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MARCH 21 - 27, 2023

BANKING AND FINANCE

Hong Kong maintained fourth place globally in the latest Global Financial Centres Index (Mar 23). Improved rankings in business environment, infrastructure, financial sector development, and reputational and general reflect the city’s strengths and advantages as a leading global financial center. Hong Kong-based financial industry practitioners were the most confident about the city’s future competitiveness as an international financial center, as compared to the assessments by practitioners from other major financial centers on the prospects of the cities in which they were based.

Hong Kong unveiled (Mar 24) a variety of measures aimed at creating a conducive and competitive environment for the businesses of global family offices and asset owners to thrive. Financial Secretary Paul Chan said Hong Kong’s world-class financial infrastructure, deep market liquidity and diversity of products and services offer enormous growth and investment opportunities for family offices. On the same day, Hong Kong hosted the Wealth for Good in Hong Kong Summit, attended by over 100 key decision makers from global family offices and their professional teams across Hong Kong and from around the globe.

Over 100 senior officials of central banks and regulatory authorities as well as top executives of financial institutions from more than 25 economies attended an international financial regulatory conference (Mar 24), jointly organized by the Hong Kong Monetary Authority (HKMA) and the Bank for International Settlements (BIS) to discuss the latest banking regulatory and supervisory policies to help maintain global financial stability. This conference followed a two-day meeting (Mar 22 – 23) of the Basel Committee on Banking Supervision (BCBS), also held in Hong Kong. Chief Executive of the HKMA Eddie Yue said the HKMA will continue to actively participate in the work of the BIS and the BCBS in order to contribute to global financial stability.

ARTS AND CULTURE

Asia’s leading arts event Art Basel Hong Kong (Mar 23 – 25) made a triumphant return to Hong Kong after a three-year hiatus. The largest edition since 2019, the fair attracted an international attendance of 86,000, with galleries reporting brisk sales throughout the week.

Hong Kong actor Tony Leung Chiu-wai will receive the Golden Lions for Lifetime Achievement at the 80th Venice International Film Festival (Aug 30 – Sep 9). He is the first Chinese actor to receive the honorary award. Hong Kong’s Secretary for Culture, Sports and Tourism Kevin Yeung said Leung’s exquisite acting skills had earned him many awards and brought him onto the global stage with flying colors. “We are so proud of him and would like to send him our heartfelt congratulations on this hard-earned and well-deserved title.”

Photo credit: La Biennale di Venezia Official Instagram

The two-day Museum Summit (Mar 24 – 25), themed “Between”, brought together leading figures and professionals from world-renowned museums and institutions in 16 countries to exchange and share their professional experiences, research findings and innovative concepts. Speaking at the opening ceremony, Chief Secretary for Administration Chan Kwok-ki said the summit highlighted Hong Kong’s unique position as an international hub for cross-cultural dialogue, adding that a comprehensive blueprint is being formulated for the development of arts and culture as well as creative industries in Hong Kong.

SPORTS

Young Hong Kong golfer Taichi Kho made history at the inaugural World City Championship at the Hong Kong Golf Club (Mar 23 - 26) by becoming the first player from Hong Kong to win an Asian Tour event. Hong Kong’s Secretary for Culture, Sports and Tourism Kevin Yeung said his victory is a solid achievement of the Hong Kong golf sector’s efforts in nurturing young athletes over the years.

HKETONY EVENT

Chicago’s Asian Pop-Up Cinema (APUC) will present its Bright Star Award to Hong Kong’s rising talent Renci Yeung on Mar 31. The actress will attend the screening of her highly acclaimed courtroom drama “A Guilty Conscience”, along with the film director Jack Ng Wai Lun. This Centerpiece film is the first Hong Kong film to top HK$100 million at the local box office. Other Hong Kong films to be screened include “The Sparring Partner” (Apr 1), the North American premiere of “Lost Love” (Apr 1), the US premiere of “Remember What I Forgot” (Apr 1) and “Port of Call” (Apr 1). Reserve your tickets now!

ECONOMY

In February, the value of Hong Kong’s total exports fell to US$36.6 billion, down 8.8% year-on-year while the value of imports of goods dropped 4.1% to US$42.5 billion, resulting in a trade deficit of US$5.8 billion, or 13.7% of the value of imports. Taking the first two months of the year together to remove the distortion caused by the difference in timing of the Lunar New Year, the value of exports fell notably from a year earlier amid the weak external environment. Looking ahead, growth moderation in the advanced economies will continue to weigh on Hong Kong’s export performance in the near term. The accelerated recovery of the Mainland economy, coupled with the lifting of cross-boundary truck movement restrictions between Hong Kong and the Mainland should alleviate part of the pressure.

Overall consumer prices rose 1.7% in February year-on-year, compared with 2.4% in January. Taking the first two months of 2023 together to neutralize the distortions caused by the different timing of the Lunar New Year, the underlying consumer price inflation rate remained moderate at 2.1%, though edging up from 2% in December 2022. Overall inflation could face some upward pressure, but should remain moderate in the near term.

The Hong Kong Monetary Authority raised (Mar 23) the base rate to 5.25% with immediate effect, according to a pre-set formula and in tandem with the 25-basis point upward shift in the target range for the US federal funds rate on Mar 23.

ADMINISTRATION AND CIVIC AFFAIRS

The Hong Kong Special Administrative Region Government firmly rejected (Mar 21) the unfounded remarks and smears contained in the United States Department of State’s so-called 2022 Country Reports on Human Rights Practices in respect of the Hong Kong National Security Law, Hong Kong’s improved electoral system, situation of human rights and rule of law etc. The Government pointed out that the improved electoral system puts in place legal safeguards to ensure full implementation of “patriots administering Hong Kong, adding that Hong Kong residents continue to enjoy various rights and freedoms.

BASIC LAW

The Basic Law (BL) is the constitutional document of the Hong Kong Special Administrative Region (HKSAR). It provides the guarantees to maintain our existing way of life, including socio-economic development, the rights and duties of Hong Kong people, the rule of law and other areas. The Basic Law was put into effect on July 1, 1997.

Q: Is Hong Kong a free port and a separate customs territory?

A: The HKSAR is a separate customs territory. The HKSAR, using the name “Hong Kong, China”, is a member in its own right of the World Trade Organization and the World Customs Organization. Ships of all nations enjoy access to the ports of the HKSAR, which is a free port, in accordance with the laws of the Region. Export quotas, tariff preferences and other similar arrangements, which are obtained or made by the HKSAR or which were obtained or made and remain valid, shall be enjoyed exclusively by Hong Kong. (BL Articles 114; 116; 126)