Following is a question by the Hon Martin Liao and a written reply by the Secretary for Innovation, Technology and Industry, Professor Sun Dong, in the Legislative Council today (September 10):
 
Question:

     The Financial Secretary has indicated in the 2024-2025 Budget that the Government has commissioned an expert group to undertake an in depth study on how to develop a robust data trading ecosystem in Hong Kong. In this connection, will the Government inform this Council:

(1) given that the facilitation measure on the Standard Contract for the Cross-boundary Flow of Personal Information Within the Guangdong-Hong Kong-Macao Greater Bay Area (Mainland, Hong Kong) (the GBA Standard Contract) has been extended to all sectors since November 1 last year to facilitate the safe cross-boundary flow of personal information within the GBA, of the current number of enterprises participating in the GBA Standard Contract and the details of their respective industries;

(2) whether the Government will explore the setting up of a data exchange in Hong Kong and the development of a comprehensive data market trading system, including standardised data format, data pricing mechanisms, categorised and hierarchical rules for data protection, data security protection mechanisms, definition of data ownership, etc., with a view to enhancing the marketisation of data elements; if so, of the details; if not, the reasons for that; and

(3) as there are views that, following the active development of the data trading market in the Mainland, more legal disputes relating to cross-boundary data trading (such as those concerning data storage, processing, ownership, and trading) may arise constantly, how will the Government capitalise on Hong Kong's strengths as a "super connector" and an international arbitration centre to establish a cross-boundary data trading dispute resolution mechanism, thereby laying a solid foundation for developing a robust data trading ecosystem?

Reply:

President,

     Having consulted the Department of Justice (DoJ), our reply to the questions raised by the Hon Martin Liao is as follows:
 
(1) The Innovation, Technology and Industry Bureau and the Cyberspace Administration of China signed the "Memorandum of Understanding on Facilitating Cross-boundary Data Flow within the Guangdong-Hong Kong-Macao Greater Bay Area" in June 2023, and jointly announced the facilitation measure on the "Standard Contract for the Cross-boundary Flow of Personal Information within the Guangdong-Hong Kong-Macao Greater Bay Area (Mainland, Hong Kong)" (the GBA Standard Contract) in December 2023 to facilitate cross boundary flow of personal information from the Mainland cities in the GBA to Hong Kong and streamline the relevant arrangements.

     The "early and pilot implementation" arrangement of the facilitation measure on the GBA Standard Contract for the banking, credit referencing and healthcare sectors has operated smoothly and received positive industry feedback. From November 2024, the facilitation measure on the GBA Standard Contract was regularised and extended to all sectors. As of end-August 2025, the Digital Policy Office has processed around 100 filing applications from different sectors, including healthcare, credit referencing, insurance, securities and printing sectors, etc. The proportion of filing applications by sectors is as follows:
 

Sector	Proportion
Healthcare	24%
Credit Referencing	16%
Insurance	14%
Securities	9%
Printing	9%
Information Technology	8%
Banking	7%
Others	12%

(2) With the acceleration of global digital transformation, data has become a key production factor, and a highly efficient data ecosystem is one of the key factors attracting enterprises to establish a foothold in Hong Kong. Hong Kong is underpinned by its distinctive advantages under "one country, two systems" and endowed with the characteristics of an international city. From supply and demand of data to application scenarios, Hong Kong is equipped with a robust foundation and possess an abundance of favourable conditions for promoting the development of data ecosystem. 

     The Financial Secretary announced in the 2024-25 Budget that an expert group, comprising professionals from sectors such as information technology, commerce and industry, finance and data sources, is commissioned to study how to develop a robust data trading ecosystem in Hong Kong. This includes Hong Kong's role as a "super connector" in data trading, the prerequisites, rules, and measures for promoting international data trading, as well as feasible implementation models. The study also covers key issues related to data trading, including data format standardisation, data pricing mechanisms, and data security protection, etc. The expert group is conducting a consultancy study on these topics and is expected to complete work and submit recommendations to the Government within 2025-26.

(3) Resolving legal issues and disputes that may arise from cross-boundary data flow (including through the voluntary adoption of the GBA Standard Contract) depends on the arrangements agreed upon by the parties to the contract and other applicable laws and regulations. Taking the GBA Standard Contract as an example, the contract template stipulates that any disputes arising between the parties to the contract shall be resolved through negotiation. If negotiation fails, the parties may choose to resolve the dispute through litigation or arbitration. If arbitration is opted, the dispute may be submitted to arbitral institutions including, inter alia, the Hong Kong International Arbitration Centre, and the arbitral proceedings may be conducted in Hong Kong in accordance with the arbitration rules in force at the time. This provides a dispute resolution mechanism for cross-boundary data flow within the GBA.

     In strengthening Hong Kong's advantages as an international arbitration centre, Hong Kong has been committed to promoting online dispute resolution (ODR) and deal-making services. According to information provided by the DoJ, the 2018 Policy Address proposed supporting the development of an online platform to provide efficient and cost-effective ODR services in Hong Kong. As a result, eBRAM International Online Dispute Resolution Centre (eBRAM Centre) was established. Since 2022, eBRAM Centre has launched online platforms, including the "eBRAM APEC Online Dispute Resolution Platform", "Online Mediation Platform" and "Online Arbitration Platform", providing efficient, cost-effective, and secure ODR services for parties from anywhere in the world. To facilitate cross-boundary commercial transactions and expand cross-boundary businesses, eBRAM Centre launched the "Deal-Making Portal" in December 2023. As of August 2025, more than 550 enterprises of various categories (including legal, professional and commercial services, information technology, etc. from Hong Kong, Mainland and other regions) have joined the "Deal-Making Portal". 

     Regarding the GBA, the DoJ first published the Action Plan on the Construction of Rule of Law in the Guangdong-Hong Kong-Macao Greater Bay Area in April 2024, actively supporting the establishment and promotion of a common ODR platform within the GBA. eBRAM Centre launched the thematic website of the GBA Online Collaborative Platform in July 2024, providing one-stop information on dispute resolution services within the GBA to integrate the arbitration and mediation resources of the GBA. A total of 14 memoranda of understanding with institutions have been signed so far for the Collaborative Platform. 

     The Government believes that Hong Kong, leveraging its strengths as an international legal and dispute resolution hub, particularly its professional expertise and institutional foundation in arbitration and mediation, can continue to enhance its dispute resolution mechanisms. This will help build a more robust ecosystem for resolving cross-boundary commercial disputes, including those arising from cross-boundary data flow. The Government will continue to monitor relevant developments, conduct study as and when appropriate, maintain communication with stakeholders in the legal and dispute resolution sectors. The Government will also strengthen exchanges and cooperation with the Mainland legal community to promote regional experience sharing as and when appropriate.

Ends/Wednesday, September 10, 2025
Issued at HKT 11:51

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