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SUCCESS
E-newsletter
30 October 2024

What's New
Topical Issues
Business News

The Support and Consultation Centre for SMEs (SUCCESS) run by the Trade and Industry Department (TID) of the Government of the Hong Kong Special Administrative Region (the HKSARG) provides small and medium enterprises (SMEs) with free business information and consultation services.

Our website: https://www.success.tid.gov.hk/en_landing.html
Our email: success@tid.gov.hk
Our customer hotline:(852)2398 5133
(Service hours of hotline and counters: Monday to Friday 8:45 a.m.-12:30 p.m. & 1:30 p.m.-5:45 p.m., other than public holidays)

More Details

"Four-in-One" Integrated Services of SME Centres

To strengthen support for SMEs and to raise SMEs' awareness of the various funding schemes and support services, the TID consolidated the services of the existing four SME centres, namely, the "SUCCESS" under the TID, the "SME Centre" under the Hong Kong Trade Development Council (HKTDC), the "SME One" under the Hong Kong Productivity Council (HKPC) and the "TecONE" under the Hong Kong Science and Technology Parks Corporation (HKSTP), in October 2019 to provide one-stop "Four-in-One" integrated services for SMEs.  Enterprises can obtain business information, funding schemes information and advisory services, etc. at any of the centres.  In addition, a web portal called "SME Linkis also established for SMEs to access information and support services provided by the four SME centres and government departments from a single online platform.

"Government Funding Schemes" of the SME Link

The Government provides over 70 funding schemes with different funding scopes, amounts and requirements to promote and support the development of enterprises and industries in Hong Kong.  The "Government Funding Schemes" web page of the SME Link features information on these 70+ funding schemes, including overview and useful hyperlinks.  The web page's search tool supports multiple search filters to facilitate enterprises identifying suitable funding schemes.

Events & Activities of the SME Link

The "Events & Activities" of the SME Link facilitates enterprises to obtain information on activities organised by the four SME centres and various government departments, including seminars, workshops, exhibitions, conferences, training courses, etc., from a single platform, and also provides relevant links to facilitate registration.

 

What's New

The Chief Executive’s 2024 Policy Address

The Chief Executive, Mr John Lee, delivered “The Chief Executive’s 2024 Policy Address”, entitled “Reform for Enhancing Development and Building Our Future Together”, on 16 October 2024.
 
For details, please visit https://www.policyaddress.gov.hk/2024/en/.

"Four-in-One" Seminar Series

The four SME centres co-organise "Four-in-One" seminar series regularly. Themes of this seminar series in the second half of 2024 are "E-commerce", "Environmental, Social and Governance (ESG)" and "Branding". An upcoming seminar under this series is listed below. Interested persons are welcome to register at the link shown therein.  Admission is Free.

Go GBA, Go E-Commerce (Seminar)

(This seminar will be held at Trade and Industry Tower on 14 November 2024)

This seminar is held by the “SUCCESS” of the TID. In this seminar, a representative of GoGBA Business Support Centre (Futian) will share their experiences in providing supportive services to Hong Kong businesses running in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA). In addition, Director of the Investment Promotion Affairs Center of Shenzhen Futian District and Dean of the Hong Kong Netrepreneurs Association’s eCollege will respectively share Shenzhen’s support policies for Hong Kong enterprises to enter the GBA e-commerce market and information on related industrial parks, as well as how SMEs may use various support measures to reposition and expand their businesses in the GBA. (This seminar will be conducted in Cantonese.)

More Details and Registration

SUCCESS-supported Activities

I. Personal Data Protection and Legal Liability in the Digital Era (Online Course)

(This course will be live-streamed on 4 November 2024)

This course is offered by the HKPC. SUCCESS is one of the supporting organisations. This online course will explore personal data protection and legal liability in the digital era. The course will cover: the definition of personal data, the relationship between personal data and artificial intelligence (AI) data input, big data, QR code, etc., as well as the principles and model framework for protecting personal data. (This course will be conducted in Cantonese.)

More Details (in Chinese only)

II. How to utilise AI for transform in business operations? (Online Course)

(This course will be live-streamed on 18 November 2024)

This course is offered by the HKPC. SUCCESS is one of the supporting organisations. This online course will explore the current situation and trends of modern AI development, how Baidu uses modern AI to bring innovative solutions and transformation to enterprises, and strategies for enterprises to utilise AI for transform in business operations. (This course will be conducted in Cantonese.)

More Details (in Chinese only)

Intellectual Property Department: IP Training Programme “IP301 Profits Tax Implications and Tax Planning on IP”

(This course will be live-streamed and held at the VTC Tower, Wan Chai on 31 October 2024)

This intellectual property (IP) course offered by the Intellectual Property Department (IPD) aims to equip participants with a comprehensive introduction on the Hong Kong profits tax implications and planning strategies in relation to IP. It focuses on profits tax regime, “Patent Box” incentive and “Original Grant Patent” system in Hong Kong. (The medium of instruction will be Cantonese, supplemented with English terms.)

Interested participants may first enroll in the “IP Manager Scheme PLUS” for free by filling out an online form to get priority in course registration. Registration fee for the course is waived for members of the Scheme. Participants will receive a certificate upon completion of the course.


More Details 
Registration

CEDB briefs Trade and Industry Advisory Board on Policy Address

The Secretary for Commerce and Economic Development, Mr Algernon Yau, briefed members of the Trade and Industry Advisory Board on major initiatives related to economic and trade developments in "The Chief Executive's 2024 Policy Address" at a meeting on 29 October 2024.

Mr Yau said that the Policy Address announced a series of initiatives to create new impetus for Hong Kong's economic development, among which, in light of the successful experience of driving the red wine trade through exemption of wine duty, the Government decided to reduce the duty rate for liquor with a view to promoting high-end liquor trade and the development of the relevant high value-added sectors. Under the new two-tier system, the duty rate for liquor with an import price over $200 will be reduced from 100 per cent to 10 per cent for the portion above $200, while the duty rate for the portion of $200 and below as well as liquor with an import price of $200 or below will remain unchanged.

Mr Yau pointed out that currently about 85 per cent of the duty-paid liquor in Hong Kong (in terms of litre) are with an import price of $200 or below, which will not benefit from the reduction in liquor duty so as to avoid providing an incentive for members of the public to increase liquor consumption as a result of the deduction in liquor duty. Therefore, the proposal has struck a balance between various policy considerations such as facilitating high-end liquor trade, maintaining healthy public finances and safeguarding public health.

Mr Yau also briefed the members on the proposal introduced in the Policy Address to build a high value-added supply chain service centre, leveraging Hong Kong's unique advantages of attracting overseas enterprises and assisting Mainland enterprises to go global. The global trade landscape is undergoing constant changes, with parts of supply chains shifting to the Global South and Belt and Road countries, while many Mainland enterprises are proactively establishing their presence abroad. Riding on this trend, the Government is dedicated to providing high value-added supply chain services for these enterprises by capitalising on the multidimensional advantages of Hong Kong's highly open environment and a sophisticated system of professional services, etc.

He added that Invest Hong Kong and the HKTDC will set up a mechanism and enhance their interfaces for attracting Mainland enterprises to establish international or regional headquarters in Hong Kong for managing offshore trading and supply chains, and providing one-stop diversified professional advisory services for enterprises in Hong Kong looking to go global.

Mr Yau highlighted that the Policy Address has rolled out various support measures for SMEs, including relaunching the principal moratorium arrangement under the SME Financing Guarantee Scheme, as well as raising the maximum indemnity ratio of the Hong Kong Export Credit Insurance Corporation to 95 per cent to provide greater export protection for enterprises.

To support SMEs in seizing opportunities in e‑commerce, the Government will expand the geographical coverage of "E-commerce Easy" to the 10 countries of the Association of Southeast Asian Nations (ASEAN), and plans to inject $1 billion into the Dedicated Fund on Branding, Upgrading and Domestic Sales to cater for the expansion of "E-commerce Easy" to the ASEAN market and the targeted funding support for enterprises to implement green transformation projects. In addition, the Hong Kong Shopping Festival will continue to be held during the next two years, and will also be launched for the ASEAN market in due course along with the expansion of "E-commerce Easy". ​

Meanwhile, representatives from the TID also briefed the members on the Second Agreement Concerning Amendment to the Mainland and Hong Kong Closer Economic Partnership Arrangement Agreement on Trade in Services (Amendment Agreement II). The Amendment Agreement II introduced new liberalisation measures across different service sectors where Hong Kong enjoys competitive advantages, making it easier for Hong Kong service suppliers to establish enterprises and develop business on the Mainland.

Mr Yau concluded that the series of measures will provide better support for SMEs especially in addressing the challenges encountered during economic restructuring, while at the same time further promoting economic and trade developments as well as strengthening and enhancing Hong Kong's status as an international trade centre, thereby enabling the steady advancement of Hong Kong's economy.

For relevant press release, please visit https://www.info.gov.hk/gia/general/202410/29/P2024102900450.htm.

"SME ReachOut: FUND Fair plus Tech Sourcing 2024" (29 and 30 October)

With support from the TID, the HKPC is holding "SME ReachOut: FUND Fair plus Tech Sourcing 2024" (the Fair) for two consecutive days on 29 and 30 October 2024. The Fair seeks to provide information on government funding schemes and assist SMEs in undertaking digital transformation, with a view to bringing new impetus to SMEs' sustainable development.

Speaking at the opening ceremony, the Secretary for Commerce and Economic Development, Mr Algernon Yau, said that supporting SMEs in developing new markets and pursuing new growth areas, and assisting SMEs in digitalisation and green transformation have long been the priority tasks of the Commerce and Economic Development Bureau and the TID. 2024 Policy Address announced a number of initiatives, such as injecting $1 billion into the BUD Fund (Dedicated Fund on Branding, Upgrading and Domestic Sales), expanding the geographical coverage of E-commerce Easy to the 10 ASEAN countries, and providing more targeted funding support for enterprises to implement green transformation projects. He encouraged the trade to make good use of the various support measures to expand their business and embrace changes.

The Fair, a leading annual event organised by "SME ReachOut", contains five thematic zones, covering topics including government funding schemes, digital transformation, e-commerce, business expansion and ESG. The Fair also features 10 thematic seminars, where experts will share information related to government funding schemes, digital transformation and e-commerce, enabling SMEs to understand the latest market trends and seek opportunities for co-operation and suitable solutions.

Operated by the HKPC under the support of the Government, "SME ReachOut" has been in service since January 2020 to assist SMEs in identifying suitable government funding schemes and answer questions related to applications. The enhanced services of "SME ReachOut" rolled out in October 2023 have strengthened the support to SMEs on government funding applications and provided capacity building services for SMEs, including one-on-one technology/business know-how consultation meetings with SMEs and networking events for SMEs, as well as annual large-scale events, such as the Fair.

Details of "SME ReachOut: FUND Fair plus Tech Sourcing 2024" are available at u.hkpc.org/fund_tech2024_en. For details of "SME ReachOut", please visit smereachout.hkpc.org/en.

For enquiries, please contact "SME ReachOut" (Tel: 2788 6868).

For relevant press release, please visit https://www.info.gov.hk/gia/general/202410/29/P2024102900174.htm.

Hong Kong FinTech Week 2024

The Hong Kong Monetary Authority (HKMA) co-organised Hong Kong FinTech Week 2024 with the InvestHK on 28 October 2024. The ninth edition of the city's flagship fintech event has attracted global participants to share innovative ideas, exchange fintech experiences and forge valuable business partnerships.

In his opening keynote, The Chief Executive of the HKMA, Mr Eddie Yue, highlighted the importance of embracing the digital frontier to drive the next phase of financial innovation. The HKMA also announced the following initiatives to spearhead the journey of fintech development in Hong Kong:

Accelerating Asset Tokenisation

The HKMA is driving innovation in financial market infrastructure (FMI) with Project Ensemble to accelerate the development of the tokenisation market in Hong Kong. To that end, the HKMA launched the Ensemble Sandbox, which supports tokenisation and CBDC initiatives within the HKMA, to explore tokenisation use cases, initially facilitated by tokenised deposits and central bank digital currencies (CBDC).

Internationally, the HKMA has established new cross-border partnerships with the Central Bank of Brazil (see here) and the Bank of Thailand (see here) to explore cross-border tokenisation use cases under Project Ensemble. As a founding member of the Linux Foundation Decentralized Trust, the HKMA will also collaborate with other members on interoperability aspects of Distributed Ledger Technology (DLT) financial market infrastructures, embracing open-source technology in the development of the Ensemble Sandbox.

The HKMA has completed the initial phase of six tokenisation use cases (see Annex I) across four main themes under Project Ensemble and will publish a report detailing the results of the experimentation in 2025. The Architecture Community has also added three new members (see Annex II), and four new participants (see Annex III) will begin experimenting with the Ensemble Sandbox on fixed income and investment funds use cases.

Building on the success of the two tokenised government green bond issuances under Project Evergreen, the HKMA is also taking the project to the next phase by introducing a series of measures to promote wider adoption of tokenisation in capital markets. One of these is the Digital Bond Grant Scheme, which will offer a maximum grant of HK$2.5 million for each eligible issuance, aiming to incentivise digital bond issuance in Hong Kong and cultivate the local digital asset ecosystem. The HKMA has consulted the industry and will announce detailed guidelines shortly.

Meanwhile, the HKMA has launched EvergreenHub, a knowledge repository where issuers, investors and other relevant market participants can reference the HKMA's experience and related materials on the technological, legal and operational aspects of digital bond transactions as they navigate bond tokenisation.

Breaking Down Boundaries for Payment

The HKMA is working closely with the People's Bank of China to establish a cross-boundary linkage between Hong Kong's Faster Payment System (FPS) and the Mainland's Internet Banking Payment System (IBPS). This linkage will support 24/7, instant, small-value, cross-boundary remittances using account proxies like mobile numbers. A pilot launch is expected to be around mid-2025 tentatively.

Unlocking Data Potential

The HKMA is driving the digital economy forward with Commercial Data Interchange (CDI), a next-generation data infrastructure that facilitates SME lending. To extend its reach, the HKMA is exploring a connection with the Land Registry by leveraging the CDI-CDEG (Note 1) linkage to enhance mortgage and loan assessments for both individuals and corporates in phases from 2025. The HKMA is also exploring pilots on cross-boundary credit referencing with Mainland credit reference platforms to enhance cross-boundary banking service offerings to SMEs.

To diversify data sources and enhance CDI's functions for corporate lending, the HKMA has partnered with the Airport Authority Hong Kong to share cargo logistics data on the Hong Kong International Airport Cargo Data Platform with consent. A proof-of-concept exercise is also underway to upgrade the Commercial Credit Reference Agency (CCRA)(Note 2) 2.0, providing analytics insights for a more efficient SME lending journey.

The HKMA has also been actively participating in Project Aperta (Note 3), a cross-jurisdictional collaboration on open finance application programming interfaces (API) network, to reduce frictions and costs in global finance. Initial use cases will focus on trade finance for SMEs.

Empowering Banks to Go Fintech

Fintech Connect, Hong Kong's first cross-sectoral sourcing platform, was launched on 28 October 2024 to bridge financial institutions with fintech solution providers. This one-stop platform helps promote precise matching of supply and demand for fintech services, fostering collaboration and innovation. The HKMA, in partnership with Qianhai Authority, further enhances the platform by incorporating Qianhai-based fintech solution providers, fostering greater collaboration in the Greater Bay Area, and promoting mutual growth in the fintech ecosystem.

Following the second edition of the FiNETech series in August 2024, at which the Generative Artificial Intelligence Sandbox was launched, the HKMA will continue to work with the ecosystem stakeholders to organise additional FiNETech sessions in the coming months with the aim of further advancing the adoption of GreenTech and DLT.

In addition, the HKMA is introducing a sector-wide uplift programme to enhance banks' monitoring of complex money laundering cases and geopolitical risks through the use of artificial intelligence, supported by a joint event with Cyberport.

Mr Yue said, "As we approach the ninth edition of Hong Kong FinTech Week, the ecosystem has experienced remarkable growth and development in various aspects, with ongoing innovation consistently reshaping the fintech landscape. To further propel the growth of the industry, our financial sector must remain adaptable and open to new opportunities. We are committed to unlocking the full potential and advantage of fintech, and harnessing its power to drive sustainable growth of the ecosystem."

Note 1: Consented Data Exchange Gateway was developed by the Government with the aim of facilitating the interflow of data within the Government with data subject consent obtained.

Note 2: CCRA was launched by the HKMA in 2004 to collect information about the indebtedness and credit history of business enterprises for sharing such with lending institutes.

Note 3: Project Aperta is a collaboration between the Bank for International Settlements (BIS) Innovation Hub Hong Kong Centre, the Central Bank of the United Arab Emirates, the Banco Central do Brasil, the Financial Conduct Authority of the United Kingdom, the HKMA, the Global Legal Entity Identifier Foundation, the International Chamber of Commerce Digital Standards Initiative and the Hong Kong University Standard Chartered Foundation FinTech Academy.

For relevant press release, please visit https://www.info.gov.hk/gia/general/202410/28/P2024102800291.htm.

Government issues Policy Statement on Responsible Application of AI in Financial Market

The Government issued a policy statement on responsible application of AI in the financial market on 28 October 2024.

The Financial Secretary, Mr Paul Chan, said, "As an international financial centre, Hong Kong's financial market is open and prudent towards the application of AI. The policy statement clearly sets out the Government's policy stance and approach towards the responsible application of AI in the financial market. As the AI technology is constantly evolving, we will closely monitor market developments, draw on the Mainland and overseas experience, and fully leverage the unique advantages of Hong Kong in bringing together the Mainland and international data as well as the free flow of information, in promoting the use of AI in the financial sector for accelerating the development of new quality productive forces tailored to local conditions."

The Secretary for Financial Services and the Treasury, Mr Christopher Hui, said, "The Government will work hand in hand with the financial regulators and industry players to foster a healthy and sustainable market environment, thereby facilitating the financial institutions to seize the opportunities and adopt AI in a responsible manner. Such efforts will promote the high-quality development of Hong Kong as an international financial centre. There are plenty of AI models and infrastructures available to financial institutions, accounting firms and solution providers. We encourage the financial services industry to make full use of these resources in the market."

Key points of the policy statement are as follows –

1. The Government recognises that the application of AI in the financial services sector has three key attributes, namely data-driven, double-edged, and dynamic. The Government will adopt a dual-track approach to promote development of AI adoption by the financial services sector, while at the same time addressing the potential challenges, such as cybersecurity, data privacy and protection of intellectual property rights;

2. Financial institutions should formulate an AI governance strategy to provide direction on how AI systems should be implemented and used. A risk-based approach should be adopted in the procurement, use and management of AI systems and human oversight will be crucial to mitigating the potential risks;

3. The Hong Kong University of Science and Technology will make its self-developed AI model and its computing resources available to Hong Kong's financial services industry, and offer advisory and training services for on-premises deployment or Application Programming Interface and Web Interface options;

4. As for financial regulatees, the potential risks posed by AI have been suitably reflected in the relevant regulations and/or guidelines issued by financial regulators. To keep pace with the latest developments of AI and international practice, such as the emergence of explainable AI, financial regulators will continuously review and update the existing regulations and/or guidelines as appropriate; and

5. The Police has been exchanging intelligence with international organisation, law enforcement agencies of different jurisdictions, and the AI industry in order to address the challenges on cyber policing posed by AI. On public education, the Investor and Financial Education Council will raise public awareness and enhance understanding on the opportunities and risks presented by AI technology in terms of retail investing and financial management.

The full policy statement can be found in the Annex.

For relevant press release, please visit https://www.info.gov.hk/gia/general/202410/28/P2024102800154.htm.

InnoCarnival 2024 showcases I&T achievements to propel future development

Organised by the Innovation and Technology Commission (ITC), InnoCarnival 2024 (IC 2024) is being held from 26 October to 3 November 2024 at the Hong Kong Science Park. Under the theme "Let's Sail with Innovation and Technology", this year's carnival features a number of exhibits of local innovation and technology (I&T) achievements. IC 2024 is also one of the signature events to celebrate the 75th anniversary of the founding of the People's Republic of China.

Officiating at the opening ceremony of IC 2024, the Financial Secretary, Mr Paul Chan, said that the theme of IC 2024 matches the HKSARG's policy in fostering economic diversification by creating a favourable environment for emerging industries to develop via technology. He said that I&T are not out of reach; rather, they are closely related to daily life and can produce substantial benefits. The Government has strived to enhance the I&T ecosystem of Hong Kong over the past few years, while the Chief Executive also announced multiple measures to promote the development of the technology industry in his Policy Address 2024.

Mr Chan continued that it is also necessary to elevate the foundation of popularising science to have a vibrant local I&T development, while the InnoCarnival serves as a good opportunity to foster popularising science among the public. In fact, the carnival is not only an I&T event for the public to enjoy but also a platform for programme partners, especially start-ups, to realise their dreams. He believed that different activities in the carnival will inspire people's interest in I&T and cultivate more talent to join the I&T field and contribute to Hong Kong and the country.

Speaking at the ceremony, the Secretary for Innovation, Technology and Industry, Professor Sun Dong, acknowledged that popularising science culture is crucial for developing the I&T ecosystem in Hong Kong, while the carnival undoubtedly serves as an event to foster science education for all. He expressed special thanks to universities, research institutes and government departments for their enthusiastic participation in the carnival. He noted that universities and research and development (R&D) centres have been the backbone of the I&T ecosystem of Hong Kong, which have spawned a number of disruptive technologies in the past and nurtured many outstanding scientific talents, while government departments have responded positively to the development of Hong Kong into a smart city in recent years by utilising technology in their daily work. He said he believes that the annual InnoCarnival, where programme partners showcase their I&T achievements with pride, presents a good opportunity for technology education for the public.

The Hong Kong Federation of Youth Groups and the HKSTP are campaign partners of IC 2024. The event is receiving support from over 75 programme partners, including local universities, R&D centres and platforms, government departments and other organisations, which have set up booths at the Hong Kong Science Park, showcasing a series of I&T achievements and interactive games. Also, a diverse line-up of about 150 workshops and webinars across various subjects will be available during the carnival, with the aim of showing the public the importance of I&T in people's daily lives.

In addition, to celebrate the 75th anniversary of the founding of the People's Republic of China, some significant scientific research projects in co-operation with Mainland institutions will be displayed, including the "Hong Kong Youth Scientific Innovation", the world's first large-scale AI model scientific satellite jointly developed by the Chinese University of Hong Kong and ADA Space with funding support from the Innovation and Technology Commission; "Surface Sampling and Packing System", a space instrument developed for the Chang'e-6 by the Hong Kong Polytechnic University to assist the country in completing the world's first lunar far-side sampling mission; and the "Digital Deep-sea Typical Habitats (DEPTH)," an initiative under the United Nations' Decade of Ocean Science for Sustainable Development led by the country and participated by the Hong Kong University of Science and Technology. These projects not only testify to country's remarkable achievements and developments in science and technology but also recognises Hong Kong's contributions to the country's I&T development.

Furthermore, 23 winning I&T solutions and some of the prototypes of the second City I&T Grand Challenge will also be displayed for trial in the carnival. To promote an I&T culture and enhance the application of I&T in the community, the second City I&T Grand Challenge was launched in March 2024 under the theme "Hong Kong's Got I&T". It invited submissions from different sectors of the community to develop I&T solutions focusing on two subjects, namely "I&T for Nature (Yama)" (improving the operation and management of country parks and campsites, and enhancing hikers' experiences in nature) and "I&T for Community (Community Wellness)" (enhancing support for carers). After rounds of assessment and pitching, over 50 awards across four categories, which were the Primary School Group, the Secondary School Group, the University/Tertiary Institute Group and the Open Group, were presented at the Grand Pitch in August 2024.

All IC 2024 activities are free of charge. Some of the activities require preregistration. Details are available on the thematic webpage (innocarnival.hk). Members of the public are most welcome to join.

For relevant press release, please visit https://www.info.gov.hk/gia/general/202410/26/P2024102600495.htm.

United Nations Sanctions (South Sudan) Regulation 2019 (Amendment) Regulation 2024 gazetted

The Government gazetted the United Nations Sanctions (South Sudan) Regulation 2019 (Amendment) Regulation 2024 (the Amendment Regulation) on 25 October 2024, which came into operation on the same day.

"The Amendment Regulation amends the United Nations Sanctions (South Sudan) Regulation 2019 to give effect to certain decisions relating to sanctions in the United Nations Security Council (UNSC) Resolution 2731 in respect of South Sudan," a Government spokesman said.

The amendments renew the 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/202410/25/P2024102500233.htm.

Government welcomes passage of Rating (Amendment) Bill 2024

The Government welcomed the passage of the Rating (Amendment) Bill 2024 by the Legislative Council (LegCo) on 23 October 2024. The Bill gives effect to the progressive rating system for domestic tenements, which will take effect from the fourth quarter of this financial year (i.e. January to March 2025), to uphold the principle of "affordable users pay".

Starting from the fourth quarter of this financial year, for domestic tenements with a rateable value (RV) of $550,000 or below, rates will continue to be charged at 5 per cent of the RV. For domestic tenements with an RV exceeding $550,000, rates will be charged at the same rate of 5 per cent for the first $550,000, 8 per cent for the next $250,000, and 12 per cent for the remaining RV.

Non-domestic tenements, including tenements used for business activities or social services, e.g. commercial building, industrial building, shop, hotel, nursery, home for the elderly, youth hostel, holiday camp, etc, will not be subject to the progressive rating system.

The Secretary for Financial Services and the Treasury, Mr Christopher Hui, said, "The progressive rating system endeavours to strike a balance between upholding the 'affordable users pay' principle and minimising the number of ratepayers affected. In formulating the progressive rating system, the Government has taken into account a basket of factors, including the affordability of ratepayers of domestic tenements, the market rentals as reflected in the RV, the number of affected ratepayers and the amount of additional rates to be paid, the estimated increase in revenue from rates, as well as the fundamental principle of maintaining a simple rating system. The progressive rating system is part of the Government's comprehensive fiscal consolidation programme. It is expected that government revenue will increase by about $820 million each year. The affected domestic tenements account for about 1.9 per cent of the total number of private domestic tenements in Hong Kong."

The Bill will be gazetted on 1 November 2024. The Rating and Valuation Department will inform the affected ratepayers. The quarterly demands to be issued in the fourth quarter of this financial year will reflect the progressive rates for applicable cases.

For relevant press release, please visit https://www.info.gov.hk/gia/general/202410/23/P2024102300237.htm.

Orders on Comprehensive Avoidance of Double Taxation Agreements with Armenia, Bahrain, Bangladesh, Croatia and Türkiye to be gazetted

The Chief Executive in Council made five Orders under the Inland Revenue Ordinance (Cap. 112) on 22 October 2024 to implement respectively the Comprehensive Avoidance of Double Taxation Agreements (CDTAs) that Hong Kong signed with Armenia, Bahrain, Bangladesh, Croatia and Türkiye. The Orders have been gazetted on 25 October 2024.

"Under the CDTAs, residents of Hong Kong and the relevant tax jurisdictions will not have to pay tax twice on a single source of income. This will bring them a greater certainty on taxation liabilities and tax savings when they engage in cross-border trade and investment activities. The CDTAs can help encourage enterprises of Hong Kong to conduct business or invest in the tax jurisdictions concerned, and vice versa," a Government spokesman said on 23 October 2024.

The Orders will be tabled at the LegCo on 30 October 2024 for negative vetting. The CDTAs will enter into force after both Hong Kong and the relevant tax jurisdictions have completed their respective ratification procedures.

Hong Kong signed the CDTAs with Bangladesh, Croatia, Bahrain, Armenia and Türkiye in August 2023; and January, March, June and September 2024 respectively, bringing the number of tax jurisdictions that have signed CDTAs with Hong Kong to 51. Highlights of the five new CDTAs are set out in the Annex.

For relevant press release, please visit https://www.info.gov.hk/gia/general/202410/23/P2024102300243.htm.

IADS Showroom Day

The HKMA announced on 23 October 2024 the official Chinese name for the Interbank Account Data Sharing (IADS) initiative and the launch of the IADS Developer Platform, in collaboration with the HKSTP, enabling banks to securely and efficiently share bank account data with other banks, subject to customer consent.

The IADS pilot programme commenced in January 2024, with a total of 28 participating banks (see Annex). The programme has established the rules and standards facilitating interbank customer-consented data sharing, covering retail, corporate and SME customer segments. This allows banks to share customers' deposit account information (including account availability, status, balances and transaction records) with other banks, subject to customer consent. The initiative aims to encourage the industry to launch more innovative data-driven banking products and services, thereby enhancing customer experience.

To showcase the initial results of the pilot programme, the HKMA held the IADS Showroom Day on 23 October 2024, allowing banks to share practical applications of IADS, including streamlining loan application process, consolidated financial analysis, and online identity verification. Banks will gradually launch related products to the market.

Additionally, in collaboration with the HKSTP, the HKMA announced the launch of the IADS Developer Platform, a one-stop platform that provides testing account data and simulated application programming interfaces (APIs) from participating banks, facilitating collaboration between banks and technology firms to jointly develop more data-driven products and services.

Deputy Chief Executive of the HKMA Mr Howard Lee said, "The rapid development of the digital economy underscores the importance of secure and efficient data transfer. We are pleased to see the banking sector actively supporting IADS and utilising customer-consented data to provide innovative banking products and services that bring convenience and benefits to the public, promoting the steady and healthy development of the fintech ecosystem."

For more details about the IADS initiative, please visit the HKMA's website.

For relevant press release, please visit https://www.info.gov.hk/gia/general/202410/23/P2024102200371.htm.

HKMA unveils Sustainable Finance Action Agenda

The HKMA launched the Sustainable Finance Action Agenda (Action Agenda) on 21 October 2024, setting out its vision to further consolidate Hong Kong's position as the sustainable finance hub in the region and support the sustainable development of Asia and beyond.
 
The "Action Agenda" includes eight goals in four areas:
 
I. Banking for net zero

  1. All banks to strive to achieve net zero in their own operations by 2030 and in their financed emissions by 2050
  2. All banks to enhance transparency on climate-related risks and opportunities

II. Investing in a sustainable future

  1. Achieve net-zero emissions for the Investment Portfolio of the Exchange Fund by 2050
  2. Support transition in the region through investment

III. Financing net zero

  1.  Develop Hong Kong into the go-to sustainable financing platform of the region and beyond
  2.  Catalyse innovation in sustainable finance

IV. Making sustainability more inclusive

  1. Support high-quality and comprehensive sustainability disclosures
  2. Close talent and knowledge gaps in sustainable finance in the region

The Chief Executive of the HKMA, Mr Eddie Yue, said, "Climate change is the defining challenge of our time. Hong Kong, as an International Financial Centre and Asia’s sustainable finance hub, has the duty and capability to up our game in facilitating sustainable fund flows and ensuring that banks manage the risks associated with the net zero transition properly. The Action Agenda sets out the HKMA's vision in this regard, including where we are heading, when we endeavour to reach various milestones, and how we expect the industry to join hands with us in the sustainable journey."
     
The HKMA will now work on implementing the Action Agenda, including providing further guidance and supporting tools for the industry. Taking into account market development and industry feedback, the HKMA will also review and refine the Action Agenda as and when necessary.
 
For relevant press release, please visit https://www.info.gov.hk/gia/general/202410/21/P2024102100317.htm.

Adaptation period for new regulation on disposable plastic products ended on 21 October 2024

The new regulation on disposable plastic products came into effect on 22 April 2024 and the six-month adaptation period ended on 21 October.
 
The Environmental Protection Department (EPD) would like to remind all businesses again that the adaptation period ended. Those unprepared yet should take action as soon as possible to comply with the legal requirements. If businesses still have unused stock, they may consider discussing with suppliers for goods returning and exporting, or contacting relevant plastic recyclers for recycling and recovery. For enquiries and assistance, please contact the EPD hotline at 2838 3111.
 
The EPD spokesperson expressed gratitude for the strong support and active participation of the trades and members of the public in taking action to reduce disposable plastics. In the past half year since the legislation has been implemented, not only has it effectively reduced plastic consumption, but also successfully initiated a trend of waste reduction among members of the public.
 
The catering sector has generally reported that many takeaway customers have gradually adapted to bringing their own reusable cutlery. Chained restaurants have indicated that approximately 80 per cent of their customers have chosen not to require takeaway cutlery, and about 30 per cent of restaurants no longer provide any takeaway cutlery. It is estimated that since the implementation of the new "plastic-free" regulation, the catering industry has reduced the use of 30 million sets of disposable cutlery. This demonstrates that if everyone is willing to change their habits, such as bringing their own cutlery for takeaways, the use of disposable cutlery can largely be avoided in most situations. Disposable cutlery should only be used when necessary, and in such cases, non-plastic alternatives should be used.
 
Although there is an increasing number of members of the public bringing their own tableware for takeaways, non-plastic disposable tableware will continue to be in demand for a certain period of time. Since the implementation of the new regulation, the number of suppliers on the EPD's "Green Tableware Platform" (www.greentableware.hk) has increased from over 60 to more than 150, while the number of non-plastic alternative products has grown from over 1 000 to more than 1 700. With the increase in market supply and options for alternative tableware, prices have also decreased as compared to those before the regulation was implemented, thereby allowing the trade to choose more suitable alternatives based on customers' feedbacks. The department encourages the trade to visit the "Green Tableware Platform" or contact the EPD hotline at 2838 3111 for enquiries.
 
In the retail and services sectors, property management companies have revealed that most people have become accustomed to using umbrella dryers instead of disposable plastic umbrella bags, and many members of the public are also bringing their own reusable umbrella bags. The use of disposable plastic products, such as plastic balloon sticks, glow sticks, and party hats during festivals, has significantly decreased, with businesses co-operating by switching to selling alternative products.
 
The hotel sector has also pointed out that since the implementation of the new legislation, visitors have adapted well to the new measures, demonstrating general acceptance and support. At the same time, the usage of disposable plastic items has also significantly decreased by over 80 per cent. Taking a medium-sized hotel as an example, it has saved 20 000 plastic water bottles and 30 000 disposable plastic toiletry items, such as shampoo and shower gel sets, within just six months. With active co-operation of the trade, Hong Kong hotels' plastic-free measures have been positioned at the forefront internationally, with Hong Kong being recognised by an international travel website as one of the world's top nine sustainable travel destinations. In terms of alternatives, the hotel sector is also pleased to see that there are now various local and foreign suppliers supplying all regulated disposable plastic toiletry items. Looking ahead, with the continued promotion of a "plastic-free" culture, the options for non-plastic alternatives will increase further.
 
After the adaptation period, the EPD will continue to prioritise publicity and education while supplementing these efforts with appropriate enforcement action. Priority will be accorded to the supply sources, with primary efforts directed towards inspecting various retail outlets to ensure that these merchants comply with the law at source. At the retail level, the EPD will first inspect stores that were found incompliant during the adaptation period. If a retailer is found to be incompliant with the new legislation, a written warning will be issued on-site, requiring the responsible person to make improvements within 10 working days. If the business is still incompliant thereafter, a fixed penalty notice will be issued to the responsible person. For other businesses such as catering and hotels, the EPD will also take action based on complaints. Upon receiving a complaint, inspections and investigations will be conducted. If violations are found, a warning letter will be issued to the responsible person requiring improvements within 10 working days. If non-compliance persists thereafter, a fixed penalty notice will also be issued to the responsible person.
 
The spokesperson concluded, "Many members of the public of Hong Kong have made unprecedented changes over the past six months to go "plastic-free". However, legislation is merely one of the tools, while our ultimate goal is to foster societal recognition and establish a "plastic-free" culture. Changing social customs and encouraging individuals to adopt new habits is no easy task. Solely relying on government initiatives will not suffice, and we would require the collective support of the society for success. The EPD appeals to all individuals, groups and organisations that support this goal to participate collaboratively and encourage others to change their lifestyles by starting with the move towards "plastic-free". Together, we can promote a green and low-carbon living culture in Hong Kong and establish our ecological civilisation."
 
For relevant press release, please visit https://www.info.gov.hk/gia/general/202410/20/P2024102000250.htm.

Government gazetted amendment regulations to implement electronic vehicle licence initiative and tackle prolonged non-licensed vehicles

The Road Traffic (Registration and Licensing of Vehicles) (Amendment) Regulation 2024 (RLV Amendment Regulation), Road Traffic (Registration and Licensing of Vehicles) (Amendment) (No. 2) Regulation 2024 (RLV (No. 2) Amendment Regulation) and Motor Vehicles Insurance (Third Party Risks) (Amendment) Regulation 2024 (TPR Amendment Regulation) were gazetted on 18 October 2024.
 
The Amendment Regulations seek to implement an electronic vehicle licence (eVL) of the Transport Department (TD) by obviating the need of vehicle owners to replace their paper-form vehicle licences on each renewal, to simplify the supporting documents required for vehicle licence (VL) applications; as well as to tighten the vehicle registration and licensing regime by introducing a penalty for taking no action on vehicles unlicensed for two years or more.
 
A spokesman for the Transport and Logistics Bureau said, "The eVL initiative will streamline the process for vehicle licence applications and bring greater convenience to vehicle owners. The TD will issue a notice to the vehicle owners containing the new licensed period in lieu of a paper-form VL, so that the vehicle owners will not need to replace the paper-form VL with a new one on each renewal after its first issuance bearing no expiry date. The amendments to the law will also simplify the documents accompanying a VL application by repealing the requirement of presenting the Vehicle Registration Document; whereas online VL applicants will have the option not to present the scanned copy of policy of insurance or security, but providing information (such as name of the vehicle owner, identity document number of the vehicle owner, vehicle registration mark, etc) to be specified by the Commissioner for Transport. 
 
"Moreover, to address at source the issue of improper abandonment of unlicensed vehicles in a public area, amendments will be made to hold vehicle owners responsible for their vehicles on a continuous basis. The registered owners of vehicles unlicensed for two years or more must, within three months of the date of a notice to be issued by the TD, either have the vehicle relicensed, or cancel the registration of the unlicensed vehicle in accordance with the requirement, failing which will constitute an offence," the spokesman added.
 
The LegCo Panel on Transport and the Transport Advisory Committee were briefed on the above, and members generally supported and welcomed the proposed arrangements. The Amendment Regulations was tabled at the LegCo on 23 October for negative vetting. Subject to scrutiny by the LegCo, the RLV Amendment Regulation and TPR Amendment Regulation will be effective from 30 December. To allow sufficient time for vehicle owners to take appropriate actions on their unlicensed vehicles, the RLV (No. 2) Amendment Regulation will come into operation on a date to be fixed by notice in the Gazette, tentatively in the fourth quarter of 2025.
 
For relevant press release, please visit https://www.info.gov.hk/gia/general/202410/18/P2024101800236.htm.

Revised Code of Practice for Bamboo Scaffolding Safety took effect from 19 October 2024

The revised Code of Practice for Bamboo Scaffolding Safety (CoP) officially took effect from 19 October 2024. The CoP was gazetted on 19 April, and a grace period of six months was provided to allow the industry to have sufficient time to understand and prepare for the revised requirements.
 
During this grace period, the LD has strengthened its publicity and promotion, as well as education and training through various channels to facilitate the industry's better understanding of the content of the CoP. These include disseminating relevant information through the LD website, the "OSH 2.0" mobile application and various mass media. In addition, a new "Work Safety Alert" animation specifically targeting truss-out bamboo scaffolds (TOS) has been produced. Relevant content has also been incorporated into the Mandatory Basic Safety Training Course (Construction Work) (commonly known as the "Green Card") and occupational safety and health (OSH) training courses organised by the LD. The LD has also co-organised with relevant organisations to conduct a series of talks and seminars and launch new television promotional videos to further explain the major revisions of the CoP.
 
The major revisions of the CoP include enhancing technical requirements for the bracings, putlogs and access and egress of bamboo scaffolds; prohibiting unauthorised alteration of bamboo scaffolding including putlogs; further specifying the requirements of supervising work of competent persons to the bamboo scaffolders who perform erection, addition, alteration or dismantling of bamboo scaffolds and inspection prior to inclement weather; and requiring all workers who perform erection, addition, alteration or dismantling of TOS to hold a valid certificate of "Advanced Level Truss-out Scaffolder Safety Training" or "Intermediate Level Truss-out Scaffolder Safety Training" issued by the Construction Industry Council before performing specified work.
 
A spokesperson for the LD said, "After the commencement of the revised CoP, the LD will continue to strengthen area patrols in the coming period to combat violations of scaffolding operations in renovation, maintenance, alteration and addition works. The inspection focuses include whether the erection, addition, alteration or dismantling of TOS is conducted under the immediate supervision of a competent person; whether the bamboo scaffolders of TOS hold valid certificates; whether suitable fall protection equipment and systems are provided and properly used by bamboo scaffolders; and the stability of the scaffolding. If any violations of the OSH legislation are detected, stringent enforcement actions will be taken immediately, including issuing suspension notices and improvement notices and initiating prosecutions without prior warning."
 
Under the general duty provisions of the Occupational Safety and Health Ordinance, employers are obligated to provide safe working environments, plant and system of work for their employees. Those who contravene the relevant provisions with serious circumstances are subject to a maximum fine of $10 million and imprisonment for two years.
 
The revised CoP can be downloaded from the LD website www.labour.gov.hk/eng/public/content2_8b.htm. Enquiries about the CoP can be made at 2559 2297.
 
For relevant press release, please visit https://www.info.gov.hk/gia/general/202410/18/P2024101800209.htm.

Waste Disposal (Amendment) Bill 2024 gazetted

The Waste Disposal (Amendment) Bill 2024 (Amendment Bill) was published in the Gazette on 18 October 2024, for implementing the relevant amendments to the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal (Basel Convention) on the control of transboundary movements of electrical and electronic waste (EEW) and their proper management in Hong Kong.
 
A spokesman for the Environment and Ecology Bureau indicated that the Conference of the Parties to the Basel Convention adopted the amendments to the Basel Convention in June 2022. The amendments, which will take effect from 1 January 2025, expand the control scope of the Basel Convention from hazardous EEW to all EEW. From then, the export of all EEW may only be allowed if the state of import and state(s) of transit, if any, have given their prior consent. The objective is to ensure EEW undergoing transboundary movement is properly managed in the state of import, thereby protecting the local environment and public health.
 
The spokesman said, "The amendments to the Basel Convention will enter into force in our country on 1 January 2025, and apply to Hong Kong. Therefore, we shall amend the Waste Disposal Ordinance (Cap. 354) (WDO) to expand the scope of import and export control to cover all EEW under the permit control system, with a view to aligning with national policy and complying with the requirements under the Basel Convention alongside with our country."
 
To facilitate the trade to adapt to the new control, the EPD has been actively explaining the implementation details and providing suitable assistance to the trade. Subject to the passage of the Amendment Bill by the LegCo, a six-month phasing-in period will be put in place once the amendments to the WDO become effective. During the phasing-in period, the EPD will exercise discretion when it handles non-compliance matters. At the same time, the EPD will continue to facilitate trade compliance through further publicity and educational efforts.
 
The Amendment Bill will be introduced into the LegCo for first and second readings on 30 October. The Government will fully complement the work of the LegCo in scrutinising the bill, and hope that the LegCo will support and approve the Amendment Bill. Subject to its passage, the relevant legislative amendments will take effect on 1 January 2025, to align with the effective date of the amendments to the Basel Convention which will be the same date when the country implements the requirement.
 
For relevant press release, please visit https://www.info.gov.hk/gia/general/202410/18/P2024101800171.htm.

HKMA introduces multiple measures to support SMEs' development, upgrade and transformation

The HKMA, together with the banking sector, introduced multiple measures on 18 October 2024 to further support, through financing as well as banking products and services, the continuous development of SMEs and assist them in expanding new businesses and markets.
 
Since the launch of the nine SME support measures by the HKMA and the Banking Sector SME Lending Coordination Mechanism (Mechanism) in March 2024, a total of around 20 000 SMEs have benefitted from the measures, involving an aggregate credit limit of over HK$44 billion. The HKMA has also been deepening its understanding of the challenges and needs faced by SMEs of different sectors through various channels and platforms, including the Taskforce on SME Lending (Taskforce) which was established in August 2024, and engagement sessions with over 50 trade associations and their members from different industry sectors.
 
While Hong Kong is currently undergoing economic transformation, the HKMA and the banking sector are aware of the needs of SMEs to strive for change and adapt to changes in the market and business operating environment. Taking into account the views of the commercial sector, the HKMA and the banking sector will roll out the following five measures to assist SMEs' continuous development, upgrade and transformation, and enhance their competitiveness and productivity to cope with various operational challenges:
 
1. Release of bank capital to facilitate the financing needs of SMEs: The HKMA lowered the countercyclical capital buffer (CCyB) ratio from 1 per cent to 0.5 per cent, and will allow banks to early adopt the preferential treatments for SME exposures under the Basel III capital framework. These policies will release bank capital and thereby enable banks to make use of the additional capital to facilitate the financing needs of SMEs.
 
2. Set aside dedicated funds to support SMEs: The 16 banks that are active in SME lending have set aside a total of over HK$370 billion of dedicated funds for SMEs in their loan portfolio. The funds will allow SME customers to access necessary financing for coping with the evolving business environment. The banks will regularly review and consider scaling up the size of their dedicated funds in response to SMEs' needs and development.
 
3. Launch more credit products and services to assist SMEs' transformation: Banks will launch more credit products and services to meet the transformation needs of SMEs. Examples include pre-approved credit limits, unsecured loans, cross-border loans, and loans with flexible repayment periods.

  • On digital transformation, banks will offer e-commerce financing and electronic payment services to enable SMEs in different sectors such as retail, catering and trading to better utilise data and adopt innovative business solutions, so that SMEs can strengthen their marketing and promotion, streamline business processes and save operating costs.
  • On green transformation, banks will actively consider launching relevant advisory services. Through collaboration with green certification agencies, banks can alleviate the costs for SMEs to apply for green certification, thereby supporting their low-carbon transition. Banks will also provide green loans to assist SMEs in purchasing and adopting low-carbon equipment, so as to reduce the SMEs' own carbon emissions and transform into green suppliers.

4. Increase the partial principal repayment options: When an orderly exit from the banking sector's Pre-approved Principal Payment Holiday Scheme commenced in July 2023, the Mechanism introduced enhanced measures to assist corporates' gradual return to normal repayment. Since some customers' partial principal repayment arrangements will expire in early 2025, banks will be accommodative and consider offering more flexible repayment arrangements to help these customers to address challenges encountered during economic transformation. Such arrangements include, for instance, extending the duration of partial principal repayment, offering more options on the proportion and duration of partial principal repayment, or even offering principal moratorium, subject to prudent risk-management principles. The above-mentioned arrangements are also applicable to taxi loans, public light bus loans and commercial vehicle loans taken out by personal customers.
 
5. Devote sufficient manpower and resources to implement the enhancements to SME Financing Guarantee Scheme as soon as possible: Banks will allocate adequate resources to process applications and work closely with HKMC Insurance Limited to implement as soon as possible the principal moratorium and other enhanced measures under the SME Financing Guarantee Scheme.
 
The HKMA will continue to understand the SME-related business strategies of banks, and maintain close communication with the commercial sectors through the Mechanism and the Taskforce. Seminars and other activities will be organised to promote the SME services, products and schemes offered by the banking sector in the concerted efforts to assist the continuous development, upgrade and transformation of SMEs.
 
Background
 
The Banking Sector SME Lending Coordination Mechanism
 
The Banking Sector SME Lending Coordination Mechanism was established by the HKMA in October 2019. Participants include 11 banks (Note 1) that are most active in SME lending, the Hong Kong Association of Banks (HKAB) and the HKMC Insurance Limited. During the pandemic, the Mechanism rolled out several rounds of relief measures for corporates, including the Pre-approved Principal Payment Holiday Scheme. In March 2024, the HKMA, together with the Mechanism, launched nine measures to assist SMEs in obtaining bank financing and to support their continuous development.
 
The Taskforce on SME Lending
 
The Taskforce on SME Lending was jointly established by the HKMA and HKAB in August 2024. Participants include representatives of the HKMA, HKAB and 16 banks (Note 2) that are active in SME lending. The Taskforce aims to further strengthen the related work for supporting SMEs in obtaining bank financing at both the individual case and the industry levels. Participating banks of the Taskforce have stated that they would ensure the ongoing effective implementation of the nine SME support measures that were launched previously, and indicated that they had not changed and would not change their risk appetite towards SME financing and related credit approval standards. The participating banks would also strive to treat customers fairly and communicate with customers in an accommodative manner.
 
Note 1: Bank of China (Hong Kong), Bank of East Asia, China Construction Bank (Asia), Citibank, Dah Sing Bank, DBS Bank (Hong Kong), Hang Seng Bank, The Hongkong and Shanghai Banking Corporation, Industrial and Commercial Bank of China (Asia), OCBC Bank (Hong Kong), and Standard Chartered Bank (Hong Kong).
 
Note 2: Including the 11 banks participating in the Mechanism, and Bank of Communications (Hong Kong), China CITIC International, Fusion Bank, Nanyang Commercial Bank and PAO Bank.
 
For relevant press release, please visit https://www.hkma.gov.hk/eng/news-and-media/press-releases/2024/10/20241018-4/.

Marine fish culture licences for operation in Wong Chuk Kok Hoi and Mirs Bay fish culture zones open for applications till 16 December 2024

A spokesman for the Agriculture, Fisheries and Conservation Department (AFCD) announced on 17 October 2024 that marine fish culture licences for operation in Wong Chuk Kok Hoi and Mirs Bay fish culture zones are open for application from the same date.
 
The spokesman said, "The AFCD has commenced the two new fish culture zones in Wong Chuk Kok Hoi and Mirs Bay for operation. The two are located in open waters with better currents, which facilitate the adoption of modern aquaculture facilities and technology such as steel truss cages or HDPE (high-density polyethylene) gravity-type cages with strong wind and wave resistance, together with automated feeding and real-time monitoring systems. They also allow fishermen to operate aquaculture in an intensification mode. Their establishment promotes and assists fishermen in switching to a modernised and sustainable mode of operation, thus facilitating the sustainable development of the local fisheries industry."
 
The AFCD accepts applications for marine fish culture licences for operation in the two new fish culture zones from 17 October to 16 December. Applicants shall provide a detailed business plan, including an introduction to the proposed sustainable mariculture business, as well as explaining the kind of deep-sea cages to be used and the business itself, which should comply with relevant cage requirements as well as environmental protection and mitigation measures.
 
The spokesman noted that persons interested in operating in the above new fish culture zones may consider applying for marine fish culture licences through funding from the Sustainable Fisheries Development Fund or through self-financing to develop mariculture businesses.
 
The AFCD designated Wong Chuk Kok Hoi, Mirs Bay, Outer Tap Mun and Po Toi (Southeast) as four new fish culture zones in December 2023, covering a total area equivalent to three times that of the original fish culture zones. Among these, Wong Chuk Kok Hoi and Mirs Bay fish culture zones commenced first. The AFCD will review the operation in these two new fish culture zones to further improve the planning of the two new fish culture zones at Outer Tap Mun and Po Toi (Southeast), and to prepare for commencing these new fish culture zones in due course.
 
The AFCD held a briefing session on 22 October for interested parties to provide information on the application process and licensing requirements of marine fish culture licences for operation in the new fish culture zones. Details of application and the briefing are available on the AFCD website: www.afcd.gov.hk/english/fisheries/fish_aqu/fish_aqu_mfco/newfczmfcl2024.html.
 
For relevant press release, please visit https://www.info.gov.hk/gia/general/202410/17/P2024101700394.htm.

Reduction of duty on liquor with alcoholic strength of more than 30 per cent

As announced in "The Chief Executive's 2024 Policy Address", the Government has reduced the duty on liquor with an alcoholic strength of more than 30 per cent (liquor) by introducing a two-tier system with different duty rates for each tier with effect from 16 October 2024.
 
Under the new two-tier system, the duty rate for liquor with import price over $200 will be reduced from 100 per cent to 10 per cent for the portion above $200, while the duty rate for the portion of $200 and below as well as liquor with import price of $200 or below will remain at 100 per cent. The new duty rates will only be applicable to liquor of up to one litre. If a larger container is used, the duty payable will be calculated on a "value per litre" basis.
 
A Government spokesman said, "Hong Kong has been adopting a simple ad valorem duty system on liquor since 1994. Given the experience in waiving wine duty in 2008, a reduction of liquor duty should similarly promote high-end liquor trade, thereby giving impetus to the development of other high value-added sectors such as logistics and storage, tourism as well as high-end food and beverage consumption, creating more job opportunities and bringing overall benefits to society. With the introduction of a two-tier system with different duty rates based on value, we believe that the proposal has struck a balance between facilitating the liquor business and guarding public health against binge drinking as a result of the reduction in liquor duty."
 
The above two-tier system is set out in the proposed resolution to be moved by the Secretary for Commerce and Economic Development pursuant to section 4(2) of the Dutiable Commodities Ordinance (Cap. 109) (the proposed resolution), which forms part of the Public Revenue Protection (Duty on Liquor) Order 2024 (the Order) made by the Chief Executive on 16 October to give full force and effect of law to the proposed resolution so long as the Order remains in force.
 
The Order and the proposed resolution were published in the Gazette on 16 October. The Hong Kong Customs and Excise Department has also put up notices at boundary control points and on its websites for travellers and the trade.
 
For relevant press release, please visit https://www.info.gov.hk/gia/general/202410/16/P2024101600585.htm.

Inland Revenue (Amendment) (Tax Deductions for Leased Premises Reinstatement and Allowances for Buildings and Structures) Bill 2024 gazetted

The Inland Revenue (Amendment) (Tax Deductions for Leased Premises Reinstatement and Allowances for Buildings and Structures) Bill 2024 was gazetted on 18 October 2024. The Bill seeks to implement two profits tax enhancement measures in the 2024-25 Budget, which include introducing a tax deduction for expenses incurred for reinstating the condition of premises under a lease to their original condition, and removing the time limit for claiming annual allowances in respect of industrial/commercial buildings or structures.
 
Under the Bill, if a lessee is obligated to reinstate or pay for the reinstatement of his/her premises to their original condition at the end of the lease term or on early termination of the lease, and the relevant costs have been incurred and are reasonable, the lessee can claim tax deduction for the relevant costs.
 
Furthermore, currently a qualifying taxpayer may claim an annual allowance in respect of the expenditure incurred on the construction of an industrial/commercial building or structure during a specified period (usage period). If the building or structure is sold before the expiry of the usage period, the buyer may claim annual allowances over the remaining years of assessment within the usage period. However, if the building or structure is sold after the expiry of the usage period, the buyer will not be entitled to claim any annual allowance even if there is residue of expenditure. The Bill proposes removing the time limit for the relevant claims in order not to discourage the purchase of old or second-hand buildings or structures. If a building or structure is sold in the basis period for a year of assessment beginning on or after 1 April 2024, the buyer will be entitled to claim annual allowances until the residue of expenditure has been fully claimed, regardless of whether the usage period of the building or structure concerned has expired.
 
A Government spokesman said, "The two enhancement measures will alleviate the tax burden of taxpayers and promote the business environment. As reinstatement costs generally represent a small part of a taxpayer's turnover, it is envisaged that the proposed tax deduction would not impact on government revenue. Regarding the removal of the time limit for claiming annual allowances for buildings or structures, based on the statistics for the year of assessment 2022/23, it is expected that it will reduce the annual government revenue by about $164 million."
 
The Bill will be introduced into the LegCo for first reading on 30 October with a view to implementing the above measures in the year of assessment 2024/25.
 
For relevant press release, please visit https://www.info.gov.hk/gia/general/202410/16/P2024101600414.htm.

Enhancement measures on New Capital Investment Entrant Scheme

As announced in the 2024 Policy Address, with effect from 16 October 2024, an applicant under the New Capital Investment Entrant Scheme (New CIES) is allowed to invest in residential properties, provided that the transaction price of a single property must be HK$50 million or above. The total investment amount in real estate (the aggregate of all residential and non-residential properties) that counts toward fulfilling the minimum investment threshold is subject to an aggregate cap of HK$10 million.
 
Invest Hong Kong has updated the Rules for the New CIES and relevant application documents. Details can be found on the New CIES website (www.newcies.gov.hk/en/resources/scheme-rules-and-documents).
 
With regard to the details of allowing investment made through an eligible private company wholly owned by the applicant to be counted toward the value of permissible investment with effect from 1 March 2025, Invest Hong Kong will make a further announcement later.
 
For more information of the eligibility criteria and relevant details, please visit the New CIES website (www.newcies.gov.hk/en). For enquiries, please call the enquiry hotline at 3904 3001 or email to newcies@investhk.gov.hk.
 
For relevant press release, please visit https://www.info.gov.hk/gia/general/202410/16/P2024101600293.htm.

Enhancements to SME Financing Guarantee Scheme

The Chief Executive announced in "The Chief Executive's 2024 Policy Address" on 16 October 2024 that, for both existing and new loans, borrowing enterprises under the SME Financing Guarantee Scheme will be allowed to apply for principal moratorium for up to 12 months while the maximum loan guarantee periods of the 80 per cent and 90 per cent Guarantee Products will be extended to ten years and eight years respectively. In addition, the partial principal repayment options will be offered to new loans under the two guarantee products. These measures aim to alleviate the repayment pressure on borrowing enterprises, helping them address challenges encountered during economic restructuring.

HKMC Insurance Limited will follow up with the lending institutions on the implementation details of the above new measures, aiming to roll them out within November 2024. Borrowing enterprises may approach their lending institutions to discuss the arrangements at that time.

For relevant press release, please visit https://www.hkma.gov.hk/eng/news-and-media/press-releases/2024/10/20241016-5/.

Subsidiary legislation related to updating of technical details of dangerous goods gazetted

The Government published the Dangerous Goods (Application and Exemption) Regulation 2012 (Amendment of Schedules 1 and 2) Notice 2024 (the Notice) in the Gazette on 18 October 2024.
 
A spokesperson for the Security Bureau said on 16 October, "The local dangerous goods (DG) regulatory regime was harmonised with international standards after the amended Dangerous Goods Ordinance and its subsidiary legislation took effect from 31 March 2022. Considering that the international standards for the classification and transportation of DG under the International Maritime Dangerous Goods Code (IMDG Code) are regularly updated, we will update the technical details of the relevant piece of subsidiary legislation accordingly." The Secretary for Security has made the Notice to update the lists of DG and relevant technical details in Schedules 1 and 2 to the Dangerous Goods (Application and Exemption) Regulation 2012 in accordance with the latest edition of the IMDG Code, so as to align with the international standards and facilitate the operations of the trades in Hong Kong.
 
The Notice was tabled at the LegCo for negative vetting on 23 October. Subject to the completion of the legislative procedures, the Notice will come into operation on 1 January 2025.
 
For relevant press release, please visit https://www.info.gov.hk/gia/general/202410/16/P2024101600216.htm.

For more recent news, please visit the "What's New" web page of the SUCCESS Website or the "News" web page of the SME Link.

 

Topical Issues

Support Measures relating to Liquidity

In view of the cash-flow pressure of SMEs, SUCCESS has compiled a summary of support measures relating to liquidity.

More Details

SME ReachOut

“SME ReachOut”, a dedicated service team operated by HKPC, has commenced operation since 1 January 2020 to enhance SMEs’ understanding of the Government’s funding schemes, with a view to encouraging better utilisation of the support provided by the Government. The team would help SMEs identify funding schemes that suit their needs, and answer questions relating to applications.

The Government has allocated $100 million to HKPC to gradually enhance the services of “SME ReachOut” in the ensuing five years starting from 2023. HKPC has enhanced the services of “SME ReachOut” in October 2023, including arranging visits to more chambers of commerce, commercial and industrial buildings and co-working spaces, and increasing the publicity in social media so as to step up the promotion of government funding schemes. At the same time, more one-on-one consultation sessions will be provided to assist SMEs in applying for government funding and building their capacities, focusing on areas such as ESG, technology transformation, digitalisation and cyber security, with a view to enhancing their competitiveness through leveraging new technologies.

For further information or enquiries on “SME ReachOut”, please contact “SME ReachOut” Hotline / WhatsApp (Text Message Only) at 2788 6868 or email by sme_reachout@hkpc.org or visit https://smereachout.hkpc.org/en.

Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund)

“E-commerce Easy” was launched in July 2024, under which enterprises can flexibly make use of a maximum funding of $1 million within their funding ceiling to implement electronic commerce (e-commerce) projects, to further assist them in exploring the Mainland domestic sales market. Unlike general applications of the BUD Fund, items under “E-commerce Easy” projects are not subject to individual funding caps, so that more targeted support can be provided to enterprises.

The HKPC as the BUD Fund implementation partner regularly organises seminars/webinars in order to enhance enterprises’ understanding of the BUD Fund, including “E-commerce Easy” and “Easy BUD”. For more details of the BUD Fund, please visit its website (www.bud.hkpc.org/en) or contact the HKPC at 2788 6088.

 

Business News

GDETO Newsletter

The latest issue of the Hong Kong Economic and Trade Office in Guangdong (GDETO) Newsletter has been published.

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Commercial Information Circulars (CICs) of the Mainland

The TID issued a number of Commercial Information Circulars (CICs) on the Mainland's trade and economic rules and regulations.  The latest CICs have been published. 

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