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JUNE 6 - 12, 2023

EVENT

Some 50,000 revelers from the Greater Boston area cheered on more than 1,500 paddlers from 64 teams racing on the Charles River at the 44th Boston Hong Kong Dragon Boat Festival (Jun 11). Speaking at the opening ceremony, the Director of the Hong Kong Economic and Trade Office, New York, Candy Nip said that since its inaugural edition in 1979, the Boston Hong Kong Dragon Boat Festival is the oldest dragon boat festival in the United States, and has become a flagship event in promoting friendship between Hong Kong and New England. “Hong Kong is proud to be the birthplace of modern dragon boat racing. This brilliant mix of culture and sport is now widely celebrated around the world. It embraces strength and stamina, together with harmony, balance and team work,” she said.

FINANCE

Hong Kong launched (Jun 12) the Network of Family Office Service Providers, a platform specially designed to help promote Hong Kong as a preferred destination of choice for global family offices. It aims to nurture the ecosystem that continues to support local and global family offices as they set up or expand in the Hong Kong market. Speaking at the launch ceremony, the Financial Secretary Paul Chan made it clear that Hong Kong, with its vibrant financial ecosystem, sophisticated financial infrastructure and the best professional services providers as well as the convergence of investment opportunities in the Mainland and the world, is naturally the preferred choice of location for global family offices.

The Hong Kong Monetary Authority (HKMA) welcomes the launch of the HKD-RMB Dual Counter Model and the Dual Counter Market Making Program on June 19. The Chief Executive of the HKMA Eddie Yue said the launch is a significant step towards developing a diversified range of RMB-denominated products in Hong Kong. The initiatives will facilitate the use of the RMB in equity trading in Hong Kong and further expand the RMB investable universe, thereby reinforcing Hong Kong’s role as the leading offshore RMB business hub. Separately, the HKMA said it aims to have all retail banks adopt a “consistent, coordinated approach to real-time fraud monitoring” by September 2023.

ECONOMY

The overall business sentiment among Hong Kong’s small-and-medium enterprises (SMEs) softened slightly in May, amid a broadly stable employment situation. The expectation on the business situation in one month’s time also retreated. The current diffusion index (DI) on business receipts amongst SMEs fell to 47.2 in May from 48 in the previous month in the contractionary zone, whereas the one-month’s ahead (June 2023) outlook DI on business receipts was 49.2. Slower growth in the advanced economies and tight financial conditions will continue to affect business sentiment, but the local economic recovery and the various measures introduced by the Government in boosting the recovery momentum should provide support.

Hong Kong’s foreign currency reserve assets dropped to US$421 billion in May from US$427.4 billion in April. This represents over five times the currency in circulation or about 40% of Hong Kong dollar M3. There were no unsettled foreign exchange contracts at the end of May.

ADMINISTRATION AND CIVIC AFFAIRS

The Hong Kong Special Administrative Region Government strongly opposed (Jun 8) the sending of a letter by the US Congressional-Executive Commission on China to the UK Prime Minister which interferes in the Hong Kong SAR's judicial proceedings in a court case involving Lai Chee-ying.

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)