Index Page Replies to initial written questions raised by Finance Committee Members in examining the Estimates of Expenditure 2020-21 Director of Bureau : Secretary for Financial Services and the Treasury Session No. : 4 File Name : FSTB(FS)-2-e1.doc Reply Serial Question Name of Member Head Programme No. Serial No. FSTB(FS)001 0982 CHAN Chun-ying 148 (1) Financial Services FSTB(FS)002 0972 CHAN Kin-por 148 (1) Financial Services FSTB(FS)003 1032 CHAN Kin-por 148 (1) Financial Services FSTB(FS)004 1033 CHAN Kin-por 148 (1) Financial Services FSTB(FS)005 1034 CHAN Kin-por 148 (1) Financial Services FSTB(FS)006 1035 CHAN Kin-por 148 (1) Financial Services FSTB(FS)007 1036 CHAN Kin-por 148 (1) Financial Services FSTB(FS)008 1037 CHAN Kin-por 148 (1) Financial Services FSTB(FS)009 1038 CHAN Kin-por 148 (1) Financial Services FSTB(FS)010 1039 CHAN Kin-por 148 (1) Financial Services FSTB(FS)011 1045 CHAN Kin-por 148 (1) Financial Services FSTB(FS)012 1255 CHEUNG 148 (1) Financial Services Wah-fung, Christopher FSTB(FS)013 1256 CHEUNG 148 (2) Subvention: Financial Wah-fung, Services Development Council Christopher FSTB(FS)014 1260 CHEUNG 148 Wah-fung, Christopher FSTB(FS)015 1266 CHEUNG 148 (1) Financial Services Wah-fung, Christopher FSTB(FS)016 0342 IP LAU Suk-yee, 148 Regina FSTB(FS)017 2749 KWOK Wing-hang, 148 (1) Financial Services Dennis (2) Subvention: Financial Services Development Council FSTB(FS)018 1161 LAM Kin-fung, 148 (1) Financial Services Jeffrey FSTB(FS)019 2615 LEUNG Kenneth 148 (1) Financial Services FSTB(FS)020 2616 LEUNG Kenneth 148 (1) Financial Services FSTB(FS)021 2617 LEUNG Kenneth 148 (1) Financial Services FSTB(FS)022 2618 LEUNG Kenneth 148 (1) Financial Services FSTB(FS)023 2621 LEUNG Kenneth 148 (1) Financial Services FSTB(FS)024 2622 LEUNG Kenneth 148 (1) Financial Services FSTB(FS)025 2623 LEUNG Kenneth 148 (1) Financial Services FSTB(FS)026 2625 LEUNG Kenneth 148 (1) Financial Services FSTB(FS)027 2626 LEUNG Kenneth 148 (1) Financial Services Reply Serial Question Name of Member Head Programme No. Serial No. FSTB(FS)028 2627 LEUNG Kenneth 148 (1) Financial Services FSTB(FS)029 2628 LEUNG Kenneth 148 (1) Financial Services FSTB(FS)030 2630 LEUNG Kenneth 148 (2) Subvention: Financial Services Development Council FSTB(FS)031 2915 LIAO Cheung-kong, 148 (1) Financial Services Martin FSTB(FS)032 1344 LO Wai-kwok 148 (1) Financial Services FSTB(FS)033 0833 MAK Mei-kuen, 148 (1) Financial Services Alice FSTB(FS)034 0835 MAK Mei-kuen, 148 (1) Financial Services Alice FSTB(FS)035 0836 MAK Mei-kuen, 148 (1) Financial Services Alice FSTB(FS)036 0448 TO Kun-sun, James 148 FSTB(FS)037 2441 TSE Wai-chun, Paul 148 FSTB(FS)038 2463 TSE Wai-chun, Paul 148 FSTB(FS)039 0310 WONG Ting-kwong 148 (1) Financial Services FSTB(FS)040 0311 WONG Ting-kwong 148 (1) Financial Services FSTB(FS)041 0312 WONG Ting-kwong 148 (1) Financial Services FSTB(FS)042 0313 WONG Ting-kwong 148 (1) Financial Services FSTB(FS)043 0316 WONG Ting-kwong 148 (1) Financial Services FSTB(FS)044 2302 WONG Ting-kwong 148 (1) Financial Services FSTB(FS)045 2303 WONG Ting-kwong 148 (1) Financial Services FSTB(FS)046 2306 WONG Ting-kwong 148 (1) Financial Services FSTB(FS)047 2307 WONG Ting-kwong 148 (1) Financial Services FSTB(FS)048 2308 WONG Ting-kwong 148 (1) Financial Services FSTB(FS)049 2309 WONG Ting-kwong 148 (1) Financial Services FSTB(FS)050 2310 WONG Ting-kwong 148 (1) Financial Services FSTB(FS)051 0469 WU Chi-wai 148 (1) Financial Services FSTB(FS)052 1488 YUNG Hoi-yan 148 FSTB(FS)053 1052 CHAN Chun-ying 26 (2) Social Statistics FSTB(FS)054 2192 MO Claudia 26 (2) Social Statistics FSTB(FS)055 0001 SHEK Lai-him, 26 (6) Labour Statistics Abraham FSTB(FS)056 2311 WONG Ting-kwong 26 (5) Price/Industry/Service Statistics FSTB(FS)057 2426 CHAN Han-pan 116 (1) Official Receiver’s Office FSTB(FS)058 2474 TSE Wai-chun, Paul 116 (1) Official Receiver’s Office FSTB(FS)059 3823 CHAN Chi-chuen 148 FSTB(FS)060 3824 CHAN Chi-chuen 148 (1) Financial Services FSTB(FS)061 4114 CHAN Tanya 148 FSTB(FS)062 4116 CHAN Tanya 148 FSTB(FS)063 4458 CHAN Tanya 148 FSTB(FS)064 5609 CHEUNG 148 Chiu-hung, Fernando FSTB(FS)065 6682 CHU Hoi-dick 148 (1) Financial Services FSTB(FS)066 6756 MAK Mei-kuen, 148 Reply Serial Question Name of Member Head Programme No. Serial No. Alice FSTB(FS)067 6053 MO Claudia 148 FSTB(FS)068 6840 WU Chi-wai 148 FSTB(FS)069 4279 CHAN Tanya 26 (2) Social Statistics FSTB(FS)070 4852 CHAN Tanya 26 FSTB(FS)071 5269 CHEUNG 26 Chiu-hung, Fernando FSTB(FS)072 5407 CHEUNG 26 Chiu-hung, Fernando FSTB(FS)073 5408 CHEUNG 26 Chiu-hung, Fernando FSTB(FS)074 3557 HO Chun-yin, 26 Steven FSTB(FS)075 4751 KWOK Ka-ki 26 (2) Social Statistics FSTB(FS)076 4753 KWOK Ka-ki 26 (2) Social Statistics FSTB(FS)077 4754 KWOK Ka-ki 26 (2) Social Statistics FSTB(FS)078 4755 KWOK Ka-ki 26 (2) Social Statistics FSTB(FS)079 4756 KWOK Ka-ki 26 (2) Social Statistics FSTB(FS)080 6033 MO Claudia 26 FSTB(FS)081 6275 SHIU Ka-chun 26 (2) Social Statistics FSTB(FS)082 6276 SHIU Ka-chun 26 (2) Social Statistics FSTB(FS)083 6277 SHIU Ka-chun 26 (2) Social Statistics FSTB(FS)084 6278 SHIU Ka-chun 26 (2) Social Statistics FSTB(FS)085 6279 SHIU Ka-chun 26 (2) Social Statistics FSTB(FS)086 6280 SHIU Ka-chun 26 (2) Social Statistics FSTB(FS)087 6282 SHIU Ka-chun 26 (2) Social Statistics FSTB(FS)088 6283 SHIU Ka-chun 26 (2) Social Statistics FSTB(FS)089 6284 SHIU Ka-chun 26 (2) Social Statistics FSTB(FS)090 6389 SHIU Ka-chun 26 (2) Social Statistics FSTB(FS)091 6390 SHIU Ka-chun 26 (2) Social Statistics FSTB(FS)092 6391 SHIU Ka-chun 26 (2) Social Statistics FSTB(FS)093 6392 SHIU Ka-chun 26 (2) Social Statistics FSTB(FS)094 6393 SHIU Ka-chun 26 (2) Social Statistics FSTB(FS)095 5121 WAN Siu-kin, 26 (2) Social Statistics Andrew (4) General Statistical Services FSTB(FS)096 6789 CHAN Tanya 31 (1) Control and Enforcement FSTB(FS)097 4884 CHAN Tanya 116 FSTB(FS)098 6084 MO Claudia 116 (1) Official Receiver’s Office Examination of Estimates of Expenditure 2020-21 Reply Serial No. FSTB(FS)001 CONTROLLING OFFICER’S REPLY (Question Serial No. 0982) Head: (148) Government Secretariat: Financial Services and the Treasury Bureau (Financial Services Branch) Subhead (No. & title): (-) Not Specified Programme: (1) Financial Services Controlling Officer: Permanent Secretary for Financial Services and the Treasury (Financial Services) (Ms Michelle LI) Director of Bureau: Secretary for Financial Services and the Treasury Question: The estimate for 2020-21 is $395.5 million higher than that for 2019-20, representing an increase of 53.6%. According to the analysis on page 405, this is mainly due to the increased cash flow requirement for non-recurrent commitment items, and anticipated increase in hire of services and professional fees and general departmental expenses. However, as stated in Matters Requiring Special Attention in 2020-21 on page 403, the Branch is basically continuing with the tasks of last year. Regarding these tasks, would the Government provide a comparison of the progress of last year with that of the coming year to justify the 53.6% increase in the estimate? Asked by: Hon CHAN Chun-ying (LegCo internal reference no.: 21) Reply: The cash flow requirement of the general non-recurrent items for 2020-21 estimate will increase by about $340.9 million as compared with the 2019-20 revised estimate, as set out below – Changes in cash-flow Commitment General Non-recurrent Item requirement ($’000) ($’000) 1 Funding for promoting and facilitating the development of the financial 500,000 +22,196 services sector 2 Funding requirements for the eMPF Platform for the administration of 3,903,630 +414,788 Mandatory Provident Fund registered schemes Session 4 FSTB(FS) - Page 1 Changes in cash-flow Commitment General Non-recurrent Item requirement ($’000) ($’000) 3 One-off funding for promoting and facilitating the development of the 300,000 +300,000 insurance industry in Hong Kong (New item created in 2020-21 estimates) 4 Pilot programme to enhance talent training for the insurance sector and the 100,000 +3,902 asset and wealth management sector 5 One-off provision of seed capital to the 400,000 -400,000 Financial Reporting Council in 2019-20 Total 5,203,630 +340,886 The estimated expenditure on hire of services and professional fees and general departmental expenses in 2020-21 will increase by about $42 million as compared with the 2019-20 revised estimate. This is mainly due to the expenses on strengthening our publicity and promotion of Hong Kong’s financial services industry both globally and in the Mainland. In the coming year, apart from continuing our work on promoting the financial services industry on various fronts, we would enhance publicity support for the "Asian Financial Forum", "Hong Kong FinTech Week", and other relevant signature events, including inviting international speakers of repute to these events. The Financial Services Branch (or through supporting the work of the Financial Services Development Council) would also promote Hong Kong's competiveness as a major international financial centre through media events, seminars, or events in partnership with industry associations and reputable organisations.