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Policy Address 2023: Hong Kong Chief Executive John Lee hopes to revive flagging stock market with cut on stamp duty

  • By: Chi On LIU、Runqing LI、Yixin GaoEdited by: Yixin Gao
  • 2023-10-25

Hong Kong’s Chief Executive, John Lee, announced his government will ease the stamp duty on stock transfer from 0.13% to 0.10% for the sluggish stock market in today’s policy address.  “A vibrant stock market is vital for upholding Hong Kong's status as an international financial centre and maintaining our competitiveness,” said Lee. Mark Li, 51, an individual stock investor who has invested in the Hong Kong stock market for more than 20 years, said that this policy would attract more short-term investors such as him.  “Relying on this decline, I can always put a huge amount of money to buy the stock at a low price and sell it at a higher price on the same day at a lower cost,” said Li.  Billy Mak Sui-Choi,40, an associate director of the Centre for Corporate Governance and Financial Policy at Hong Kong Baptist University, said that the decrease of stamp duty on stock transfer would increase the stock liquidity but could not ensure all investors trade more frequently as the deduction of stamp duty on stock transfer had less effect on long-term investors. “Even though the stamp duty does not decrease, the long-term investors will be unaware as the 0.13% stamp duty can easily be diluted,” said Mak. “Also, the biggest concern from people is not stamp duty but corporates’ performance.” The Hong Kong Financial Secretary, Paul Chan Mo-Po, also wrote in his weekly blog on Sept. 3 that decreasing the stamp duty on stock transfer was not enough to stimulate the Hong Kong stock market structurally in the long term. “The drop of 0.03% is minimal,” said Chris Wong, 24, a corporate banker. “For example, if you invest HK$ 10,000 on the stock market and only spend three dollars less, it will not affect a lot,” he added.  Wong said …

Society

Policy Address 2023: Unveiling more details on Northern Metropolis plan amid conservation inadequacy

  • By: James Ezekiel Kalaw MODESTOEdited by: Nga Ying LAU、Ho Yi CHEUNG
  • 2023-10-25

Chief Executive John Lee announced more details on the Northern Metropolis project, the "new engine" for Hong Kong growth, in the 2023 Policy Address on Wednesday.  The government will release the Action Agenda for the Northern Metropolis shortly, which merges with the planning of Shenzhen and other Greater Bay Area cities, following the new establishment of a supervision body, the Northern Metropolis Coordination Office. The Northern Metropolis will include  initiatives, such as building tertiary institutions and international schools, reserving sites for government offices and building art and cultural facilities. The government also plans to expedite development through the Enhanced Conventional New Town Approach, and repurpose a previously planned public columbarium site in the North District for innovation and technology purposes. The Northern Metropolis will be divided into four major zones, including a high-end professional services and logistics hub, an innovation and technology zone, a business and industrial zone at the border control points, and a blue-green recreation and tourism eco-system. However, while the project is steered towards further socioeconomic development, conservationists are worried about the impacts it could bring to the environment. The project mainly covers the Yuen Long and the North districts, two areas known for their ecosystem and biodiversity, housing a diversity of plants and wild animals. Michael Lau Wai-neng, 60, the founder of the Hong Kong Wetlands Conservation Association, said that a large-scale project can be “detrimental to Hong Kong's ecosystem”. "Wetlands, marshes and mangroves provide natural protection against extreme weather, where they can absorb water during floods and heavy downpour," said  Lau. "Wetlands in Hong Kong not only support exceptional biodiversity, but also mitigate climate risks," he said. Lau suggested that the government should look into incorporating natural infrastructure into future drainage and water systems to help mitigate extreme weather risks as opposed to building concrete …

Society

Key Takeaways of 2023 Policy Address

  • By: Rex Cheuk、Mei Ching LEEEdited by: Ming Min AW YONG
  • 2023-10-25

   

Society

Policy address 2023: Hong Kong to pay HK$20,000 for each newborn baby

  • By: Yuqi CHU、Juncong SHUAIEdited by: Chengqi MO
  • 2023-10-25

Hong Kong Chief Executive John Lee announced a plan to pay parents a HK$20,000 newborn baby bonus among other incentives including tax-deduction, housing arrangement and child caring services in an attempt to reverse the falling birth rate. “It is imperative that the Government set a firm policy direction to encourage childbearing amid our persistently low birth rate,” Lee said. Hong Kong’s birth rate hit its record low last year, with only 701 live births per 1000 women, according to the latest statistics from Census and Statistics Department. The one-off cash bonus of $20,000 will be provided to parents who are Hong Kong Permanent Residents for each baby born from today in Hong Kong.  The government will also raise the accommodation-related tax deduction ceiling for home loan interest or domestic rents from HK$100,000 to HK$120,000, for those who live with their first child born today or after until the child is 18-year-old. To further support those families with newborns, more priority will be given for them  in subsidised sale flats purchase and public rental housing allocation.  Lee noted that from next April, the household and child allowances will increase 15% to alleviate the working family’s childbearing burden. More childcare centres are also planned to open in the coming years. Next year, the pre-primary child care assistance  Sylvia Pun, 27, who is newly married, said the new policies inspired her to consider having a child.  “This represents the government’s determination to encourage parents to give birth and raise children. I hope that there will be more comprehensive policy help in the future to dispel the worries of fertile parents,” she said. However, Lee Tsz-han, 29, felt disappointed by the incentives. “As far as I know, the cost of vaginal delivery in private hospitals generally ranges from HK$40,000 to HK$60,000,” she said, “HK$20,000 …

Society

2023 Policy Address: Hong Kong frontline carers to get a website and publicity campaign - but no new funding or staff

  • By: Ka Man Wong、Ji Youn LeeEdited by: Aruzhan ZEINULLA
  • 2023-10-25

Despite highlighting Hong Kong’s ageing population as a priority for his government, and calls from frontline workers for more action, John Lee's policy speech offered little in funding or resources for the aged care sector.  “The Government is committed to supporting carers of the elderly and carers of persons with disabilities,” Lee said. “In parallel, we also wish to provide the elderly and persons with disabilities with personal care to relieve the pressure on carers”. Starting next month, the government will launch an Information Gateway for Carers which encourages carers to seek timely assistance. The government will establish specialised teams to identify carers in need and support them through visits, contacts, and case referrals to relevant social welfare units.  A pilot program of the care teams will operate in Tsuen Wan and the Southern Districts. Carer respite services will be enhanced with the addition of 160 Residential Care Homes for the Elderly and 190 service units under the Community Care Service Voucher Scheme for the Elderly. These facilities will offer respite services for carers who require temporary relief from their work. The Hong Kong Government also plans to launch a three-year publicity campaign “Care the Carers Campaign” to stimulate empathy for carers. However, no policies regarded financial stability for frontline workers. Li Hang, 30, is a frontline worker for The Neighborhood Advice-Action Council, an NGO dedicated to serving disadvantaged communities. Li emphasised the inadequacy of support for caregivers. Li said that the current level of support is insufficient to attract new frontline workers to the field. “The shortage of frontline workers exists,” Li said. “There are a lot of old people, but not enough resources to get people to work here.” During his 2022 Policy address, John Lee Ka-Chiu announced three methods of care for frontline carers: a hotline for …

Society

Policy Address 2023: Hong Kong's newborn support initiatives for housing fall short of expectations

  • By: KONG Tsz YuenEdited by: Kei Tung LAM
  • 2023-10-25

Hong Kong Chief Executive John Lee’s policy speech included a cash bonus for newborn babies and measures to put families with newborn children at the front of the queue for public housing as part of his campaign to reverse Hong Kong’s falling birth rate.  Lee announced the Hong Kong government will launch the new Newborns Flat Selection Priority Scheme and Families with Newborns Allocation Priority Scheme, giving parents of newborn children a one-year reduction in public housing waiting time and reservation of priority flats for families with children under three. The Flat Selection Priority Scheme will reserve 10% of flats for newborn families while at the same time, the Allocation Priority Scheme will reduce the public rental housing waiting time by one year from next April. The scheme does not cover single elderly individuals, non-permanent residents, and families already with children, Sze Lai Shan, Deputy director for the Society for Community Organization said.  "We have consistently communicated to the housing department that families with young children should be given priority due to their children's physical needs. They require adequate space, a regular table, and other essentials that their current homes cannot provide," Sze added.  Despite these appeals, the government has not implemented these changes. "I have been living in a subdivided flat with less than 200 square feet, along with my four family members, and waiting for public housing for 11 years," Lau said. She said the government should support families like hers who already have children. Besides the housing measures, Lee also offered a one-time cash bonus of $20,000 for babies born today or after in Hong Kong to HKPR parents. According to the United Nations Population Fund, Hong Kong has the lowest fertility rate in the world, with a fertility rate of 0.8, lower than South Korea's 0.9 …

Society

Policy Address 2023: HK$10 billion boost for innovation and technology development

  • By: Tsz Wing CHAN、Bella DingEdited by: Bella Ding
  • 2023-10-25

Chief Executive John Lee announced a HK$10 billion investment today, continuing his ambition to develop the city into a centre for international innovation and technology. The new Industrialisation Acceleration Scheme aims to promote the downstream development of enterprises in the fields of life and health technologies, AI and data science, advanced manufacturing, and new energy technologies.  These areas account for over 50% of all start-up industries. There are now 3,985 start-up companies, a 52% jump compared to 2018, according to Start Me Up, a team under InvestHK to help overseas start-ups enter the city. Hong Kong has topped the Emerging Ecosystems ranking in Asia and ranked second worldwide in 2023.  The funding support for the set-up of production facilities will follow the matching basis of one government to two companies, subject to a funding ceiling of HK$200 million.  “I firmly believe that these stakeholders will remain at the forefront of shaping and advancing the future of the fintech industry,” said Phoebe Kwok, Head of Partnership of AllStarsWomen DAO’s Asia Pacific Chapter, a global community empowering women in fintech, AI and Web3 field. “But I anticipate that the overall development for the fintech industry will also require further regulatory frameworks to support,” she added.  The government is still considering the feasibility of enterprises employing non-local technical personnel more flexibly and easing the restriction on subsidised research talent headcount this year. No detailed policy has been announced yet. Compared to last year, the government also doubled the financial input to HK$16 million into nurturing talents and commercialising Research and Development outcomes through its Research, Academic and Industry Sectors One-plus Scheme. Each R&D program submitted by eight UGC-funded universities will be capped at HK$100 million. Funding will be provided to support a minimum of 100 university research teams with the potential to become …

Society

Policy Address 2023: Hong Kong to encourage elite athlete development, promote sporting events to public

  • By: Yau To LUMEdited by: Kin Hou POON、Tsz Yin HO
  • 2023-10-25

In his 2023 Policy Address, Chief Executive John Lee aims to continue to foster sports growth in Hong Kong by supporting elite sports, improving professionalism, and promoting sports in the community to develop the city as a centre for key international sporting events, as well as expanding the sports sector. To achieve the vision, Lee said that a new Hong Kong Sport Institute building will be completed in mid-2024, providing advanced training facilities for elite athletes. “In the recent Asian Games in Hangzhou, Hong Kong won a record high of 53 medals, and the government will continue to promote sports development in Hong Kong,” Lee said. Lee also stated that he would like to popularise sporting events among the general public in order to improve the city's overall sports growth. Cheng Tsz-lam, 26, a member of Hong Kong’s women’s kabaddi team, said the facilities could help the elite athletes who played minor sports.  “Minor sports players who cannot find a place with the correct size requirement for training can use the new training facilities that will be built in the coming years as a place for daily training," Cheng said.  Lee also said the Culture, Sports, and Tourism Bureau will continue implementing the 10-year development blueprint for sports and recreation facilities, which provide sports and recreation facilities such as sports centres, grounds, and parks, including a swimming pool suitable for hosting international competitions and an arena with fencing training and competition facilities.  The government will also cooperate with the Sports Federation and Olympic Committee of Hong Kong, China in 2024 to offer coaches more professional training and internship opportunities. Cyclist Ceci Lee Sze-wing, 22, who won a silver medal in this year’s Asian Games, thinks there is an alternative way to enhance professionalism.  “If they can invite foreign teams or …

Society

Policy Address 2023: Hong Kong halves the buyer stamp duty for the first time

  • By: Junzhe JIANG、Lisheng CHENGEdited by: Zimo ZHONG
  • 2023-10-25

Hong Kong Chief Executive John Lee announced that the buyer stamp duty is halved and published the stamp duty suspension arrangement with immediate effect for incoming talents on Wednesday to boost the local property market in his latest policy address. The Hong Kong government will cut the current buyer stamp duty in half to 7.5% and will postpone levying double stamp duties for incoming talents who have not yet become Hong Kong permanent residents.  Meanwhile, the applicable period of special stamp duty will be shortened from three years to two years, meaning property owners will no longer pay the 10% special stamp duty if they choose to resell the property after two years of acquisition. “Compared with last year’s policy, these new policies are more direct to property buyers,” said Martin Wong, head of research and consultancy for Knightfrank, a global property consultancy based in Hong Kong. John Lee published the Proposed Refund Mechanism for non-local residents to attract talent in his 2022 policy address with the condition that the double stamp duties will be refunded if non-permanent residents buy their new property after Oct. 19, 2022. Terence Li, senior principal account manager of Centaline Property, said: “30% stamp duties are always too high for non-local buyers, and last year’s policy is not that attractive as it’s hard for those non-local residents to reach the seven-year mark.” The price of properties in Hong Kong dropped 15.2%, and the trading amount of primary and secondary markets dropped 39% in 2022 compared with 2021, according to the Rating and Valuation Bureau of Hong Kong. From 2009 to 2016, a series of measures were introduced with the intention of reducing speculative demand and restraining the surging home prices that had surged after the conclusion of the SARS outbreak in July 2003. The special …

Society

Canada's Leylah Fernandez wins the Hong Kong Tennis Open Title 2023

  • By: Jemima BadajosEdited by: Rajnandini PANDEY
  • 2023-10-21

The 6th Prudential Hong Kong Tennis Open concluded on Sunday with 21-year-old Leylah Fernandez from Canada taking her first title of the 2023 season at the women’s singles, beating Czech Republic's Katerina Siniakova.