The Consulate General of Switzerland in Hong Kong

UBS’s Khan takes on high-stakes Asia role with Swiss roots in focus
UBS’s expansion in Asia, particularly in Hong Kong and China, is a key part of the Swiss bank’s strategy to grow its wealth management division. The bank has secured major mandates from Chinese companies like Alibaba and JD.com and is strengthening ties with local institutions, including a joint venture with the Industrial & Commercial Bank of China. UBS continues to navigate the challenges of China's economic slowdown and political tensions, with competition from local rivals like HSBC and DBS. Its emphasis on Swiss values and heritage remains central as the bank works to solidify its position in the region, highlighted by events in Hong Kong to ease the transition post-Credit Suisse merger. Bloomberg, Feb 19

Hong Kong Democratic Party’s disbands which concerns the EU
The European Union expressed deep concern over the shrinking civil society space in Hong Kong after the Democratic Party, once the city’s largest opposition group, moved to disband. EU spokesperson Anitta Hipper highlighted alleged political pressure on the party and the suspension of research by the Hong Kong Public Opinion Research Institute, urging authorities to protect rights, while a French official voiced dismay over the loss of checks and balances, noting added strain on groups like the Hong Kong Journalists Association, which canceled its fundraiser after venue issues. SCMP, BBC, Feb 22

Hong Kong pushes on with efforts to woo top European firms despite challenge
The government’s Office for Attracting Strategic Enterprises (OASES) is pressing on with efforts to attract European companies to set up in the city, despite heightened global geopolitical challenges. In an interview, Director General of the Office Peter Yan confirmed that his team has approached several top-tier pharmaceutical firms overseas, with at least one seeing promising results. SCMP, Feb 17

Malaysia’s trade minister urges Asean, Hong Kong, China to lead ‘Asian century’
At the “China Conference: Southeast Asia 2025” in Kuala Lumpur, Malaysia’s Trade Minister Tengku Zafrul Aziz called 2025 Asean’s year, emphasizing its unrivaled potential with Hong Kong and mainland China to shape the ‘Asian century.’ He highlighted Hong Kong as a gateway to China for Asean and Malaysia as a bridge for Hong Kong into Asean, stressing the need for connectivity and resilience amid global challenges, as shared in his closing speech alongside Hong Kong’s Chief Executive John Lee. SCMP, Feb 17

EU plans to blacklist 25 more Chinese and HK companies for flouting Russia sanctions
The European Union plans to add another 25 Chinese entities to a blacklist of companies for circumventing sanctions on Russia, as part of the next package of measures aimed at hobbling Moscow’s war effort. The entities – a mixture of mainland Chinese and Hong Kong-registered companies – will be banned from sourcing goods from the EU, should the package be agreed by the bloc’s member states, according to senior figures familiar with the proposal. SCMP, Feb 8

Beijing and Hong Kong slam US call to free former media boss Jimmy Lai
China’s Ministry of Foreign Affairs in Hong Kong and the city’s government have condemned Washington’s “erroneous remarks” calling for the unconditional release of Jimmy Lai, who has been detained for 1,500 days. The US Bureau of Democracy, Human Rights and Labour said Lai had been behind bars “while standing up bravely for democracy and free speech in Hong Kong.” The Commissioner’s Office of China’s Foreign Ministry in Hong Kong expressed strong dissatisfaction and opposition, accusing Lai of colluding with external forces to jeopardise national security. SCMP, Feb 8

Canada ends ‘lifeboat’ work permit scheme for recent Hong Kong graduates
Canadian immigration authorities confirmed that a ‘lifeboat’ open work permit scheme for recent graduates from Hong Kong will end and that it will not be extended. The three-year programme, launched in 2021 in response to the National Security Law, was ‘always intended as a temporary measure,’ according to a spokesperson for Immigration, Refugees and Citizenship Canada. HKFP, Feb 7

China’s Ministry of Commerce vows to support Hong Kong’s status as a separate customs territory
The Hong Kong government and the ministry jointly held a forum to introduce a new agreement under the Closer Economic Partnership Arrangement. The ministry pledged to implement various preferential measures also open to global investors accessing the mainland market through Hong Kong. The Standard, Feb 19

Top Beijing official gives ‘very clear instructions on accelerating the city’s integration with mainland
The Director of the Hong Kong and Macao Affairs Office Xia Baolong held a four-hour meeting with top Hong Kong officials. In addition to that, acting Chief Executive Eric Chan stressed that Xia provided ‘very clear instructions’ on how Hong Kong should align with national strategies in economic and financial developments, particularly on how to integrate with the mainland ‘as quickly as possible. The Standard, SCMP, Feb 11, 12

HK politician to suggest expanding visa scheme during ‘Two Sessions’ in mainland
Hong Kong’s sole delegate to the nation’s top legislative body Starry Lee revealed that she planned to propose extending the multiple-entry visa scheme recently resumed for Shenzhen residents to other nearby mainland Chinese cities during the ‘Two Sessions’ in Beijing next month. ‘I suggest considering Guangzhou as a prioritised starting point, as it has a very close relationship with Hong Kong,’ she explained. SCMP, Feb 9

Verdict for Jimmy Lai’s national security trial expected in October and Apple Daily liquidation to follow
A verdict for Jimmy Lai’s national security trial is expected in October, with the Apple Daily liquidation proceeding to follow 35 days later, according to a Hong Kong court. Lai, who faces charges of collusion with foreign forces and publishing seditious materials, could be sentenced to life in prison if convicted. The liquidation request for Apple Daily, which ceased operations in June 2021, was filed by two former employees seeking to dissolve the company. The court also noted that Apple Daily’s assets are currently frozen under the national security law. HKFP, Feb 24

Former lawmaker’s family assets permanently seized by the government
The High Court has ordered the confiscation of wanted pro-democracy politician Ted Hui’s family assets, valued at over HKD 80 million (USD 10.2 million). Hui and his family are currently living in exile in Australia. This marks the first confiscation of personal assets under the National Security Law. SCMP , Feb 18

Jimmy Lai denies concealing 2020 US vice-president meeting plan
Jimmy Lai, the 77-year-old ex-founder of Apple Daily, denied hiding a 2020 plan to meet then-US Vice- President Mike Pence when seeking court approval to visit his granddaughter, admitting it would have been negligent under the national security law effective June 30 that year. Testifying at West Kowloon Court, Lai faces charges of collusion with foreign forces and seditious publications, as judges expressed frustration with his lengthy and inconsistent responses. SCMP, Feb 3

Chinese tech firms flock to Hong Kong for IPOs amid DeepSeek-triggered AI boom
Mid and large-cap Chinese firms in semiconductors, AI, and robotics are exploring Hong Kong IPOs. Beijing-based AI solutions provider AICT aims to raise about USD 200 million. Improved sentiment towards tech and AI has led to more firms considering Hong Kong IPOs. DeepSeek's large language models have sparked interest, with Chinese companies benefiting from supportive regulatory environments. SCMP, Feb 25

Hong Kong may legalise basketball betting to tap vast market
Basketball gambling could generate over HKD 26 billion (USD 3.34 billion) in government revenue if it follows the 50% duty levied on football betting. To tackle the city's HKD 100 billion (USD 12.9 billion) deficit, Hong Kong's finance chief is considering legalising basketball betting. In 2023, illegal sports betting by Hongkongers reached HKD 350 billion (USD 45 billion), with basketball accounting for 15%. Legalising basketball betting could bring in HKD 52.5 billion (USD 6.75 billion). SCMP, Feb 24

Low deposit rates and surging stocks drive mainland investors to open bank accounts in Hong Kong Due to higher deposit rates and a stock market rebound, many mainland investors are opening bank accounts in Hong Kong. Interest rate differentials have widened, with Hong Kong banks offering higher rates for USD deposits compared to mainland banks, which have significantly reduced their rates. This has led to long lines at banks like HSBC and Bank of China in Hong Kong. Yicai Global, 24 Feb

Hong Kong property value drops after curbs lifted
Hong Kong’s residential property market lost HKD 480 billion (USD 61.7 billion) in value since February 2024, dropping from HKD 9.5 trillion (USD 1.22 trillion) to HKD 8.99 trillion (USD 1.15 trillion) by January 2025, despite the removal of decade-old curbs like the Buyer’s Stamp Duty, per Centaline Property. Transactions briefly surged 90% to 5,387 monthly deals in Q2 2024 but fell to 3,017 in Q3, rebounding to 4,554 in Q4 after mortgage relaxations. SCMP, Feb 21

Asian infrastructure bank raises USD 549 million in Hong Kong bond sale
The Asian Infrastructure Investment Bank (AIIB) raised HKD 4 billion (USD 549 million) through a Hong Kong dollar-denominated bond sale, issuing three-year sustainable-development bonds with a 3.847% coupon, settled via Hong Kong’s Central Moneymarkets Unit. SCMP, Feb 20

Hong Kong stocks hit three-year high on tech surge
Hong Kong stocks reached a near three-year peak by Friday noon, driven by strong earnings from Chinese tech firms. The Hang Seng Index closed the morning at 23,238 points, up 2.93% or 661 points, after hitting 23,256 points, while the tech gauge jumped 4.69% to 5,757 points. Main board turnover for the half-day was HKD 209.38 billion (USD 26.87 billion). The Standard, Feb 21

Beijing opens Mainland credit card market to Hong Kong banks
Starting in March this year, Beijing will permit Hong Kong and Macau banks to issue credit and debit cards on the mainland, a move announced by the National Financial Regulatory Administration (NFRA) under the Closer Economic Partnership Arrangement. This policy shift, effective from next month, lifts previous restrictions and allows major Hong Kong lenders like HSBC, Standard Chartered, Bank of East Asia, and Hang Seng Bank to expand services in China. SCMP, Feb 20

HSBC to redeploy USD 1.5 billion to Hong Kong
Global banking major HSBC announced a plan to invest more resources in Hong Kong’s wealth- management products and services in the coming years. As part of the plan, HSBC has started to scale down its investment banking and capital markets activities in the US, UK and Europe. It also plans to sell its private bank in Germany and its insurance business in France. SCMP, Feb 19

Chinese spatial design firm Manycore Tech files for IPO in Hong Kong
Hangzhou-based Manycore Tech, operator of the world’s largest spatial design platform by monthly active users and China’s top revenue-earning spatial design software provider in 2023, has filed for an IPO in Hong Kong, sponsored by JPMorgan and CCB International, aiming for potentially USD 200 million. SCMP, Feb 15

Hong Kong’s MTR seeks USD 128 million loans for rail expansion
Hong Kong’s MTR Corp. is negotiating bilateral loans with banks, requesting HKD 1 billion (USD 128 million) each for up to five years to fund expansions like the Tung Chung and East Rail lines, with total amounts still TBD. Facing a HKD 160 billion (USD 20.54 billion) shortfall over the next decade, MTR also considers bonds after securing a HKD 1 billion (USD 128 million) sustainability-linked loan last year and a HKD 25 billion (USD 3.21 billion) syndicated loan in 2016. Bloomberg, Feb 14

Largest battery maker in the world plans Hong Kong listing
The world's largest battery maker, CATL, has started the process to list in the city by submitting its filings to the Hong Kong Stock Exchange. The deal is expected to raise at least HKD 39 billion (USD 5 billion), with part of the funds being used to build a USD 7.3 billion battery plant in Hungary. This would be the city’s largest IPO in four years. Reuters, Feb 12

GDP grew by 2.5% in 2024
Hong Kong’s economy grew by 2.5% in real terms last year, easing from 3.2% expansion in 2023, according to preliminary figures released on Monday (3 February). The government predicted further growth in 2025, despite heightened uncertainties brought by US ‘trade protectionist policies implemented by the US’. SCMP, Feb 3

Traffic at Hong Kong airport reaches post-pandemic high yet figures still fall short of 2019
Hong Kong's airport saw a post-pandemic high in flight movements and passenger numbers in January, reaching around 33,660 flights and handling over 193,000 passengers on a single day. However, these figures still fall short of pre-pandemic levels from 2019. The Covid-19 pandemic had a significant impact on the airport. Despite the recent recovery, airport traffic remains lower than in 2019. SCMP, Feb 25

Hong Kong’s M+ museum and MoMA sign landmark deal
Hong Kong’s M+ museum signed a first-of-its-kind collaboration with New York’s Museum of Modern Art (MoMA) to advance curatorial research, conservation, programs, and talent development. Separately, M+ will exhibit over 200 works by Chinese-French artist Zao Wou-Ki, tapping into Hong Kong’s vast collection of his art, the largest outside France. SCMP, Feb 20

Hong Kong’s mega-events to draw 840,000 visitors, says John Lee
Hong Kong’s Chief Executive John Lee Ka-chiu announced that mega-events like Art Basel, Art Central, and ComplexCon will attract 840,000 visitors and HKD 3.3 billion (USD 424.1 million) in spending in the first half of the year, adding HKD 1.8 billion (USD 231.2 million) in economic value.. SCMP, Feb 18

UK’s largest electronic music festival cancelled in the city
British music festival Creamfields cancelled its programme in Hong Kong due to ‘irresistible factors.’ The event would have taken place between 8 and 9 March and the Hong Kong Tourism Board had promoted the event on its website. HKFP, Feb 18

Macau aims to generate 1.1 billion patacas (USD 137 million) in consumption with spending scheme
Macau's government is launching a 10-week campaign with a budget of about 295 million patacas (USD 36.86 million) to stimulate consumption in the typically slow period after the Lunar New Year. These vouchers can be used at participating merchants the following weekend, with the goal of generating around
1.1 billion patacas (USD 137 million) in consumption. The scheme will run from March 24 to June 1 and is aimed at supporting small businesses and boosting community spending.
SCMP, Feb 22

Macao and Hong Kong link bond clearance systems to create larger market for fundraising
Macau's GDP is expected to grow at a moderate pace in 2025, driven by sustainable tourism and increased non-gaming investments, according to the Monetary Authority of Macau (AMCM). After a strong post- pandemic rebound in 2023, the city’s economy expanded by 11.5% in the first three quarters of 2024, although it remains below pre-pandemic levels. The full-year 2024 GDP figure is not yet known, but the IMF has projected a 10.6% growth for the year. External demand is expected to remain strong, supported by government policies like the “one-trip-per-week” and “multiple-entry” permits for Zhuhai residents.
Macau Business, Feb 4

Financial Secretary Paul Chan delivers annual Budget speech
In his 2025 Budget speech, Financial Secretary Paul Chan outlined Hong Kong's fiscal strategy in the face of mounting global challenges, including rising protectionism and economic fragmentation. The budget aims to address Hong Kong's long-term fiscal health while acknowledging the current economic difficulties. Chan emphasized the importance of building a sustainable fiscal foundation through spending cuts and targeted revenue increases. SCMP, HKFP, The Standard, Feb 26
The projected consolidated deficit for the fiscal year 2024/25 is HKD 87.2 billion (USD 11.2 billion), with an expected deficit of HKD 67 billion (USD 8.6 billion) for 2025/26. Despite this, the city’s fiscal reserves will reach HKD 647.3 billion (USD 82.7 billion) by March 2025, though reserves are anticipated to decline to HKD 579.1 billion (USD 74.1 billion) by 2030. In terms of public spending, significant reductions are planned. Recurrent expenditure will be slashed by 7% by the fiscal year 2027/28, and a freeze on civil servants’ pay has been imposed. Additionally, the government will reduce its civil servant workforce by 10,000 positions by 2027. These measures are part of a broader effort to control government spending and ensure long- term fiscal stability. The Standard, Feb 26

To fund infrastructure projects, the government plans to issue bonds worth between HKD 150 billion and HKD 195 billion (USD 19.2 billion to USD 24.9 billion) over the next five years. New revenue measures include raising the passenger departure tax, increasing fees for electric vehicle (EV) licenses, and introducing levies for private cars crossing the border into mainland China. Fixed penalties for traffic offenses will also help boost government income. In a move to promote innovation, Chan allocated HKD 1 billion (USD 128 million) to establish an AI research and development institute. This reflects the government’s commitment to positioning Hong Kong as a hub for technology and innovation. Furthermore, the government expects a new batch of 10 strategic companies to bring in HKD 50 billion (USD 6.4 billion) in investment, which will contribute to Hong Kong's economic recovery. SCMP, Feb 26

Tourism promotion, an important sector for Hong Kong’s economy, will receive HKD 1.23 billion (USD 157 million), though this is down by 19.1% from the previous year. Additionally, Hong Kong will host major international events like the World Tourism Cities Federation’s 2025 WTCF Fragrant Hills Tourism Summit in April, in a bid to boost tourism and global engagement. Chan also addressed the city’s transport system. The HK$2 transport subsidy scheme will now be capped at 240 trips per month, with eligible users required to pay 20% of fares above HK$10. In his speech, Chan outlined a more cautious approach to land sales for commercial use, with a pause on such sales to help stabilize the market. Overall, the 2025 Budget reflects the government's strategy to balance fiscal discipline with efforts to promote technological innovation, economic recovery, and global engagement, all while addressing the significant fiscal challenges posed by the ongoing global economic uncertainties.
SCMP, HKFP, The Standard, Feb 26

This is a review of the Hong Kong media and does not necessarly represent the opinion of the Consulate General of Switzerland. The Consulate General of Switzerland in Hong Kong does not bear any responsibility for the topicality, correctness, completeness or quality of the information provided. Liability claims regarding damage caused by the use of any information provided, including any kind of information which might be incomplete or incorrect, will therefore be rejected.

28.2.2025