LCQ17: Hong Kong Investment Corporation Limited

Hkic signs strategic partnership with smartmore, accelerates ai development in hong kong - investment details remain confidential, focus on talent nurturing and ecosystem building.

Following is a question by the Hon Mrs Regina Ip and a written reply by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, in the Legislative Council today (July 3):

Question:

The Chief Executive announced the establishment of the Hong Kong Investment Corporation Limited (HKIC) in the 2022 Policy Address, and nearly two years later, the HKIC finally signed a strategic partnership agreement (the Agreement) with the innovation and technology (I&T) enterprise, SmartMore Corporation Limited (SmartMore), last month, marking the first time the HKIC signs a strategic partnership agreement with a technology enterprise. In this connection, will the Government inform this Council:

(1) of the specific amount of the HKIC's investment in SmartMore under the Agreement; if the amount of investment cannot be disclosed, of the reasons for that; whether it has drawn up a timetable for disclosing the arrangements under the Agreement;

(2) given that in the reply to a question raised by a Member of this Council on the Estimates of Expenditure 2024-2025, the Government has indicated that the Board of Directors of the HKIC will formulate appropriate disclosure arrangements for the HKIC in accordance with factors such as the actual needs of its investment operation, of the current progress of the relevant work; when the Government plans to disclose the investments made by the HKIC in various enterprises and explain how such investments will bring into play its role of channelling capital and leveraging market resources;

(3) as it is learnt that SmartMore has undertaken in the Agreement to establish the first artificial intelligence (AI) research institute in Hong Kong to nurture local AI talents, whether the Government has assessed the economic benefits that the project will bring to Hong Kong; if so, of the details; if not, the reasons for that;

(4) whether, in addition to the establishment of an AI research institute, there are other plans under the Agreement to build an I&T ecosystem in Hong Kong; if so, of the details; if not, the reasons for that;

(5) as it is learnt that an AI-powered real-time translation service was provided on the spot at the signing ceremony of the Agreement, and SmartMore's official website has uploaded both the Chinese and English versions of the press release on the signing ceremony, but the HKIC's official website has only uploaded the Chinese version of the press release and the speech delivered by its Chief Executive Officer (CEO) one week after the signing ceremony, and there are views that the relevant practice may hinder the HKIC's external publicity work, of the reasons why the HKIC did not upload the English version of the press release and the speech delivered by its CEO; and

(6) whether the HKIC has formulated measures to step up its external publicity work; if so, of the details; if not, the reasons for that; whether the Government has formulated corresponding performance indicators for the HKIC; if so, of the details; if not, the reasons for that?

Reply:

President,

In consultation with the Hong Kong Investment Corporation Limited (HKIC), the reply to the six parts of the question is as follows:

(1) The HKIC plans to join hands with SmartMore in accelerating the advancement in the continued development and application of cutting-edge technologies in artificial intelligence (AI) large language models (LLM) in Hong Kong, with a view to contributing to the economic and social developments of Hong Kong. Key content of the strategic partnership agreement was disclosed on the date of signing, which includes the establishment of the first AI Research Institute by SmartMore in Hong Kong to focus on nurturing Hong Kong young talents for AI development, putting Hong Kong as the priority location for initial public offering in its future development plan, and deployment of resources to enhance the computing power of Hong Kong. Owing to the confidentiality clauses regarding the commercially sensitive information in the agreement, details on the investment amount cannot be disclosed.

(2) The HKIC has started to implement certain direct and co-investment projects in June this year covering the themes of Hard and Core Technology, Biotech, New Energy and Green Technology. All of these investment projects target companies that are at the forefront of technology or operate in critical sectors, and are medium to long term investments. The HKIC aims to exert its influence as "patient capital", accelerating the construction of the information innovation and technology (I&T) ecosystem in Hong Kong and generating investment return by way of investing and signing collaboration agreements. The HKIC will have appropriate disclosure arrangements in its annual report regarding its operations and investment.

(3) "Science and technology is primary productive force, talent is primary resource, and innovation is primary driver of growth". Talent is a key element in I&T. Nurturing talents in the specialised field of AI is very important for the fostering and continued development of the relevant ecosystem in Hong Kong. SmartMore will establish the first AI Research Institute in Hong Kong, which will focus on nurturing Hong Kong’s young talents for AI development. The relevant Research Institute will be situated in a reputable university in Hong Kong, with details being discussed in depth. Talent development is an important factor for the HKIC when selecting strategic partners or investment projects.

(4) Other key content of the strategic partnership agreement includes putting Hong Kong as the priority location for initial public offering in SmartMore's future development plan, and deployment of resources to enhance the computing power of Hong Kong. SmartMore's strategic partnership with the HKIC means that SmartMore is plugged into the I&T ecosystem of Hong Kong as well as the broad network of the HKIC, benefiting from more cross-jurisdictional and cross-sectoral resources. The HKIC's investment strategy includes bringing more collaborative opportunities and development potential to its investee companies and strategic partners, and creates more value for Hong Kong on that basis.

(5) The Chinese and English bilingual press release for the signing of the strategic partnership agreement between the HKIC and SmartMore has been uploaded to the official website of the HKIC. Regarding the speech, its release adheres to the customary practice of the Government, under which the deployed version was used.

(6) The HKIC conducts publicity and promotion work on an on-going basis for its investment strategy under which the ecosystem construction is driven by capital. Such work covers the participants and potential participants of the ecosystem of cutting-edge technologies locally, in the Mainland and overseas, with a view to allowing them to develop a deeper understanding. It is believed that targeted publicity will help attract the relevant enterprises to Hong Kong.

The Chief Executive Officer (CEO) of the HKIC only assumed office in last October. Considering that the HKIC is still in its initial operation, the Board of Directors acknowledges that full deployment of capital takes time, and that it also takes time for the invested capital to yield reasonable return. Meanwhile, another important policy objective of the HKIC's investment is to help enhance Hong Kong's medium to long term competitiveness. Therefore, the CEO's work objectives and performance indicators set by the Board of Directors primarily include the establishment of governance and investment mechanisms as well as the team; construction of extensive and close connections with the investment, industry, academic and research sectors in Hong Kong, the Mainland and overseas; identification of high quality investment projects, enterprises and partners; and promotion of the I&T ecosystem construction in Hong Kong.

Source: AI-generated images

Eight sdu landlords fined $51,500 for violating landlord and tenant ordinance; rvd prosecutes 307 cases, emphasizes compliance and tenant rights; enforcement actions continues.

Eight landlords of subdivided units (SDUs), who contravened Part IVA of the Landlord and Tenant (Consolidation) Ordinance (Cap. 7) (the Ordinance) pleaded guilty and were fined a total of $51,500 today (July 5) at the Eastern Magistrates' Courts. Since the Ordinance has come into force, the Rating and Valuation Department (RVD) has successfully prosecuted 307 cases involving a total of 263 SDU landlords, with fines ranging from $400 to $28,000, amounting to a total of $607,110.

The offences of these landlords include (1) failing to submit a Notice of Tenancy (Form AR2) to the Commissioner of Rating and Valuation within 60 days after the term of the regulated tenancy commenced; (2) failing to produce copies of the bills and provide an account in writing when requiring the tenant to pay for the reimbursement of the apportioned water and/or electricity charges; and (3) failing to provide the tenant with a rent receipt. One of the landlords committed 35 offences under (1) above and was fined $28,000.

The RVD earlier discovered that the landlords failed to comply with the relevant requirements under the Ordinance. Upon an in-depth investigation and evidence collection, the RVD prosecuted against the landlords.

A spokesman for the RVD reiterated that SDU landlords must comply with the relevant requirements under the Ordinance, and also reminded SDU tenants of their rights under the Ordinance. He also stressed that the RVD will continue to take resolute enforcement action against any contraventions of the Ordinance. Apart from following up on reported cases, the RVD has been adopting a multipronged approach to proactively identify, investigate and follow up on cases concerning landlords who are suspected of contravening the Ordinance. In particular, the RVD has been requiring landlords of regulated tenancies to provide information and reference documents of their tenancies for checking whether the landlords concerned have complied with the requirements of the Ordinance. If a landlord, without reasonable excuse, refuses to provide the relevant information or neglects the RVD's request, the landlord commits an offence and is liable to a maximum fine at level 3 ($10,000) and to imprisonment for three months. Depending on the actual circumstances, and having regard to the information and evidence collected, the RVD will take appropriate actions on individual cases, including instigating prosecution against suspected contraventions of the Ordinance.

To help curb illegal acts as soon as possible, members of the public should report to the RVD promptly any suspected cases of contravening the relevant requirements. Reporting can be made through the telephone hotline (2150 8303), by email (enquiries@rvd.gov.hk), by fax (2116 4920), by post (15/F, Cheung Sha Wan Government Offices, 303 Cheung Sha Wan Road, Kowloon), or in person (visiting the Tenancy Services Section office of the RVD at Room 3816-22, 38/F, Immigration Tower, 7 Gloucester Road, Wan Chai, Hong Kong, and please call 2150 8303 to make an appointment). Furthermore, the RVD has provided a form (Form AR4) (www.rvd.gov.hk/doc/en/forms/ar4.pdf) on its website to facilitate SDU tenants' reporting to the RVD.

The RVD reminds that pursuant to the Ordinance, a regulated cycle of regulated tenancies is to comprise two consecutive regulated tenancies (i.e. the first-term tenancy and second-term tenancy) for an SDU, and the term of each regulated tenancy is two years. A tenant of a first-term tenancy for an SDU is entitled to be granted a second-term tenancy of the regulated cycle, thus enjoying a total of four years of security of tenure. Since the first batch of regulated tenancies has already approached their second-term tenancies, the RVD has started a new round of publicity and education work in order to assist SDU landlords and tenants to understand the important matters pertaining to the second-term tenancy, and procedures that need to be followed about two months prior to the commencement of the purported second-term tenancy. In addition, the RVD has started issuing letters enclosing relevant information to the concerned landlords and tenants of regulated tenancies in batches, according to the expiry time of their first-term tenancies, to remind them about their respective obligations and rights under the Ordinance. These landlords and tenants may also visit the dedicated page for the second-term tenancy on the RVD's website (www.rvd.gov.hk/en/tenancy_matters/second_term_tenancy.html) for the relevant information, including a concise guide, brochures, tutorial videos and frequently asked questions, etc. SDU landlords and tenants are also advised to familiarise themselves with the relevant statutory requirements and maintain close communication regarding the second-term tenancy for handling the matters properly and in a timely manner according to the Ordinance.

For enquiries related to regulated tenancies, please call the telephone hotline (2150 8303) or visit the RVD's webpage (www.rvd.gov.hk/en/our_services/part_iva.html) for the relevant information.

Source: AI-generated images