Hong Kong’s historic flea market, Temple Street, is to be “revitalised” into a market with food stalls and performances in November, a representative of the market’s hawkers has said.

Located in Yau Ma Tei, the market attracted hundreds of hawkers in the 1960s, becoming famous for cheap merchandise, street food, as well as stalls for fortune-telling. However, business has declined over recent years under the city’s strict Covid-19 restrictions. It has yet to recover since the pandemic rules were lifted early this year.

“We hope to develop it with reference to Taiwan’s Silin Night Market, ” Raymond Chan, a pro-establishment politician and chair of the Yau Ma Tei Temple Street Association of Hawkers, told RTHK on Monday in Cantonese.

Chan said that, while there used to be around 200 hawkers, currently only around 100 are actively running. He told HK01 in August that he had never seen the streets of Yau Ma Tei, Mong Kok and Tsim Sha Tsui so quiet.

To boost business around Temple Street, the association plans to set up 30 street food stalls for a night market: “12 stalls will be operated by existing restaurants on Temple Street, and the rest are from restaurants in nearby streets, ” Chan said.

Amid a weak growth outlook and a slower-than-hoped tourism recovery, the government launched a “Hong Kong Night Vibes” campaign to boost the night-time economy last month. The campaign involved a series of night markets along the city’s harbourfronts at Kennedy Town, Wan Chai and Tsim Sha Tsui during holidays and weekends.

Secretary for Culture, Sports and Tourism of Hong Kong Kevin Yeung told TVB on Sunday that the area would be “revitalised” in November with street stalls and performances, but it should also take into account of the needs of residents as there were residential buildings surrounding the thoroughfare.

Chan said that the association hoped to host the night market until 11pm each night: “Our staff will patrol at 10pm everyday and ask tourists and diners to lower their voices as not to interfere with people living upstairs,” Chan said.

HKFP has reached out to the Culture, Sports and Tourism Bureau for more details.

Few tourists

However, Luk Hing Fat, another representative for hawkers, told Commercial Radio in September that he believed the plan would not help rejuvenate the tourist hotspot, as it is hard to attract many tourists by simply putting on street food stalls.

Luk, chair of the Temple Street Association of Commerce, said that the market declined because it did not renovate its business model and kept selling goods from mainland China. Another factor, he added, was the decreasing number of tourists: “There are few tourists from Europe and the US. Few visited [Temple Street].”

“Temple Street is a famous night-time attraction in Hong Kong,” a Hong Kong Tourism Board spokesperson told HKFP on Tuesday in an emailed response. “The Hong Kong Tourism Board is discussing with related trade associations and government departments to make plans to enhance the overall vibe of Temple Street. Details will be announced in due course.”

As one of the city’s pillar industries, the tourism sector has seen a slow recovery since the pandemic, with mainland Chinese arrivals picking up faster than international travellers.

In August, Hong Kong welcomed 4.07 million visitors, up 14 per cent from the previous month, according to provisional data from the Tourism Board. In August 2018, the city saw nearly 6 million visitors. Even during the height of the pro-democracy protests and unrest in August 2019, the city welcomed 3.59 million arrivals.

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By Oliver Hotham in Beijing, China

China began welcoming on Monday representatives of 130 countries for a conference that will be overshadowed by the Israel-Hamas war, as an increasingly assertive Beijing is asked to help de-escalate the violence.

At the top of the invitation list to China’s Belt and Road Initiative forum is Russia’s President Vladimir Putin, on his first trip to a major global power since the Ukraine invasion threw his regime into international isolation.

Leaders have begun to pour into the Chinese capital for a gala event marking a decade of the BRI, a key project of President Xi Jinping to extend China’s global reach.

While China hopes the forum will help boost its international standing, Israel’s war with Palestinian militant organisation Hamas will continue to dominate the headlines.

Israel declared war on the Islamist group after waves of its fighters broke through the heavily fortified border on October 7, shooting, stabbing, and burning to death more than 1,400 people, most of them civilians.

More than one million people have fled their homes in scenes of chaos and despair under heavy Israeli bombardment of the Hamas-ruled Gaza Strip.

Israel’s bombing has killed at least 2,670 people in Gaza, mainly civilians, and flattened entire neighbourhoods.

China’s Foreign Minister Wang Yi condemned Israel’s actions for going “beyond the scope of self-defence” and called for it to “cease its collective punishment of the people of Gaza”.

“(Israel) should listen earnestly to the calls of the international community… and cease its collective punishment of the people of Gaza,” Wang said Sunday, in China’s strongest response to the conflict so far.

Western officials have criticised Beijing for not naming Hamas in statements on the Israel-Gaza conflict.

Wang spoke on Sunday with US Secretary of State Antony Blinken, who called on China to use its “influence” in the Middle East to push for calm.

China has a warm relationship with Iran, where the clerical leadership supports both Hamas and Hezbollah, the Lebanese militant group that could open a second front against Israel.

This year, China brokered an entente between former regional foes Iran and Saudi Arabia.

Beijing’s special envoy Zhai Jun will visit the Middle East this week to push for a ceasefire and peace talks, China’s state broadcaster CCTV said on Sunday, without specifying which countries he would visit.

The BRI summit would allow Beijing to frame attendance as a gesture of support for its position on the Israel-Hamas war, said Niva Yau, a non-resident fellow with the Atlantic Council’s Global China Hub.

“Any head of state that attends the summit, it’s almost as if they agree with Beijing’s positions on these global issues,” she said.

Strategic dependence

Several leaders are already in Beijing ahead of the two-day forum, which starts Tuesday.

Among them are the prime ministers of Hungary, Ethiopia and Cambodia, and the presidents of Kenya, Chile and Indonesia.

Russia’s Foreign Minister Sergei Lavrov flew into Beijing on Monday and within hours held talks with his Chinese counterpart.

Lavrov thanked China for inviting Putin as the summit’s “chief guest”, according to a readout from Moscow, which later said the top diplomat would head to North Korea after Beijing.

Relations between China and Russia are “on the rise”, Lavrov told Wang Yi, adding that their two leaders “will discuss them in their entirety when they meet”.

Wang, in turn, said China “appreciates” Russia’s support for the Belt and Road Initiative.

The top Chinese diplomat also discussed the Israel-Hamas conflict, with Wang stressing Beijing “condemns all acts that harm civilians and opposes any violation of international law”.

“It is necessary for the UN Security Council to take action, and major countries should play an active role,” he added.

Putin is expected to arrive overnight.

Trade between China and Russia this year has soared to levels not seen since the beginning of Moscow’s war in Ukraine, with Chinese imports of Russian oil offering Moscow a critical lifeline as international sanctions bite.

China has refused to condemn the Ukraine war in an effort to position itself as a neutral party, while offering Moscow vital diplomatic and financial support.

Xi and Putin, who have described each other as “dear friends”, each rely on the other to help counter Western dominance.

Putin hailed ties with Beijing in an interview with state broadcaster CGTN ahead of his visit, praising Xi’s “highly relevant and significant” initiatives.

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A senior Beijing official in Hong Kong has urged the city’s legal professionals to act as “envoys” in promoting its rule of law, and to seize the chance to become a dispute resolution centre for China’s Belt and Road Initiative.

Liu Guangyuan, deputy director of the central government’s Liaison Office, said Hong Kong should leverage its unique advantages as the sole common law jurisdiction in China and provide cross-border dispute resolution services for Belt and Road countries.

Liu was speaking at a forum organised by the Law Society of Hong Kong, a professional body for the city’s lawyers, to mark the 10th anniversary of the initiative.

“The legal sector in Hong Kong is an important participant, contributor and beneficiary in the Belt and Road Initiative,” Liu told guests in Mandarin.

“It should actively engage in international exchanges, serving as envoys to tell a good story of Hong Kong’s rule of law, and to polish its gold-lettered signboard.”

Liu, formerly Beijing’s top diplomat in Hong Kong, also told the sector to firmly uphold the Chinese constitution and the Basic Law, Hong Kong’s mini-constitution, in defending the city’s constitutional order.

“Making use of the rule of law and optimising the business environment are important ways for Hong Kong to contribute to the Belt and Road project,” he added.

Speaking at the same event on Wednesday, Chief Executive John Lee said China’s 14th Five-Year Plan’s supported Hong Kong’s development as a centre for dispute resolution services in the Asia-Pacific.

Lee also said that his administration fully supports a White Paper published by China’s State Council that summarises the development of the decade-long infrastructure project.

According to the white paper, the Belt and Road Initiative has generated more than US$ 2 trillion (HK$15 trillion) in contracts in more than 130 countries.

“Hong Kong has a clear and compelling role to play in helping to realise peace and prosperity throughout the Belt and Road,” Lee said.

Anniversary of Belt and Road Initiative

Hong Kong held its 8th Belt and Road Summit last month to mark the 10th anniversary of the initiative, one of Chinese leader Xi Jinping’s signature foreign policies.

Supporters of the strategy say it will help boost trade and raise gross domestic product in participating nations. Critics, however, have called it a Trojan horse designed to increase China’s influence.

During the event, the government paid for visits by 15 journalists from Asia and Europe as part of efforts to promote a “favourable image of Hong Kong” internationally and in mainland China.

In Beijing, the third Belt and Road Forum for International Cooperation will be held from October 17-18. Xi is scheduled to attend the opening ceremony and deliver a keynote speech.

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Hong Kong has issued around 100,000 working visas in the first nine months of the year, around 2.5 times more than the total number granted in 2022.

The surge was led by the new Top Talent Pass Scheme (TTPS), launched last year to attract talent amid a brain drain.

“As General Secretary Xi Jinping has said, ‘the competition of national strength ultimately comes down to a competition of talent,'” Financial Secretary Paul Chan said in Mandarin at a forum on Monday, quoting a speech made by the Chinese leader at a major congress meeting last year.

“Currently, different economies are all striving for high-quality talent and professionals,” he said, adding that Hong Kong and “its brother cities” in the Greater Bay Area needed to stand out internationally to sustain “high-quality development.”

The 100,000 working visas granted from January to September this year were significantly more than the 38,559 issued last year. Travel restrictions were in effect for most of 2022 as the city maintained strict Covid-19 rules.

According to Chan and labour chief Chris Sun, who also attended the forum, around 39,000 people were approved via the TTPS by September 30.

Introduced during Chief Executive John Lee’s maiden Policy Address last year, the TTPS attracts graduates from the world’s top universities – or who earn an annual income of more than HK$2.5 million – to come to Hong Kong. Applicants do not need to have secured a job offer in advance.

Most TTPS holders were from mainland China. In response to HKFP, the Immigration Department said that 30,183 people had received visas as of July 31, of whom 94.6 per cent of applications came from mainland China.

One per cent of the talent visa holders came from the US, while another one per cent from Canada.

Sun, the labour chief, said in Mandarin that the TTPS served “as a major driving force for our efforts in competing for talent,” adding that the city should provide housing and education support for the families of the visa holders.

Over 80 per cent of the TTPS visa holders were graduates from top universities, while the rest were high earners, according to the Immigration Department.

According to local outlet The Collective, which interviewed visa holders and migrant agents, some who had been approved under the TTPS did not plan to settle in Hong Kong. Instead, they wished to secure the visa as a back-up plan for the future.

Visas relaxed

In the Policy Address 2022, the city’s leader John Lee unveiled a series of measures to “snatch talent.” He said the local workforce had dropped by 140,000 from the second quarter of 2020 to the same period that year.

Apart from launching the TTPS, the authorities also extended the limit of stay from one year to two years for non-local graduates, suspended the annual quota under the Quality Migrants Admission Scheme (QMAS), and eased requirements for three other schemes.

The number of new visa holders has increased following the relaxations. The Immigration Department’s figures showed that 7,022 people have obtained visas under QMAS in the first half year of 2023, of which 98.3 per cent came from mainland China.

In 2022, only 2,845 people were granted the QMAS visas.

Mass exodus

Hong Kong has seen an exodus of local families and expatriates in recent years amid strict Covid-19 restrictions and a national security law imposed by Beijing.

According to a survey of 107 Hong Kong professionals released by a global recruitment consultancy in October, over half considered leaving the city within five years. Among them, 51 per cent were aged between 27 and 42.

Meanwhile, the UK said in February that some 144,500 people had left Hong Kong and moved to Britain in the two years since it launched a visa route for holders of British National (Overseas) passports (BNO) in early 2021.

Among the BNO visa holders, 69 per cent had university degrees, the UK’s Home Office revealed in a survey released last February. Almost 40 per cent were classified as having a “professional occupation.”

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Hong Kong police have reportedly arrested a crypto influencer in connection with a high-profile “fraud” scandal linked to digital asset exchange platform JPEX, as the number of those impacted surpassed 2,530.

A total of 28 people have been apprehended so far over the alleged fraud case concerning the unlicensed crypto exchange platform, police said on Sunday, with reports received from 2,538 people claiming to be victims in the case involving losses of HK$1.56 billion.

According to local media reports citing sources, the latest arrest was 28-year-old influencer Henry Choi, who founded “Hong Coin,” a social media page promoting cryptocurrency with around 20,700 followers on Instagram.

Police said on Sunday that one person had been detained pending investigation, while the remaining 27 had been released on bail without charge.

Choi on Monday cut ties with JPEX and said he would “fully assist” in pushing JPEX to allow for immediate withdrawals of USDT, a cryptocurrency pegged to the US dollar.

“Today, I fully cooperated with a police investigation within Hong Kong’s jurisdiction. I would like to clarify once again that I did not receive any funds nor have I been involved in the JPEX incident. I have no knowledge of the matter,” Choi said in a Chinese-language post, adding he had been travelling amid rumours he had fled the city.

Those arrested were suspected of using false advertising and unlawful means to lure victims to invest through JPEX. The unlicensed platform then imposed restrictions on withdrawal limits and significantly raised withdrawal handling fees, leaving customers unable to withdraw their virtual assets, police alleged.

The authorities first took action against JPEX in mid-September, when police rounded up four men and four women on suspicion of conspiracy to defraud. Among the arrestees aged 22 to 53 were social media influencers Joseph Lam and Chan Yee.

Conspiracy to defraud is punishable by up to 14 years of imprisonment in Hong Kong.

The case surrounding JPEX has cast a shadow over Hong Kong’s embrace of digital assets and revealed regulatory gaps soon after the city rolled out rules requiring crypto exchanges are licensed and meet investor protection standards.

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Hong Kong welcomed about 1.1 million mainland Chinese tourists over the National Day “Golden Week” holiday, with the daily average of arrivals from across the border reaching about 85 per cent of pre-pandemic levels, the government has said. But the influx did not result in a rise in retail sales, according to an industry representative.

The eight-day holiday – from September 29 to October 6, and the first Golden Week since Covid-19 restrictions were lifted – saw an average of around 140,000 inbound mainland Chinese visitors per day. The figure peaked on October 1, China’s National Day, with around 180 000 arrivals, according to the Immigration Department (ImmD).

“I hope visitors can feel the festive ambience and unique metropolitan glamour of Hong Kong,” Kevin Yeung, the secretary for culture, sports and tourism, said on Saturday.

Yeung added that the government would review “various operations” to prepare for future tourist seasons.

In a statement released on Saturday, a government spokesperson said that the daily figure was about 85 per cent of the level recorded in the same holiday between 2017 to 2019. Most mainland Chinese visitors arrived in Hong Kong via high-speed railway to the West Kowloon Station or through the Lok Ma Chau Spur Line.

Among mainland Chinese visitors, 45 per cent stayed overnight, the spokesperson said. The overall hotel occupancy rate reached 90 per cent, according to the Hong Kong Tourism Board (HKTB).

Events such as the Tai Hang fire dragon dance parade and the National Day fireworks display attracted about 48,000 and 430,000 spectators, respectively, the government spokesperson said.

During the holiday, around 780 mainland Chinese tour groups visited the city, involving around 26,800 visitors, according to figures from the Travel Industry Authority (TIA).

The government spokesperson added that the TIA had not received any reports of coerced shopping during the holiday, referring to the practice of forcing tourists on low-budget tours to spend in certain shops.

Retail sales ‘underperformed’

Although the influx of tourists boosted consumption, overall retail sales did not rise in lockstep with arrivals, an industry representative said.

Annie Yau, the chairperson of the Hong Kong Retail Management Association, said on RTHK last Friday that overall sales attributed to tourists had risen by 10 to 20 per cent. But Golden Week sales figures still lagged behind the level recorded in 2018.

The outflow of local residents over the long weekend could have played a role in the underperformance, Yau said in Cantonese.

According to figures from the ImmD, about 1.8 million Hong Kong residents departed during the recent holiday period, with more than 70 per cent heading north via various checkpoints, outnumbering the amount of tourist arrivals.

Chief Executive John Lee said last week that it was normal for Hongkongers to holiday overseas, adding that the government would focus on its “Night Vibes Hong Kong” campaign to boost local consumption and evening activities.

Slow tourism reboot

Tourism industry representatives previously estimated that around 1 million mainland Chinese visitors would come to Hong Kong during the Golden Week holiday, but that many had planned to take shorter trips compared to pre-pandemic levels.

Speaking to HKFP on National Day, several tourists arriving at the West Kowloon Station via high-speed railway said they only planned to stay for two or three days, with some saying they was only dropping by the city for a day-trip.

Hong Kong’s tourism sector – a pillar industry that contributed 3.6 per cent of the city’s gross domestic product and employed around 232,700 people in 2019, according to government figures – was particularly devastated by Covid-related travel restrictions, which essentially isolated the city for almost three years.

Since fully reopening its borders in February, visitor arrivals have risen, led by those from mainland China, but still lag behind pre-pandemic levels.

Hong Kong welcomed 4.07 million visitors in August, up 14 per cent from the previous month, according to provisional data from the HKTB. In August 2018, the city saw nearly 6 million visitors. And even during the height of the pro-democracy protests and unrest in August 2019, the city welcomed 3.59 million arrivals.

The HKTB has blamed “currency exchange rates, airline capacity and the global economic outlook” as factors affecting the pace of the tourism reboot.

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At a Japanese restaurant in a Hong Kong commercial district, the eatery’s newest dishes raised eyebrows.

The menu advertised sashimi bowls layered with savoury blue jelly, or “radioactive water,” a tongue-in-cheek nod to recent curbs on Japanese seafood after treated wastewater from the Fukushima Daiichi nuclear power plant was released into the ocean. The dish did not, however, contain anything from Fukushima or other regions from which Hong Kong had restricted imports.

Days after HKFP visited the restaurant, it was inspected by the Food and Environmental Hygiene Department, asked whether it was using ingredients from restricted regions and ordered it to stop serving the “radioactive” bowls.

The stunt came after Hong Kong – the second-largest importer of Japanese seafood behind mainland China last year – banned aquatic products from 10 parts of Japan in late August, the same day the country began releasing the treated nuclear wastewater. Mainland China, Macau and Hong Kong are among the few places that have restricted Japanese imports. The United Nations’ nuclear watchdog said in July that Japan’s move was in line with international standards.

The blue-hued bowls – an apparent mockery of Hong Kong’s ban – was as far as the owners went in criticising the authorities. In a social media post a day before the import restrictions were enacted, the restaurant said it respected the government’s regulations.

The restaurant owner declined to speak on the record with HKFP, a reticence common among restaurant owners when asked what they think of the controls. Political experts said their hesitation reflected the reality in Hong Kong today where self-censorship is the norm – even in sectors unrelated to politics.

Developments in Hong Kong in recent years, from the disbanding of civil society groups under the national security law to overhauls of legislative and district administration electoral systems, left little room for criticism of the government, experts said.

“I think there is definitely a chilling effect in society that makes people unwilling to openly say anything that is against the government,” Liu Dongshu, an assistant professor who researches Chinese politics at the City University of Hong Kong, told HKFP.

In addition to the bans, the government has also started conducting radiological tests on all aquatic products from elsewhere in Japan, causing delays to food air-freighted from the country, restaurant owners told HKFP. Some said they had been forced to apologise to diners when ingredients were still at the airport at dinner time, forcing them to make last-minute menu changes.

The Food and Environmental Hygiene Department told HKFP that as of September 24, all samples tested had passed the radiological tests.

Y, the director of a Japanese izakaya in the Wong Tai Sin neighbourhood, said the restrictions had brought significant inconvenience. He asked to stay anonymous as he feared reprisal from the authorities.

Often, diners who wanted to eat more premium sashimi would reserve in advance. But due to delays, Y said he had to tell customers their orders would not arrive in time and ask if they could come the following evening instead.

“It’s most awkward when they’re not free the next day,” Y told HKFP, speaking in Cantonese. “If we are not able to sell the order to another table, then we will make a loss.”

The government has denied that the delays were related to radiation checks, attributing it to increased imports and importers not completing the necessary paperwork.

Y said that if restaurateurs spoke their mind, it could get them into trouble. He added he had read news reports of small businesses becoming victim of increased checks from government departments after being seen as critical of the authorities.

“This pressure [to stay silent] reflects that society no longer tolerates us expressing our views,” he added.

‘Loyalty’ to Beijing

There has been little international reaction to Japan’s wastewater discharge. But across the border, Beijing has banned all seafood imports from Japan and made strongly-worded remarks, rejecting Japan’s statements that the wastewater had been adequately treated.

 Japan was “putting its selfish interests” above people’s well-being and treating the Pacific Ocean as its own “private sewer,” China’s foreign ministry said. The hostility between the two countries dates back decades, to the Japanese invasion of China ahead of World War Two.

On Chinese social media platforms, people have called for boycotts of Japanese products, rallied behind local alternatives, and spread debunked rumours – including one about the death of a Japanese official who drank a glass of treated water from the nuclear plant at a 2011 press conference to prove the water’s safety.

The online chatter did not come out of left field. Since April 2021, when Japan first announced it would discharge the treated wastewater, Chinese state media – from national broadcasters to provincial-level platforms – have raised alarm, according to the Taiwan-based Information Operations Research Group.

Such messaging is amplified through YouTube channels, some of which came from content farms providing commentary on current affairs. They seemingly target Chinese users abroad, since the video hosting platform is blocked in the mainland.

The condemnation of Japan’s decision is less visible among the Hong Kong public, and the city has not banned Japanese seafood outright. But Hong Kong authorities have used similar language to the central government – describing the treated water as “nuclear-contaminated” – in press releases. Both governments have called Japan’s decision irresponsible, saying the discharge could impact the international community’s environment, ecology, and food safety.

Hong Kong’s restrictions include four landlocked places, raising questions about their scientific basis. Asked how the government decided to ban seafood from those regions, the Environment and Ecology Bureau did not respond directly.

“The discharge of such nuclear-contaminated water in such a large scale (130 Million cubic metres) and for such a long period (30 years) is unprecedented and there is no established international standards or practices for such discharge,” the bureau said.

The release of the treated wastewater came more than a decade after an earthquake in 2011 hit Japan’s Fukushima prefecture and damaged reactors at a nuclear plant. The country said it would discharge the water – which was used to cool the reactors – over a period of 30 years.

The water is being discharged in phases. The first was completed in mid-September, and the second phase of release began on Thursday.

Liu said that while he believed the Hong Kong government did have food safety concerns, it was “safe to say” that political factors were also at play. 

“[The Hong Kong government] faces tremendous political pressure to follow the central government more closely than before the social movement,” Liu said, referring to the protests and unrest in 2019. “Hong Kong [has to show] a kind of loyalty.”

In August, lawmakers and members of the city’s largest pro-establishment groupings – the Democratic Alliance for the Betterment and Progress of Hong Kong and the Federation of Trade Unions – held separate protests outside the Japanese consulate to protest Tokyo’s decision. Representatives had organised multiple petitions up to the day of the discharge.

They also called on the government to take Beijing’s lead and ban all Japanese seafood imports, not just those from certain regions.

Tetsuro Kobayashi, a former political communications associate professor at the City University of Hong Kong who is currently at Tokyo’s Waseda University, said the parties were merely echoing the central government. Both held similar rallies when US House Speaker Nancy Pelosi visited Taiwan, a trip that China’s foreign ministry said “seriously undermined” the country’s sovereignty, he said.

“I think the rallies [against Japan] were completely a performative act,” he added. “I don’t think there’s any scientific solid ground to ban [all seafood] from Japan.”

Lawmaker Bill Tang, a member of the Hong Kong Federation of Trade Unions who demonstrated outside the consulate, told HKFP he believed a complete ban on Japanese seafood would be “best.”

“We don’t understand how big the effect of the wastewater release would be. We need time to observe,” he said, adding that he did not think tests suggesting a negligible risk were comprehensive enough.

Asked if he thought the demonstrations were political, Tang said: “If that’s political, then I’d ask why the US government wants to ban Huawei.”

The lawmaker was referring to the US placing Huawei on a trade blacklist in 2019, meant to bar the Chinese smartphone company – which has become a symbol of the US-China tech war – from buying American software.

Tang also told HKFP he was not reducing his consumption of Japanese food. “I trust the government. If it’s passed [Hong Kong]’s radiation tests, I believe it is safe,” he said.

‘Very careful’

Restaurant owners with whom HKFP spoke said that while they saw a steep drop in diners right after the government enacted the restrictions, business had slowly been recovering.

Wu Chun-wa, a manager at a sashimi restaurant in the Shek Tong Shui neighbourhood, said he did not anticipate a serious hit to revenue in the long run.

“Diners are starting to come back,” Wu told HKFP in Cantonese after a busy Friday lunch hour in September. “Japan will discharge the water for 30 years. It’s not like people won’t eat Japanese food for 30 years.”

Restaurant owners said it was difficult to gauge the impact of the ban on food supply, because they ordered seafood from middlemen suppliers in Hong Kong. The options change daily and if certain items were unavailable, it was unclear whether it was because of the restrictions or for other reasons, such as there not being a fresh catch that day.

On the whole, they said their supply was not affected much, as most of the food they imported were from regions unaffected by the ban such as Hokkaido and Kyushu.

Kobayashi said he did not think most Hongkongers agreed with the government’s reaction to the wastewater discharge.

“The things that have transpired in the past three, four years in Hong Kong, people have a really good skill of discounting what the government is saying… they seek alternative information,” he said.

“It could be international media or the Japanese consulate,” Kobayashi said, referring to statements made by the Japanese consul-general that itwas “regretful” that Hong Kong authorities were referring to the treated waters as “contaminated.”

For Wu, the current restrictions were still acceptable as he could import the ingredients needed. But if the ban were to be expanded, as the pro-establishment groups had urged, Wu said his restaurant’s survival could be under threat.

“I think I’d gather with other restaurateurs and show my opposition. We’d have to make our own channels to speak out,” he said. “And we’d have to be very careful about our words.”

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Hong Kong’s privacy watchdog has warned the public against WhatsApp account hijacking after receiving several reports of data breaches within the past month.

The incidents, involving five social welfare services groups and schools, resulted in the exposure of 900 people’s personal data, the Office of the Privacy Commissioner for Personal Data (PCPD) said in a statement on Thursday. Among the details disclosed were the names and mobile numbers of service users, as well as those of students, students’ parents, and staff.

Ada Chung, privacy commissioner for personal data, said on RTHK on Friday that scammers were randomly selecting WhatsApp accounts to hijack, adding that the public should be more cautious when receiving messages from strangers and take measures to secure the privacy of their online accounts.

According to the PCPD, swindlers will often pose as a WhatsApp user’s friend or relative and ask them to forward the registration codes of their WhatsApp accounts.

They also use use fake WhatsApp websites to obtain mobile phone numbers and WhatsApp registration codes.

A new scamming technique called “SEO poisoning” has also emerged, police said on their Cyber Defender social media page. By improving search engine optimisation (SEO) or paying for advertising, scammers are able to get fake WhatsApp websites to the top of search results. If people scan the QR codes from these websites, their data will be breached.

The police warned the public to be aware of sponsored posts that appear at the top of search results, and to always call the person involved to confirm their identity if they receive messages from friends or relatives asking to borrow money.

Following incidents of WhatsApp account hijacking, PCPD suggested enabling two-factor authentication, regularly checking linked devices in WhatsApp settings, and logging out of any devices that are no longer in use.

Fraud-related crime surged

Hong Kong has seen 58,453 crime cases in the first eight months of this year, a 34.6 per cent increase compared with the same period last year.

The security chief Chris Tang said in late September that the rise was attributed to a 52.2 per cent year-on-year spike in fraud-related crime, including e-commerce and phone scams.

Phone fraud rose by 73.6 per cent compared with the same period last year, averaging 272 cases per month, Tang said.

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Firms long established in Hong Kong were among 30 “strategic enterprises” that finance chief Paul Chan has said were attracted to the city following the government’s move to draw international innovation and technology (I&T) companies. Most of them came from mainland China.

The city’s leader John Lee and Chan held a ceremony with executives from 20 of those companies on Wednesday, signing partnership agreements to mark both sides’ commitment to working together to boost the development of I&T in Hong Kong.

Among the 30 companies, nearly 80 per cent came from mainland China, Chan said when he met the press after the ceremony.

“We believe the companies should not be defined as where they were registered. Most companies present today are running international businesses, ” the financial chief said in Cantonese. “But if we classify them based on places of registration, around 70 to 80 per cent are mainland Chinese enterprises.”

Chan added that the government had not provided any special incentives for those companies, saying the advantages of the One Country, Two Systems model had attracted them to set up or expand their business in the city.

“When a company comes to Hong Kong under the framework of One Country, Two Systems, there is freedom of information flow. In the field of AI, data can flow freely,” Chan said in Cantonese.

The authorities did not reveal full list of the 30 strategic enterprises. Those attending Wednesday’s ceremony included mainland Chinese companies such as Lenovo, JD, Dmall, and Yuanhua Tech, as well as US-registered biopharmaceutical company Sirnaomics and multinational pharmaceutical company AstraZeneca.

Tech company Lenovo was listed in Hong Kong in 1994 and already has an office and stores in Hong Kong, while JD was listed in Hong Kong in 2020.

Chan said that not all 30 companies were newcomers to the city, but he did not reveal the percentage of those that had an existing presence.

100 out of 272

Chief Executive Lee announced during his maiden Policy Address last year that authorities would take a series of moves to attract capital and enterprises to Hong Kong, including setting up a new department Office for for Attracting Strategic Enterprises (OASES) and the Mutual Invest Fund to invest in potential companies.

Apart from OASES, InvestHK, a department for foreign direct investment, attracted 277 companies to develop their business in Hong Kong this year, Secretary for Commerce and Economic Development Algernon Yau said in mid-September.

The top three origins of those companies were mainland China, with 100 fires, the United Kingdom with 38, and the United States with 22, InvestHK said in response to enquiries by HKFP.

Invest HK did not reveal full list of the companies or their scale and industry sector, citing commercial confidentiality.

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By Christophe Vogt in Geneva, Switzerland

Concerns about China’s economic troubles are being exaggerated and Beijing still has plenty of fiscal headroom, the United Nations’s trade and development chief said Wednesday.

China’s ballooning property-sector crisis has seen several high-profile firms engulfed in debt, fuelling fears about the country’s wider economy and a possible spillover globally.

“We don’t share the very pessimistic projections about China,” said Rebeca Grynspan, head of the UN Conference on Trade and Development.

UNCTAD lowered its 2024 China growth estimates from five percent to 4.8 percent, citing weak domestic demand.

“It’s a slowdown but it’s not something like the very pessimistic reviews that we have seen in some of the publications,” Grynspan told a press conference for UNCTAD’s flagship annual economic forecasts.

“We think that there is a slowdown of growth in China, but not a dramatic crisis.”

Grynspan, a former vice president of Costa Rica, added that China “has a lot of fiscal space, unlike other countries”, so Beijing still has the means in hand “to be able to rebound and to support the economy”.

China’s property sector has long been a pillar of growth — along with construction it accounts for about a quarter of GDP — and it experienced a dazzling boom in recent decades.

But the massive debt accrued by its biggest players has been seen by Beijing as an unacceptable risk for China’s financial system and overall economic health.

Authorities have gradually tightened developers’ access to credit since 2020, and a wave of defaults has followed — notably that of property giant Evergrande.

Richard Kozul-Wright, the director of UNCTAD’s Globalisation and Development Strategies division, was even more critical of the prevailing pessimism than Grynspan.

“You could have expected a faster recovery in China this year, and that hasn’t happened because of a number of strong headwinds in the real estate market,” he said.

Furthermore, consumer demand in China has been much weaker than expected, Kozul-Wright added.

“But we certainly don’t agree with the almost hysterical reaction some of the Western press has adopted towards China.”

China eclipsing eurozone growth

UNCTAD’s report forecasts that China will grow 10 to 12 times faster than the eurozone this year, and “it continues to be a major contributor to global growth”, Kozul-Wright said.

In addition to the slowdown linked to weak domestic demand, China’s economic partners are also worried about upheavals shaking the property sector, which seems to many analysts to be reaching the limits of its economic model.

Chinese policymakers have come under intense pressure in recent months to unveil measures to support the property sector.

However, they are not keen on the type of bonanza unveiled in 2008 during the global financial crisis, meaning the government could struggle to hit its growth target of around five percent for this year.

Kozul-Wright said there were problems that China’s policymakers would have to address, because the five percent target “will be difficult to reach, unless they do employ fiscal instruments to boost growth”.

“So there are challenges — but not of the order of magnitude that we often read in the Western press.”

In its report, UNCTAD said world economic growth was projected to slow from three percent last year to 2.4 percent in 2023, with few signs of a rebound next year.

Institutional reforms of the global financial architecture, more pragmatic policies to tackle inflation, inequality and sovereign debt as well as stronger oversight of key markets are needed, it said.

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More than half of Hong Kong professionals have considered leaving the city in the near future, a survey conducted by a global recruitment consultancy has found.

The survey, which was conducted by consultancy Robert Walters, found that 52.3 per cent of professionals were considering leaving Hong Kong. More than 15 per cent of respondents planned to “leave as soon as possible,” while 36.7 per cent were considering a move within three to five years.

Among those who expressed an interest in working overseas, 51 per cent were millennials aged 27 to 42.

“The desire to work overseas and gain international experience is not new, especially among young people, but it’s concerning to see such a large percentage of Hong Kong professionals considering leaving the city,” John Mullally, managing director at Robert Walters Hong Kong said in a press release issued last Friday.

Mullally also said that Hong Kong employers should ensure they were “doing everything [they] can” to retain talent.

According to the survey, among those considering leaving the city, 96 per cent had already taken steps to prepare for work abroad. Forty per cent said they had applied for overseas roles, while 27 per cent had looked for internal transfer opportunities.

The survey interviewed 107 professionals in Hong Kong across various industries, including tech, finance, and construction.

Mullally said employers should better understand workers’ expectations to retain talent, especially in times of economic uncertainty.

“Moving abroad is not an easy decision,” Mullally said. “If what professionals want is to gain international experience for career growth or broaden their minds, there are employers that can facilitate this.”

Over the past three years, Hong Kong has seen exodus of local families and expats amid strict Covid-19 restrictions and following the establishment of national security law.

According to the 2022 policy address, the local workforce dropped by 140,000 from the second quarter of 2020 to the same period in 2022.

Responding to a lawmaker’s questions last November, Secretary for Labour and Social Welfare Chris Sun, said that most people leaving the local workforce were aged 25 to 39. Associate professionals, service and sales workers, and professionals experienced the greatest losses of manpower.

“One of the major reasons for the decline in local labour force over the past two years is the significant reduction in people inflow caused by the global epidemic,” the labour chief said. At the time, Covid-19 restrictions remained in place.

According to Britain’s Home Office, as of February, some 144,500 people had left Hong Kong and moved to the UK in the two years since London launched a visa route for holders of British National (Overseas) passports (BNO) in the wake of the national security law.

Among the BNO visa holders, 69 per cent were educated to degree-level or higher, and 39 per cent were professionals, the Home Office revealed in a survey released last February.

Most ‘top talent’ from mainland China

To try and plug growing gaps in Hong Kong’s shrinking local workforce, leader John Lee introduced a series of schemes to attract talent in his maiden Policy Address last year, including a new visa under the Top Talent Pass Scheme to attract top university graduates and high earners.

Launched on December 28 last year, the scheme had received over 41,000 applications as of July 31, among which 30,183 people have been granted visas, the Immigration Department told HKFP on Wednesday.

Ninety-five per cent of top talent visa holders were mainland Chinese, while only 1 per cent were from Canada and 1 per cent from the US.

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Shares in heavily indebted Chinese property giant Evergrande ended higher Tuesday as they resumed trade following last week’s suspension when the firm announced its boss was under criminal investigation.

The company has become a symbol of China’s ballooning property-sector crisis, which has seen several high-profile firms engulfed in a sea of debt, fuelling fears about the country’s wider economy and a possible global spillover.

Last Thursday, Evergrande said its founder and chairman Xu Jiayin was suspected of “illegal crimes” after reports he was being held by police. The same day, the firm’s stocks were suspended in Hong Kong.

When trading resumed Tuesday, its shares initially jumped more than 60 percent before paring much of their gains to close up 28 percent at HK$0.41. In July 2020 the stock had traded at more than HK$25.

“Looks like the gains are driven by speculative money,” Willer Chen, a senior research analyst at Forsyth Barr Asia Ltd, told Bloomberg.

“With this volatility, I really don’t know if there’s any chance for any proper investor to make money on this name.”

Stephen Innes of SPI Asset Management added: “The extent to which the rally sticks and even moves out of penny stock territory will significantly depend on whether a government policy is put in the offing.”

Evergrande estimated it had debts of US$328 billion at the end of June.

And the company warned last month it was unable to issue new debt because its subsidiary, Hengda Real Estate Group, was being investigated. Key meetings planned for debt restructuring were shelved.

The firm said it was “necessary to reassess the terms” of the plan in order to suit the “objective situation and the demand of the creditors”.

Its property arm missed a key bond payment last week, and Chinese financial website Caixin reported that former executives had been detained.

Given the changing status of the Evergrande crisis and the property market contributing to one-third of the country’s economic activity, Innes said he could not “see China sitting back and watching the real estate market crumble”.

“This extensive reliance on the property sector raises concerns about its potential impact on various related industries, ranging from construction materials like steel and cement to household appliances and other consumer goods,” he told AFP.

“Any disruptions or downturns in the property market can have far-reaching consequences for these allied industries.”

Vanished life savings

China’s property sector has long been a pillar of growth — along with construction it accounts for about a quarter of GDP — and it experienced a dazzling boom in recent decades.

However, the massive debt accrued by its biggest players has been seen by Beijing as an unacceptable risk for China’s financial system and overall economic health.

Authorities have gradually tightened developers’ access to credit since 2020, and a wave of defaults has followed — notably that of Evergrande.

The long-running housing crisis has wreaked misery on the lives of homebuyers across the country, who have often staked life savings on properties that never materialised.

A wave of mortgage boycotts spread nationwide last summer, as cash-strapped developers struggled to raise enough to complete homes they had already sold in advance — a common practice in China.

Policymakers have come under intense pressure in recent months to unveil measures to support the economy, particularly the property sector.

But they are not keen on the type of bonanza unveiled in 2008 during the financial crisis, meaning the government could struggle to hit its growth target of around five percent for this year. That would represent one of its worst performances in decades, excluding during the pandemic.

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“Hong Kong is back in business” has become a familiar phrase to fall from the mouths of government officials – uttered in at least 11 high-profile addresses since the beginning of the year, including five times in September alone. 

But for an elderly hawker in Yau Ma Tei, who cut a lonely figure along the northern end of Temple Street, business was far from back. His stall was the only one open at around 7 pm on a late-September Tuesday. Speaking to HKFP on condition that his name was not used, he said he was about to close for the day, hours earlier than he used to.

He had been selling wooden handicrafts and calligraphy brushes at Temple Street Night Market – described by travel guide Lonely Planet as a “tourist trap” and “Hong Kong’s liveliest market” – for about 40 years, reopening in 2022 after shuttering for much of the Covid-19 pandemic, during which visitors were essentially barred from the city. 

Things these days were different. Faded orange national and Hong Kong flags hung limply in the humid night air, and the once animated street was all but empty. He did not get many customers, the stallholder said, squatting on his plastic stool in front of an industrial floor fan. People seemed less keen to spend money, he added, and that included tourists. 

It was a similar story at a footwear store on Mong Kok’s Fa Yuen Street, better known as “sneaker street” and popular with a younger, historically cashed-up clientele. While a website dedicated to the area entreats anyone with “an itch to buy some athletic shoes at 11pm” to head over, the owner of three shops on the street said he had started closing at 9 pm.

Also speaking on condition of anonymity, he told HKFP he had cut staff from six to four during Covid so that he could stay open. But business was down by about 50 per cent compared to pre-pandemic levels, and quieter than it was while anti-epidemic restrictions remained in place. Once, customers would buy several pairs of shoes – now he was lucky if they bought one.    

In an effort to redress weak consumption and reinvigorate the city’s evening economy after Covid-related restrictions kept Hongkongers at home for the better part of three years, the government has launched a “Night Vibes Hong Kong” campaign. Much of it is centred around malls, pop-up night markets, and events already firmly entrenched in the city’s calendar – National Day Celebrations, the Hong Kong Wine and Dine Festival, and Halloween events at the city’s theme parks. 

It also runs from Mid-Autumn Festival, which this year fell in late September, until Lunar New Year in early February, traditionally the city’s busiest period for spending and for tourism. 

Speaking to reporters on September 19, Chief Executive John Lee said the campaign aimed to get people “out of their former habits of staying home early.”

“The whole intention and purpose of this Night Vibes Hong Kong programme is to develop a new culture for people to enjoy their night activities more,” Lee said, adding that “activities will mean more people; more people will mean more business and more consumption, which will be good for the overall economic development.”

The campaign kicked off with a weekend market hosted by the Avenue of Stars and shopping centre K11 Musea – both overseen by property and development conglomerate New World Development – along the Tsim Sha Tsui waterfront on September 22. In a statement, K11 hailed the first event as a success, with “thriving crowds craving for local specialties” resulting in a 30 per cent surge in footfall. There was no mention of an impact on sales. 

Among the local specialities on offer were quintessential Cantonese dishes such as siu mai, which went viral for costing HK$20 for four pieces – a lot by Hong Kong standards. The Fa Yuen Street sneaker store owner told HKFP he did not think the campaign would have a genuine impact, saying that you could buy such snacks on most Mong Kok streets but they did not bring people out.    

To make a real difference to the night economy, he suggested the government subsidise stores to stay open. He had started closing earlier during Covid because of a lack of customers and to save staffing costs, and now people were used to shops closing at a certain time and did not look to spend late into the evening. He called it a vicious cycle. 

‘Things have changed’ 

For much of three years, since Covid-19 was first detected in the city in January 2020 until Hong Kong’s border with mainland China was fully reopened in February, the city was subject to some of the most stringent pandemic restrictions in the world. 

While spared the strict lockdowns of cities like Shanghai or London, Hongkongers were limited in other ways, including in the number of people allowed to gather in public and around a table at a restaurant – both capped at two when outbreaks were at their worst. 

Many of the businesses associated with the night economy – bars, restaurants, karaoke lounges, massage parlours, nightclubs and live music venues – were forced to close completely or operate according to rigorous regulations and curtailed opening hours. Dinner service at eateries was banned for months on end. Several did not survive.

Dining out in large groups has long been part of Hong Kong’s food culture. “People used to go out 15 at a time, families, friends… but now, a lot of them go home at nine o’clock because they’re used to it,” Allan Zeman, the nightlife impresario behind Lan Kwai Fong, one of Hong Kong’s best known after-dark areas, told HKFP by phone in early September. 

“Covid changed a lot of habits for a lot of people… people are used to eating at home,” Zeman said. “Things have changed.” 

Syed Asim Hussain, founder of hospitality group Black Sheep Restaurants, echoed Zeman’s assertion that things were different. “The landscape has changed, it’s dramatically changed,” he told HKFP by video call in late September. “The message internally is we’re not holding our collective breath for things to go back to how they were in 2018.”

Without tourism, a pillar industry that in 2019 contributed around 3.6 per cent to Hong Kong’s gross domestic product and employed some 232,700 people, according to government figures, consumption in the city fell off a cliff in early 2020. Spending still lags behind 2019 levels, which were depressed during the protests and unrest that shook Hong Kong that year. 

Restaurant receipts have shown a more consistent rise, but likewise languish below the amount spent on eating out in 2019, with provisional data for the second quarter showing a decline from the first.  

Economic sociologist at the Hong Kong Polytechnic University Anson Au told HKFP that the impact of Covid on Hongkongers was “longitudinal.” 

Speaking via video call in September, Au spoke of the “disruption” many suffered. “If they had any spells of unemployment, which [many] did during that time, the financial effects are… long term, because you had to dip into your savings to basically recuperate, and that takes some time to bounce back,” Au said. 

The timing of Hong Kong’s reopening also played a role in people’s willingness to spend, he added. 

“We’re at this time when consumer confidence is a little bit lower than is normal because there is some concern about a recession on both sides of the aisle,” Au said. “We have concerns about slowdown in China, we have concerns about a slowdown in America, and whenever consumers are afraid about that, that usually shows up in discretionary spending – so that’s basically stuff that is a luxury but not a need.” 

Hongkongers have seemed keener to part with their money while overseas – another blow for domestic consumption. Even before the border reopened, a 2022 report from Mastercard Economic Institute highlighted a “sharp recovery in outbound travel” across the Asia-Pacific region, adding it was “notable” in Hong Kong, “where the demand has been growing since the implementation of the ‘0+3’ quarantine policy.”

Introduced last September, the 0+3 requirement replaced quarantine for arrivals with a complex series of nucleic and rapid tests, allowing Hongkongers for the first time in years to travel without having to undergo isolation upon their return.

The trend for overseas travel has continued since all border controls were dropped, with Hussain saying “revenge travel” – people’s desire to expand their horizons after not being able to do so – was evident. “Our guests that we would see a few times a week, they’re on the road all the time,” he said.

“The other thing that we’re seeing is guests even within our portfolio are trading down,” Hussain said, referring to the phenomenon of spending less than before.

Hongkongers are not the only ones taking advantage of the post-Covid opportunity to travel. However, the 1.3 million Chinese arrivals recorded in the city from January to July was still 41 per cent below 2019 figures for the same period, according to Hong Kong Tourism Bureau data, and international tourists were yet to make a noticeable return. 

Lan Kwai Fong’s Zeman said mainland Chinese tourists made up about 35 per cent of the area’s customers now, compensating for a drop in expatriates. “Our business has really been very good,” he said. 

He said that the type of mainland Chinese tourist had changed. “In the old days, all they wanted to do is go shopping in the shopping centres because the prices were a lot cheaper than in mainland China, especially for all the labels,” Zeman said. 

Deflated consumption trends in Hong Kong indicate that travellers, like locals, are less willing to spend. Retail receipts in almost every sector were down compared to before Covid, with clothing and department store expenditure particularly depressed. 

“Now that the tax [of luxury goods in mainland China] is almost equal to Hong Kong, they don’t come here. It’s a different kind of client who’s coming now. They’re much better dressed, they’re more sophisticated, they travel,” he said, adding that these tourists were looking for experiences unique to Hong Kong. 

Enjoying Hong Kong nightlife ‘prohibited’ 

The issue with that, said many involved in the city’s nightlife economy who spoke to HKFP for this article, was that Hong Kong’s unique culture had been eroded, and in some cases, commodified. 

Dai pai dongs – street food stalls that have served classic Hong Kong dishes for decades – are under threat because of government bureaucracy and no new licences have been issued since the 1970s, citing concerns over food safety and hygiene. Acknowledging their cultural importance, though, a dai pai dong will pop up at Wan Chai Harbourfront as part of the Hong Kong Night Vibes campaign offering “nostalgia” and “an enticing array of traditional Hong Kong-style street food,” according to a press release. 

Similarly, neon signs – visually synonymous with the city for many foreigners – have fallen foul of regulations and been removed, with some of what remains relegated to museums. Street performers, who drew crowds but were largely disliked by local residents and business owners, were popularly sent packing from Sai Yeung Choi Street in Mong Kok in 2018. Today the once pedestrianised area is quiet, both audibly and in terms of footfall.       

In Tsim Sha Tsui, street photographers who took tourists’ pictures against the backdrop of Victoria Harbour have mostly been moved on. Jumbo, one of Hong Kong’s floating restaurants fell victim to Covid restrictions then sank in the South China Sea in June 2022 as it was being towed away, sparking memes that it was a metaphor for Hong Kong’s future. 

Without even a hint of irony, the Government Records Service launched an exhibition on September 15 titled, “Yesterday’s Vacation in HK,” assembling images of bygone tourist attractions that “remain a crucial part of locals’ and visitors’ memory towards Hong Kong despite having become part of history.”

Becky Lam and Mike Watt, the duo behind popular Peel Street bar Shady Acres in Central, questioned why Hong Kong did not appear on any lists of the world’s best cities for nightlife. 

“Hongkongers are as creative, educated, cosmopolitan, youthful, and entrepreneurial as any other people in Asia, if not more so,” they said in emailed responses to HKFP, adding that the city had “the economic and human resources to sustain a world-class nightlife scene and then some. And yet why doesn’t it?”

The answer, Lam and Watt said, was simple. “Bit by bit, we’ve basically made key elements of nightlife all but illegal. We’ve hunted them to the point where they’re endangered or even extinct,” they said.  

“There are a wide variety of individual laws and regulations which, when you add them up, essentially prohibit the city from enjoying a world-class nightlife scene,” Lam and Watt added.

“Think of the ingredients that make up a thrilling nightlife destination: live entertainment, outdoor dining, street food, night markets, public performances, bars and clubs that seemingly never close, and so on. Offering these activities legally in Hong Kong is very challenging, frequently impossible, and therefore the opportunity to have those experiences is very limited relative to other major global cities.”

Lam and Watt said they were not advocating a “free for all” and regulations were essential. “It’s a balancing act.”  

Whether that act can be achieved by the government’s night economy push remains to be seen. 

Black Sheep Restaurants’ Hussain seemed unconvinced. “I feel like we’re playing someone else’s game, we’re not playing to our strengths,” he said, among which were “world class hospitality, excellent experiential dining.”

Zeman, whose Lan Kwai Fong was participating in the reinvigoration efforts by offering a series of performances and discounts mid-week , said: “We just have to keep on being innovative.” Night markets offering what he called “cheap, cheap, cheap stuff” were “not the answer to our problems,” he added. 

Hussain agreed that “cheap and cheerful” was not the way ahead. ” We’ve got to return back to things that made Hong Kong so glossy… We are a really dynamic city when we’re making space for arts and culture… those are the sort of events that I think we should be creating more space for.”

As for what was on the Night Vibes Hong Kong agenda, Zeman said: “I’ve talked to a lot of operators that are doing it because the government’s asked them to… I’m not sure it will bring a lot of business. It’ll bring more people out, for sure.” 

He continued: “I don’t know if that’s really going to bring out spenders, you know. A lot of these people, they might go to the shopping mall, they’ll look, but they’re not really going to be shopping.” 

Emigration, integration

After losing tens of thousands of residents to an emigration wave after the 2019 pro-democracy protests and the arrival of Covid-19 and the national security law the following year, recent mid-year population figures rose to 7.5 million. However, almost 250,000 of them were “mobile residents,” or those who do not live in the city full-time. 

The Hong Kong Public Opinion Research Institute last March found that 24 per cent of respondents planned to leave the city. An immigration route introduced for Hongkongers by the UK in January 2021 had resulted in 144,500 visas issued by February, and British magazine The Spectator reported in late September that 125,000 Hongkongers had entered the UK under the scheme thus far. 

Chinese University of Hong Kong cultural anthropologist Sidney Cheung pointed out that the decline in domestic spending was “much bigger than the percentage of people who are moving out,” a survey commissioned by Hong Kong-based digital life insurer Blue in 2021 highlighted other ways in which relocation plans may affect consumption habits. 

It found that Hongkongers on average saved a quarter of their monthly income, with two in five savers saying they intended to emigrate, many within five years. 

Zeman pointed to another factor at play in how and where residents splash their cash: Hong Kong’s role in the Greater Bay Area, a megalopolis and port hub that is critical to mainland China’s export industry spanning nine cities in Guangdong province, as well as Hong Kong and Macau. 

“On the weekend… a lot of locals are going to Shenzhen,” Zeman said, referring to the city just across the border to the north of Hong Kong. Connectivity and cost – both hotels and Michelin-starred meals were “half the price,” he said – were enticing Hongkongers to spend not only in Shenzhen, but Macau and Guangzhou, too. 

“It’s become what a future in the Greater Bay Area will be about,” Zeman said. “I think that’s really something we are living with at the moment.”  

Hussain, though, said he was “frustrated that we’re trying to sort of compete.”

“There is this narrative about how everyone’s going up to China for the weekend, and even if that’s true – and the numbers actually show that it’s true, if you look at the data I think some 300,000 people are going up north – even if that is true, I feel we’ve got to continue to play to our strengths instead of adjusting or pivoting to something that’s not really what makes Hong Kong special,” Hussain said.

“What’s really frustrating is… this sort of V-shape recovery post-Covid that places like London, Paris, Singapore, Tokyo, other tier-one restaurant markets, other tier-one cities [had]… didn’t happen for us,” Hussain added, referring to a quick, decisive economic recovery witnessed elsewhere after Covid restrictions were dropped. “We’re still kind of languishing.” 

As for whether the Hong Kong Night Vibes campaign will be successful, or if seasonal spending between the Mid-Autumn Festival and Lunar New Year will peak as per previous years, only time will tell. The Travel Industry Council has estimated that 1 million mainland Chinese tourists will visit the city during the Golden Week holiday in the first week of October.

“I think we need to know whether we are going to move back to the old model – like doing Mid-Autumn Festival or Chinese New Year at restaurants – or have we got used to the new model of ordering things and eating at home,” Cheung said. 

Au acknowledged he was “more optimistic” about tourism, saying that globally, “the big picture story for tourism is improving,” and adding that he did not see “any fundamental reason why Hong Kong would be left out from that.” 

However, he was less bullish on domestic spending, and whether changes catalysed by Covid could end up being permanent. 

“The short answer is, we’ll see,” Au said. “Because the pandemic did something to the economy altogether. That itself, the effects of that, remain to be seen. You know, we walked out of one of the most stringent lockdowns in the world, where we basically isolated ourselves from global flows of trade and capital, and that itself took a toll,” he said. 

“We will bounce back, but we’re also bouncing back at a time when there are recessionary fears in the world economy at large… whatever happens for night markets in Hong Kong, and tourism, and consumer confidence, will be driven by this bigger story.” 

Additional reporting: Kyle Lam

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Thousands of mainland Chinese visitors have flocked to Hong Kong as the city marked China’s National Day on Sunday, its first since all Covid-19 restrictions were lifted earlier this year.

Many arrived in Hong Kong from all over China on high-speed trains via West Kowloon Station on Sunday morning. However, several said they would only stay in the city for a short trip.

In the station’s arrivals hall, families, couples and individuals speaking Mandarin were seen ferrying luggage and seeking the quickest route to their destinations. Some declined to be interviewed by HKFP, saying they were just in Hong Kong for the day and did not have time to stop.

“We are visiting [Hong Kong] for two-to-three days,” a couple from Hangzhou, who gave their names as Elena Gao and Knight Li, told HKFP in Mandarin.

Another couple from Hangzhou, Susie Zhan and Wang, also said they would stay in Hong Kong for two days before travelling to Macau.

When asked about their plans in the city, both couples said they would rely on travel guides published on Chinese social media and e-commerce platform Xiaohongshu, which is increasingly popular among young mainland Chinese in search of novel locales to visit.

See also: Not Prada but Praya: Mainland Chinese tourists use social media to search for memorable Hong Kong locations

Gao and Li, said they believed that Hong Kong was similar to mainland Chinese cities in terms of prosperity.

“We are looking for a nostalgic feeling in Hong Kong,” said Gao, referring to the impression she had of the city while scrolling on Xiaohongshu.

Meanwhile, some mainland tourists were already leaving on Sunday morning, including Shenzhen residents Yu and Li, who were off to catch the train home after completing their three-day trip.

Slow recovery of tourism sector

Tourism representatives earlier estimated that around 1 million mainland Chinese tourists were expected to visit Hong Kong during the “Golden Week” holiday, which spanned eight consecutive days from Friday. It is also the first Golden Week since Beijing lifted all Covid-19 restrictions and overseas travel curbs.

Citing travel industry experts, local media reported that travellers were planning shorter trips compared with pre-pandemic levels. Roy Lo, secretary of TIC and an owner of a travel agency, told Sing Tao Daily in mid-September that mainland Chinese tourists’ spending had also dropped.

Lo said the decline was attributed to China’s economic downturn and the depreciation of China’s currency, the Yuan. He said he believed spending would increase again once the Yuan strengthened.

Hong Kong’s tourism sector – a pillar industry that contributed 3.6 per cent of the city’s gross domestic product and employed around 232,700 people in 2019, according to government figures – was particularly devastated by Covid-related travel restrictions, which essentially isolated the city for almost three years.

Since fully reopening its borders in February, visitor arrivals have risen, led by those from mainland China, but still lag behind pre-pandemic levels.

Hong Kong welcomed 4.07 million visitors in August, up 14 per cent from the previous month, according to provisional data from the Hong Kong Tourism Board (HKTB). In August 2018, the city saw nearly 6 million visitors. And even during the height of the pro-democracy protests and unrest in August 2019, the city welcomed 3.59 million arrivals.

The HKTB has blamed “currency exchange rates, airline capacity and the global economic outlook” as factors affecting the pace of the tourism reboot.

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By Holmes Chan

Heavily indebted property giant China Evergrande said Thursday its boss was suspected of “illegal crimes”, after trading of its shares was suspended earlier in the day.

The company announcement to the Hong Kong Stock Exchange comes a day after media reports that Xu Jiayin was being held by police.

No specific reason was given for the decision to suspend share trading, which also affected the company’s property services and electric vehicle units.

But late Thursday, the company said it had “received notification from relevant authorities” that Xu “has been subject to mandatory measures in accordance with the law due to suspicion of illegal crimes”, without giving further details.

On Wednesday, Bloomberg News reported Xu was being held under “residential surveillance” — which does not mean he has been arrested or charged with a crime — citing anonymous sources.

The firm has become the poster child for China’s growing property-sector crisis that has seen several high-profile firms engulfed in a sea of debt, fuelling fears about the country’s wider economy and a possible spill over globally.

It is just a month since the firm resumed trading following a 17-month halt caused by its failure to publish its financial results.

Evergrande estimated it had debts of US$328 billion at the end of June.

On Sunday, the company said it was unable to issue new debt as its subsidiary, Hengda Real Estate Group, was being investigated. And last Friday, it said meetings planned this week on a key debt restructuring would not take place.

The firm said it was “necessary to reassess the terms” of the plan in order to suit the “objective situation and the demand of the creditors”.

The company’s property arm this week missed a key bond payment, and Chinese financial website Caixin reported that former executives had been detained.

The crisis has deepened a broader slowdown in the world’s second-largest economy.

The property sector has long been a key pillar of growth — along with construction it accounts for about a quarter of GDP — and it experienced a dazzling boom in recent decades.

But the massive debt accrued by its biggest players has been seen by Beijing in recent years as an unacceptable risk for China’s financial system and overall economic health.

Contagion risk

Policymakers have come under intense pressure in recent months to unveil measures to support the economy and particularly the property sector.

However, they are not keen on the type of bonanza unveiled in 2008 during the financial crisis, meaning the government could struggle to hit its growth target of around five percent for this year. Even that would represent one of its worst performances in decades, excluding the pandemic.

Moody’s Analytics assistant director-economist Heron Lim told AFP: “If Evergrande is the tip of the iceberg and contagion risks materialise, a crisis of confidence in the onshore debt markets that have thus far avoided many of the defaults could erupt and lead to a severe downturn.”

Authorities have gradually tightened developers’ access to credit since 2020, and a wave of defaults has followed — notably that of Evergrande.

The long-running housing crisis has wreaked misery on the lives of homebuyers across the country, who have often staked life savings on properties that never materialised.

A wave of mortgage boycotts spread nationwide last summer, as cash-strapped developers struggled to raise enough to complete homes they had already sold in advance — a common practice in China.

Earlier this month, authorities in the southern city of Shenzhen said they had arrested several Evergrande employees and called on the public to report any cases of suspected fraud.

Another Chinese property giant, Country Garden, narrowly avoided default in recent months, after reporting a record loss and debts of more than US$150 billion.

“Markets are increasingly pricing in the possibility that the ultimate end-game is a much smaller property sector,” Louise Loo, lead China economist at Oxford Economics, told AFP.

“That likely means no private sector developer is too big or systemic to fail.”

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Hong Kong police have made three new arrests in the alleged fraud case linked to crypto exchange platform JPEX, as the number of reported victims rose to 2,407 with losses totalling almost HK$1.5 billion.

A total of 15 people have been arrested so far in connection with the JPEX “fraud” scandal, police said in a statement on Wednesday evening. The force received reports from 2,407 people who said they were victims in the case that saw losses totalling HK$1.499 billion.

“The investigation of the case is still ongoing, and the police do not rule out that more individuals may be arrested,” a Chinese-language press release from the police read.

The first round of arrests took place around two weeks ago when police detained four men and four women – aged between 22 and 52 – on suspicion of conspiracy to defraud. Among the arrestees who were released on bail without charge were social media influencers Joseph Lam and Chan Yee.

The arrested individuals were said to have used false advertising and unlawful means to lure victims to open accounts and make investments on JPEX. The crypto platform then subsequently imposed restrictions on withdrawal limits and raised the handling fee for withdrawal significantly, leaving customers unable to withdraw their virtual assets, police alleged.

Lam, an insurance agent and former barrister, told the press last Friday that he had closed his company and terminated the rental contract for his office. But he did not disclose any details about the JPEX investigation.

The influencer, who ran an over-the-counter crypto exchange store in the city, said on social media in July that he had applied to join JPEX as a partner. Investigations by local newspaper Ming Pao revealed that Lam had spoken at talks on crypto currency investment in July, during which he promoted the unlicensed platform and urged people to invest through it.

Police detained more people following the initial arrests, but did not specify whether they were also suspected of conspiracy to defraud, an offence punishable by up to 14 years of imprisonment.

On Wednesday, Secretary for Security Chris Tang said police were actively investigating the JPEX case and working closely with the Securities and Futures Commission. The financial watchdog said on Monday that it would reveal the names of cryptocurrency exchanges that have applied for trading licences, after it faced criticism from the industry and lawmakers over its handling of the alleged large-scale fraud case.

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The billionaire boss of beleaguered Chinese property developer Evergrande is being held by police, Bloomberg reported Wednesday, as the debt-ridden company continues to grapple with severe financial troubles.

Xu Jiayin, who is also known as Hui Ka Yan in Cantonese, was taken away by authorities earlier this month and is now being held, according to anonymous sources cited by Bloomberg.

He is being held under “residential surveillance”, the report said, which does not mean he has been arrested or charged with a crime.

Evergrande’s enormous debt has contributed to the country’s deepening property market crisis, raising fears of a global spillover.

The company’s property arm this week missed a key debt payment due, and Chinese financial website Caixin reported that former executives at the firm had been detained.

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The Hong Kong government has spent around HK$1 million taxpayer money this year on sponsoring journalists from mainland China and overseas to cover major events in the city, including the recent Belt and Road Summit.

The Information Services Department (ISD) paid for 15 journalists from mainland China, South Korea, Thailand, Indonesia, Poland and Hungary to cover the summit held on September 13 and 14, a government document supplied to the legislature showed.

Among them were reporters and editors, two thirds of them from mainland China.

The sponsored visits were part of a government-run programme to invite journalists from mainland China and overseas to visit the city and report on major events or activities. Foreign and mainland Chinese journalists were encouraged to “see for themselves the latest development in the city,” the ISD said last week in response to HKFP’s enquiries.

The department’s Overseas Public Relations Sub-division told HKFP last week that the programme has been running for years, but it had been suspended during the Covid-19 pandemic.

The journalists sponsored journalists mainly came from countries, regions or cities covered by the Hong Kong government’s offices overseas and in mainland China, the ISD said. The composition of the journalists in sponsored trips also varied based on the theme and nature of each trip, it added.

“ISD started inviting journalists to visit Hong Kong again this year as cross-boundary and global travel resumed normal,” the department said an emailed reply.

Asked how much the sponsored visits cost, the ISD said about HK$1 million has been spent on the programme so far in the financial year of 2023/24.

Sponsored journalist visits were usually tied to major events in the city, such as InnoEX and Digital Economy Summit, the Belt and Road Summit, and the Asian Financial Forum, ISD said. The department would arrange briefings, interviews and visits for the journalists during their stay in the city, it said.

“Depending on the nature and theme of the events, the ISD will invite appropriate media outlets and journalists to cover them,” the department said, without elaborating on how or why the 15 journalist journalists were selected to be sponsored.

According to figures supplied by the ISD, the government spent around HK$2.3 million on sponsoring journalist visits in 2017/18, while the spending fell to around HK$2 million in 2018/19. It dropped further in 2019/20, when around HK$1.4 million taxpayer was used on financing such visits.

According to the ISD’s financial estimates submitted in February, the department assisted three visiting journalists and film crews in 2020 and four the following year, before the number rose to 41 in 2022. The low figures were due to travel restrictions amid the Covid-19 pandemic, which essentially barred non residents from coming to the city, ISD said.

The department estimated at the time that it would assist 100 journalists and film crews in 2023.

Offering assistance to visiting journalists and film crews was listed as one of the indicators for evaluating the ISD’s performance in respect of its publicity work outside Hong Kong.

The Hong Kong government spent HK$191.1 million in 2022-2023 on public relations outside Hong Kong, which aimed to promote a “favourable image of Hong Kong” internationally and in mainland China. It earmarked HK$182.4 million for the 2023-2024 financial year.

At the summit held earlier this month, government officials from more than 10 countries, business leaders, and more than 35 state-owned enterprises were among the nearly 6,000 people who joined the event. It was the first Belt and Road Summit held since Hong Kong dropped its Covid-19 restrictions earlier this year.

Chief Executive John Lee said at the opening ceremony that this year’s event also commemorated the 10th anniversary of the Belt and Road Initiative, one of Chinese leader Xi Jinping’s signature foreign policies that has seen Beijing invest in infrastructure in more than 100 countries, many of them in the Global South.

Supporters of the strategy say it will help boost trade and raise gross domestic product in participating nations. Critics, however, have called it a Trojan horse designed to increase China’s influence.

“This year’s summit is, I’m pleased to note, the first in-person, face-to-face edition since we moved on from Covid. We are opened up, once again, to doing what we do best: creating a world of opportunity,” Lee said in a speech delivered in English at the summit.

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Hong Kong’s financial watchdog has said it will reveal the names of cryptocurrency exchanges that have applied for trading licences after meeting criticism from the industry and lawmakers over its handling of an alleged large-scale crypto fraud.

The Securities and Futures Commission (SFC) said in a press conference on Monday that it would publish lists of licensed virtual assets trading platforms (VATPs) , those applying for licences, and defunct ones. It would also issue a list of ” suspicious VATPs” on its website.

Only two exchanges – OSL and Hash Blockchains – have been granted licences so far.

HKBitEx, Hong Kong BGE, HKVAX and Victory have all applied for licences, although the SFC said the public should be aware that they were yet to be licensed.

Authorities initiated action against JPEX, an unlicensed crypto exchange platform that often engaged influencers to promote it, last Monday. Eleven people have been arrested so far, with the case ballooning to involve HK$1.49 billion in losses, police said on Monday.

Police have received at least 2,360 reports related to the case.

The SFC said during a joint press briefing with the police last Tuesday that it would not reveal the names of platforms that had applied for licensing, saying it was “not very appropriate.”

The watchdog also said it had issued a number of statements warning unnamed VATPs against “engaging in improper practices.”

The first SFC statement naming JPEX was issued on September 13, calling the platform unlicensed and saying that authorities had observed JPEX using “suspicious” methods to actively promoting its products through influencers.

Hong Kong introduced a new licensing regime for virtual asset trading providers on June 1, giving platforms with a “meaningful and substantial presence” before that date a one-year transition period to apply for licensing or close down.

Johnny Ng, a businessman and a lawmaker, said on Metro Radio last Saturday that it was too late for the watchdog to issue a statement in the middle of September. He said more investors “could have been saved” if SFC had alerted them earlier.

Jeffery Lam, a lawmaker and a member for executive council, said the incident reflected the government’s deficiency in regulating virtual asset platform and in educating investors.

Emil Chan, co-chair for the Hong Kong Digital Finance Association, said on RTHK on last Saturday that SFC did not fulfil its responsibility to protect investors.

SFC said on Monday that it would do more to educate investors and the public on virtual assets.

Influencer-backed platform

Before authorities launched their investigation, JPEX had actively promoted its products through influencers and stars, including Joseph Lam – an insurance agent and a former barrister, financial Youtuber Chan Yee, and actors Julian Cheung and Jacquelin Ch’ng.

Lam and Chan was among the 11 people arrested by police over conspiracy to defraud, while Cheung and Ch’ng were questioned by police.

Lam held a press conference with a lawyer at his home in Mid-Levels last Friday afternoon after being granted bail last Tuesday. He told reporters that he had closed his company and terminated the rental contract for his office, but refused to disclose any details about the JPEX investigation.

Aside from influencers and stars, JPEX also worked with many over-the-counter crypto stores to attract investors. Police also searched branches of over-the-counter stores Coingaroo and Coiner last Monday.

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By Sébastien Ricci

The EU’s trade chief told Beijing on Monday that tough security laws and a more “politicised” business environment have left European companies struggling to understand their obligations and questioning their future in China.

China’s refusal to condemn ally Russia for its war in Ukraine also poses a “reputational risk” for the world’s second-largest economy, Trade Commissioner Valdis Dombrovskis said in a speech at Beijing’s Tsinghua University.

He said transparency and openness were “a winning strategy in the long run”, at a time when trade tensions between the European bloc and China are mounting.

“China is navigating a challenging transition from an investment-led economy to a broad-based economy,” he said.

“For this it needs to remain open.”

Dombrovskis’s four-day trip, which kicked off Saturday, follows a report by the EU Chamber of Commerce that showed business confidence was at one of its lowest levels in years.

It also follows Brussels’ decision to launch a probe into Beijing’s electric car subsidies.

The investigation could see the EU try to protect European carmakers by imposing punitive tariffs on vehicles it believes are unfairly sold at a lower price.

China’s commerce ministry has condemned the EU’s “naked protectionism”, and said the measures “will have a negative impact on China-EU economic and trade relations”.

On Monday, Dombrovskis insisted China remained an attractive investment opportunity for European businesses.

“The EU and China both benefited immensely from being open to the world,” he said, adding that “European companies still want to invest here — but only if the conditions are right.”

From ‘win-win’ to ‘lose-lose’

Growing challenges for European business in China mean that “what many saw as a ‘win-win’ relationship in past decades could become a ‘lose-lose’ dynamic in the coming years”, the commissioner said.

A new foreign relations law aimed, in part, at combating foreign sanctions and a recent update to China’s tough anti-espionage regulations are of “great concern to our business community”, Dombrovskis said.

“Their ambiguity allows too much room for interpretation,” he warned.

“This means European companies struggle to understand their compliance obligations: a factor that significantly decreases business confidence and deters new investments in China.”

He also criticised China’s refusal to condemn Russia’s war in Ukraine, which he said “is affecting the country’s image, not only with European consumers, but also businesses”.

China has sought to position itself as a neutral party in the Ukraine conflict, while offering Moscow a vital diplomatic and financial lifeline as its international isolation deepens.

Chinese President Xi Jinping visited Moscow in March, while Russian leader Vladimir Putin is due to visit China next month.

“Territorial integrity has always been a key principle for China in international diplomacy. Russia’s war is a blatant breach of this principle,” Dombrovskis said.

“So it’s very difficult for us to understand China’s stance on Russia’s war against Ukraine, as it breaches China’s own fundamental principles.”

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Hong Kong influencer Joseph Lam, who was arrested this week in connection with an allegedly fraudulent cryptocurrency exchange platform, has said he ceased all operations with JPEX.

Lam held a press conference at his home in Mid-Levels on Friday afternoon, during which he told reporters that he had closed his company and terminated the rental contract for his office, but refused to disclose any details about the JPEX probe.

He was among 11 people arrested since Monday over conspiracy to defraud in the largest case of its kind in Hong Kong, involving HK$1.37 billion. Police have received at least 2,197 reports related to the case, with many people saying they had invested large amounts of money with JPEX that they had been unable to withdraw.

Lam was released on bail on Tuesday without charge.

An insurance agent and a former barrister, Lam ran an Over-The-Counter (OTC) crypto exchange store in Hong Kong. He said on social media in July that he had applied to join JPEX as a partner. He later confirmed he was a partner to Ming Pao, which found the influencer had been promoting the crypto platform and urging people to invest through it.

When asked about his involvement by journalists on Friday, Lam did not disclose any details apart from that he had ceased operations with the related business, closed down his company in Central and terminated the rental contract for his office.

Lam, who held the press conference with a lawyer and his girlfriend present, said he hoped to help the alleged victims but did not reveal how.

Police on Tuesday said they had frozen assets worth over HK$60 million linked to suspects.

Influencers and stars

Before authorities launched their investigation, JPEX had been actively promoting its financial products through influencers and stars.

Actors Julian Cheung and Jacquelin Ch’ng, who worked with JPEX to promote the platform, were questioned by police on Thursday.

JPEX user Chau told Commercial Radio on Thursday that key opinion leaders had frequently published posts promoting JPEX, and thus played a critical role in influencing investors. “They really attracted people to rush to the platform and trust it,” Chau said in Cantonese, adding that JPEX often claimed its product was “low risk and high return.”

Another alleged victim told am730 that he had invested US$450,000 (HK$3.52 million) into the platform since last year but was unable to withdraw all the money. He said he had started to pay attention to JPEX after an influencer promoted the platform.

Aside from influencers and stars, JPEX also worked with many over-the-counter crypto stores to attract investors. Police also searched branches of OTC stores Coingaroo and Coiner on Monday.

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Hong Kong’s Cathay Pacific has announced plans to adjust pilots’ pay to reduce losses resulting from roster changes amid complaints from aircrew about the airline’s hours-based contract and pay cuts.

Cathay said in a statement issued on Thursday that the move would “bring further stability” to pilots’ pay from January next year, compensating up to 50 per cent of any shortfall in hours that arose from changes to their duties, such as flight cancellations or delays.

Hong Kong’s flagship carrier has seen an exodus of pilots since it introduced new contracts for all aircrew during the pandemic in 2020 during the pandemic. HKFP has reported on an ensuing lack of morale sparked by significant cuts to the salaries of most pilots.

The new contract changed the way pilots were paid, moving from a guaranteed salary to a more flight hours-based system, at least 30 per cent of which was what the company called “a productivity pay.” According to the current contract, cancellations of flight duties result in pay losses.

Under the allowance being introduced in January, Cathay said that if a pilot’s flight hours were decreased due to “company-initiated roster changes,” the carrier would try to assign new duties to minimise the associated losses.

“If these hours cannot be replaced within the month, pilots will be compensated up to 50% of the shortfall in hours,” the company said.

Paul Weatherilt, chairman of the Cathay pilots’ union the Hong Kong Aircrew Officers Association and a captain with Cathay, told HKFP on Friday that the allowance would “have little effect on morale,” as it only offered to replace up to half of what was lost. But he added the “move seems like a small step in the right direction.”

Shortage in pilots

The union leader has been calling on the carrier to address pilot’s morale and raising concerns about what he said was a massive shortage of pilots, especially senior ones. 

According to union estimates, nearly 1,000 pilots had resigned over the past three years, most of whom were senior staff – experienced captains and those providing training to junior ones.

Jack Bennett, general manager aircrew at Cathay Pacific, told HKFP in August that the company had made a few changes this year to ensure competitive renumeration despite a severe hit during the pandemic.

Like many airlines globally, Cathay took a severe hit during the pandemic and accepted a HK$39 billion government-led bailout in June 2020, which the airline has to buy back in the form of preference shares.

In August, it posted its first half-year profit since pandemic, vowing to “share the success” with its staff. It has also set a target of restoring 70 per cent of its pre-pandemic passenger flight capacity by the end of this year, and 100 per cent by the end of next year.

Traffic figures released on Wednesday showed that Cathay had carried almost 1.8 million passengers last month, however that was still far below the 3 million passengers in August 2019.

Bennett said that Cathay had increased the basic salary by 3.3 per cent this year, while improving several pilot allowances, and offering a bonus of up to six-weeks’ pay. In 2022, the airline raised average pay for aircrew by 1.5 per cent and provided a discretionary bonus of up to one-month pay to eligible staff.

Cathay will also adopt a new calculation model for pilots’ working hours from October, the carrier announced in June.

The move came after pilots complained that their pay was largely based on actual time spent flying, which means they would be paid less if they arrived at destinations earlier than expected.

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By Holmes Chan

Crypto investor Jenny first learned about digital assets at a Hong Kong store that promoted cryptocurrency exchange JPEX in March — but by September she was among more than 2,000 “inexperienced” victims police said the platform had defrauded.

“Many of my classmates and friends went all in with our investments,” Jenny — not her real name — who lost “six figures” in Hong Kong dollars, told reporters.

“We never thought it would be a scam.”

The scandal surrounding JPEX has so far seen 11 arrests of company staff and affiliated influencers this week for “conspiracy to defraud”, with victims’ losses exceeding US$175 million.

JPEX’s downfall is casting a shadow over Hong Kong’s embrace of digital assets, with experts saying it has revealed regulatory gaps just three months after the rollout of rules requiring crypto exchanges to get licensed and meet investor protection standards.

The Securities and Futures Commission last week issued a warning against the platform, saying it falsely advertised itself as “licensed” and showed suspicious features like very high returns.

In response, JPEX halted its return-generating products and imposed sky-high fees on withdrawals.

Police on Monday conducted a high-profile raid of 20 premises — including crypto businesses and private homes — seizing cash, computers and luxury handbags.

Two telecommunications service providers confirmed Thursday they complied with police to block access to JPEX’s website.

Investigators are probing whether JPEX conspired with influencers and shops to play up the platform’s legal status and the value of JPEX-issued virtual coins.

“Victims often had a ‘fear of missing out’ mentality and impulsively believed in advertisements… (But) there is no such thing as a free lunch,” said senior superintendent Kung Hing-fun, describing the scale of the case as “shocking”.

JPEX — headquartered in Dubai according to its website — has blasted the regulatory action as “unfair” and “biased”.

It has not responded to multiple AFP requests for comment.

Rogue players

Crypto trading is outlawed in China but Hong Kong, which has its own financial regulations, received Beijing’s backing to pursue ambitions to become a digital asset hub.

In contrast, regulators in the United States have cracked down on the sector following the implosion of FTX last year, which lost investors billions and sparked a “crypto winter”.

Kristi Swartz, a fintech lawyer at DLA Piper, said Hong Kong faced a difficult balancing act as it needed to entice crypto businesses while installing guardrails to protect retail investors.

The licensing system enacted in June targets exchanges but excludes over-the-counter (OTC) brokerages — brick-and-mortar businesses outwardly resembling money changers — which Swartz called a “loophole”.

As for the enforcement actions against JPEX, Swartz said regulators were “a little bit heavy-handed perhaps, but I think it’s the right message to send”.

“This is an area where you’ve got a lot of rogue players.”

Some of the OTC businesses are endorsed by popular influencers and host classes where victims like Jenny are subjected to high-pressure sales tactics.

She said the store where she first learned about blockchain felt “like a big family”.

A Hong Kong crypto business owner who requested anonymity told AFP that JPEX offered hefty incentives to partner with OTC shops, including better exchange rates and subsidies for advertisement and rent.

Wake-up call

Regulators on Tuesday admitted they “do not have a number on how many OTC shops are actually operating in Hong Kong”.

Clara Chiu, a former director of licensing at the SFC, told AFP such shops were less popular when she drafted Hong Kong’s fintech rules in 2019, and so were not prioritised.

“It is time for us to consider stepping up and expanding our licensing and supervision regime to OTC crypto stores,” Chiu said, citing the stores’ more “aggressive” marketing lately.

Carlton Lai, head of blockchain and cryptocurrency research at Daiwa Capital Markets, said the scandal “could be a wake-up call” for authorities.

“More regulations are probably needed on OTC shops, from the standpoint of anti-money laundering and know-your-customer” — but governing influencers will be tough, he said.

Despite the crackdown, JPEX unveiled a “stakeholders dividend plan” on its website Wednesday that let users vote — and invest — in the company’s future.

“Even in the face of such oppression and unfair treatment, our platform will continue to operate as usual,” it said.

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The number of alleged fraud victims linked to crypto exchange platform JPEX has risen to 2,086, as three more people are arrested.

The case, which involves around HK$1.3 billion in losses, is reportedly Hong Kong’s largest financial fraud case, with some telecom firms now blocking the JPEX website – reportedly upon police request.

Three men, aged 25 to 32, were arrested over conspiracy to defraud on Wednesday, bringing the total number of arrests to 11, including two social media influencers – Joseph Lam and Chan Yee. The police told HKFP on Thursday that investigations were still ongoing and more arrests may be made.

The police have asked local telecom operators to block the website of JPEX, local media reported citing sources.

HKFP confirmed that the site cannot be accessed locally via telecom operators including SmarTone, CSL mobile and Three. The police said it would not comment on the operational details of investigations into individual cases, when approached by HKFP.

Financial watchdog – the Securities and Futures Commission (SFC) – urged investors to use licensed and regulated cryptocurrency trading platforms at a press conference on Tuesday.

Licensing for virtual asset trading

Hong Kong introduced a new licensing regime for virtual asset trading providers on June 1. However, the SFC said that operators who already had a “meaningful and substantial presence” before that date may enjoy a one-year transition period before applying for a licence – otherwise they must close down.

JPEX, registered in 2019, had continuously partnered with key opinion leaders and Over-The-Counter (OTC) crypto stores to promote itself as a licensed platform, Elizabeth Wong, director of licensing and head of the fintech unit at the SFC, said at the Tuesday press briefing.

However, the watchdog said that JPEX has not applied for a licence, nor expressed any wish to apply. The SFC issued a statement last Wednesday stating that the authorities were aware that JPEX had been using “suspicious” methods to promote its products through influencers, adding that the platform was unlicensed.

The platform promoted some of its financial products as offering an annual percentage yield of over 20 per cent, but many retail investors found themselves unable to withdraw virtual assets from their JPEX accounts, or had found that their account balance had “been reduced and altered,” according to the watchdog and Ming Pao.

Following reports of suspected fraud, police arrested six people on Monday and searched the offices and crypto stores of the two social media influencers.

 Branches of OTC stores Coingaroo and Coiner were also searched.

JPEX issued two statements on Wednesday and Thursday saying that the platform has been “impacted by an event involving SFC.” It said the company has “always hoped to hold rational consultations and communications with the SFC,” but their repeated efforts to seek guidance have often been “dismissed or sidestepped” by SFC.

HKFP has reached out to the SFC for a response.

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Hong Kong has lost its crown to Singapore in a global ranking of economic freedom released by a Canadian think tank on Tuesday. It said Beijing’s growing interference and eroding confidence in the city’s rule of law were reasons behind the decline, prompting the local government to slam the claims as “totally groundless.”

The Fraser Institute, a public policy think tank headquartered in Vancouver, said on Tuesday that Beijing’s crackdown on civil and political dissent in Hong Kong had taken a toll on the city’s economic freedom.

“This is the first year Hong Kong has not ranked number one on the index since its inception, and the expectation is that its score will only fall further as the Chinese Communist Party (CCP) continues to suppress freedom of all sorts,” said Fred McMahon, a resident fellow and holder of a research chair in economic freedom at the Fraser Institute.

But, in a Tuesday press release, the Hong Kong government dismissed the claims by the think tank as “factually wrong” and “totally groundless,” saying that it had been “fully, faithfully, and resolutely implementing the principles of ‘one country, two systems’, ‘Hong Kong people administering Hong Kong’ and a high degree of autonomy” based on the Basic Law, the city’s mini-constitution, and that “Hong Kong has entered a new stage of advancing from stability to prosperity.”

Hong Kong falls to second for the first time

The Fraser Institute published its latest annual Economic Freedom of the World report on Tuesday, which saw Hong Kong slip from its top position to second – the first time since the institute’s research began in 1996.

Singapore rose from second in the 2022 edition to top, out of 165 jurisdictions included in the report, edging out Hong Kong by a margin of 0.01 points.

The report examined regulations, freedom for international trade, the size of government, legal system and property rights, and sound monetary policies to measure people’s freedom to make their own economic decisions. The 2023 report is based on data from 2021, the last year with available statistics across jurisdictions.

Hong Kong saw a 0.25-point decline in regulation components, and a 0.20-point decline in legal system and property rights components, gaining an overall score of 8.55 out of 10 – a 0.40 drop from 2019 – as Singapore scored 8.56 to take the top spot.

The institute highlighted new barriers to entry, limits on the employment of foreign labour, and increases in the cost of doing business as reasons for the decline in regulation scores. Meanwhile, “increased military interference'” in the rule of law, and eroding confidence in the court and the judicial system were factors accounting for the lower scores in the legal sector.

“Hong Kong’s recent turn is an example of how economic freedom is intimately connected with civil and political freedom,” said Matthew Mitchell, senior fellow at the Fraser Institute. “The Chinese government’s aim was to crack down on political and civil dissent. These repressions… inevitably led to diminished economic freedom,” he added.

But the institute did not provide specific evidence of “military interference in the rule of law” in Hong Kong. McMahon, the resident fellow at Fraser, told HKFP that the institute had relied on the PRS Group, a geopolitical risk rating firm, for measuring the military’s involvement in politics.

“All our data are from third party sources so our judgments do not determine the scoring,” McMahon told HKFP by email. “I would only note their judgment seems consistent with publicly available information: the intimidating and greatly increased presence of the [People’s Liberation Army], directly under the control of the CCP, on the territory of Hong Kong.”

Government disputed claims

On Tuesday, a government spokesperson disputed the institute’s claims about new barriers to entry and limits on foreign labour employment as “unfound.”

“There is no change to the labour policy in [Hong Kong],” the spokesperson said.

The spokesperson also defended Hong Kong’s legal system and judicial independence and said that fundamental rights and freedom – including equality before the law – are guaranteed in the Chinese Constitution and the Basic Law.

“Under Article 14 of the Basic Law, military forces stationed by the Central People’s Government in the [Hong Kong] for defence shall not interfere in the local affairs,” the spokesperson said, adding that the Garrison Law also forbids any military interference in the city’s affairs.

The spokesperson added that the 2023 report had made “biased” comments about the implementation of the national security law, and the city had upheld national security as a top priority under the One Country, Two Systems framework.

The 2023 report mentioned the security law as part of Beijing’s economic and political crackdown in Hong Kong.

In June 2020, Beijing inserted national security legislation directly into Hong Kong’s mini-constitution – bypassing the local legislature – following a year of pro-democracy protests and unrest. It criminalised subversion, secession, collusion with foreign forces and terrorist acts, which were broadly defined to include disruption to transport and other infrastructure. The move gave police sweeping new powers, alarming democrats, civil society groups and trade partners, as such laws have been used broadly to silence and punish dissidents in China. However, the authorities say it has restored stability and peace to the city.

In 2021, Hong Kong was axed by Washington-based public policy group Heritage Foundation from its economic freedom index after topping the chart for 25 consecutive years, as the group said Hong Kong’s economic policies “ultimately controlled [by] Beijing.”

Switzerland ranked third in the 2023 report, with the US in the fifth place. Taiwan ranked 11th, Japan 20th, and China 111th.

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Hong Kong’s financial watchdog has urged investors to use licensed and regulated cryptocurrency trading platforms amid a major fraud investigation into an unlicensed virtual asset platform involving around HK$1.2 billion in losses.

Eight people – four men and four women aged 22 to 52 – were arrested on Monday over allegations of conspiracy to defraud linked to crypto exchange JPEX, police said in a joint press conference with the Securities and Futures Commission (SFC) on Tuesday. More than 1,600 complaints had been received, with one person suffering a loss of HK$40 million, they added.

The press briefing came after Chief Executive John Lee said on Tuesday that investors should only trade on regulated virtual asset platforms. The government would step up efforts to “educate investors” about the risk of investing on unlicensed platforms, Lee told reporters ahead of his weekly Executive Council meeting.

False and misleading claims by JPEX

The arrests on Monday followed a warning statement by the SFC last week, which identified JPEX as operating without a license and making false or misleading claims suggesting it had applied for a licence.

JPEX has continuously partnered with key opinion leaders and over-the-counter (OTC) operators to actively promote itself to the Hong Kong public as a licensed platform, Elizabeth Wong, director of licensing and head of fintech unit in the SFC, said in the joint press briefing.

The case was referred to the police for investigation, and complaints were received from investors who were unable to cash out their assets from accounts maintained with the platform, Fanny Kung Hing-fun of the fraud division, commercial crime bureau, said.

Police seized HK$8 million in cash, as well as computers and phones, from 20 locations in Hong Kong during the course of their investigation on Monday. Over HK$15 million worth of assets were also frozen.

Among those arrested were owners and staff of OTC shops and social media influencers, including Joseph Lam Chok and YouTuber Chan Hoi-yee, according to local media reports.

“Most victims were inexperienced and ignorant about virtual assets,” Kung said in Cantonese. “Investors must have adequate knowledge of investment products.”

JPEX posted an announcement on its website on Wednesday refuting the accusations by the SFC and stated that all platform operations were normal.

Only 2 licensed platforms operating

Hong Kong introduced a new regulatory regime for virtual asset trading platforms in June, following plans to become a regional digital asset hub.

Under the new law, virtual asset trading platforms operating or actively marketing their services in Hong Kong are required to be licensed and regulated by the SFC. But platforms which existed before the amendment of the law could be given a “one-year” grace period to operate without a license.

So far only two platforms are listed on SFC’s licensed virtual asset trading platforms.

When asked by a reporter during the joint press conference, Wong said the SFC could not provide the numbers of failed and ongoing license applications.

Wong said that the SFC did not keep statistics on the number of OTC shops in Hong Kong, and that the SFC had no power to regulate them under the current legal framework, adding that the watchdog was aware of their operations.

Branches of OTC shops, including Coingaroo and Coiner, were closed on Tuesday.

In a Chinese-language social media post on Monday night, Coingaroo said it would close until further notice to aid police with their investigation.

Addressing reporters on Tuesday morning, Lee said he was concerned by the incident and warned investors of the risks associated with trading on unlicensed platforms.

“That is why we will be doing more public education for investors to know the risks, how investment operates on such platforms,” Lee said.

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The European Commission’s digital chief said Tuesday that murky Chinese laws were fuelling concerns among foreign firms in the country, following discussions with Beijing officials about critical areas such as AI and data governance.

Vera Jourova, who is also the commission’s vice president, made the comments after talks on Monday with Chinese counterparts including Vice Premier Zhang Guoqing in the second “High-level Digital Dialogue” between the two sides.

Among the concerns Jourova said she had heard about from European businesses in China was the “unpredictability of the decisions and interpretation of the laws by the regulators”.

Beijing has recently implemented expansive new regulations covering cybersecurity, counterespionage and data management, citing the need to shore up national security measures.

But the new regulations have worried some foreign firms, unsure of how their enforcement will affect their business operations in the world’s second-largest economy.

“First thing is the not very clear wording of the laws, especially missing definitions of, for instance, what is ‘important data’, and what… the companies could be confronted with when transferring the data outside,” Jourova told reporters.

Jourova also criticised the “lengthy procedures” foreign firms must undergo to conduct business in the country.

“I think it’s 45 days for one process — it lasts very often a much longer time,” she said.

“Nobody is criticising the Chinese laws, we just want them to be clear and relatively easy to comply with.”

The EU official and Czech politician’s visit to Beijing comes just days after Brussels announced a probe into Chinese subsidies for electric vehicles, which it said had resulted in unfair competition.

See also: Advisory firms on alert after China raids and arrests, as experts say data crackdown will hinder int’l investment

China warned that the investigation would have a negative impact on its trade relations with the bloc, accusing it of “naked protectionism”.

Jourova said she emphasised during her meetings with Chinese officials the concerns of European firms over increasingly difficult business conditions in the country, as well as the implications of AI on human rights in the country’s northwestern Xinjiang region.

China is accused of incarcerating more than a million Uyghurs and other Muslim minorities in a network of detention facilities across Xinjiang, although Beijing insists its actions have helped to combat extremism and enhance development.

Deteriorating ties between China and the West in recent years have given rise to concerns in Brussels over the potential vulnerabilities posed by AI, misinformation, and data security.

European Commission President Ursula von der Leyen has called on the EU to define its own approach to Beijing, although some of Europe’s larger powers want to be cautious to avoid severing business ties.

“The EU does not seek to de-couple from China,”  Jourova said.

“But we need to improve our resilience and competitiveness by de-risking our economic interdependencies and advancing our technology security agenda in order to remain competitive and protect our essential European interests.”

China has pushed back on the “de-risking” strategy espoused by Washington and its European allies.

A foreign ministry spokesperson said in June that “anyone seeking to ‘de-risk’ against China is getting their target wrong and will only create real risks”.

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Four men and two women have been arrested on suspicion of conspiracy to commit fraud linked to the unlicensed cryptocurrency exchange platform JPEX, after Hong Kong police received reports from 1,480 people related to the case.

The case under investigation involved over HK$1 billion, the police told HKFP on Monday.

Among those arrested were influencer and insurance agent Joseph Lam and investment YouTuber Chan Yee, also known as Chan Hoi-yee, according to photographs published in local media. Both ran over-the-counter (OTC) crypto exchange stores in Hong Kong. Lam said on social media in July that he had applied to join JPEX as a partner, later confirming that he was a partner to Ming Pao.

Local media reported that police searched Lam’s office and OTC store in Central and Chan’s office and OTC store in Tsim Sha Tsui on Monday. Branches of OTC stores Coingaroo and Coiner were also searched.

Hong Kong introduced a new licensing regime for virtual asset trading providers on June 1, with market watchdog the Securities and Futures Commission (SFC) providing operators that had a “meaningful and substantial presence” before that date a one-year transition period to apply for licensing or close down.

JPEX, a new platform, was reportedly promoting its products and operating in Hong Kong without having applied for licensing.

In July, Lam held several lectures on investment and recommended that audience members invest via JPEX, encouraging people to join the platform “before full regulation and licensing.” Ming Pao also reported that many users encountered difficulties in withdrawing assets from JPEX.

SFC said in a bilingual statement last Wednesday that authorities were aware that JPEX had been “actively promoting” its products through influencers.

“The SFC wishes to make it clear that no entity in the JPEX group is licensed by the SFC or has applied to the SFC for a licence to operate a VATP in Hong Kong.”

The watchdog also said it had received complaints from retail investors who were unable to withdraw virtual assets from their JPEX accounts, or had found their account balances “having been reduced and altered.”

The SFC then transferred the case to the police for further investigation.

JPEX froze transactions on Monday, saying in a statement that this move was due to “third-party market makers” restricting liquidity. It added that JPEX was trying “to resolve the liquidity shortage.”

“During this period, our dedicated withdrawal team responsible for handling emergency withdrawal requests will continue to prioritize users’ needs,” the company said.

Affected users have formed online support groups, and lawmaker and businessmen Johnny Ng held a press conference with two people impacted by the case on Monday.

Ng said he had received more than 30 calls for assistance linked to JPEX, involving HK$100 million.

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The Hong Kong government has attracted 272 companies to develop business in Hong Kong this year, the city’s commerce secretary has said.

Speaking on a Commercial Radio show on Saturday, Secretary for Commerce and Economic Development Algernon Yau said foreign companies that left Hong Kong during the pandemic “have all returned” to the city, adding that it showed foreign capital had regained confidence in the city.

Yau did not provide details about the 272 companies, such as where they were headquartered or the size and scale of their operations. He said the authorities aimed to attract 1,100 companies to Hong Kong in the coming three years.

HKFP has reached out to the Commerce and Economic Development Bureau for a response.

Hong Kong saw an outflow of expats and foreign companies amid strict Covid-19 restrictions from 2020 to 2022 and following the establishment of the national security law.

According to Census and Statistics Department, the number of regional headquarters set up in Hong Kong by US, Japanese, British and European companies all decreased in 2022 compared to 2019.

The number of French companies with regional headquarters in Hong Kong fell from 96 in 2019 to 80 in 2022, recording the largest decline of 16.7 per cent. Reginal headquarters set up by US companies decreased from 278 in 2019 to 240 in 2022.

In the same time period, mainland Chinese companies have opened more regional headquarters in Hong Kong, increasing from 216 in 2019 to 251 in 2022.

In recent years, Hong Kong has seen a decrease in the number of foreign affiliated companies, which the government defines as those from mainland China and overseas. In 2022, there were 8,978 companies holding regional headquarters, regional offices and local offices in the city, down from 9,040 in 2019.

The authorities have launched a series of initiatives to attract foreign companies, including establishing an Office for Attracting Strategic Enterprises (OASES) in December last year. The office aimed to attract “representative and high-potential strategic enterprises” to Hong Kong.

Commerce bureau chief Yau said on Saturday that OASES has reached out to around 200 “strategic enterprises” this year, among which 25 companies would soon set up local offices in Hong Kong.

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Hong Kong has launched a nightlife campaign to “boost its night-time economy”, financial chief Paul Chan had said, amid a weaker than expected economic growth outlook.

“This event was led by the Hong Kong government, and by joining forces with all walks of society, we hope to boost night-time business, “Chan said in Cantonese during the opening ceremony of the “Hong Kong Night Vibes” campaign on Thursday.

The campaign will involve night markets, food stalls, movie screenings and live music shows during weekends on both sides of Victoria Harbour, including at Wan Chai harbourfront, Sai Wan harbourfront and Kwun Tong harbourfront, and Avenue of Stars.

Eighty shopping malls across the city will also host events and activities at night in the coming few months, with some extending opening hours until 11pm. The city’s theme parks, Ocean Park and Disney, also announced they would offer more evening activities and extend their opening hours on specific days.

The city’s sole rail transport provider, the MTR, would support the campaign, too, offering passengers a free trip after taking five journeys departing after 10.30 pm. Each passenger can enjoy up to 4 free trips.

Held at the M+ museum in the West Kowloon Cultural District, the ceremony presented various performances, including a lion dance and a group dance in the dark, following by eight children introducing their favourite food and activities during night time.

Over the past month, Chief Executive John Lee, top officials and pro-establishment figures have been promoting the concept of “night markets” and the “night-time economy,” proposing various ideas to encourage after-dark consumption.

Campaigning amid weak recovery

Lee has spearheaded two campaigns to try and make the city “alive and active” since all Covid-19 restrictions were lifted and the borders reopened at the beginning of the year.

The “Hello Hong Kong” campaign, introduced in February, spent at least HK$2 billion to revive tourism, including giving away 500,000 plane tickets and welcome gifts to overseas visitors.

The authorities launched another campaign, “Happy Hong Kong,” in April to boost local consumption in shops and restaurants. Movie tickets were offered to Hongkongers for HK$30 and food fairs were organised across the city.

However, the city’s economy has seen a slow post-pandemic recovery. In July, Hong Kong recorded 3.59 visitors, nearly 31 per cent less than the number of visitors in July 2019.

In June, the value of retail sales was the lowest for the month since 2011, excluding 2020 to 2022, when the city was under pandemic-related restrictions.

In August, the government narrowed its growth domestic product growth outlook in 2023 from 3.5-6.5 per cent to 4-6 per cent. According to economists surveyed by Bloomberg on Monday, Hong Kong’s GDP would expand 4 per cent this year, down from previous estimates of 4.6 per cent.

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