police against such illegal acts, the quantities of illegal drugs seized, the number of cases in which prosecutions were instituted and the penalties imposed in convicted cases; (2) whether the Government has conducted interdepartmental joint monitoring and enforcement in respect of the current circulation modes, cross-boundary transportation channels and major sales platforms for the illegal online sale of weight-loss injection-type prescription drugs, including conducting comprehensive inspections and intercepting illegal sales activities on social media platforms and the Internet, as well as combating the cross-boundary illegal importation of the relevant drugs; if so, of the details; if not, the reasons for that; (3) whether the authorities will review the existing legislation relating to drug regulation to strengthen the penalties for the illegal sale and supply of prescription drugs so as to enhance the deterrent effect, as well as to step up the relevant law enforcement work; if so, of the details and the implementation timetable; if not, the reasons for that; and (4) whether the authorities will step up publicity to members of the public on the health risks of the unauthorised use of weight-loss injection-type drugs which are unregistered or purchased through illegal channels, and appeal to members of the public not to purchase and use prescription drugs through illegal channels; if so, of the details? Reply: President, Having consulted the Department of Health (DH), the Customs and Excise Department (C&ED) and the Hong Kong Police Force, the consolidated reply to the Hon Nixie Lam’s question is as follows: In Hong Kong, almost all anti-obesity medicines are prescription drugs, and should only be used under close supervision of doctors. Drug regulation and import and export control Currently, injectable medicines registered in Hong Kong for the treatment of obesity include liraglutide, semaglutide and tirzepatide, which are all Part 1 poisons and prescription drugs (i.e. Schedule 3 Poisons) under the the Pharmacy and Poisons Ordinance (Cap. 138) (the Ordinance). According to the Ordinance, pharmaceutical products must meet the criteria of safety, efficacy and quality and be registered with the Pharmacy and Poisons Board of Hong Kong before they can be sold in the market. Furthermore, import and export of pharmaceutical products are controlled under the Import and Export Ordinance (Cap. 60). Any person who imports or exports pharmaceutical product without relevant licence commits an offence, and shall be liable, upon conviction, to a maximum penalty of a fine of $500,000 and two-years’ imprisonment. Law enforcement In response to the illegal sale of controlled anti-obesity injectable medicines in the market, the Drug Office of the DH has in particular stepped up inspection and enforcement across Hong Kong from January to April 2026, as well as maintained close communication with other law enforcement agencies regarding the suspected cases, the nature of the medicines and relevant regulatory matters: (a) The Drug Office of the DH conducted six joint enforcement actions with the Hong Kong Police Force or the C&ED, arrested several persons for suspected contravention of drug related legislations which included persons involved in illegal possession or sale of Part 1 poisons and unregistered pharmaceutical products, and seized a total of 47 boxes of anti-obesity injections. The DH will continue to work with relevant enforcement agencies to crack down on such illegal activities. (b) In response to the illegal import and export of controlled injections and drugs, the C&ED conducted multiple special operations during the same period, detected 15 major smuggling cases and seized over five million suspected pharmaceutical products and approximately 150 000 controlled injections suspected of containing Part 1 poisons (including approximately 130 000 anti-obesity injection vials and approximately 20 000 cosmetic injection vials), with an estimated market value of approximately $220 million. The DH has an established mechanism to monitor the sale of medicines in the market (including the Internet) through unannounced inspections, market surveillance and control buy to surveil the sale of medicines including the Internet. If the DH detects any persons suspected of illegal sale or possession of unregistered pharmaceutical products or Part 1 poisons, sale of prescription drugs without the authority of a prescription, and more, it will promptly investigate, and, depending on actual needs, refer the case to other law enforcement agencies such as the Hong Kong Police Force and the C&ED to follow up, or conduct joint operations with them, to crack down unlawful acts. Overall speaking, over the past 12 months (from April 1, 2025, to March 31, 2026), enforcement actions taken by the Drug Office of the DH and the C&ED regarding the sale of medicines include: (a) The Drug Office of the DH conducted around 1 189 unannounced inspections against pharmacies in Hong Kong. During the same period, it handled 41 conviction cases involving illegal sale or possession of unregistered pharmaceutical products or Part 1 poisons (including but not limited to the so-called “Anti-obesity injectable” medicines) with two cases involving Internet sellers. Among these 41 cases, the cases with the highest penalties were sentenced to two months’ imprisonment (suspended for three years) or imposed with a $87,000 fine. (b) During the same period, the DH handled six conviction cases involving illegal sale of prescription drugs by pharmacies. The case with the highest fine imposed was $87,000. (c) The C&ED received a total of 54 reports involving illegal import and export of injectable medicines (including but not limited to the so-called “Anti-obesity injectable” medicines). The number of cases involving illegal import and export of injectable medicines detected by the C&ED, number of seizures, number of prosecutions, number of persons prosecuted and penalties imposed are tabulated below:
Note 1: This refers to cases involving illegal import or export of injectable medicines in violation of the Import and Export Ordinance and the Pharmacy and Poisons Ordinance, including drugs commonly known as “Anti-obesity injectable” medicines. The C&ED does not maintain a breakdown of statistics for drugs commonly known as “Anti-obesity injectable” medicines. Note 2: As the packaging of the seized injectable medicines varies, they cannot be presented in a uniform unit. Note 3: Cases with prosecutions instituted during the year. Note 4: Cases with trial concluded during the year. Note 5: As some cases are under the legal proceedings, the outcomes conviction/sentencing results have not yet been determined. Publicity and education The DH has been providing drug safety information to the public through different channels, urging members of the public not to purchase and use prescription drugs through illegal channels. The DH has also advised the public that the relevant drugs may not be properly stored during transportation (especially for drugs requiring cold-chain storage), which may result in adverse effect to the drug safety and create health risks. The DH has also reminded the public that selling medicines controlled under the Ordinance illegally, regardless of the sales channel (including online sales platforms, instant messaging applications or social media), carries criminal liabilities. The DH has prepared safety information for consumers regarding the purchase and use of medicines, including online information of “General Knowledge on the Use of Medicines”, “Be Cautious when Buying Medicines on Internet”, “Health message on overweight problem and slimming products” and “Slimming Products with Undeclared Western Drug Ingredients”, to remind the public to refrain from purchasing or using products of doubtful composition or from dubious sources, with a view to safeguarding public health. At the same time, the Government has always been concerned about the adverse health effects of obesity on members of the public. In March this year, the Government launched Hong Kong’s inaugural Action Plan on Weight Management, adopting a life-course approach and whole-of-society participation as its strategic framework. Through cross-departmental and multi-disciplinary effort, the Government encourages members of the public to adopt healthy lifestyle. To manage weight effectively, members of the public should maintain a balanced diet and engage in appropriate amounts of physical activity. Members of the public should consult a doctor or pharmacist before using any anti-obesity medication, and strictly adhere to the treatment plans prescribed by doctors. LCQ11: Strengthening regulatory oversight of employment agencies for foreign domestic helpersSource: Hong Kong Government special administrative region LCQ11: Strengthening regulatory oversight of employment agencies for foreign domestic helpers (i) the number of complaints received against EAs and the year-on-year rates of change (broken down by nature of complaint); and
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