HK to strengthen Swiss trade links

Secretary for Commerce and Economic Development Gregory So promoted Hong Kong as a place for Swiss companies to do business, using both the free trade agreement (FTA) between Hong Kong and the member states of the European Free Trade Association, and the Hong Kong Closer Economic Partnership Arrangement (CEPA) with China.

On January 24, when visiting Switzerland, So made a speech. He spoke about the opportunities for Hong Kong and Switzerland to enhance co-operation as Switzerland’s hi-tech firms might get a foothold in the Chinese market, as well as markets across Asia.

He said that, in 2012, Mainland China overtook the US for the highest number of filings in major types of intellectual property (IP) rights, and Hong Kong is exploring ways to establish Hong Kong as an IP trading hub in Asia, not just for Mainland Chinese firms but also for innovative companies in Hong Kong, in Switzerland and worldwide.

He indicated that Swiss companies can take advantage of the FTA signed in 2011 between Hong Kong and the Member States of the European Free Trade Association, including Switzerland, and of the CEPA with China, which includes more than 400 trade liberalization measures and covers 48 services sectors.

A business luncheon was hosted by the Hong Kong Economic and Trade Office in Berlin, the Hong Kong Trade Development Council and the Swiss-Hong Kong Business Association.

Filed under: Business and Economy, Financial Services, International Business Environment

HK and Fujian enhance co-operation

Chief Executive CY Leung met Fujian Provincial Committee Secretary You Quan tonight, and agreed to enhance co-operation between their two jurisdictions.

Fujian is the core of the Haixi Economic Zone, which faces Taiwan and has an important strategic position in cross-strait economic and trade co-operation.

Taking the advantage of trade agreements between Hong Kong, Fuijian and Taiwan, it was agreed that closer ties will enhance the common development of the 3 places.

Hong Kong’s Chief Secretary and the Vice Governor of Fujian will identify areas for closer co-operation, and Hong Kong’s Fujian Liaison Unit will follow up on the details.

Filed under: Business and Economy, HK as a Financial Centre, News and politics

Tsang: HK must boost income

John Tsang Chun-wah, the financial chief of Hong Kong said that the jurisdiction is facing mounting fiscal pressures amid an aging population, with a sustainable public finance situation achievable by tapping new income streams, reducing spending and boosting savings. He noted that detailed commentaries about public finance will be shown in the fiscal budget to be revealed in February 2014.

Tsang stated the importance of public finance, which benefits every Hong Kong’s citizen as well as future generations. However, the growing number of elderly is set to affect the SAR in various ways, including the momentum of economic growth and the government’s fiscal balance.

Tsang suggected that financial deficit is possible in the future, if expenditure growth consistently exceeded that of income.

While Tsang earlier estimated a surge of HK$ 20 billion in the government’s recurrent expenditure, contingent upon a series of anti-poverty measures that were suggested in the policy address, according to Chief Secretary for Administration Carrie Lam Cheng Yuet-ngor, this figure was only HK$ 10 billion.

Filed under: Business and Economy, Financial statistics, HK as a Financial Centre

C&SD releases Unemployment and Underemployment Statistics for October – December 2013

On January 20, 2014, the Census and Statistics Department (C&SD) released unemployment and underemployment statistics for October – December 2013. According to the latest statistics, the seasonally adjusted unemployment rate decreased from 3.3% in September – November 2013 to 3.2% in October – December 2013. The underemployment rate remained unchanged at 1.4% in the 2 periods.

The Secretary for Labour and Welfare, Mr Matthew Cheung Kin-chung, commented on the latest unemployment figures: “The labour market remained tight in October – December 2013. Total employment climbed to a new record high of 3 760 400 amidst the festive boost to labour demand towards the year-end. The number of unemployed persons declined further to 118 400. The seasonally adjusted unemployment rate edged down to 3.2%, the lowest level since end-2012.”
The unemployment and underemployment statistics were compiled from the findings of the continuous General Household Survey. This survey covered a sample of some 25 000 households or 74 000 persons, selected in accordance with a scientifically designed sampling scheme to represent the population of Hong Kong.

Filed under: Financial statistics