GMT EIGHT - Hong Kong & MaCao

Hong Kong Civil Aviation Department: The airport passenger traffic in December 2024 increased by 18.3% year-on-year to 5.1 million persons.

On January 21, according to the Hong Kong Airport Authority, in December 2024, the passenger volume increased by 18.3% year-on-year to 5.1 million. Compared to the same month last year, all categories of passenger volume recorded significant increases, with the most pronounced growth in travel to and from Southeast Asia, mainland China, and Japan. Within the month, the cargo volume increased by 6.6% year-on-year to 446,000 tons, with export cargo volume recording a 6.8% increase, with the largest increases seen in trade with Europe, the Middle East, and Australasia. The export cargo volume in 2024 increased by 20.2%, driving overall cargo volume growth for the year, with the most significant growth seen in trade with Europe, North America, and the Middle East. Data shows that with Hong Kong International Airport entering a new era of three-runway operations in 2024, the airport's air traffic volume grew vigorously, with the aircraft movements in December increasing by 12.5% year-on-year to 33,550 aircraft movements, approaching pre-pandemic levels, and with certain individual days' aircraft movements even surpassing pre-pandemic levels, setting new records. Throughout the year, the airport's passenger volume reached 53.1 million, and aircraft movements reached 363,305, representing jumps of approximately 34.3% and 31.6% compared to 2023. The total cargo volume for 2024 increased by 14.0% year-on-year to 4.9 million tons. The Acting CEO of the Hong Kong Airport Authority, Vivian Cheung, stated: "2024 was a fruitful year for Hong Kong International Airport. The three-runway system was completed on time and within budget, and was commissioned in November. The airport was also selected as the world's busiest cargo airport for the 13th time since 2010. The airport was very busy during the Christmas period, and we are prepared to welcome another peak in travel during the Lunar New Year holiday, with many airlines adding numerous flights to meet the high demand." It was reported that Hong Kong International Airport is further expanding its vast air traffic network, with multiple airlines offering new routes to and from the airport in January 2025. HK Express launched a new route to Sendai, Japan; Hong Kong Airlines resumed direct flights to Vancouver, Canada, and the Gold Coast, Australia; Shenzhen Airlines introduced a new service to Nanjing, while the new passenger airline Air Premia began operating flights between Hong Kong and Seoul, South Korea.

5 h ago

Macau Statistics and Census Bureau: The operating income of interviewed catering merchants increased by 1.9% year-on-year in November 2024.

According to data from the Macau Statistics and Census Bureau, the turnover of surveyed catering merchants in November 2024 increased by 1.9% year-on-year, with the turnover of Japanese and Korean restaurants rising by 12.6%. In the retail industry, the turnover of surveyed merchants in November decreased by 9.2% year-on-year, with the turnover of watches and jewelry, cosmetics and hygiene products, and leather goods recording year-on-year declines of 24%, 12.8%, and 11.2% respectively, while the turnover of automobiles increased by 26.9%. Compared to October, after the end of the National Day Golden Week, the turnover of surveyed catering merchants in November decreased by 4.2%, with the turnover of Chinese restaurants, teahouses, and congee and noodle shops declining by 4.3% and 3.7% respectively. On the other hand, the turnover of surveyed retail merchants in November decreased by 8.3% month-on-month; with the turnover of watches and jewelry and supermarkets recording declines of 15.6% and 11.5% respectively, while the turnover of automobiles increased by 17%. In terms of turnover expectations, 35% of surveyed catering merchants expect the Christmas holiday in December to drive a month-on-month increase in turnover, with corresponding proportions of 56% and 35% for western-style restaurants and Japanese and Korean restaurants; about 17% of catering merchants believe that turnover in December will decrease month-on-month. In the retail industry, 42% of surveyed merchants expect a month-on-month increase in turnover in December; with corresponding proportions of 63%, 48%, and 43% for department stores, adult clothing retailers, and watch and jewelry retailers. Additionally, about 20% of surveyed merchants believe that turnover in December will decline month-on-month. In terms of the Business Outlook Index reflecting surveyed merchants' expectations of changes in turnover month-on-month, the index for the catering industry (59.3) and the retail industry (61.5) are both above 50, indicating that surveyed merchants in both industries generally expect better business performance in December than in November.

21/01/2025

In 2024, the total number of inbound tourists to Macau for the whole year was 34.92865 million, an increase of 23.8% compared to the previous year.

According to data from the Macao Statistics and Census Bureau, the total number of inbound tourists in Macao in 2024 was 34,928,650, an increase of 23.8% compared to the previous year. However, the number of day-trippers (18,884,882) and overnight visitors (16,043,768) increased by 35% and 12.8% respectively. Due to the increase in the proportion of day-trippers, the average length of stay for tourists in 2024 decreased by 0.1 day to 1.2 days, while the average length of stay for overnight visitors remained at 2.3 days. In terms of visitor sources, the number of mainland Chinese tourists increased by 28.6% to 24,491,424 in 2024, with individual tourists (12,281,055) rising by 15.5% and group tourists entering and exiting Macao totaling 17,078. The number of tourists from the Greater Bay Area of Guangdong-Hong Kong-Macao increased by 28.8% to 11,985,383. The number of tourists from Taiwan increased by 64.1% to 834,411, while the number of tourists from Hong Kong decreased by 0.2% to 7,179,722. There were a total of 2,423,093 international tourists in Macao in 2024, an increase of 66% compared to the previous year. In the Southeast Asian market, tourists from the Philippines (493,399), Indonesia (183,062), and Malaysia (181,941) increased by 57.1%, 28.1%, and 82.2% respectively. Tourists from Thailand (134,658) and Singapore (119,201) also increased by 31.8% and 29.8% respectively. Tourists from India in South Asia increased by 76.5% to 103,817, while tourists from South Korea (492,184) and Japan (126,424) in Northeast Asia increased by 1.4 times and 68.2% respectively. Long-haul tourists from the United States recorded a 57.7% increase to 147,941. In terms of entry channels, the number of tourists entering Macao through land routes (27,769,490, 79.5%), sea routes (4,094,585, 11.7%), and air routes (3,064,575, 8.8%) increased by 24.1%, 10.7%, and 43.9% respectively. In December 2024, there were a total of 3,040,337 inbound tourists, an increase of 3.3% compared to the same period last year, with international tourists (292,202) increasing by 22.5%. The number of day-trippers (1,712,682) increased by 15.3%, while overnight visitors (1,327,655) decreased by 8.9%. The average length of stay for tourists decreased by 0.1 day to 1.1 days; the average length of stay for day-trippers remained unchanged at 0.2 days, while the average length of stay for overnight visitors increased by 0.1 day to 2.3 days.

21/01/2025

Hong Kong Securities and Futures Commission Ye Zhiheng: More new virtual asset platform licenses will be issued soon.

Recently, Ye Zhixing, Executive Director of the Intermediaries Division of the Hong Kong Securities and Futures Commission (Chairman of the FinTech Consultation Group), revealed that a new virtual asset platform license will soon be issued, and it is believed that there will be good news in the first quarter. He also mentioned that last year, almost all applicants had undergone on-site inspections, giving regulators the opportunity to express their requirements and platforms the time to respond. The industry believes that direct communication can expedite the licensing process. Ye Zhixing stated that there is no guarantee that all 11 current applications will be approved, as regulatory red lines must be respected, including investor protection and network security requirements for operators. However, he hopes that in one or two months, there will be good news. Previously, the Hong Kong Securities and Futures Commission announced plans to establish a consultation group for all licensed platforms by early 2025 in order to ensure that industry perspectives are considered in the policy-making process. Ye Zhixing mentioned that senior executives of licensed platforms have been invited to participate, with the expectation that representatives from each platform will attend the first meeting expected to be held after the Lunar New Year in the first quarter.

21/01/2025

Chen Haolian: The plan for the issuance of virtual asset custody service licenses is scheduled to undergo public consultation this year.

On January 21st, Hong Kong's Under Secretary for Financial Services and the Treasury, Joseph Chan Ho-lim, stated that Hong Kong has taken various measures to promote the development and regulation of virtual asset businesses. By the end of 2024, seven virtual asset trading platforms have obtained legal licenses and are operating in accordance with relevant regulations. However, with the rapid growth of the virtual asset market, the regulation of stablecoins and the virtual asset ecosystem faces new challenges. To ensure that customer virtual assets held by service providers are adequately protected, a licensing system for virtual asset custody service providers is being developed, with plans for public consultation to take place this year. Chan Ho-lim noted that to expedite the processing of license applications from virtual asset trading platform operators who have been conducting business in Hong Kong, the Securities and Futures Commission (SFC) has implemented a fast-track licensing procedure. Currently, the SFC is processing 11 applications under the Anti-Money Laundering Ordinance, with seven being considered for licensing and undergoing on-site inspections to ensure compliance with regulatory requirements. However, as the virtual asset market continues to grow rapidly, new challenges and risks are emerging. In particular, given the significant role stablecoins play in the Web3 and virtual asset ecosystem, and the increasing connectivity between the traditional financial system and the virtual asset market, the Hong Kong government proposed the Stablecoin Bill to the Legislative Council on December 18, 2024. The regulatory framework aims to address potential risks posed by fiat-backed stablecoins to currency and financial stability, and provide protection for users of fiat-backed stablecoins. A committee held its first meeting earlier today to discuss the proposed legislation. Beyond the regulation of stablecoins, the virtual asset ecosystem also includes over-the-counter (OTC) exchanges, which operate through physical stores or online platforms and are easily accessible to the general public. OTC trading services for virtual assets are also under consideration, with the first round of consultations held in 2024. Feedback received will be used to adjust the framework for a second round of consultations expected to take place this year. Additionally, to ensure the adequate protection of customer virtual assets held by service providers and manage related risks effectively, Hong Kong is also working on a licensing system for virtual asset custody service providers, with plans for public consultation to be conducted this year. Chan Ho-lim emphasized that regulatory oversight of virtual assets is an ongoing effort, with adjustments and enhancements to the regulatory framework being made based on market developments and international regulatory discussions. The goal is to create a favorable business environment and promote the sustainable and responsible development of Hong Kong's third-generation internet and virtual asset ecosystem through appropriately regulated service providers.

21/01/2025

In December, the overall consumer price index in Hong Kong rose by 1.4% compared to the same period last year.

The Hong Kong Census and Statistics Department today released the Consumer Price Index for December 2024. According to the Composite Consumer Price Index, the overall consumer prices in Hong Kong for December 2024 increased by 1.4% compared to the same month a year ago, which is the same as the corresponding increase in November 2024. Excluding the impact of all one-off relief measures by the government, the year-on-year increase in the Composite Consumer Price Index for December 2024 (i.e., the basic inflation rate) was 1.3%, slightly higher than 1.2% in November 2024. The seasonally adjusted Composite Consumer Price Index showed an average monthly increase of 0.1% for the three-month period ending December 2024, which is the same as the corresponding increase for the three months ending in November 2024. Excluding the impact of all one-off relief measures by the government, the corresponding increases were 0.2% and 0.1%. In terms of the detailed index analysis, the Class A, Class B, and Class C Consumer Price Indexes had year-on-year increases of 1.7%, 1.4%, and 1.2% respectively in December 2024, compared to 1.7%, 1.3%, and 1.1% respectively in November 2024. Excluding the impact of all one-off relief measures by the government, the year-on-year increases for Class A, B, and C Consumer Price Indexes in December 2024 were 1.6%, 1.2%, and 1.1% respectively, while in November 2024, the increases were 1.6%, 1.1%, and 1.0%. The seasonally adjusted Class A, B, and C Consumer Price Indexes showed an average monthly increase of 0.1% for the three months ending December 2024, which is the same as the corresponding increase for the three months ending in November 2024. Excluding the impact of all one-off relief measures by the government, the average monthly increases for the seasonally adjusted Class A, B, and C Consumer Price Indexes for the three months ending December 2024 were 0.3%, 0.1%, and 0.1%, while the corresponding increases for the three months ending November 2024 were 0.2%, 0.1%, and 0.1%. In terms of the various components of the Composite Consumer Price Index, the categories that recorded year-on-year increases in prices in December 2024 were tobacco and alcohol (up 21.2%), electricity, gas, and water (up 11.4%), miscellaneous services (up 2.1%), transport (up 2.1%), dining out and takeaways (up 1.8%), miscellaneous items (up 1.4%), and housing (up 1.0%). On the other hand, the categories that recorded year-on-year decreases in prices in December 2024 were clothing and footwear (down 3.2%), durable goods (down 1.6%), and basic food items (down 0.6%). In the fourth quarter of 2024, the Composite Consumer Price Index increased by 1.4% compared to the same period a year ago, while the Class A, B, and C Consumer Price Indexes increased by 1.7%, 1.3%, and 1.2% respectively. Excluding the impact of all one-off relief measures by the government, the corresponding increases were 1.2%, 1.5%, 1.1%, and 1.0%. For the full year 2024, the Composite Consumer Price Index increased by 1.7% compared to the same period a year ago, with the corresponding increases for the Class A, B, and C Consumer Price Indexes at 2.1%, 1.6%, and 1.5% respectively. Excluding the impact of all one-off relief measures by the government, the corresponding increases were 1.1%, 1.0%, 1.1%, and 1.2%. Commentary A spokesperson for the Hong Kong government stated that the basic consumer price inflation for December 2024 remained at a mild level. Overall, food prices continued to increase slightly year-on-year. At the same time, prices of energy-related items turned to a slight increase due in part to a low base effect. The price pressure faced by other major components remains generally under control. The average basic consumer price inflation rate for the whole of 2024 was 1.1%. Looking ahead, inflation is expected to remain moderate in the short term. As the Hong Kong economy continues to grow, local costs may face some upward pressure. External price pressures should remain manageable, although uncertainties originating from the external environment will be monitored closely. The government will continue to keep a close eye on the situation.

21/01/2025

Country Garden: Hong Kong's new homes recorded 449 deals in 2024, a 1.6 times increase from the previous quarter.

Yang Mingyi, Senior Co-Chairman of the Research Department of Midland Realty, pointed out that a total of 449 new units in Hong Kong were booked in 2024, compared to 256 units in 2023, a significant increase of 75.4%. Of these, 346 units were booked in 2024, with a booking rate of 77%, slightly higher than the 73% in 2023. In the fourth quarter of 2024, 104 units were booked, up 1.6 times from the 40 units in the third quarter. Benefiting from the start of the fourth quarter interest rate cut cycle, the property market stabilized, transaction volumes increased, and developers accelerated the sale of booked units. In December last year, the Hong Kong Monetary Authority introduced a one-time special arrangement, allowing buyers of pre-sale properties who had chosen installment payments during the construction period from 2021 to 2023 to apply for a maximum of 80% mortgage loans from banks. In January 2025, private mortgage insurance companies will provide new mortgage plans for designated properties, with loan amounts of 110% of the valuation or 90% of the purchase price. Although the above measures helped to reduce the number of bookings, it is believed that with the market picking up after the Spring Festival, and developers continuing to reduce prices to promote sales, the number of new unit bookings in the short term will remain high, with an estimated level of around 100 units in the first quarter of 2025. Of the 104 first-hand private residential transactions cancelled in the fourth quarter of 2024, 55 had been successfully resold by December, with a resale rate of 53%, up significantly from the 43% resale rate in the third quarter. Reflecting the decline in interest rates, along with some developers lowering prices and reselling after reclaiming booked units, buyers were attracted to the market, thus pushing up the resale rate to over fifty percent. Among the ten projects with the most bookings in the fourth quarter, seven had a resale rate of fifty percent or more. The top two projects in terms of bookings in the fourth quarter were Le Grandeur, Diamond Hill with 15 bookings, and WINGS II, Tuen Mun with 11 bookings, both of which were large unit bookings. South Horizon Phase 2 in Wong Chuk Hang, La Salle Pierre 2B in Ho Man Tin, and City One in Kai Tak recorded 5 bookings each, with large unit booking rates of 80%, 100%, and 0% respectively. In the above five projects, South Horizon and La Salle Pierre 2B had all been resold, while City One had an eighty percent resale rate, but WINGS II had a slightly lower resale rate of 18%. Cases where the resale price in the fourth quarter dropped by more than twenty-five percent, ninety percent were units sold in the peak prices between December 2019 and December 2021, mainly focusing on small units below 500 square feet in Cheung Sha Wan and V City 1. Among them, two handbooked units were resold with a price drop of thirty percent, including High-floor unit F in Wing West of Rayfont in Cheung Sha Wan, with a practical area of 435 square feet. It was originally purchased for 14.837 million HKD in December 2023, with a price per square foot of 34,108 HKD, the unit was resold in October 2024 for 9.5 million HKD, with a price per square foot of 21,839 HKD, a drop of 36%. In addition, Low-floor unit F of Block 2B of Dragon Plaza in Kai Tak, with a practical area of 865 square feet, was purchased for 25.568 million HKD in December 2019, with a price per square foot of 29,558 HKD. It was resold in December last year for 18 million HKD, with a price per square foot of 20,809 HKD, a price reduction of 30%.

21/01/2025

Chen Maobo: Looking forward to expediting the signing of a free trade agreement between Hong Kong and the Gulf Cooperation Council.

On January 20, Hong Kong Financial Secretary Paul Chan Mo-po met with Secretary-General of the Gulf Cooperation Council (GCC) Dr. Nayef al-Hajraf to discuss enhancing bilateral economic and trade cooperation. Paul Chan Mo-po expressed his hope to expedite the signing of a free trade agreement between Hong Kong and the GCC, and stated that the Hong Kong SAR government will actively promote more business delegation visits between Hong Kong and GCC countries. They also discussed aligning projects in the digital economy and green transformation, as well as cooperation in areas such as securities markets, Islamic finance, and asset and wealth management between the two regions.

21/01/2025

Hong Kong Dollar (HKD) overnight lending rates fluctuated significantly, with one-month lending rates hitting a nearly four-month low.

On January 21st, the overnight Hong Kong Interbank Offered Rate (HIBOR) fluctuated significantly, dropping 80 basis points to 3.05071% after rising nearly 123 basis points the previous day. Other tenors of HIBOR remained relatively stable, with the one-month rate slightly decreasing to 3.9%, reaching a four-month low. Two-month to one-year HIBOR rates remained unchanged for three consecutive trading days.

21/01/2025

Kenneth Li: Mainland China's Spring Festival Golden Week expected to attract over 1.4 million mainland tourists to visit Hong Kong.

Hong Kong Chief Executive John Lee Ka-chiu said in a meeting with reporters before attending the Executive Council meeting on January 21 that it is expected that during the Chinese New Year Golden Week from the twenty-eighth day of the year to the seventh day of the new year (January 28 to February 4), there will be over 1.4 million mainland Chinese visitors to Hong Kong, an increase of 3% and 14% compared to last year's National Day and Chinese New Year respectively. John Lee Ka-chiu stated that he has instructed various departments to make preparations and plans, including crowd management, immigration control at sea, land and air ports, and transportation management. The inter-departmental working group led by the Chief Secretary for Administration of the Hong Kong Special Administrative Region, Matthew Cheung Kin-chung, has also begun working on festival arrangements to ensure that all activities proceed smoothly and orderly, providing a good experience for visitors. The group will announce the overall arrangements once they are deployed. He also mentioned that starting from this Saturday (January 25) for four consecutive days, he will visit various districts with department heads to check on the living conditions of grassroots families and offer them blessings to celebrate the holiday. On the 15th of next month, the twin pandas born in Hong Kong will celebrate their half-year birthday with a ceremony, followed by a public appearance the next day.

21/01/2025

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