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OCTOBER 25 - 31, 2022

BUSINESS AND FINANCE

The Hong Kong Special Administrative Region (HKSAR) Government issued (Oct 31) a policy statement on the development of virtual assets (VA) in Hong Kong, which sets out its policy stance and approach towards developing a vibrant sector and ecosystem for VA in the city. Regarding regulations, the Government said as it steps up its preparatory work for a new licensing regime for VA service providers, it is ready to engage with global VA exchanges and invite them to set foot in Hong Kong for new business opportunities. The Securities & Futures Commission will conduct a public consultation on how retail investors may be given a suitable degree of access to VA, and Hong Kong will be open to the possibility of having Exchange Traded Funds on VA in its market.

ECONOMY

Hong Kong's economy saw a widened year-on-year contraction in the third quarter of 2022. According to the advance estimates (Oct 31), Gross Domestic Product (GDP) fell by 4.5% year-on-year in real terms in the third quarter, after a 1.3% decrease in the preceding quarter. The decline in GDP was mainly attributable to the weak performance in external demand during the period. The worsened external environment and continued disruptions to cross-boundary land cargo flows dealt a serious blow to Hong Kong’s exports. Looking ahead, the markedly deteriorating external environment will continue to place immense pressure on Hong Kong's export performance in the remainder of the year. Elevated inflation and aggressive monetary policy tightening in major advanced economies will dampen global demand further, while heightened geopolitical tensions and the pandemic development will also add downside risks. Nonetheless, the recent relaxation of the quarantine and testing arrangements for inbound visitors should help exports of services.

In Sept 2022, the values of Hong Kong's total exports and imports of goods both recorded year-on-year decreases, at 9.1% and 7.8% respectively, amid the deteriorating external environment and continued disruptions to cross-boundary land transportation. Analyzing the value of total exports by major market, exports to the Mainland, the US and the European Union fell further, while those to other major Asian markets recorded mixed performance.

ARBITRATION AND DISPUTE RESOLUTION

Business leaders and legal communities in New York gathered virtually at the webinar entitled “From Alternative Dispute Resolution (ADR) to Online Dispute Resolution (ODR)” (Oct 27) to learn about how ODR is helping businesses resolve disputes. In her welcoming remarks, Director of the Hong Kong Economic and Trade Office, New York (HKETONY) Candy Nip gave an overview of Hong Kong’s latest developments in ODR, highlighting the role of Hong Kong as an international arbitration and dispute resolution center. Also speaking at the webinar, CEO of eBRAM International Online Dispute Resolution Centre (eBRAM Centre) Emmanuelle Pui-Ki Ta and partner of Duane Morris LLP Christopher Healy shared their insight on how ODR brings a paradigm shift to the traditional dispute resolution practice. The webinar was jointly organized by HKETONY, Hong Kong Association of New York, and eBRAM Centre.

JUDICIARY

The overall ranking of Hong Kong remains high in the 2022 World Justice Project Rule of Law Index, attaining the 6th in East Asia and the Pacific, and the 22nd out of 140 countries and jurisdictions worldwide. Besides, Hong Kong ranks 6th in "Order and Security" and 9th in "Absence of Corruption" worldwide.

The HKSAR Government said in a statement (Oct 27) that it strongly opposed US Government's untruthful accusation against the court verdict on the fraud case involving Lai Chee-ying, which was given in accordance with the law.

ARTS AND CULTURE

Following the opening of Hong Kong Cinema series of Asian Pop-Up Cinema Season 15 on Oct 29, another four Hong Kong movies will be presented this week at AMC NEWCITY 14 in Chicago. Far Far Away directed by Amos Why and The First Girl I Loved by Yeung Chiu-hoi will be screened on Nov 5. Closing the film series will be the US premiere of Terry Ng’s Pretty Heart and Septet: The Story of Hong Kong, a sonorous symphony created in concert by seven of Hong Kong’s most revered directors. Hong Kong actress Jennifer Yu will join the screenings in person and will receive this season’s Bright Star Award. She will be joined by other Hong Kong filmmakers at the finale event. 

SPORTS

Congratulations to Hong Kong’s double Olympic silver medallist Siobhan Haughey for winning two freestyle gold medals (100m, 200m) and one bronze medal (400m) at the Fina World Cup in Toronto (Oct 28-30)! The results leave Haughey in second place in the overall rankings after two legs of the World Cup and she's looking ahead to third leg of the World Cup in Indianapolis, US on Nov 3-5.

BASIC LAW

The Basic Law is the constitutional document of the HKSAR. Put into effect on July 1, 1997, it enshrines within a legal document the important concept of “One Country, Two Systems”.

Q: Does the HKSAR enjoy executive, legislative and independent judicial powers?

A: Yes. The National People’s Congress authorizes the HKSAR to exercise a high degree of autonomy and enjoy executive, legislative and independent judicial powers, including that of final adjudication. The Chief Executive heads the HKSAR and the Government of the HKSAR. The Executive Council, consisting of members appointed by the Chief Executive, assists the Chief Executive in policy making. The legislature, which is constituted by election, enacts legislation, while the judiciary exercises judicial power independently free from interference. (BL Articles 2; 16; 17; 19; 43; 54; 55; 66; 68; 73; 85)