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Rating agencies affirm Hong Kong’s credit ratings

Three major rating agencies, including Fitch, S&P and Moodys, have affirmed Hong Kong’s credit ratings, all with stable outlook, reflecting confidence in the city’s financial resilience amid increasing global economic and financial uncertainties. Fitch affirmed Hong Kong’s AA- credit rating; S&P has maintained Hong Kong’s AA+ credit rating, while Moody’s has affirmed Hong Kong’s Aa3 credit rating, and upgraded the outlook from negative to stable. Welcoming these affirmations, the Hong Kong Special Administrative Region (HKSAR) Government said the rating agencies recognised the city’s strong credit fundamentals, including its substantial fiscal buffers and foreign exchange reserves, robust external finances and a low level of fiscal debt. Recent data has underscored the robustness of its financial system, including continued growth in bank deposits, an active capital markets, and a thriving IPO market. The Government expressed confidence in addressing external challenges while seizing new opportunities in this evolving landscape. It remains committed to leveraging Hong Kong’s institutional advantages under the “one country, two systems” framework, reinforcing and enhancing its status as an international financial, shipping and trade centre.

Stablecoins Bill passed

The HKSAR Government welcomed the passage of the Stablecoins Bill by the Legislative Council (May 21), with a view to establishing a licensing regime for fiat-referenced stablecoins issuers in Hong Kong. Secretary for Financial Services & the Treasury Christopher Hui said the ordinance adheres to the ‘same activity, same risks, same regulation’ principle, with a focus on a risk-based approach to promote a robust regulatory environment. This is in line with international regulatory requirements, and lays a solid foundation to promote the sustainable development of the industry, protects users’ rights and interests, and strengthens Hong Kong’s status as an international financial centre. The ordinance is expected to come into effect this year.

Swap Connect to be enhanced

The People’s Bank of China, Hong Kong Securities and Futures Commission and Hong Kong Monetary Authority plan to further enhance the Swap Connect to promote collaborative development of financial derivatives markets on the Mainland and in Hong Kong, as well as the high-level opening-up of Mainland’s financial markets. Under the enhanced arrangement, the tenor of interest rate swap contracts would be extended to 30 years. Also, the product scope would be expanded by including interest rate swap contracts using the Loan Prime Rate as the reference rate. This would also promote RMB internationalisation and strengthen Hong Kong’s role as an international financial centre. Launched on May 15, 2023, the Swap Connect has seen strong growth, with 20 Mainland dealers and 79 offshore investors taking part in Swap Connect, and completing more than 12,000 interest rate swap transactions with an aggregate notional amount of approximately RMB 6.5 trillion.

Re-domiciliation regime takes effect

With the Companies (Amendment) (No. 2) Ordinance 2025 taking effect on May 23, eligible companies incorporated outside Hong Kong can now apply for re-domiciliation through the Companies Registry (CR). The re-domiciliation mechanism reduces the need for a re-domiciled company to go through complicated and costly judicial procedures, and enables it to maintain its legal identity as a body corporate, thereby ensuring business continuity.  Secretary for Financial Services & the Treasury Christopher Hui said the Amendment Ordinance addresses the demand of companies incorporated elsewhere with major business in Hong Kong for re-domiciliation to Hong Kong, and is conducive to the city's efforts in proactively attracting enterprises and investment.

Hong Kong welcomes international students

Hong Kong’s doors are wide open for international students, including those affected by the latest US policy that bans Harvard University from enrolling foreign students. Chief Executive John Lee said Hong Kong will welcome any students who have been discriminated by the US policy, who face difficulties to study or continue their studies, in the US universities. The HKSAR Government, together with the eight University Grants Committee-funded universities, will do all its best to facilitate and assist any students so that they will find a way to study in Hong Kong. The Hong Kong University of Science and Technology and Hong Kong Polytechnic University have extended invitations to international students currently enrolled at, or holding confirmed offers from, Harvard University to continue their academic journey in Hong Kong.

Rethinking Hong Kong’s playbook

Some 60 members of New York’s business and financial sectors gained further insights on how Hong Kong was adapting to the evolving global financial landscape from Benjamin Hung, President (International) of Standard Chartered Bank and Chairman of the Hong Kong Financial Services Development Council at the “Rethinking Hong Kong’s Playbook” luncheon session on May 19. Opening the session, Director of Hong Kong Economic and Trade Office, New York (HKETONY) Maisie Ho said Hong Kong's fundamentals remained strong, ranking as the world’s largest offshore renminbi business hub; 7th largest merchandise trading entity; 4th in IPO fundraising; and third in the latest Global Financial Centres Index.

Mr Hung shared insights on Hong Kong’s evolving role in the global financial landscape, noting that despite global transitions, the US and China remain the world’s largest economies with both continuing to trade in evolving forms, with New York and Hong Kong playing pivotal roles. He highlighted Hong Kong’s strategic role as an international financial hub; gateway to China; the largest offshore renminbi hub; and its role in the Global South, giving the city a unique advantage. Mr Hung also discussed Hong Kong’s regulatory approach to digital assets, highlighting new rules by the Securities and Futures Commission and tokenisation initiatives by the Hong Kong Monetary Authority (HKMA). The luncheon event was co-hosted by HKETONY, the Hong Kong Association of New York, Invest Hong Kong and supported by the HKMA.

Innovation ties strengthened in Philadelphia

Director of HKETONY Maisie Ho visited Philadelphia from May 16 – 17 to engage with local business leaders and strengthen innovation ties. On May 16, she delivered opening remarks at the business forum “AI Revolution Unveiled: Transforming Business and Global Trade”, hosted by the National US Hong Kong Business Association (NUSHKBA). She highlighted the impact of AI on global business and trade, emphasising that Hong Kong is well-positioned to lead with its robust innovation ecosystem and strategic investments, supported by key initiatives such as the AI Supercomputing Centre and the Industry-Oriented Fund, which are driving AI adoption across sectors and supporting inclusive, forward-looking growth. Other speakers included Regional Director of the Americas of the Hong Kong Trade Development Council Regina Lai; Founder, Executive Director, and Chief AI Officer of AI 2030 Xiaochen Zhang; Associate Professor at Drexel University Dr. Matthew C. Stamm; and President and CEO of JL Sutherland & Associates and author Joe Sutherland. On May 17, Ms Ho participated in the Americas Regional Caucus of the Hong Kong Business Association, co-hosted by NUSHKBA, the Hong Kong-Canada Business Association, and the Hong Kong-Latin America Business Association. She briefed regional leaders on Hong Kong’s latest developments and reaffirmed the strong, enduring trade relationship between Hong Kong and America.

Boston Hong Kong Dragon Boat Festival to be held June 8

The annual Boston Hong Kong Dragon Boat Festival, North America’s first dragon boat festival and one of the largest cultural festivals in New England will return to the picturesque Charles River on Sunday, Jun 8. Located by John W. Weeks Footbridge, between JFK Street and Western Avenue, this year’s festival will feature 72 teams, with about 2000 paddlers from all over Massachusetts, New England, New York, Florida. Come and cheer for the the teams competing in exhilarating races while enjoying cultural performances, arts & crafts, performances and more! The Boston festival is used as a vehicle to promote Asian cultures and dragon boat racing, as well as to bring diverse communities together in Boston and the surrounding areas. The HKETONY has been the naming sponsor of the festival.

International Organization for Mediation to be set up in Hong Kong

The signing ceremony of the Convention on the Establishment of The International Organization for Mediation (IOMed) is set for May 30 in Hong Kong, with nearly 60 countries from Asia, Africa, Latin America and Europe, and about 20 international organisations including the United Nations sending senior representatives. Member of the Political Bureau of the Communist Party of China Central Committee and Minister of Foreign Affairs Wang Yi will attend. A global forum on international mediation will be held to discuss topics such as mediation of disputes among countries and mediation of international investment and commercial disputes. Initiated in 2022 by China and nearly 20 like-minded countries, the IOMed, with headquarters to be set up in Hong Kong, will be the world’s first intergovernmental international legal organisation dedicated to resolving international disputes through mediation.

Hong Kong seeking sustainable trade

Delivering remarks at a May 16 session of the Asia-Pacific Economic Cooperation (APEC) Ministers Responsible for Trade (MRT) Meeting in Jeju, South Korea, Secretary for Commerce & Economic Development Algernon Yau said Hong Kong, as an international shipping and logistics hub, has been implementing various measures to support sustainable supply chains, including “Hong Kong’s Climate Action Plan 2050” and a roadmap for sustainability disclosure. Initiatives have been introduced to support micro, small, and medium-sized enterprises in reducing their environmental impact and adopting sustainable business practices. Additionally, funding and capacity-building programmes have been implemented to promote the use of digital technologies, driving the digital transformation of supply chains.

Cross-border cargo clearance facilitation pact signed

Commerce & Economic Development Bureau (CEDB) and General Administration of Customs of the People’s Republic of China signed (May 19) the Cooperation Arrangement on Single Window, a trade facilitation measure between Hong Kong and the Mainland. The Single Window provides a one-stop electronic platform for submitting trade declaration and cargo clearance documents. With the Mainland as Hong Kong’s largest partner in trade in goods with frequent cross-boundary trade, the arrangement enhances cross-boundary trade through greater collaboration and interconnectivity between the two places. The CEDB has been implementing the Single Window in three phases, with the first two phases in full service since 2020 and 2023 respectively, covering 42 types of trade documents. Phase 3 will be rolled out in batches from 2026 onwards.

Hong Kong-born panda cubs named

The first pair of giant panda twin cubs born in Hong Kong have been officially named Jia Jia and De De. The names were selected as the winning entries out of more than 35,700 submissions to a naming competition organised by the Culture, Sports & Tourism Bureau and the Ocean Park Corporation. The judging panel considered the names to be full of meaning. Jia Jia is female and the elder of the twins, with the Chinese character for “Jia” indicating “support”. Sharing the same pronunciation as the Chinese characters for “home” and “auspices” in both Cantonese and Putonghua, “Jia” also carries an element of family and a sense of auspicious grace, signifying the prosperity of families and the nation as well as the happiness of its people. As for De De, Jia Jia’s little brother, the Chinese character De means “to succeed”, with the name conveying a sense of success for Hong Kong. De also shares the same pronunciation as the Chinese character for “virtue” in both Cantonese and Putonghua, which implies that the pandas, as national treasures, possess the virtues cherished by the Chinese people.

Hong Kong movie set exhibition opens

The “Kowloon Walled City: A Cinematic Journey” Movie Set Exhibition, featuring the set of  the award-winning Twilight of the Warriors: Walled In, the Best Film at the 43rd Hong Kong Film Awards, officially opened on May 23 at Kowloon Walled City Park. Running for three years, the exhibition, is open to the public free of charge. This new attraction joins the city’s other attractions in Kowloon City, aiming to draw local, Mainland and overseas visitors to experience Hong Kong culture and cuisine, while contributing to the local economy. The exhibition features classic movie sets with elements of local traditional craftsmanship and large-scale projection technology. Visitors can travel back in time and gain an immersive experience of the Walled City, while appreciating the ingenious creativity and dedication to exquisite craftsmanship of Hong Kong’s film professionals.

US senators’ attempt to sanction Hong Kong judges, prosecutors condemned

The Hong Kong Special Administrative Region (SAR) Government strongly condemned (May 17) US senators who requested a review, through a so-called bill, that includes a number of judges and the Department of Justice’s prosecutors in a so-called list of sanctions, in an attempt to intimidate Hong Kong SAR personnel who safeguard national security. In a press statement, the Hong Kong SAR Government made it clear that safeguarding national security falls within the internal affairs of a sovereign jurisdiction, and the implementation of the National Security Law is free from any intervention. Furthermore, the Hong Kong SAR Government noted that the Judiciary exercises judicial power independently in accordance with the law, and everyone charged with a criminal offence has the right to a fair hearing.

The Basic Law (BL) is the constitutional document of the 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: Can non-government organizations in areas such as education, science, and culture in Hong Kong work with international and foreign organisations?

A: Non-government organizations in fields such as education, science, technology, culture, art, sports, the professions, medicine and health, labour, social welfare and social work as well as religious organisations in the HKSAR may maintain and develop relations with their counterparts in foreign countries and regions and with relevant international organisations. They may, as required, use the name “Hong Kong, China” in the relevant activities. (BL Article 149)