THE CONSULATE GENERAL OF SWITZERLAND IN HONG KONG

MAINLAND

• ‘One country, two systems’ in Hong Kong a success

FOREIGN POLICY/INTERNATIONAL RELATIONS

• Five arrested in international human trafficking jobs scam
• Hong Kong Government supports Chinese countermeasures against Pelosi
• Hong Kong says UN panel’s uninformed statement on Hong Kong was appalling

DOMESTIC POLICY/POLITICS

• Hong Kong never had ‘separation of powers’
• Prominent human rights lawyer loses seat on Law Society council
• Judges shut down bid for same-sex marriage
• John Lee’s popularity reaches 54.9 points, highest since 2018
• Jimmy Lai and 47 democrats charged under NSL to face trial with no jury
• Hong Kong was never a colony and local schools to receive a copy of Xi’s speech
• 30% local youths don't identify as Chinese
• Criticising the government is fine as long as no confidential information disclosed
• Under Secretary for Security named secretary-general of national security committee
• Justice chief vows to act on concerns over NSL trial delay for 47 activists
• Hong Kong schools expected to help students discern fake news

ECONOMY / FINANCE

• Hong Kong loses to Singapore: Outflow of top talents and airport ranking
• Hong Kong Key Interest Rate Is Set to Reach Highest Since 2008
• Economy may contract in 2022 for third time in four years

CULTURE / INNOVATION / TECHNOLOGY

• Study finds media credibility drops to new low
• Exhibition of Swiss video artist Pipilotti Rist in Hong Kong

COVID-19

• 14% increase in arrivals since relaxed quarantine rules for inbound travelers
• Deaths not calculated scientifically, says former hospitals chief
• Government vaccine committee agree on jabs for kids below three

MACAO

• GDP plunges by 39% in Q2
• Major trade events postponed from September to December amid Covid
• Shorter quarantine for inbound travellers while visitor arrivals plummet 98.8% in July
• 8 700 Non-resident workers leave city since January
• MOP 35 billion financial support plan to launch on 17 August

MAINLAND

‘One country, two systems’ in Hong Kong a success
A white paper titled ‘The Taiwan Question and China’s Reunification in the New Era’, published by the State Council’s Taiwan Affairs Office and Information Office, said Beijing has reaffirmed its pledge to achieve peaceful reunification with Taiwan and to adopt ‘one country, two systems’ as a guiding principle, crediting its implementation in HK as a ‘resounding success’. The paper mentions HK several times, reminding the SAR to be a good model for Taiwan. SCMP HKFP ST CE statement Aug 11

FOREIGN POLICY/INTERNATIONAL RELATIONS

Five arrested in international human trafficking jobs scam
Five locals between 17 to 51 were arrested for allegedly recruiting Hongkongers in job scams with victims eventually being held by human traffickers in Southeast Asia. As of Sunday, 36 victims have sought help from the police. 22 are believed still being held by traffickers in Cambodia and Myanmar while nine remain missing. TS SCMP RTHK HKFP Aug 22

Hong Kong Government supports Chinese countermeasures against Pelosi
The government said that it firmly opposes any external forces interfering in the internal affairs of China, and will fully support and facilitate all necessary measures by the Central Government to safeguard national sovereignty and territorial integrity. Executive Council convener Regina Ip said it is unnecessary for HK to suspend the importation of Taiwanese goods because trade was not the focus of the countermeasures. SCMP Aug 8

Hong Kong says UN panel’s uninformed statement on Hong Kong was appalling
An opinion from Charles Ng, a member of New People’s Party, said that the European External Action Service echoed the UNHCR’s statement on HK under ICCPR with no further investigation. He said the statement was appalling as condemning a vibrant city amid peacetime seemed as though the European Union was picking petty fights to divert attention from domestic gaffes. China Daily Aug 5

DOMESTIC POLICY/POLITICS

Hong Kong never had ‘separation of powers’
On the 180th anniversary of the signing of the ‘Nanjing Treaty’. Jasper Tsang, former LegCo president, attended a seminar about the history of the treaty. He stated that there has never been a ‘separation of powers’ in Hong Kong, including during the British colonial era. Pro-Beijing local newspaper Wen Wei Po made a series of report saying that Hong Kong has never been a colony and there should not be any dispute of sovereignty. The paper also accused that the ‘brainwash’ education imposed by the British government has alienated the relationship and culture between Hong Kong and China. TLT, Aug 28

Prominent human rights lawyer loses seat on Law Society council
Mark Daly, a prominent human rights lawyer in Hong Kong, has lost his seat on the Law Society’s governing council. His defeat means there will be one fewer outspoken liberal on a council that has in recent years been divided largely by solicitors who focus on the sector’s development and those who share the human rights lawyer’s views. The society is now left with four lawyers known for their outspokenness on the council. SCMP, Aug 24

Judges shut down bid for same-sex marriage
Pan-democratic and LGBT rights activist Jimmy Sham’s legal bid to make Hong Kong recognise same-sex marriages registered overseas has been rejected by the Court of Appeal once again. The court said the recognition of same-sex marriage is ‘clearly contrary to the intention of the drafters of the Basic Law,’ stressing that legal marriage in HK is restricted to heterosexual couples only. TS SCMP RTHK Aug 24

John Lee’s popularity reaches 54.9 points, highest since 2018
After getting the joint-lowest popularity rating immediately after taking office (popularity rating of 53.8 marks in his first week in office) when compared with his predecessors, results of a newly conducted telephone survey by Hong Kong Public Opinion Research Institute indicated that Chief Executive John Lee received a rating of 54.9 for his performance. It is a new record of Hong Kong leader’s highs since December 2018. As for the government, the survey showed its latest satisfaction rate is 36% of the respondents, whereas the dissatisfaction rate stands at 35%. HKFP TS Aug 3&17

Jimmy Lai and 47 democrats charged under NSL to face trial with no jury
The trial of 47 democrats arrested in February 2021 and charged with “conspiracy to commit subversion” will be conducted with no jury. The Department of Justice claimed the move was out of adjudicating cases fairly and impartially. Following the case of Jonathan Tong Ying-kit, the case of 47 democrats is the second trial without a jury under National Security Law. The Standard Aug 17

Hong Kong was never a colony and local schools to receive a copy of Xi’s speech
In a Chinese-only article posted on its website, the Education Bureau stated that Hong Kong was never a colony despite having been under colonial rule during the British ‘occupation’. The authority said that it was not seeking to deny the city’s history but that students needed to have an accurate understanding of the basic facts of important past events of China. It also stated the 1997 handover was a ‘passing of authority’ from Britain to China and not ‘a transfer of sovereignty’. Meanwhile, the Education Bureau will distribute copies of the speech made by Chinese President Xi Jinping on July 1st to local schools and kindergartens. It marks the first time that a state leader’s address will be given to teachers for study. The Bureau expects the teachers to ‘accurately comprehend’ the constitutional order under ‘one country, two systems’, deepen their awareness of the trends in both China and the world, and understand the importance of HK’s integration into the overall development of China. SCMP1 SCMP2 Aug 3 &15

30% local youths don't identify as Chinese
An online survey conducted by the Young Democratic Alliance for the Betterment and Progress of Hong Kong among 465 people aged 18 to 35 found that 29.9% of the respondents did not identify themselves as Chinese, 64.2% did and the remaining were undecided. The group said authorities should enhance national identity. TS Aug 15

Criticising the government is fine as long as no confidential information disclosed Following the arrests of four civil servants including two administrators of the ‘Civil Servant Secrets’ Facebook page, Secretary for the Civil Service Ingrid Yeung said civil servants will not find themselves in trouble as long as they do not disclose confidential information, adding it is fine for them to criticize government policies on social media platforms. TS Aug 15

Under Secretary for Security named secretary-general of national security committee Former undersecretary for security Sonny Au has been appointed secretary-general to the Committee for Safeguarding National Security, the State Council announced. An official statement said the council, after receiving Au's nomination from Chief Executive John Lee, approved his appointment and removed the now Chief Secretary Eric Chan from the post. TS RTHK SCMP Government’s statement Aug 9

Justice chief vows to act on concerns over NSL trial delay for 47 activists
Secretary for Justice Paul Lam promised to act on ‘legitimate’ concerns over a delay in the prosecution of 47 activists arrested under the national security law. Although accepting that ‘justice delayed is justice denied’, Lam insisted the proceedings so far have not been exceptionally lengthy saying that the prosecutors have been grappling with a much heavier workload in recent years. SCMP Aug 8

Hong Kong schools expected to help students discern fake news
Hong Kong’s education authorities are requiring schools to equip students with skills that will help them identify false information and understand the impact of sharing such messages, with pupils expected to attain different levels of discernment depending on their age. SCMP Aug 4

ECONOMY/FINANCE

Hong Kong loses to Singapore: Outflow of top talents and airport ranking
Asia’s busiest airport before the pandemic, Hong Kong International Airport languishes as Singapore Changi is Asia’s No 1 for passenger arrivals from April to June. Easing the quarantine rules is not enough to safeguard city’s aviation hub status. Aviation experts said they expected the gap between the rival airports to widen, with a global airline industry group warning that Hong Kong had a long way to go to catch up with the rest of Asia and the world. Meanwhile, Hong Kong needs better policies to encourage talent to stick with the city if it is to retain its position as a regional financial center in the face of stiff competition for top notch staff from Singapore, human resources experts have warned. Warning comes after Singapore announces new work visa rules from next January designed to woo foreign professionals, mainly in the financial and high technology sectors. SCMP1 SCMP Aug 14 & 31

Hong Kong Key Interest Rate Is Set to Reach Highest Since 2008
The three-month Hong Kong interbank offered rate advanced for an 18th straight day Friday, rising to 2.60%, just shy of its 2019 peak of 2.66%. An increase above that would put it at the highest since the global financial crisis in 2008. The gauge is also heading for a record 11th month of gains. Oversea-Chinese Banking Corp. expects three-month Hibor at 2.82% by year-end. Bloomberg Aug 26

Economy may contract in 2022 for third time in four years
Q2 economic performance improved but not as expected. Gross domestic product may potentially contract this year for the third time since 2019, according to the government. Fitch Ratings warned in a report this month that Hong Kong’s apparent prioritization of national strategies and governance practices over economic competitiveness may undermine the city’s role as an international financial center. Financial Secretary Paul Chan wrote on his blog that the international geopolitical situation and global inflation have seriously dragged down the performance of Hong Kong's exports, making the city's economy in the second quarter worrying. With the new ‘3+4’ quarantine arrangement, Chan believes it would allow economic activity to ‘regain vitality’. TS SCMP RTHK HKGov Aug 12 & 14

• HK’s Exodus Shrinks Workforce, John Lee vows to snatch overseas talents for the Financial- Hub Status: In his first public consultation session with over 100 citizens for his policy address to be released in October, Chief Executive John Lee vowed to attract talents in the field of medics, innovation and high-end technology. He also stressed the government highly value youth development and added that the new Home and Youth Affairs Bureau will focus on helping youngsters on employment and participation in politics. Labor force is near a decade-low amid population outflow. Since August 2018, HK’s labor force has dropped about 6% to 3.75 million people, near a decade-low, according to the latest official figures. About 121,500 residents departed the city in the year ended June 30, leaving the population at about 7.29 million, according to government data released this month. That means the population fell 1.6%, marking the third straight year of declines and the biggest drop in at least six decades. TS SCMP RTHK HKGov Bloomberg Aug 20 & 26
• HK’s international trade shrunk and outlook expected to slump further: Hong Kong exports for July shrank by 8.9 per cent from a year earlier, while the government expected performance to be dragged further due to heightened geopolitical tensions and supply-chain disruptions caused by the Covid-19 pandemic. Performance attributed to a worsening external environment and continued disruptions to cross-boundary land transport, government spokesman says. ‘Looking forward, Hong Kong’s export performance will continue to be dragged by the weakening global growth momentum’, he adds. SCMP Aug 26
• Financial chief expects ‘moderate’ inflation in ‘buffered’ city:
  Financial Secretary Paul Chan wrote on his blog that Hong Kong’s rate of inflation for the full year is likely to remain at a ‘roughly moderate’ level of 2.1% because the city is buffered from some of the factors that have exacerbated inflation in the US and Europe. TS Bloomberg Chan’s blog Aug 21
• HKEX profit tumbles 27% to $4.8 billion amid slowdown:
  HK Exchanges and Clearing reported its lowest interim profit in five years in which its net profit fell 27% from a year ago to HK$4.84 billion (EUR606 million), or HK$3.82 (EUR0.48) per share, in the six months to June 30. The plunge was more than estimated and was attributed to investment losses, slower trading and fewer initial public offerings. HKEX chief executive Nicolas Aguzin expected geopolitics, market volatility and the rising interest rate environment will continue to impact markets in the short term. SCMP TS Nikkei Asia Reuters WSJ Aug 18
• Government consumption vouchers would stimulate economy, Unemployment rate drops to 4.3%:
  The second round of HK$2 000 (EUR250) vouchers were released to around 6.2 million people on Sunday. Financial Secretary Paul Chan wrote on his blog saying that it would provide some stimulus for a local economy that is in need of urgent support. He added that while the economy shrank for a second quarter in a row, private consumption was relatively stable, even though it was lower than expected. However, according to the latest data released by the Statistics Department, the unemployment rate decreased from 4.7% in April-June to 4.3% in May-July, with 168 200 citizens remain jobless. Secretary for Labour and Welfare Chris Sun said the labour market improved as domestic economic activities continued to revive. RTHK TS HKFP SCMP Bloomberg C&SD Aug 7 & 17
• June sales declined 1.2% from a year earlier:
  Provisional figures released by the Census and Statistics Department showed June sales totaled HK$27.7 billion, declined 1.2% from a year earlier and dropped slightly from the HK$29.1 billion recorded in May. The government attributes the decline to souring desire to spend following resurgence of local coronavirus cases and interest rate rises by central banks. SCMP C&SD Aug 3
• Hong Kong slips into recession as economy shrinks by 1.4% in second quarter:
  According to advance estimates of the Census and Statistics Department, decreased by 1.4% in real terms in the second quarter of 2022 from a year earlier, compared with the decrease of 3.9% in the first quarter. Contraction in GDP was recorded for a second consecutive quarter meaning that the city has fallen into an economic recession. The government said it would downgrade its full-year forecast on Aug 12, when the final GDP data was due to be made public. SCMP Bloomberg FT Aug 2

CULTURE / INNOVATION / TECHNOLOGY

Study finds media credibility drops to new low
A survey by the Chinese University of Hong Kong interviewed 994 people between June and July and asked them to rate the credibility of different media outlets from 1 to 10, with 10 being the most credible. Results showed the overall score of the local media outlets was 5.44, a 0.27-point drop from the last time the survey in 2019. CUHK research professor Clement So said it means people generally do not trust the media enough. HKFP Aug 26

Exhibition of Swiss video artist Pipilotti Rist in Hong Kong
The Swiss video artist’s “Behind Your Eyelid” exhibition at Tai Kwun was inaugurated on 2 August. It includes a 54-metre installation that puts viewers inside a human eye. Rist likes to say that our eyes are “blood-driven cameras”. Her language, as well as her art, can be breathtakingly visceral. Pipilotti Rist is a Swiss visual artist best known for creating experimental video art and installations. Her work is often described as surreal, intimate, abstract art, having a preoccupation with the female body. SCMP Aug 2

COVID-19

14% increase in arrivals since relaxed quarantine rules for inbound travelers
The government announced that starting from Friday, visitors from mainland China or Macao not under Return2hk and Come2hk scheme must complete three days of home isolation, down from seven days, followed by four nights of self-monitoring. Unlike international arrivals, they will not face further restrictions after completing their home isolation and will not be issued with an amber health code in their LeaveHomeSafe app. Meanwhile, Chief Executive John Lee announced that hotel quarantine for inbound travellers will be reduced from seven days to three days, plus four days of home medical surveillance during which they would be allowed to leave their homes with their masks up at all times. The newly adopted ‘3+4’ quarantine arrangement has triggered an increase in incoming travelers, with around 24 000 flying into Hong Kong in the first four days since the arrangement came into effect. HKFP TS Bloomberg Aug 8, 9 & 16

Deaths not calculated scientifically, says former hospitals chief
Former head of Health Authority Leung Pak-yin said that the local calculation of death cases caused by Covid-19 lacks scientific basis. He said that this type of calculation is only applied in Hong Kong rather than any other countries or regions. Under the current definition, a person who died within 28 days of the first day tested with a positive result will be classified as a death case of Covid. TS Aug 16

Government vaccine committee agree on jabs for kids below three
The age of Covid vaccination lowered for six months to three years old. TS Aug 2

MACAO

GDP plunges by 39% in Q2
Macao’s Gross Domestic Product declined by 39.3% year-on-year in the second quarter, according to figures from Statistics and Census Service. The GDP drop was mostly due to a 48.6% fall in exports of services, as exports of gaming services plummeted by 69.6%, while exports of tourism services went down by 47%. Meanwhile, the number of unemployed individuals has increased to 15 600 in the three-month period ending in July, 1 700 more than in the April to June period. MB1 MB2 MN Aug 26

Major trade events postponed from September to December amid Covid
The first China (Macao) High-quality Consumption Exhibition (CHCE) & Hengqin Global Bay Areas Forum have been rescheduled to 30 November - 4 December from 7-11 September to support Covid-19 prevention measures and preserve participants’ health. MN MPD Aug 24

Shorter quarantine for inbound travellers while visitor arrivals plummet 98.8% in July Macao welcomed only 9 759 tourist arrivals in July 2022 the Statistics and Census Service said, accounting for a 98.8% plunge as the SAR endured a partial lockdown and stringent broader restrictions due to a community COVID-19 outbreak. Meanwhile, with immediate effect, a ‘7+3’ medical observation policy is implemented for inbound travellers from HK, Taiwan, or other international locations. With 18’620 mainland visitors on Saturday 27th. TS MB MDT1 MDT2 MN, Aug 6, 18, 19 & 29

8 700 Non-resident workers leave city since January
The total population as at end-June 2022 decreased by 4 400 quarter-to-quarter to 677 300, mainly as a result of a drop in the number of non-resident workers living in Macao. The number of blue-card holders have been decreasing for over nearly three years, due to the economic turn down caused by the Covid-19 pandemic, leading to lay-offs from companies. MDT MB Aug 11

MOP 35 billion financial support plan to launch on 17 August
Macao’s financial support plan for workers, the self-employed and businesses will start to be disbursed on 17 August. The government will allocate MOP 35.1 billion (EUR4.24 billion) from the special reserves to provide tax breaks and exemptions to minimise the impact of the pandemic outbreak on people’s lives and the economy. According to the plan, a one-off subsidy of MOP 10 000 (EUR1 208) is to be granted to eligible employees and freelancers, and that of up to MOP 500 000 (EUR60 418) per business. MN MPD Aug 2

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