Following is a question by the Hon Andrew Lam and a written reply by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, in the Legislative Council today (October 8):

Question:

     The Financial Secretary Incorporated (FSI) may hold and manage Government property, and for certain large development projects involving the Government such as the Cyberport, the Government will also set up companies owned by FSI to deal with the projects. In this connection, will the Government inform this Council:
 
(1) of the projects FSI is currently engaged in or managing, directly and indirectly, and the companies or bodies owned by FSI (set out in a table);

(2) for the projects in which FSI is directly or indirectly engaged as mentioned in (1), of the government departments responsible for the actual monitoring of such projects, and the management frameworks or mechanisms respectively; and

(3) given that the 2025 Policy Address proposes to set up a Working Group on Devising Development and Operation Models, to be led by the Financial Secretary, under the Committee on Development of the Northern Metropolis to formulate development and operation models for industry parks in the Northern Metropolis, taking into account their nature and scale, whether the Government will draw on the models and mechanisms previously employed in projects in which FSI was directly or indirectly engaged, or introduce other new models in taking forward and running the projects of various industry parks; if so, of the details?

Reply:

President,

     In consultation with the Financial Secretary's Office, my reply to the various parts of the question is as follows:

(1) Under the Financial Secretary Incorporation Ordinance (Cap. 1015), Financial Secretary Incorporated (FSI) is a corporation sole constituted by the person who for the time being is performing the duties of the office of Financial Secretary. The FSI may hold and manage government assets on behalf of the Government, and the Government would, as required, through the FSI, directly or indirectly hold companies specifically established for individual projects, with a view to providing public services or achieving important policy objectives. Examples include Hong Kong Cyberport Management Company Limited, MTR Corporation Limited, Hong Kong Science and Technology Parks Corporation, Airport Authority, Hong Kong Investment Corporation Limited, Hongkong International Theme Parks Limited, etc.

(2) These enterprises can operate in accordance with market principles, which allows them to bring in the management and expertise from the commercial sector and adopt more flexible and market-oriented financial and operational arrangements. Apart from helping the Government to achieve policy objectives, this arrangement can also encourage innovation and enhance productivity, improve service quality and efficiency, and promote the development of relevant industries, thereby facilitating structural upgrades of Hong Kong's industries.

     These enterprises have considerable autonomy in their day-to-day operations. Nevertheless, government bureaux or departments in charge of relevant policies oversee their development direction and operations through various means to safeguard public interests and the Government's interests as a shareholder. These measures mainly include:

(i) appointing officers from relevant bureaux and/or departments to serve as board members of these enterprises to monitor their performance, participate in discussions on major decisions, and provide advice on their operational strategies, corporate plans and financial projections, with a view to ensuring that the enterprises' operations align with relevant policy objectives and that resources are properly utilised, thereby safeguarding the Government's interest as a shareholder and the use of public money. Government representatives also provide input at board meetings on issues relevant to the public to ensure that enterprises would give due regard to public interest in their operations;

(ii) establishing monitoring mechanisms, including having Secretaries of Departments and Directors of Bureaux review and approve enterprises' annual plans and financial budgets, setting key performance indicators, and requiring these enterprises to submit regular reports to the Government. Individual enterprises are also regulated by specific legislation (such as the Airport Authority and Hong Kong Science and Technology Parks Corporation, etc.) which clearly stipulates the relevant monitoring mechanisms; and

(iii) requesting these enterprises to regularly report to the Legislative Council on their financial position, work progress, etc.

(3) The 2025 Policy Address announced the establishment of the Committee on Development of the Northern Metropolis chaired by the Chief Executive, under which three working groups have been set up. Among them, the Working Group on Devising Development and Operation Models (the Working Group) led by the Financial Secretary will formulate development and operation models for designated development areas in the Northern Metropolis (NM), taking into account their nature and scale. This will include setting up dedicated companies, or statutory or non-statutory bodies, for various industrial parks, devising public-private partnership approaches, considering appropriate land disposal approaches for industry land and major development projects in the NM, as well as the suitable financing arrangements. The Working Group held its first meeting on September 29, 2025.

     The Working Group will make reference to the models previously adopted in participating in major development projects, and adopt an open-minded, flexible and innovative approach in considering the development strategies that best suit the characteristics of various development areas and industry parks of the NM. It will endeavour to remove unnecessary barriers and ease restrictions and leverage market capital with a view to accelerating the development of NM and anchoring of industries through a diversified approach.

Ends/Wednesday, October 8, 2025
Issued at HKT 11:45

NNNN