The Guangdong-Hong Kong-Macao Greater Bay Area Development Promotion Centre (Promotion Centre) of the Constitutional and Mainland Affairs Bureau held a luncheon sharing session on Start-ups and Environmental, Social and Corporate Governance (ESG) in Guangzhou on 26 September 2024. The sharing session aimed to provide start-ups with the latest information on ESG development and trends, assist start-ups in formulating ESG policies, and promote sustainable business development.

The Commissioner for the Development of the Guangdong-Hong Kong-Macao Greater Bay Area, Ms Maisie Chan, attended the sharing session in Guangzhou and delivered a welcome speech. Ms Chan said that ESG and sustainable development are the foci of global attention. Apart from investors, clients of enterprises are also paying more attention to environmental protection, civic social responsibility and corporate governance. For enterprises, the formulation of ESG strategies to achieve sustainable development has transitioned from being optional to becoming an essential requirement. The sharing session on 26 September was organised by the Promotion Centre to provide information in this regard to start-ups.

Ms Chan emphasised that the HKSARG is committed to providing support to Hong Kong residents and enterprises pursuing development in the Mainland cities of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), as well as enhancing the promotion of the enormous opportunities GBA development has to offer. The Promotion Centre, established in Guangzhou in April 2023, seeks to better understand the development needs of Hong Kong residents and enterprises in the Mainland cities of the GBA and to provide practical assistance through various forms of activities. The Promotion Centre encourages Mainland talent and enterprises to capitalise on Hong Kong's unique advantages and status under the principle of "one country, two systems", and to develop overseas markets through Hong Kong, thereby fully leveraging Hong Kong's dual roles in "going global and attracting foreign investment".

The sharing session on 26 September, held at Guangzhou O₂ PARK, received support from the Human Resources and Social Security Department of Guangdong Province and attracted nearly 100 start-up representatives. In addition to keynote speeches, practical case studies were presented on how enterprises could achieve sustainable development in terms of environmental, social and corporate governance. At the sharing session, four representatives from Hong Kong enterprises also shared their experiences in implementing ESG practices across cultural and creative, environmental protection, architectural design, and educational technology industries. There was an interactive session as well to discuss strategies for implementing the best ESG initiatives to help enterprises stand out from their competitors.

Moreover, participants of the sharing session took the opportunity to visit O₂ PARK, a city revitalisation project that has integrated ESG concepts into its development since the design stage. During the visit, participants also further learned from successful cases about the benefits of integrating ESG concepts into the operating strategies of enterprises.

For relevant press release, please visit https://www.info.gov.hk/gia/general/202409/26/P2024092600449.htm.

The Maker in China SME Innovation and Entrepreneurship Global Contest - Hong Kong Chapter (MiCHK) 2024 Final was held successfully at Cyberport on 26 September 2024. "The next-generation photonic integrated circuits for future high-bandwidth optical links, sensing and computing" by Kokoxili Photonics Limited won the Champion prize, while "Electron Beam (EB) irradiation technology application" by HK Highsolve Technology Limited and "All-scenario rapid testing platform against antimicrobial resistance" by MicroFlow Innovation Limited won the First Runner-up prize and the Second Runner-up prize respectively. They will represent the Hong Kong Special Administrative Region (HKSAR) to compete in the Global Final Contest of the Maker in China to be held in the fourth quarter of 2024 in Guangzhou.

Speaking at the event, the Commissioner for Digital Policy, Mr Tony Wong, said that the Hong Kong Innovation and Technology Development Blueprint has set "To proactively integrate into the overall development of the country and consolidate our role as a bridge connecting the Mainland and the world" as one of the four broad development directions. The MiCHK is a sound platform for Hong Kong start-ups and SMEs to further expand business opportunities in the Mainland market, with numerous winning teams establishing their foothold in the GBA and expanding their operations on the Mainland in recent years. Moreover, many teams have attracted the attention of corporate investors from the Mainland and overseas, receiving a considerable number of procurement contracts and collaboration opportunities.

Mr Wong stressed that the theme of this year's contest has been extended to cover the frontier technology fields such as advanced network equipment, quantum technology and green technology with a view to fostering the development of innovation and technology (I&T) and related industries, and promoting the development of new quality productive forces in Hong Kong. He congratulated the winning teams and encouraged all participating teams to continue to forge ahead in the area of I&T, so as to contribute to the high-quality development of the country and Hong Kong.

The MiCHK 2024 has received overwhelming response with a total of 153 local innovation projects. After initial screening and a semi-final held earlier, the top 10 finalists entered the Final on 26 September 2024, where they competed for the Champion, First Runner-up and Second Runner-up honours by staging roadshows to a panel of judges comprising local and Mainland experts of different I&T fields. Apart from building a platform for local I&T startups, the MiCHK arranges one-on-one business matching sessions between the top 10 finalists and the investors and enterprises from the GBA. The top 10 finalists were given opportunities to join different incubation and acceleration programmes and exhibitions to promote their products and services to different regions through various platforms. Details about the entries can be obtained from makerinchina.hk/.

The MiCHK 2024 is organised by the Digital Policy Office of the HKSARG, the China Centre for Promotion of SME Development of the Ministry of Industry and Information Technology of the People's Republic of China, the Department of Youth Affairs of the Liaison Office of the Central People's Government in the HKSAR, and the China International Cooperation Association of SMEs, and formulated by the Hong Kong Cyberport Management Company Limited, the Angel Investment Foundation and the Guangzhou SME's Promotion Association For Specialization Refinement Differentiation Innovation Development. With the support of the Guangzhou Municipal Industry and Information Technology Bureau, the Hong Kong and Macao Affairs Office of the People's Government of Guangzhou Municipality and the People's Government of Guangzhou Nansha District, this is the sixth time the regional chapter took place in Hong Kong.

For relevant press release, please visit https://www.info.gov.hk/gia/general/202409/26/P2024092600393.htm.

Hong Kong and Türkiye enter into tax pact

StartmeupHK Festival 2024 showcases Hong Kong's thriving start-up ecosystem

The Labour Department (LD) held the Good Employer Charter 2024 (Charter 2024) Presentation Ceremony and the Good Employee Recognition Campaign Kick-off Ceremony on 24 September 2024, commending all good employers while launching the Good Employee Recognition Campaign.

Speaking at the ceremony, the Secretary for Labour and Welfare, Mr Chris Sun, expressed gratitude to every good employer for implementing flexible work arrangements and offering assistance to employees to enable them to balance the needs of work and personal lives, which are conducive to unleashing the potential of the local labour force.

Various sectors have supported the Charter 2024, with a total of 1 596 organisations being accredited as signatories, representing an increase of nearly 70 per cent from the previous term. Among them, 1 002 organisations are authorised to use the "Supportive Family-friendly Good Employer" logo which symbolises a commitment to promoting a family-friendly employment culture. Moreover, 318 organisations have been signatories for three consecutive terms with consistent good human resource management practices in place. Representatives from three signatories of the Charter 2024 shared their successful experiences in carrying out good human resource management and family-friendly employment practices at the event on 24 September 2024.

In furtherance of the Charter 2024, the LD launched for the first time the Good Employee Recognition Campaign to encourage participating signatories to nominate their employees to join the Campaign to express their gratitude and recognition for their contributions. Good employees can be measured in the following five key aspects, namely work ability, attitude to clients, adaptability, team spirit, and a sense of belonging to the organisation. Nominated employees or teams being accredited by the panel of judges will each be awarded the Good Employee Commendation Certificate and a lapel pin to recognise their outstanding performances and contributions to the organisations.

The Presentation Ceremony and the Kick-off Ceremony is one of the signature events in celebration of the 75th anniversary of the founding of the People's Republic of China. Mr Sun said that the current-term Government attached great importance to improving employees' benefits, promoting employment, and protecting the occupational safety and health of employees. He hoped that different groups in society would continue to support the government-led Charter and the Good Employee Recognition Campaign, and work together closely to foster win-win labour relations as well as a harmonious and inclusive community.

The LD has published a newspaper supplement introducing the Charter 2024 and the Good Employee Recognition Campaign as well as major initiatives of the current-term Government to improve employees' rights and benefits. For details of Charter 2024 and the Good Employee Recognition Campaign, please visit the website: www.gec.labour.gov.hk.

The Good Employer Charter has come to its third round since it was first awarded in 2018, and is supported by eight organisations, namely the Chinese General Chamber of Commerce, Hong Kong; the Chinese Manufacturers' Association of Hong Kong; the Employers' Federation of Hong Kong; the Federation of Hong Kong Industries; the Hong Kong General Chamber of Commerce; the Hong Kong General Chamber of Small and Medium Business; the Hong Kong Institute of Human Resource Management, and the Hong Kong Small and Medium Enterprises Association. The aforementioned organisations, together with the Hong Kong Federation of Trade Unions and the Federation of Hong Kong and Kowloon Labour Unions, are supporting organisations of the Good Employee Recognition Campaign.

For relevant press release, please visit https://www.info.gov.hk/gia/general/202409/24/P2024092400289.htm.

The Immigration Department (ImmD) announced on 24 September 2024 that, effective from 30 September 2024, nationals of Georgia who are holders of valid diplomatic, official and ordinary passports may visit Hong Kong visa-free for a stay of up to 30 days.

Currently, Hong Kong Special Administrative Region passport holders may visit Georgia visa-free for a stay of up to 30 days.

An ImmD spokesman said, "Georgia is along on the Belt and Road. Under the Belt and Road Initiative, this visa-free arrangement will provide travel convenience for visitors from Georgia and strengthen the tourism, cultural and economic ties between the Hong Kong Special Administrative Region and Georgia."

For relevant press release, please visit https://www.info.gov.hk/gia/general/202409/24/P2024092400253.htm.

The Hong Kong Monetary Authority (HKMA) commenced Phase 2 of the e-HKD Pilot Programme (Phase 2) on 23 September 2024 to delve deeper into innovative use cases for new forms of digital money, including e-HKD and tokenised deposits, that can potentially be used by individuals and corporates. As Project e-HKD expands its coverage from e-HKD only to a more comprehensive exploration of the digital money ecosystem, the project has been renamed as Project e-HKD+, reflecting the evolving fintech landscape and the HKMA's commitment to unlocking the full potential of digital money.

The e-HKD Pilot Programme is an integral part of Project e-HKD+. Under Phase 2, 11 groups of firms from various sectors have been selected to explore innovative use cases for e-HKD and tokenised deposits across three main themes, namely settlement of tokenised assets, programmability and offline payments (see Annex). The selected firms will also examine the commercial feasibility, within a real-world setting, of new forms of digital money that may potentially be accessible to individuals and corporates.

The outcome of Phase 2 will help the HKMA understand the practical issues that may be faced in designing, implementing and operating a digital money ecosystem that comprises both publicly and privately issued digital moneys. Project e-HKD+ will continue to advance the technology and legal groundwork to support the potential issuance of an e-HKD for the use of individuals and corporates in the future.

The HKMA will also establish the e-HKD Industry Forum to provide a collaborative platform for participating institutions to discuss common issues and further explore the possible implementation and adoption of new forms of digital money in a scalable manner. Under the Forum, industry-led working groups will be established to make recommendations on specific topics, with an initial focus on issues related to programmability.

Similar to Phase 1, an e-HKD sandbox will be made available to pilot participants to accelerate their prototyping, development and testing of use cases. The HKMA will work closely with the selected firms in the next approximately 12 months in conducting Phase 2, with the aim of sharing the key learnings from Phase 2 with the public by the end of 2025.

The Chief Executive of the HKMA, Mr Eddie Yue, said, "Project e-HKD+ signifies the HKMA's commitment to digital money innovation. The e-HKD Pilot Programme has provided a valuable opportunity for the HKMA to explore with the industry how new forms of digital money can add unique value to the general public. The HKMA will continue to adopt a use-case driven approach in its exploration of digital money. We look forward to working closely with industry participants in Phase 2 to co-create various innovative use cases."
 
For relevant press release, please visit https://www.info.gov.hk/gia/general/202409/23/P2024092300594.htm.

The Government gazetted the United Nations Sanctions (Democratic Republic of the Congo) Regulation 2019 (Amendment) (No. 2) Regulation 2024 (the Amendment Regulation) on 20 September 2024, which came into operation on the same date.
 
"The Amendment Regulation amends the United Nations Sanctions (Democratic Republic of the Congo) Regulation 2019 to give effect to certain decisions relating to sanctions in the United Nations Security Council (UNSC) Resolution 2738 in respect of the Democratic Republic of the Congo," a Government spokesman said.
 
The amendments renew arms embargo, travel ban and financial sanctions.
 
The HKSARG has all along been implementing fully the sanctions imposed by the UNSC. The Amendment Regulation aims to give effect to the instructions by the Ministry of Foreign Affairs for fulfilling the international obligations of the People's Republic of China as a Member State of the United Nations.
 
For relevant press release, please visit https://www.info.gov.hk/gia/general/202409/20/P2024092000211.htm.

The Chief Executive, Mr John Lee, and the Minister of Industry and Information Technology, Mr Jin Zhuanglong, witnessed the signing of the Co-operation Agreement on the Development of New Quality Productive Forces and the Promotion of New Industrialisation between the HKSAR Government and the Ministry of Industry and Information Technology (MIIT) in Beijing on 19 September 2024.
 
The Secretary for Innovation, Technology and Industry, Professor Sun Dong, and Vice Minister of Industry and Information Technology Mr Xiong Jijun represented Hong Kong and the Mainland, respectively, in signing the co-operation agreement. The agreement aims to support Hong Kong in developing new quality productive forces and promoting new industrialisation according to local conditions. Moreover, it strengthens exchanges between the two sides in the fields of industry and information technology, promoting co-operation and joint development in industries where both places have clear advantages.
 
Mr Lee said, "The HKSAR Government actively develops new quality productive forces, promotes new industrialisation, and fosters better integration into the national system of industry and innovation. The signing of the co-operation agreement between the HKSAR Government and the MIIT today (19 September) signifies the importance of our efforts to integrate into national development. The HKSAR Government will collaborate with the MIIT to further advance innovation, technology and industry, injecting new impetus into economic development and making greater contribution to the comprehensive promotion of Chinese modernisation to build a great country and achieve national rejuvenation."
 
Before the signing ceremony of the co-operation agreement, both sides updated each other on the latest policy initiatives for developing new quality productive forces and promoting new industrialisation. They also exchanged views on areas for strengthened co-operation and discussed how the two places could promote the development of innovation and technology while integrating into the overall national development.
 
For relevant press release, please visit https://www.info.gov.hk/gia/general/202409/19/P2024091900664.htm.

The Secretary for Commerce and Economic Development (SCED) and the Communications Authority (CA) jointly launched a public consultation on 19 September 2024 on the proposed arrangements for the reassignment of 50 MHz of spectrum in the 2.5/2.6 GHz band for the provision of public mobile services as well as the related spectrum utilisation fee (SUF).
 
The 50 MHz of spectrum in the 2.5/2.6 GHz band is currently deployed for the provision of fourth generation (4G) mobile services, with the existing assignments due to expire in May 2028. The good radio propagation characteristics of spectrum in the band facilitates the deployment of radio base stations with wider geographical coverage, enabling the continued provision of public mobile services in a cost effective manner.
 
"As there are likely to be competing demands for the spectrum, the CA proposes to reassign it by way of auction. Under the technology neutral approach, prospective spectrum assignees may make use of the spectrum acquired for the provision of 4G, 5G or more advanced mobile services to meet the future demand for high-speed mobile broadband services and other innovative mobile technology applications," a spokesman for the CA said.
 
Similar to other spectrum assigned for public mobile services by way of auction, the SCED proposes that the SUF should reflect the full market value, and will set the auction reserve prices nearer the time.
 
"The auction ensures that spectrum as a scarce public resource will be put into the hands of those who value it the most and will consequently put it to the most efficient use, thereby benefiting the general public at large," a spokesman for the Commerce and Economic Development Bureau (CEDB) said.
 
Views and comments from the industry and other interested parties on the consultation paper are welcome on or before 31 October. After taking into account the views and comments received, the SCED and the CA target to make their respective decisions no later than May 2025, thereby giving a three-year advance notice to the incumbent spectrum assignees before the expiry of the existing assignments.
 
The consultation paper can be downloaded from the websites of the CEDB and the CA.
 
For relevant press release, please visit https://www.info.gov.hk/gia/general/202409/19/P2024091900385.htm.

Members of the construction industry are invited to enrol in the Construction Industry Safety Award Scheme 2024/2025 (the scheme), which was launched on 19 September 2024.
 
A Labour Department (LD) spokesman said, "Co-organised by the LD and 16 major stakeholders in the construction industry, the scheme aims at raising the occupational safety and health (OSH) awareness of contractors, site personnel and workers of the construction industry, fostering a positive safety culture and encouraging the adoption of safe work practices in the industry. The scheme also offers awards to contractors, site personnel and workers in recognition of their good OSH performance."
 
The scheme is divided into three main categories: Construction Sites, Safety Teams and Safe Workers. Entries for the Construction Sites category are further divided into eight sub-categories, namely Building Sites (Public Sector), Building Sites (Private Sector), Civil Engineering Sites, Renovation and Maintenance Works, Minor Renovation and Maintenance Works, Building Sites - Sub-contractors, Civil Engineering Sites - Sub-contractors, and Renovation and Maintenance Works - Sub-contractors. For the Construction Sites and Safety Teams categories, there will be a gold prize, a silver prize, a bronze prize and a meritorious prize. For the Safe Worker category, each winner will be presented with a cash coupon, a certificate and a badge.
 
To encourage contractors to adopt innovative technology to improve lifting operation safety, a new award, namely Lifting Operation Safety Innovation Award, will be introduced this year in each of the four sub-categories under the Construction Sites category. They are: Building Sites (Public Sector), Building Sites (Private Sector), Civil Engineering Sites and Renovation and Maintenance Works. Besides, additional marks will be given to contestants in the sub-category of Building Sites (Private Sector) who have joined the Smart Site Safety System (4S) Labelling Scheme to further boost application of the 4S in that sector.
 
All construction contractors, sub-contractors and site personnel in Hong Kong are invited to compete for the awards, provided that no serious or fatal accidents have been recorded on their construction sites and the contractors or sub-contractors have not received any suspension notices served by the LD in the 12 months preceding the enrolment deadline.
 
Scheme brochures with enrolment forms can be downloaded from the LD's website (https://www.labour.gov.hk/common/news/pdf/CISAS_2024-2025_TC_EN.pdf) by interested parties. They can also be obtained from offices of the Occupational Safety and Health Branch of the LD (www.labour.gov.hk/eng/tele/od.htm). The closing date for the scheme entries is 9 October. The results will be announced in May 2025.
 
In addition, the scheme will feature a number of promotional activities, including a safety quiz competition (the quiz), to enhance the OSH awareness of the industry and the public. The quiz is divided into Individual and Group categories. Citizens aged 15 or above and construction-related organisations are welcome to join. Enrolment will start on 10 October, and application forms can be obtained from offices of the Occupational Safety and Health Branch or downloaded from the LD's website from that date onwards. The deadline for enrolment is 6 November.
 
For details of the related assessment scheme and criteria, please refer to the scheme brochure. Enquiries can be made on 2852 3565.
 
For relevant press release, please visit https://www.info.gov.hk/gia/general/202409/19/P2024091700246.htm.

Adjustment of Base Rate

The HKMA announced on 19 September 2024 that the Base Rate has been set at 5.25 per cent with immediate effect according to a pre-set formula.
 
The Base Rate is the interest rate forming the foundation upon which the Discount Rates for repurchase transactions through the Discount Window are computed.  The Base Rate is currently set at either 50 basis points above the lower end of the prevailing target range for the US federal funds rate or the average of the five-day moving averages of the overnight and one-month Hong Kong Interbank Offered Rates (HIBORs), whichever is the higher.
 
Following the 50-basis point downward adjustment in the target range for the US federal funds rate on 18 September (US time), 50 basis points above the lower end of the prevailing target range for the US federal funds rate is 5.25 per cent, while the average of the five-day moving averages of the overnight and one-month HIBORs is 3.21 per cent.  The Base Rate is therefore set at 5.25 per cent according to the pre-set formula.
 
For relevant press release, please visit https://www.info.gov.hk/gia/general/202409/19/P2024091900145.htm.

Establishment of direct linkage between Central Moneymarkets Unit of HKMA and Macao Central Securities Depository and Clearing Limited of AMCM

To promote the development of bond markets in Hong Kong and Macao, the HKMA and the Monetary Authority of Macao (AMCM) jointly announced on 16 September 2024 the establishment of a direct linkage between the Central Moneymarkets Unit (CMU) of the HKMA and the central securities depository (CSD) operated by Macao Central Securities Depository and Clearing Limited (MCSD), a wholly-owned subsidiary of the AMCM.
 
Under the direct linkage arrangement, investors in Hong Kong, through their accounts at the CMU, will be able to clear, settle and hold bonds lodged with the CSD in Macao; while investors in Macao, through their accounts in the CSD in Macao, will also be able to clear, settle and hold bonds lodged with the CMU. This arrangement will mark a new milestone in the financial co-operation between Hong Kong and Macao, signifying far-reaching implications for the synergistic development of the core cities in the GBA.
 
The Chief Executive of the HKMA, Mr Eddie Yue, said, "The HKMA, in recent years, has gradually established connectivity with various neighbouring financial markets to strengthen regional co-operation, and to bring in more opportunities for all sorts of financial services, in particular the Renminbi business. This also provides domestic and overseas investors with a greater variety of investment products, so as to further strengthen Hong Kong's competitiveness as an international financial centre. On this basis, fostering connectivity between the bond market infrastructures in Hong Kong and Macao is a major manifestation of the synergistic development of the financial markets in the GBA, and will develop CMU into an international CSD in Asia, leveraging its role as a super-connector."
 
The Chairman of the AMCM, Mr Benjamin Chan, said, "The Macao Special Administrative Region (SAR) Government has been promoting appropriate economic diversification and fostering diversity within the financial ecosystem, with bond market serving as the crucial cornerstone. This could provide another financing channel to support major national strategic deployments, including the development of the GBA. Besides, based on the historical ties between Macao and Portuguese-speaking countries, connecting with the bond market infrastructure in Hong Kong will enable Macao to further leverage its role as a gateway between China and Portuguese-speaking countries. It will also strengthen Macao's function as the financial services platform serving China and Portuguese‑speaking countries, and achieve mutual market access among the financial markets and financial market infrastructures in the GBA."
 
The official launch date and detailed arrangements for the direct linkage will be announced in due course.
 
About HKMA
 
The HKMA is Hong Kong's central banking institution. The HKMA's main functions are: (i) maintaining currency stability within the framework of the Linked Exchange Rate System; (ii) promoting the stability and integrity of the financial system, including the banking system; (iii) helping to maintain Hong Kong's status as an international financial centre, including the maintenance and development of Hong Kong's financial infrastructure; and (iv) managing the Exchange Fund.
 
The CMU, owned and operated by the HKMA, provides secure and efficient clearing, settlement and custodian services for Hong Kong's multi-currency debt securities and those in international markets. Over the years, the CMU has continuously established linkages with regional and international central securities depositories to expand its issuer and investor reach globally. With the launch of Bond Connect scheme in 2017, the CMU has become a pivotal financial market infrastructure serving both onshore and offshore market participants.
 
Please visit www.cmu.org.hk for more information about the CMU.
 
About AMCM
 
The AMCM is Macao's central banking and integrated financial regulatory institution. Its main functions include: (i) assisting the Chief Executive of Macao SAR in formulating and implementing monetary, financial, exchange rate and insurance policies; (ii) overseeing the monetary, financial, foreign exchange and insurance markets in accordance with relevant statutory regulations to ensure their smooth operations, as well as supervising and regulating the entities operating in the respective markets; (iii) maintaining the internal stability and external solvency of the domestic currency to ensure its full convertibility; (iv) managing foreign exchange reserves and the fiscal reserve; and (v) maintaining the stability of the financial system. With the support of the Central Government, the AMCM constructed the CSD and set up the MCSD as its wholly owned subsidiary in December 2021. The MCSD is responsible for the operation of the CSD. Currently, the MCSD mainly provides securities registration, clearing, settlement, depository and other related services. The MCSD aims to provide financial-market infrastructure services to support the efficient and safe operations of the Macao bond market, which is expected to become an investment and financing platform that is widely recognised by local and international issuers, investors and other participants.
 
Please visit www.mcsd.com.mo for more information about the MCSD.
 
For relevant press release, please visit https://www.info.gov.hk/gia/general/202409/16/P2024091300604.htm.