Politics

Japan’s representative to Hong Kong has said his consulate is making “steady progress” in improving ties with the city, while noting the absence of top local officials at a celebration of the emperor’s birthday amid tensions between Tokyo and Beijing.Jun Miura, the country’s consul general to the city, on Thursday expressed his thanks for the friendship between Japan and Hong Kong at an event marking the 66th birthday of Emperor Naruhito.“While we do not have a guest of honour per se, I consider you all to be our guests of honour,” the envoy said in a speech.Last year’s reception was attended by Deputy Financial Secretary Michael Wong Wai-lun, who at the time praised Miura for his fluent English and celebrity-like looks.Former leader Carrie Lam Cheng Yuet-ngor was also spotted among last y...

US Treasury Secretary Scott Bessent said he “would not be surprised” if China is already looking into ways to challenge the US’ pre-eminence in digital assets, given Hong Kong's efforts to develop the industry.When testifying before the Senate Banking Committee on Thursday, Bessent said that there are “lots of rumours of Chinese digital assets” possibly being backed by something other than its currency yuan, such as gold, but that the US could not confirm such claims.“We don’t know that for sure,” Bessent said, answering Wyoming Senator Cynthia Lummis’ question about whether China is trying to use digital assets and blockchain to “build an alternative to American financial leadership”.“They have a very large sandbox in Hong Kong, and the [Hong Kong Monetary Authority] is actively travellin...

Hong Kong’s innovation and technology (I&T), intellectual property and investment promotion departments will receive budget increases of at least 10 per cent in the coming financial year, even as the government moves to curb recurrent spending, while the environmental branch and public broadcaster face sharp cuts of 70 and 28 per cent, respectively.The Home and Youth Affairs Bureau will expand its civil service workforce by 16 per cent in 2026-27 – the largest increase among all departments – even as the overall civil service headcount shrinks by 2 per cent.Financial Secretary Paul Chan Mo-po announced in his annual budget on Wednesday that the government’s recurrent expenditure would be cut by 2 per cent in 2026–27, even after the city’s coffers returned to surplus.However, the indivi...

After consecutive operating deficits, the operating account has returned to profit. Simultaneously, the consolidated account records a HK$2.9 billion (US$370.6 million) surplus for 2025/26, signalling stability. This turnaround is driven largely by a buoyant stock market and a stabilising property sector, reviving stamp duty revenues and investment income.This provides fiscal space for the government to put money back in Hongkongers’ pockets. Marking the first adjustment to various tax allowances since the 2016/17 financial year, this move fully shows the government’s resolve and commitment.Increasing the basic and married person’s allowances by 10 per cent helps shield the workforce from the cumulative inflation of the past decade. Additionally, doubling the ceiling of the one-off tax red...

Panama is aiming to mitigate geopolitical risks and respond to US pressure by adopting a multi-operator model for its strategic canal after nullifying the concession granted to Hong Kong’s CK Hutchison to operate two of the ports, analysts have said.Panamanian President Jose Raul Mulino was reported to have vowed on Thursday that his country would “never again” grant concession contracts to run the Balboa and Cristobal terminals at each end of the Panama Canal to a single company.The country’s Supreme Court of Justice last week stripped the rights from the Panama Ports Company (PPC), a subsidiary of the conglomerate led by Hong Kong billionaire Li Ka-shing’s family.The PPC has managed the ports since 1997 and renewed the contract for 25 years in 2021.While Beijing slammed the court’s decis...

A district councillor who illegally parked in Hong Kong has been warned to adhere to higher standards, a minister has revealed.Secretary for Home and Youth Affairs Alice Mak Mei-kuen told reporters on Saturday that the Kwai Tsing district officer had reminded Chau Kit-ying verbally and in writing to act in accordance with the public’s expectations.“We demand that each district councillor perform their duty responsibly, and speak and act prudently,” Mak said. “Their actions must fulfil the public’s expectations of the district council and its councillors.”Chau apologised after a photo showing her black car parked in a fire exit lane at Shek Foon House of Shek Lei (II) Estate went viral.Kwai Chung Media, a district-based community news platform, reported that some neighbourhood residents had...

Hong Kong’s CK Hutchison could find it hard to secure compensation from Panamanian authorities over their decision to nullify its port operations, legal experts have said, noting that the arbitral tribunal it engaged lacks enforcement power and the issuance of damages may depend on the country’s own courts.The conglomerate, led by tycoon Li Ka-shing’s family, said on Wednesday that its subsidiary, the Panama Ports Company (PPC), commenced arbitration against Panamanian authorities a day earlier.The move was in response to a judgment of the country’s top court that declared PPC’s concession to operate two Panama Canal ports to be “unconstitutional”.CK Hutchison said the decision to start arbitration was based on the concession contract and the Rules of Arbitration of the International Chamb...

At this time of year, Financial Secretary Paul Chan Mo-po’s top priority is finalising the Hong Kong government’s budget for 2026-27, balancing requests for incentives and welfare against calls for a return to fiscal prudence.For decades, budget speeches have followed a familiar structure: a review of past performance, near- and medium-term forecasts, support measures for industries and social services, a report on the government’s fiscal position and financial estimates for the coming year. The public typically looks for “sweeteners” – tax rebates or subsidies – and for any fee or duty adjustments to meet policy goals.This year, however, Chan should enrich that format by explaining the macroeconomic rationale behind Hong Kong’s new industrial-policy direction: large-scale investment in in...

Hong Kong’s U-turn on its seat belt rule for buses is a sobering reminder to lawmakers that they must meet higher standards even under the “executive-led” governance model recently underlined by Beijing, according to several policy experts.They said some lawmakers had been complacent, prioritising speed over efficacy in policymaking in a “patriots-only” legislature with no opposition presence, and would have to share the responsibility for administrative missteps.Xia Baolong, director of the Hong Kong and Macau Affairs Office, said in a seminar last month that the city’s executive, legislative and judicial branches should perform “on the same stage” with “coordination and cooperation” as key principles of its executive-led system.He stressed that the executive leadership required active su...

To err is human. But when an error funnels through a system that has safeguards, the error is supposed to be caught and rectified. Checks and balances are written into the Basic Law, Hong Kong’s mini constitution.Hong Kong has an executive-led system, which means it is the executive branch’s job to formulate and implement policies, as well as “draft and introduce bills, motions and subordinate legislation”. The legislature’s job is “to enact, amend or repeal laws”.Therefore, lawmakers are the gatekeepers when it comes to ensuring the laws they enact are good, not only in spirit but in the letter of the law. Regardless of intentions, legislation must be worded correctly, at the very least.So what has transpired over something as simple as requiring people to wear seat belts on buses proves ...