Calendar of Events of Significance for the Hong Kong Economy in 2020 1 Jan in Order to Ease the Financial Burden of Public Renta
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Calendar of Events of Significance for the Hong Kong Economy in 2020 1 Jan In order to ease the financial burden of public rental housing (PRH) tenants, the Government paid two months’ rent in total for lower income tenants living in PRH units of the Hong Kong Housing Authority (HA) and the Hong Kong Housing Society in January and July 2020, benefiting about 790 000 households. The Government enhanced the non-means tested Public Transport Fare Subsidy Scheme by increasing the subsidy rate from one-fourth to one-third of public transport expenses in excess of the specified amount, and raising the subsidy cap from $300 to $400 per month. 7 Jan The Securities and Futures Commission (SFC) issued guidance to clarify the regulatory obligations of private equity firms and family offices which conduct business in Hong Kong. 13-14 Jan The Government and the Hong Kong Trade Development Council (HKTDC) co- organised the 13th Asian Financial Forum, with the theme “Redefining Growth: Innovation ∙ Breakthrough ∙ Inclusiveness”, discussing global economic trends, developments in financial innovations and investment opportunities. The event attracted over 3 500 participants, including government leaders, regulators, financial and business leaders and investors from all over the world. 14 Jan The Government committed to providing 15 000 transitional housing units within a three-year period from 2020-21 to 2022-23. 17 Jan The Free Trade Agreement (FTA) and the related Investment Agreement (IA) between Hong Kong and Australia came into force. 20 Jan To enhance support to Hong Kong enterprises in the face of economic downturn, the Government implemented a series of enhancement measures to the SME Export Marketing Fund (EMF) and the Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund), including doubling the cumulative funding ceiling per enterprise under the EMF and the BUD Fund to $800,000 and $4 million respectively, providing applicants with an option to obtain up to 75% of the approved government funding as initial payment, as well as extending the geographical coverage of the BUD Fund to all economies with which Hong Kong has signed FTAs. The Banking Sector SME Lending Coordination Mechanism convened by the Hong Kong Monetary Authority (HKMA) held its second meeting, with representatives from the Hong Kong Association of Banks (HKAB), ten major banks and the HKMC Insurance Limited (HKMCI). The meeting followed up on the progress of the measures proposed at the first meeting, and discussed other ways to support small and medium-sized enterprises (SMEs). 21-25 Jan The Chief Executive (CE) visited Switzerland to attend the World Economic Forum (WEF) Annual Meeting, during which she addressed different sessions organised by the WEF and other organisations, and met with leaders of various governments, the WEF and the business sector. 1 23 Jan Hong Kong and Mexico signed an Investment Promotion and Protection Agreement (IPPA). The agreement would enhance investors’ confidence, expand investment flows, and further strengthen the economic and trade ties between the two places. 25 Jan CE activated the Emergency Response Level, the highest level, under the Preparedness and Response Plan for Novel Infectious Disease of Public Health Significance, and ever since chaired the inter-departmental Steering Committee cum Command Centre to formulate and implement strategies and measures against the COVID-19 epidemic. 3 Feb The Government released the advance estimates on Gross Domestic Product (GDP) figures for the fourth quarter of 2019 and the whole year of 2019. Real GDP decreased by 2.9% in the fourth quarter of 2019 from a year earlier, as the local social incidents with violence weighed heavily on economic sentiment as well as consumption- and tourism-related activities. For 2019 as a whole, real GDP decreased by 1.2%. 14 Feb MTR Tuen Ma Line Phase 1 was commissioned, extending the Ma On Shan Line (MOSL) to three new stations, namely Hin Keng Station, Diamond Hill Station Extension and Kai Tak Station, providing passengers of the East Rail Line (EAL) and MOSL another alternative to access the urban districts and helping to relieve the most congested section of EAL between Tai Wai and Kowloon Tong. 17 Feb The People’s Bank of China (PBoC) issued in Hong Kong a total of RMB30 billion RMB bills with tenors of three months and one year. 21 Feb The Finance Committee of the Legislative Council approved a commitment of $30 billion to set up the Anti-epidemic Fund (AEF) to enhance Hong Kong’s capability in combatting the pandemic and to provide assistance or relief to enterprises and individuals hard hit by the pandemic or affected by anti-epidemic measures. Together with the subsequent injections into the AEF approved by the Finance Committee of the Legislative Council in April, September and December respectively, as well as the implementation of the relief measures announced in the 2020-21 Budget, the Government’s commitment amounted to over $300 billion. Airport Authority Hong Kong (AAHK) introduced relief measures in view of the impact brought about by COVID-19 to businesses operating at the airport. The measures included rental concessions, reduction or waiver of fees for airport retail and catering outlets, airlines, ground handling agents, ramp handling services companies and aviation support service companies, etc.. To prevent the risk of cross-infection during the sales process, the Insurance Authority introduced a set of Temporary Facilitative Measures which allowed non-face-to-face distribution of selected protection type insurance products. 2 26 Feb The Financial Secretary (FS) delivered the 2020-21 Budget. The Budget was prepared with the focus on “supporting enterprises, safeguarding jobs, stimulating the economy, relieving people’s burden”. A massive package of counter-cyclical measures involving over $120 billion was announced in the Budget. The 2019 Economic Background and 2020 Prospects was published along with the 2020-21 Budget. Hong Kong’s real GDP growth in 2020 was forecast to range from -1.5 to 0.5%. The headline and underlying inflation rates were forecast to be 1.7% and 2.5% respectively. The HKMC Annuity Limited announced the lowering of the minimum eligible age for the HKMC Annuity Plan from 65 to 60 with immediate effect. 27 Feb The Government announced the 2020-21 Land Sale Programme (LSP). The LSP included 15 residential sites (capable of providing about 7 530 flats) and six commercial/hotel sites including New Central Harbourfront Site 3 and Caroline Hill Road Site. 28 Feb The Finance Committee of the Legislative Council approved the 2019-20 Civil Service Pay Adjustment. The adjustment rates ranged from 4.75% to 5.26%, and took retrospective effect from 1 April 2019. 2 Mar In line with the Government’s relief measures announced on 26 February, the HA approved the extension of rent concession measures for its eligible retail and factory tenants. 6 Mar The IPPA between Hong Kong and the United Arab Emirates came into force. 16 Mar The Monetary Authority announced the reduction of countercyclical capital buffer for Hong Kong from 2.0% to 1.0% with immediate effect to allow banks to be more supportive to the domestic economy. 17 Mar Hong Kong was ranked second in the Heritage Foundation’s 2020 Index of Economic Freedom. 23 Mar AAHK launched a new round of $1 billion relief package for the airport community in view of the continuing impact brought about by the COVID-19 pandemic. Measures included reduction of passenger aircraft-related fees, ramp handling, maintenance and airside vehicle-related fees, as well as reduction of rental of offices and lounges in the terminal and franchise fees for aviation support services such as aircraft catering, into-plane fuelling and maintenance, etc.. 30 Mar The PBoC issued in Hong Kong a total of RMB10 billion RMB bills with a tenor of six months. 1 Apr Commercial 5G services were launched in Hong Kong, bringing more innovative communications services and applications to consumers. 3 8 Apr AAHK launched a new round of relief package worth up to $2 billion to further support airlines and aviation support services operators. AAHK offered to purchase around 500 000 air tickets in advance from the home-based carriers and provided an option for aviation support services operators at the Hong Kong International Airport (HKIA) to sell their ground services equipment to AAHK, and enjoy a rent free period for using the equipment after the sales. 9 Apr The HKMA announced a plan to reduce the issuance size of Exchange Fund Bills by $20 billion in order to increase the overall Hong Kong dollar liquidity in the interbank market. The additional liquidity helped ensure continued smooth operation of the Hong Kong dollar interbank market amid a volatile global macro environment brought about by COVID-19. 17 Apr The HKMA, along with the Banking Sector SME Lending Coordination Mechanism, announced the launch of a Pre-approved Principal Payment Holiday Scheme for eligible corporate customers, with a view to alleviating their cash-flow pressure. 20 Apr The HKMCI launched the Special 100% Guarantee Product under the SME Financing Guarantee Scheme (SFGS) to provide low interest loans that were 100% guaranteed by the Government to help ease cash flow problem of enterprises hard hit by the COVID-19 pandemic. Following the approval by the Finance Committee of the Legislative Council, the total guarantee commitment was increased to $50 billion. The maximum loan amount per enterprise was increased to $4 million and the principal moratorium arrangement was extended to 12 months. 22 Apr The HKMA announced the introduction of a temporary US Dollar Liquidity Facility to make available US dollar liquidity assistance for licensed banks and to help alleviate tightness in the global US dollar interbank money markets.