APRIL 2010
Hong Kong takes steps
towards universal suffrage
Progress towards universal suffrage in Hong Kong as the government
announced its proposals for elections in 2012
On April 14, the Hong Kong
Government announced
proposals on methods for
selecting the Chief Executive
and forming the Legislative
Council in 2012. Representing
a critical stage of
constitutional development,
the proposals take into
account the views and
suggestions expressed during
the consultation exercise
launched in November 2009.
One of the key
recommendations for
electing the Chief Executive
is to increase the number
of members of the Election
Committee from 800 to
1200. Furthermore, the
majority of the seats in the
fourth ‘Political’ sector will
be allocated to the elected
District Councils members.
It was also proposed that
the number of seats in the
Legislative Council should
increase from 60 to 70 and
that the
resulting new
Functional
Constituency
seats should
be elected
from among
District
Council
members by
proportional representation.
Permanent residents of
Hong Kong not of Chinese
nationality, or with the right
of abode in foreign countries,
may continue to stand in
elections for 12 Functional
Constituencies.
The government aims to
have a vote on the proposals
at the Legislative Council
before mid-July and put in
place the details to implement
the plans before the end of
2011.
Chief Executive, Donald
Tsang said: “What we need
now is a consensus on this
reform package and to
secure its passage in the
Legislative Council. Then we
shall have a solid foundation
for implementing universal
suffrage in 2017 and 2020.”
Details of the full
proposal are available at:
www.cmab-cd2012.gov.hk
Chinese New
Year starts
with a roar
2
Hong Kong’s
economy still
getting stronger
6
Shanghai Expo:
Hong Kong shows
unlimited potential
7
Budget promotes recovery and caring society
A fairer, caring society building
on Hong Kong’s recovery
from the global financial crisis
was the focus of Financial
Secretary John C Tsang’s budget
statement in February.
Mr Tsang highlighted the
strong showing of Hong Kong’s
gross domestic product (GDP),
which expanded by 2.6% in
the fourth quarter of 2009,
and unveiled initiatives to
consolidate economic recovery
and develop priority industries.
“With economic development
we aim to build a prosperous
and caring Hong Kong,”
explained Mr Tsang.
Further measures included
a relief package, an increase
in capital works expenditure
and an extension of key
tax concessions. Cautiously
optimistic about prospects for
2010, Mr Tsang forecast GDP
growth of 4-5%.
Chief Executive Donald
Tsang said: “The Budget
responded positively to the
immediate concerns about
people’s livelihood and will
consolidate our economic
recovery and contribute
to Hong Kong’s long-term
economic growth.”
For more on the 2010-11
budget please turn to
pages 4 & 5
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Hong Kong shares
‘green’ experience in
Copenhagen and London
Secretary for the
Environment Mr Edward Yau
attended the United Nations
Climate Change Conference
as a member of the Chinese
Delegation, and participated
at the Climate Summit for
Mayors as a member of the
C40 Large Cities Climate
Leadership Group.
During the visit to
Copenhagen, Mr Edward
Yau shared Hong Kong’s
experience in formulating
strategies to reduce
greenhouse gas emissions
at the Climate Summit for
Mayors. Mr Yau also took
part in the C40’s discussion
on ‘Low Carbon Transport
- Mass Transit and Green
Vehicles’ and participated in
The Secretary for the Environment, Edward Yau, joins a panel discussion
of the Climate Summit for Mayors in Copenhagen. On right are Lord
Mayor of City of Copenhagen, Ritt Bjerregaard and Governor of California,
Arnold Schwarzenegger.
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new financial landscape.
The theme for the Forum was
‘Asia in the World Economic
Order’, and Chief Executive
Donald Tsang said today’s
international community
expected Asia to play a
more prominent role in the
improving economic landscape.
“Governments around the
London:
Sandra Kwan, Manager of Travel
Trade Marketing, HKTB; Lore Buscher,
Regional Director Europe, HKTDC;
Jack So, Chairman, HKTDC; Mary
Chow, Special Representative for Hong
Kong Economic and Trade Affairs to
the European Union and Sarah Wu,
Director General, HKETO, London.
Mr Yau in Copenhagen with the
MyCar electric vehicle, developed
in Hong Kong.
the C40’s announcement on
Electric Vehicles.
Mr Yau also visited Malmö
and Stockholm, Sweden
to share good practice in
environmental protection
and power generation.
In February, Permanent
Secretary for the
Environment Alissa Wong
also led a delegation to the
UK to study the country’s
experience in reducing bus
emissions.
Asian Financial Forum success
More than 1,500 highpowered delegates from 31
countries and regions came
to Hong Kong in January
for the third Asian Financial
Forum. The delegates, which
included key players from
governments, business,
finance and regulatory bodies,
came together to discuss the
•
world, including those
here in Asia, have spent
vast sums of money in
shielding their economies
from the worst of the
global financial crisis. Now
is the time for governments
to start coordinating exit
strategies from these stimulus
measures.”
New Year Strength
The Year of the
Tiger got off to
a roaring start
in February,
with a series
of spectacular New Year
celebrations in London,
and events elsewhere
across Europe.
Speaking at the
London ETO’s new year
reception at the Whitehall
Banqueting House on
16 February, Miss Sarah
Wu, Director General
of the London ETO,
welcomed in the Year of
the Tiger, commenting
that the characteristics of
the Tiger are well suited
to the year: “The Tiger
symbolises bravery, energy
and competitiveness. People
born in the Year of the Tiger
are said to make audacious
and passionate leaders. They
embrace the unpredictable
and love a challenge,” said
Miss Wu.
In her address Miss Wu
said that Hong Kong’s
economy was in good
form, despite the global
downturn. She highlighted
Hong Kong’s current
strengths, commenting
that the city continued
to build on its position
as Asia’s international
financial centre. Miss Wu
underlined that Hong Kong
is now Asia’s trading hub
for the wine industry, a hot
destination for tourists,
and a major venue for fairs,
exhibitions and conferences.
“Hong Kong is truly
a larger than life city,
and with our sound
fundamentals, resilient
economy and “can do”
spirit, we are confident
that, like a tiger, Hong Kong
will continue to overcome
its challenges and further
recover as the global
environment improves.”
A week later, the Chinese
New Year came to London
in a big way in Trafalgar
Square and Shaftesbury
Avenue, sponsored by
the London ETO. An
estimated 250,000 people
attended the event, which
took place on Sunday 21
February. Crowds watched
international Chinese artists
- including a spectacular
‘flying lion’ display perform in the square.
In Shaftesbury Avenue
the HKETO sponsored
‘Hong Kong in London
Chinatown’, recreating
Hong Kong’s skyline with
spectacular flags, along
with music and dance acts
from the local Chinese
community.
The London ETO also held
a range of Chinese New
Year events internationally
(see below).
New
Year
picture
gallery
The Hong Kong Economic and
Trade Office held Chinese New
Year receptions/luncheons in
Coventry (12 February), Cardiff
(17 February), London (16
February), Belfast (18 February),
Copenhagen (25 February),
Stockholm (26 February), Helsinki
(2 March), Oslo (3 March), Moscow
(4 March), St Petersburg (5 March),
Glasgow (11 March), Edinburgh
(12 March), Malmö (18 March),
Gothenburg (19 March), Vilnius
(25 March) and Riga (26 March).
Stockholm:
Copenhagen:
From left: Sarah Wu; Mary Chow; Claus
Hemmingsen, Chairman of the DenmarkHong Kong Trade Association; Mr Xie Hang
Shen, Chinese Ambassador to Denmark and
Lore Buscher.
Sarah Wu, Director
General of Hong
Kong Economic
Trade Office
updates the guests
about business
opportunities in
Hong Kong.
London:
Oslo: From left to right: Rudi Bolsoy, Chairman of the Norway – Hong Kong
Chamber of Commerce; Sarah Wu; Mary Chow; Mr Tang Guoqiang,
Chinese Ambassador to Norway; Lore Buscher and Leif Schwabe, Vice
Chairman of the Norway - Hong Kong Chamber of Commerce.
Also present at the Chinese
New Year reception were
former Governors of Hong
Kong, Lord Patten (left) and
Lord Wilson.
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Towards a positive future
Consolidating recovery, economic development and a caring
society are the three principles that underpin the 2010-11 budget.
Allocate
HK$600 million to
strengthen primary
care services
Caring society
Estimated recurrent expenditure
on education, healthcare and
social welfare will increase
to HK$130 billion, or 56% of
total government recurrent
expenditure.
Supporting learning
• Increase recurrent funding for the School-based
After-school Learning and Support
Programmes to HK$175 million.
• Subsidy of HK$1,300 or half subsidy
Allocate HK$1 billion
of HK$650 on Internet access
for the fifth round of
charges in the 2010 academic year
the Matching Grant
for families in need with children
Scheme
for tertiary
in primary and secondary schools.
institutions
• Inject HK$500 million into
the Language Fund to upgrade
proficiency in English and Chinese.
Budget Highlights
Consolidating recovery
• Economic outlook is cautiously optimistic.
• There will be a HK$25.2 billion deficit in the 2010-11
Consolidated Account. This is expected to decrease
gradually and achieve balance by 2013-14.
Estimated capital
works expenditure
will increase to
HK$49.6 billion
Fostering a healthy property market
• Number of completed private residential units will rise to
14,300 this year.
• Increase the supply of small and medium-sized
residential flats.
• Raise stamp duty on transactions of properties valued over
HK$20 million from 3.75% to 4.25%.Buyers will not be allowed
to defer stamp duty payment.
GDP forecast
to grow 4-5% for
2010. Headline
inflation forecast
at 2.3%
Economic development
• HK$100 million to support the Construction Industry
Council’s efforts to improve training and related work.
• Allocate HK$41 million to support the work of the Hong
Kong Council for Testing and Certification and the Hong
Kong Accreditation Service.
• Hong Kong Science Park Phase 3 development will create
9,000 additional R&D and construction jobs.
• HK$7.9 billion to implement remaining works under Harbour
Area Treatment Scheme Stage 2A.
• Set up a HK$300 million Pilot Green Transport Fund.
• Provide HK$540 million in subsidies for the replacement
of Euro II diesel commercial vehicles.
Promoting building maintenance
• Allocate an additional HK$500 million for “Operation
Building Bright” to help owners maintain their buildings,
including dilapidated buildings without owners’ corporations.
• Urban Renewal Authority take forward the redevelopment
project in Ma Tau Wai Road.
4
Strengthening public healthcare
rovide an additional HK$1.24 billion to the Hospital
P
Authority (HA) to strengthen services including:
• Allocate an additional HK$40 million to enhance drugs
regulation.
• Inject HK$3 billion into the Beat Drugs Fund, and allocate
an additional HK$52 million in 2010-11 to support
anti-drug efforts.
Promoting culture and sport
Caring for the needy
• Inject HK$3 billion into the Arts and Sport Development
Fund as seed money.
• Support the development of the West Kowloon Cultural
District with an additional HK$486 million.
• HK$160 million to provide
over 1,000 additional places in
residential care homes for the
elderly.
• HK$282 million for pilot
schemes on home care for the
elderly and disabled.
• Additional funding of HK$100
million to enhance services for
persons with disabilities.
• Enhance medical and community
level support for mental patients
at a cost of nearly HK$200 million.
Supporting job seekers
Waive the
business registration
fee for one year at
a cost of
HK$1.8 billion
Provide an additional $173
million to enhance employment
services:
• Two-year Pilot Employment
Navigator Programme with
11,000 places per year. Each
eligible person will get a $5,000
cash incentive.
• 12-month training and
internships for up to 500 young
people with low educational qualifications.
Inject HK$200
million into the
Partnership Fund for
the disadvantaged
Relief measures
• Pay two months’ rent for public housing
tenants at a cost of HK$1.8 billion.
• Provide one more month of Comprehensive Social Security
Assistance payment, Old Age Allowance and Disability
Allowance.
• Reduce 75% of salaries tax and tax under personal
assessment for 2009-10, capped at HK$6,000.
• Ninety per cent of domestic and 60% of non-domestic
properties will not need to pay rates.
To find out more visit www.budget.gov.hk
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Hong Kong economy on track
Hong Kong’s position as
one of the world’s most
vibrant economies has been
reinforced and underlined
following a number of key
developments as well as
reports by international
bodies. Here are some of the
highlights:
latest Global Innovation
Index (GII). Compiled
by INSEAD and the
Confederation of Indian
Industry, the report shows
Hong Kong’s position has
risen to third place from
12th.
IT position rises
HK still the world’s freest
economy
A prestigious economic index
published by The Heritage
Foundation, has once again
ranked Hong Kong as the
world’s freest economy. It is
the 16th consecutive year the
city has won the title since
the index was first published
in 1995.
Trading position
strengthens
Hong Kong’s position in
international trade has
strengthened according to
the World Trade Organisation
(WTO). In its Global Trade
Statistics, the WTO reveals
that HK was the world’s
11th largest trading entity in
both goods and services – up
from 13th (goods) and 12th
(services) in 2008.
Innovation thriving
Hong Kong’s place as a
leading centre for innovation
has been recognised by the
Hong Kong has risen from
12th to eighth position in the
annual Global Information
Technology Report, issued by
the World Economic Forum.
The report assesses countries’
preparedness to leverage
on advances in information
and communication
technologies (ICT) for
increased competitiveness
and development.
Trade and tax agreements
Hong Kong has signed a
free trade agreement (FTA)
with New Zealand – its first
FTA with a foreign economy.
Hong Kong already has an
FTA with mainland China.
In tax matters, Hong Kong
signed a comprehensive
agreement for avoidance
of double taxation (CDTA)
with the Netherlands. It is
the first such agreement
with an Organisation for
Economic Co-operation
and Development (OECD)
member country.
Record Year for Investment
Hong Kong continues to
be an attractive place to
invest following a record 256
overseas companies setting
up in the city with assistance
from Invest Hong Kong
during 2009. This includes
more than 40 from the UK
and other countries covered
by the London ETO.
This is the highest ever level
of Foreign Direct Investment
(FDI) to the city and signifies
external investors’ strong
vote of confidence in the city.
www.InvestHK.gov.hk
Financial Centre boost
Hong Kong’s position as
a global financial centre
received a boost from the
City of London. Its Global
Financial Centres Index
showed that the gap
between Hong Kong in third
place, and London and New
York (joint first place) had
narrowed significantly. Hong
Kong also retained its place
as Asia’s Financial Centre.
Hong Kong also led the
world in terms funds raised
by new listings (IPOs) in
2009. Earlier this year the city
welcomed the first Russian
company to its Stock Exchange
when Rusal, the world’s
biggest aluminium company,
floated in Hong Kong.
Airport boosts capacity and links to the mainland
Hong Kong International Airport
(HKIA) has underlined its position as
a leading international aviation hub,
with the opening of the SkyPier and
North Satellite Concourse.
The Skypier provides a fast, high
quality ferry service linking the HKIA
to destinations in the Pearl River
Delta. It will be able to carry 8 million
passengers per year in comfort. The
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North Satellite Concourse provides
smaller aircraft with air bridge
services, meaning more comfort for
passengers.
Meanwhile, the HKIA is developing
the area between the two runways
to increase handling capacity to 70
million passengers and six million
tonnes of cargo annually. In 2009
HKIA carried 46 million passengers.
Mr Tsang being briefed on the facilities
at the North Satellite Concourse
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Hong Kong attracts 30 million visitors
Despite the global downturn,
Hong Kong still attracted
nearly 30 million visitors in
2009, according to latest
figures from the Hong Kong
Tourism Board (HKTB).
A contributor to this growth
was a 15.7% increase in visitors
from Russia. This increase was
partly due to more flights
being available but also to
the bilateral visa-free travel
arrangement which came into
force in July.
Cheung Chau Bun Festival
The HKTB forecasts that visitor
arrivals in 2010 will continue to increase and exceed 30 million for the first time.”
It is hoped that two major projects will contribute to this increase: the government’s
‘Mega Events’ scheme, aimed at supporting large arts, cultural and sports events; and
the new Kai Tak Cruise Terminal which will open in 2013. Situated at the old Hong Kong
airport site, the terminal will be able to berth the world’s largest cruise vessels.
For more on events and activity in Hong Kong visit: www.discoverhongkong.com
Cooperation
with Guangdong
reaches new
levels
A new framework agreement,
signed in Beijing, will take
cooperation between Hong
Kong and Guangdong Province
up to a new level. A measure of
the importance attached to this
agreement is that its initiatives
could be incorporated into the
Mainland’s 12th Five-Year Plan.
The agreement capitalises on the
competitiveness of Hong Kong’s
service industries and Guangdong’s
manufacturing industries to build
a new world-class economic zone.
For 2010, a major financial services
measure will be to take forward
the renminbi cross-border trade
settlement pilot scheme, which
will encourage more Guangdong
enterprises to list in Hong Kong.
Infrastructure projects to
enhance transport links and
environmental protection projects
on such issues as air quality also a
major part of the agreement.
Hong Kong joins
mainland high
speed rail network
A high-speed rail link is set to halve the
travel time between Hong Kong and many
mainland cities.
In January, work started on the HK$66
billion Guangzhou-Shenzhen-Hong Kong
Express Rail Link, (XRL). The XRL highspeed trains will soon be able to travel
between the West Kowloon terminus
and Guangzhou in less than 50 minutes,
compared to more than 100 minutes
currently.
The XRL will also provide through-train
services to 16 major cities across China,
including Shanghai and Beijing – bringing
the capital within ten hours and Shanghai
within eight hours of Hong Kong.
Hong Kong
– unlimited
potential on show
at Shanghai Expo
Millions of visitors will get the
message that life and business
within Hong Kong offers unlimited
potential when they visit the World
Exposition 2010, in Shanghai.
Hong Kong’s pavilion, titled,
“Hong Kong – Potential Unlimited”
will be on display from 1 May to 31
October – giving the territory the
perfect opportunity to promote its
quality of city life and its leading
position as a creative capital.
Showcasing the city’s unique
connectivity with the Mainland and
the rest of the world, the pavilion
will also highlight Hong Kong’s
considerable achievements in
sustainable urbanization.
The Hong Kong pavilion will
have three levels with a sleek
contemporary look to showcase
Hong Kong’s global connectivity, the
“infinite” imagination and creativity
of Hong Kong people, quality city
life and rich natural heritage.
The Shanghai Expo will see Hong
Kong’s performing arts groups and
visual artists join forces to stage the
largest scale cultural programme
organised outside of Hong Kong.
The artists will showcase their talent
and creativity with 70 performances
in 26 programmes during the
six month Expo. Four visual art
exhibitions will also feature.
For more information please visit:
www.hkexpo2010.gov.hk
Chief Secretary for Administration Henry
Tang looks at the wall which showcases
a posterised view of Hong Kong’s iconic
skyline.
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Festival triumph for Hong Kong film
Forthcoming events
Hong Kong’s position as a leading
centre for film production and the arts
was confirmed following a prestigious
international film award for ‘Echoes of
the Rainbow’, directed by
Alex Law and produced by
Mabel Cheung.
The film beat 14
16 April – 12 June
Photo exhibition by Stanley Wong
at Chinese Arts Centre, Manchester
New face for
Hong Kong
Hong Kong’s brand identity
(BrandHK) has been revitalised
following a review of the city’s
international communications
platform, first launched nine
years ago.
The most eye-catching update
is the BrandHK visual identity.
While keeping the essence of
the original flying dragon, it has
evolved and changed colour.
It is the work of the renowned
designer, Alan Chan.
The five updated core
values of BrandHK are: Free,
Enterprising, Excellence,
Innovative and Quality Living.
Alan Chan said that the blue
and green ribbons that extend
from the dragon symbolise
blue sky and a sustainable
environment, while Lion Rock,
which represents the “can-do”
spirit of Hong Kong people, is
silhouetted by the red ribbon.
Qin music and poetry
in concert
Britons will have a rare opportunity to
experience a unique Chinese music and
poetry tradition: the chanting of classical
poetry to qin (zither) music.
HKETO is supporting two performances
featuring Xie Daoxin and Li Ming, both
masters on the qin. The events are being
held at Wolfson College Hall, Oxford on 9
May and Brunei Theatre, School of Oriental
and African Studies, London on 11 May.
Visit www.qinconcert.com
1 May - 31 Oct
Hong Kong Pavilion at Shanghai
Expo 2010
6-9 May
Terracotta Film Festival in London
showing Hong Kong films
Events
timetable
From left: Mr Aarif Lee
(Actor); Mr Alex Law
(Director) and Ms Mabel
Cheung (Producer)
other entrants to win the Crystal
Bear for the Best Feature Film in
the Generation section of the 2010
Berlin Film Festival. It’s the first time a
Hong Kong film has
won the prestigious
award, which aims to
promote cultural
understanding
among the
younger
generation.
9 and 11 May
Qin (zither) and Chanting concert in
Oxford and London
20 May - 10 June
Hong Kong Photo Exhibition in
Vladivostok, Russia
13 June
Dragon Boat Festival in Belfast
27 June
London Hong Kong Dragon Boat
Festival
Visit www.hketolondon.gov.hk for updates
Arts and creative
heads appointed
The West Kowloon Cultural District
Authority has appointed Graham Sheffield
as Chief Executive Officer of the West
Kowloon Cultural District (WKCD). Mr
Sheffield was previously Artistic Director
at London’s Barbican Centre for 15 years.
WKCD is a HK$21 billion project to
boost cultural and entertainment
establishments in West Kowloon. The 40
hectare development will ensure Hong
Kong remains Asia’s art and culture hub
for years to come.
Meanwhile, Jerry Liu Wing-leung has
been appointed Head of CreateHK, the
agency set up to lead, champion and
drive the development of the creative
economy in Hong Kong. Mr Liu has
worked in the film and television industry
for more than 25 years. Visit www.wkcda.hk
and www.createhk.gov.hk
Dragons in
London
Dragons will be seen on London’s
Docklands when the 14th annual
London Hong Kong Dragon Boat
Festival, sponsored by the Hong
Kong Economic and Trade Office,
takes place on Sunday, 27 June.
It promises to be a spectacular
event with over 40 dragon boat
teams taking part. The event is
hosted by London Chinatown Lions
Club and supported by The Hong
Kong Executive Club. For more
information visit:
www.lclc.co.uk
Hong Kong Economic and Trade Office, 6 Grafton Street, London W1S 4EQ
Tel 020 7499 9821 Fax 020 7493 1964 E-mail [email protected] Website: www.hketolondon.gov.hk
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