GMT EIGHT - Hong Kong & MaCao

Chung Yuan Mortgage: The number of newly registered mortgages for existing properties in Hong Kong reached 13,109 in the first quarter, an increase of 15.7% compared to the same period.

Wong Mei Fung, Managing Director of Central Mortgage, stated that according to the latest data from the research department of Central Mortgage and the Land Registry, the number of new mortgage registrations for existing buildings in Hong Kong in the first quarter of 2025 increased by 15.7% year-on-year to 13,109, mainly due to the warming of the property market and increased investment in the fourth quarter of last year leading to an increase in mortgage withdrawals and registrations in the first quarter of this year. BOC HONG KONG undertook a total of 4,732 new mortgage registrations for existing buildings in the quarter, with a market share of 36.1%, temporarily ranking first. Data from the research department of Central Mortgage shows that in March, there were 3,803 new mortgage registrations for existing buildings in Hong Kong, a decrease of 27.9% compared to the previous month, reaching a four-month low. In March, BOC HONG KONG's market share for new mortgage registrations for existing buildings fell by 5.1 percentage points to 33.3% compared to the previous month, but still remained the market leader for six consecutive months; while HSBC's market share increased by 0.9 percentage points to 17.1%, rising to second place; HANG SENG BANK's market share fell by 4.3 percentage points to 13.3%, dropping to third place; followed by ICBC Asia with an increase of 2.2 percentage points to 7.7%, maintaining fourth place. As for new property mortgage registrations, there were 1,750 registrations in the first quarter of this year, a significant increase of 5.7 times compared to the same period last year. Wong Mei Fung pointed out that the increase in transactions of new developments last year, combined with the further relaxation of mortgage conditions for new developments and overall mortgage conditions by the Hong Kong government last year, led to a significant increase in the ratio of new supply to demand for new properties; according to individual cases of Central Mortgage, the proportion of new supply to demand for first-hand new developments increased significantly from 25% in 2023 to 64% in 2024, reflecting a significant increase in new property mortgage registrations in the first quarter of this year. Among them, BOC HONG KONG ranked first with 521 new property mortgage registrations, accounting for 29.8% of the market share, temporarily ranking first; thus, BOC HONG KONG won the championship in both new and existing property mortgage registrations in the first quarter. Wong Mei Fung pointed out that in March, there were 704 new property mortgage registrations in Hong Kong, an increase of 7.3% compared to the previous month, reaching a nine-month high. In March, BOC HONG KONG maintained its market share at 27.4% for the second consecutive month, remaining at the top for four consecutive months, while HSBC's market share increased by 2.1percentage points to 13.2%, ranking second in the same month, and ICBC Asia's market share increased by 4.2 percentage points to 12.9%, ranking third. HANG SENG BANK fell to fourth place, with a market share decreasing by 2.1 percentage points to 12.8% compared to the previous month. Standard Chartered Bank's market share was 11.2%, a decrease of 0.2 percentage points from the previous month, dropping to fifth place.

01/04/2025

HKEX: Annual Plan for 2025 Compliance Assessment and On-site Inspection Coming Soon

On April 1st, HKEX announced that it will soon launch its annual plan for the 2025 compliance assessment and on-site inspection to continuously promote a culture of compliance in the market. The plan focuses on participants' compliance with relevant rules and regulations and includes two core components: a compliance assessment questionnaire for participants and on-site inspections of selected participants. The key focus areas for 2025 are as follows: (1) China Connect Rules: Compliance with the China Connect Rules related to northbound trading (applicable to China Connect Exchange Participants and Exchange Participants trading through China Connect Exchange Participants). (2) Risk Management: Measures involving the identification, assessment, monitoring, and mitigation of various risks, including credit, liquidity, operational, market, and financial risks (applicable to Clearing Participants). In addition to the key focus areas mentioned above, the compliance assessment questionnaire will also cover designated risk monitoring (applicable to Futures Exchange Participants and Options Exchange Participants of the Stock Exchange).

01/04/2025

KPMG: Hong Kong's IPO fundraising amount in the first quarter of this year was HK$17.7 billion, nearly three times higher than the same period last year, ranking fourth globally.

On April 1st, the "China Mainland and Hong Kong IPO Market: Review of the First Quarter of 2025" released by KPMG stated that, benefiting from the success of several large new listings, the total funds raised in the first quarter of Hong Kong IPO reached 17.7 billion Hong Kong dollars, almost three times higher than the same period last year, setting a new high for the first quarter since 2021, and ranking fourth globally in terms of total funds raised. In the first quarter of 2025, there were 283 IPOs globally, raising a total of 28.2 billion US dollars. Compared to the same period in 2024, the total funds raised increased by 4% while the number of listings remained the same. The two major stock exchanges in the United States led the world in terms of total funds raised, accounting for about 30% of the global IPO proceeds. The Tokyo Stock Exchange ranked third due to the completion of the largest IPO so far in 2025. The Hong Kong Stock Exchange ranked fourth. According to Zhu Yayi, Managing Partner of KPMG China's New Economy and Life Sciences industry in Hong Kong, after the "Two Sessions", the China Securities Regulatory Commission proposed a new round of capital market optimization measures aimed at promoting comprehensive investment reform, prioritizing high-quality development and reducing risks. In particular, supporting high-quality technology startups that are not yet profitable to go public will further promote the innovation and development of technology companies in mainland China. The Hong Kong IPO market continued its strong momentum from the second half of 2024 and had a good start in early 2025. The outstanding performance of the IPO in the first quarter of Hong Kong was not only due to a 25% increase in the number of listings but also because six IPOs in the first quarter raised over 1 billion Hong Kong dollars, driving an average transaction size growth of 193%. With the popularity of DeepSeek, the market's interest in mainland Chinese technology companies has significantly increased, playing a key role in overall market liquidity and valuation improvement. However, among the five largest IPOs in the first quarter of 2025 in Hong Kong, three came from the consumer sector, with the largest IPO being the largest tea drink chain brand in mainland China. The growth momentum is also reflected in the number of IPO applications, which has increased to 120 companies, significantly higher than the 86 at the end of 2024. This increase is mainly attributed to 51 companies submitting applications for the first time this quarter, compared to only 24 in the previous quarter. In addition, the "A+H" listing model is also becoming increasingly popular, with about a quarter of the companies applying for listings coming from A-share listed companies. The Hong Kong Stock Exchange recently reviewed the relevant regulatory framework for optimizing IPO pricing processes and the public market, suggesting measures aimed at providing greater flexibility to companies in terms of capital management structure and enhancing liquidity, especially for companies listing through the "A+H" model. In the 2025-26 Financial Budget, the Hong Kong government emphasized its commitment to consolidating Hong Kong's status as an international financial center and proposed a series of policies and measures to support the IPO market, including optimizing approval processes, increasing overseas recognized exchanges, and establishing a specialized "Tech Enterprise Line" to provide consulting and guidance services for technology and biotechnology companies interested in listing in Hong Kong. Liu Dachang, Managing Partner of KPMG China's Hong Kong Capital Markets group, stated that the increase in investor confidence and the recent AI boom are prompting more early-stage mainland Chinese technology companies to consider listing in Hong Kong through the tech company channel. KPMG also noted that some larger A-share listed companies have recently submitted applications for listing in Hong Kong. By focusing on high-growth industries and attracting more "A+H" companies, the Hong Kong IPO market will have a vibrant year ahead.

01/04/2025

Hang Seng Index Company: Will announce the results of the review of the Hang Seng Index series for the first quarter of 2025 on May 16th.

On April 1st, Hang Seng Index Company Limited (Hang Seng Company) announced that the results of the review of the Hang Seng Index series for the first quarter of 2025 will be announced on May 16th, 2025 (Friday). The changes to the components of the Hang Seng Index series will take effect on June 9th, 2025 (Monday).

01/04/2025

The Hong Kong Department of Health successfully held the first introduction seminar on the new drug registration application process under the "1+" mechanism.

The Hong Kong Department of Health held its first "1+" new drug registration application briefing yesterday, introducing the registration requirements for pharmaceutical products under the "1+" mechanism to industry practitioners and stakeholders. They also announced upcoming drug registration workshops and pre-application consultation services for "1+" new drug registration applicants. Starting from the second half of this year, the Department of Health will provide pre-application consultation meetings for those interested in submitting "1+" registration applications to provide specific guidance on planning the new drug application approval process and enhancing the quality of application documents to improve processing efficiency. The Chief Executive's Policy Address for 2024 proposed to provide pre-application consultation services for "1+" new drug registration applicants to enhance the efficiency of processing related applications. These consultation services include briefing sessions, workshops, and pre-application consultation meetings. The briefing session held yesterday was attended by 76 representatives from local or overseas pharmaceutical companies, consultancy firms, and research institutions, who responded enthusiastically, marking the beginning of a series of consultation services. The Department of Health will hold two more briefing sessions on April 21st and May 16th this year, and interested individuals can visit the Department of Health's Drug Office "1+" mechanism web page for more information and registration. The Hong Kong Special Administrative Region implemented the "1+" mechanism on November 1, 2023, to facilitate the registration of new drugs for the treatment of severe or rare diseases in Hong Kong. The Hong Kong government also expanded the "1+" mechanism to include all new drugs from November 1st last year, including products containing new drug ingredients or biological elements, drugs for new indications, vaccines, and advanced therapy products. Under the "1+" mechanism, if a new drug can provide locally relevant clinical data that meets the requirements and is approved by local experts, it only needs to submit a permit from one (instead of the previous two) reference regulatory authority in order to apply for registration in Hong Kong.

01/04/2025

Hong Kong Exchanges and Clearing Limited: Plans to digitize the subscription and redemption of ETPs in the primary market this year to promote efficiency and reduce costs in the ETP market.

Brian Roberts, Head of Securities Product Development at Hong Kong Exchange (00388), mentioned in an article titled "Building the Foundation for a Successful Hong Kong ETP Ecosystem" that the exchange will optimize market structure, improve trading efficiency, reduce trading costs, and help international issuers enter the ETP market, with plans to further digitize the subscription and redemption mechanism of the ETP primary market by 2025. Roberts stated that Hong Kong has one of the most diverse ETP product ecosystems in Asia. The one-stop trading platform with robust regulatory measures can increase investor choices and ensure sound regulation. He mentioned that the newly launched individual stock leveraged and inverse products are the latest additions to the HKEX's ETP market. With HKEX continuously introducing innovative products, the number of listed ETPs has increased from 146 at the end of 2020 to 194 at the end of 2024. The establishment of new product regulations, inclusion of ETFs in the Shanghai-Hong Kong Stock Connect to enhance connectivity with the mainland, and the introduction of covered warrant and virtual asset ETFs inject more energy into the ETP ecosystem. HKEX believes that there is ample room for development in both individual stock leveraged and inverse products and overall ETP product types, providing more opportunities for investors and consolidating Hong Kong's position as a leading international financial center in Asia and the world.

01/04/2025

In March, Macau's gross gaming revenue reached 19.659 billion Macau patacas, an increase of 0.8% year-on-year.

On April 1, the Gaming Inspection and Coordination Bureau of Macao announced that the gross revenue from lucky gambling in Macao in March this year was 19.659 billion Macao dollars, an increase of 0.8% compared to the previous year. The gross revenue from gambling in Macao for the first quarter of this year reached 57.657 billion Macao dollars, an increase of 0.6% compared to the previous year.

01/04/2025

Overnight rates fell below 3%, with one-month rates hitting almost a seven-week low.

After the quarterly closing date, Hong Kong Dollar interbank interest rates fell across the board. Overnight interbank interest rates dropped sharply by 95 basis points to 2.9%, hitting a three-week low. The one-month interbank interest rates related to property mortgages also fell for four consecutive days, reaching 3.6256%, the lowest since February 12th. One-week interbank interest rates fell for three consecutive days, reaching 3.33702%. The three-month interbank interest rates, reflecting the cost of bank funds, fell for four consecutive days, reaching 3.83131%, the lowest since February 14th. The six-month and one-year rates also fell to 3.9481% and 4.03387% respectively.

01/04/2025

Xie Qiuanyi: It is expected that Hong Kong's retail sales decline in March and April will narrow or slightly increase, but the market slump will continue.

The Census and Statistics Department of the Hong Kong Special Administrative Region government announced that the total value of retail sales in Hong Kong in February this year was temporarily estimated at 29.4 billion Hong Kong dollars, a year-on-year decrease of 13%, far exceeding the market's expectation of 5.7%. This decline also widened significantly from the 3.1% drop in January, marking the 12th consecutive month of decrease. The Chairperson of the Retail Management Association, Annie Shek Yau-yee, stated that the data for the first two months continued the decline from last year, and the overall market environment showed no signs of improvement. However, she emphasized that with the low base effect in March and April, the decline in retail sales is expected to narrow or slightly increase year-on-year. Nevertheless, the sluggish retail market environment is expected to persist for a longer period of time. Regarding the retail performance in March of this year, Annie Shek Yau-yee mentioned that the low base effect caused by Easter falling later last year, increased promotional efforts by businesses, and various events driving passenger flow growth have benefited low-priced goods. According to a survey by the association, 50% of respondents believe that business in March remained steady or slightly increased year-on-year, describing it as a significant improvement compared to before. Convenience stores, cosmetics, and supermarkets saw single-digit increases. Regarding the recent accelerated entry of mainland e-commerce platforms into Hong Kong, Annie Shek Yau-yee stated that while this will indeed impact the retail industry in Hong Kong, it cannot be stopped. The industry hopes to discuss with the government how to regulate the quality of products sold on these e-commerce platforms, as well as how to reduce the costs for local retail businesses to enhance competitiveness. She also pointed out that association members have indicated that there is still room for rent reductions in current contract renewals.

01/04/2025

Hong Kong Department of Health: Will extend the "Support for the Guangdong-Hong Kong-Macao Greater Bay Area Hospital Authority Patient Care Plan" until March 31 next year.

The Hong Kong Department of Health (DH) announced today (March 31) that it will extend the "Patient Navigation Scheme for Hospital Authority Patients in the Guangdong-Hong Kong-Macao Greater Bay Area" (Navigation Scheme) for another year until March 31 next year, allowing eligible Hospital Authority (HA) patients to choose to receive subsidized outpatient services at designated collaborative medical institutions in the Greater Bay Area. The scheme aims to provide more choices for Hong Kong citizens receiving services from the HA, and currently applies to the University of Hong Kong Shenzhen Hospital (HKU Shenzhen Hospital). The Hong Kong government and the HA will review the effectiveness and coverage of the Navigation Scheme annually and make adjustments as appropriate. From May 10, 2023, to the end of February 2025, a total of 5,100 eligible patients have participated in the Navigation Scheme, with over 60% of them being 65 years old or older. According to a patient survey conducted by HKU Shenzhen Hospital at the end of last year, about 90% of respondents expressed satisfaction with the services. To provide more targeted medical support to patients, the Navigation Scheme will be optimized. Starting tomorrow (April 1), eligible patients participating in the scheme must receive outpatient services at the corresponding department of HKU Shenzhen Hospital based on the category of their HA clinic appointment, in order to use the subsidies provided by the Navigation Scheme. Furthermore, the government is also studying the possibility of offering more medical options within the Greater Bay Area for patients receiving specific HA services through the Navigation Scheme, and will introduce relevant measures when ready. Professor Lu Cheung-mau, Director of the DH, said, "The government has always promoted medical and health cooperation in the Greater Bay Area based on the principle of mutual complementation and mutual benefit. The HA will continue to explore deeper medical cooperation projects with suitable institutions and improve the efficiency of public medical services to reduce patient waiting times." Apart from the optimization measures mentioned above, the other arrangements under the extended Navigation Scheme are broadly similar to the current ones. Eligible patients will need to pay a personal fee of RMB 100 for each visit for designated outpatient services at HKU Shenzhen Hospital (excluding designated individuals who are exempt from medical fees as verified by the HA). The personal fee that eligible patients need to pay will be adjusted according to the fees for specialist outpatient services set by the public healthcare fee reform on January 1 next year, with the remaining amount subsidized by the Navigation Scheme, up to a maximum of RMB 2,000 per year, for services used between tomorrow and March 31 next year. The subsidized outpatient services under the Navigation Scheme will continue to cover outpatient services provided by the HA, including anesthesiology (only pain clinic outpatient services), cardiothoracic surgery, clinical oncology, otolaryngology, ophthalmology, gynecology, internal medicine, neurosurgery, obstetrics, orthopedics and trauma surgery, pediatrics, surgery, and general medicine. However, incidental illnesses, inpatient or day ward services, and emergency room services are not covered under the subsidized outpatient services. Eligible patients must receive subsidized outpatient services at the corresponding department of HKU Shenzhen Hospital based on the category of their HA clinic appointment. The subsidy for existing patients under the Navigation Scheme will expire today. Eligible patients who wish to continue participating in the scheme can make appointments for outpatient services at the corresponding department of HKU Shenzhen Hospital based on their HA clinic appointment through existing methods. Before receiving subsidized outpatient services, they must fill out a declaration form confirming their continued participation at HKU Shenzhen Hospital. Patients who do not wish to continue participating in the scheme and want to return to Hong Kong for HA clinic appointments can make the request to HKU Shenzhen Hospital. The hospital will refer them back to the appropriate HA clinic for follow-up appointments based on their clinical needs. As for eligible patients who have never participated in the Navigation Scheme or need to update their personal information, they can apply to HKU Shenzhen Hospital starting tomorrow.

31/03/2025

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