
No extra budget disbursed to nat. security ‘special fund' in 2024, Hong Kong gov't says
In a document submitted to the legislature on Monday, the Financial Secretary's Office said that the Hong Kong government 'did not further inject funds into the Special Fund during the reporting period,' referring to the year 2024.
Hong Kong established the special fund in 2020 to finance expenses related to safeguarding national security after Beijing imposed national security legislation in June that year, following pro-democracy protests and unrest in 2019.
It received an initial allocation of HK$8 billion in December 2020 and an additional HK$5 billion in the financial year ending March 31, 2023.
In the document, the Financial Secretary's Office also cited the Beijing-imposed national security law, saying that the details regarding the use of the fund would not be disclosed.
The document only outlined the use of the fund in general terms, like 'recurrent expenditure,' which included salaries and allowances, and 'non-recurrent expenditure,' such as those for construction works and equipment. It did not provide any figures either.
The national security law stipulates that Hong Kong establishes a Committee for Safeguarding National Security, chaired by the city's leader and supervised by Beijing, and that the police and the Department of Justice set up their own special national security teams.
The special fund, which finances these establishments and their operations, is managed by a special accounting and financial unit under the Committee for Safeguarding National Security. The special unit reports to the financial secretary.
The fund is appropriated from the government's general revenue with the approval of the chief executive. The financial secretary shall submit an annual report regarding the fund to the legislature.
The special fund does not cover the expenditure of China's national security office in Hong Kong, which is funded separately by Beijing.
In Monday's document, the Financial Secretary's Office reiterated that the special fund had been 'independently audited' following the requirements of Hong Kong's accounting policies and principles.
But no details of the use of the special fund will be disclosed under Article 14 of the national security law, which states that information about the work of the Committee for Safeguarding National Security shall not be disclosed.
'Quite a number of jurisdictions regard the expenditure and manpower establishment concerning national security as secret information and do not disclose details of the expenditure involved,' the document added.
Paul Chan, the financial secretary, is expected to present the document to the legislature during a general meeting on Wednesday.
Beijing inserted national security legislation directly into Hong Kong's mini-constitution in June 2020 following a year of pro-democracy protests and unrest. It criminalised subversion, secession, collusion with foreign forces and terrorist acts – broadly defined to include disruption to transport and other infrastructure. The move gave police sweeping new powers and led to hundreds of arrests amid new legal precedents, while dozens of civil society groups disappeared. The authorities say it restored stability and peace to the city, rejecting criticism from trade partners, the UN and NGOs.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


South China Morning Post
an hour ago
- South China Morning Post
HKEX to reduce minimum spread of 300 stocks from Monday to cut cost, boost trading
Hong Kong Exchanges and Clearing (HKEX) , which operates Asia's third-largest stock market, will reduce the minimum trading spread for about 300 stocks starting Monday, a move aimed at lowering transaction costs and increasing turnover. 'The minimum spread is the minimum price change for a stock traded on an exchange and determines the tightest bid-ask spread allowed,' the HKEX said in the conclusion of its consultation on the spread reform. 'A reduction of minimum spreads could therefore encourage trades to be transacted in smaller sizes.' The reform is part of the Hong Kong government's initiative to encourage the HKEX to enhance market infrastructure, lower transaction costs, and attract more international investors, thereby strengthening the city's status as an international financial centre. From Monday, the minimum spreads for stocks priced between HK$10 (US$1.27) and HK$20 will be halved to HK$0.01. Stocks priced from HK$20 to HK$50 will see their minimum spreads cut by 60 per cent, from HK$0.05 to HK$0.02. As of Friday, about 300 stocks, exchange-traded funds, and real estate investment trusts (REITs) were trading between HK$10 and HK$50, representing about 30 per cent of average daily turnover, according to exchange data. HKEX will reduce the minimum trading spread for about 300 stocks starting Monday. Photo Eugene Lee 'After narrowing the trading spread, the cost for investors will decrease, encouraging more of them to trade in the local stock market to help boost turnover further,' said Robert Lee Wai-wang, lawmaker and chairman of Hong Kong-based Grand Finance Group.


South China Morning Post
14 hours ago
- South China Morning Post
Competition should be about innovation and quality, not the price
As Beijing works aggressively to make sure the economy meets the 5 per cent growth target at year end, one new tool in its arsenal is to amend a key law to discourage vicious price wars that have plagued multiple sectors in recent years. From food delivery and e-commerce to solar power and electric cars, steep price cuts – with the aim to drive out competitors but which also undercut one's own profits – are fuelling deflationary pressure. That has led regulators to propose urgent amendments to an old pricing law. A public consultation is open until August 23. With transparency and an open mind, the authorities can use positive public feedback to fine-tune the changes. In the existing law, firms are banned from selling goods below cost to eliminate competitors or monopolise the market. The new amendment adds the condition that businesses cannot fight each other by dumping products at below-cost prices. With more transparent price regulation and oversight, they will also be prohibited from 'leveraging data, algorithms and technological tools' to chase clients and beat rivals. So far, market reactions have been positive. Listed companies in consumer services, non-ferrous metals and financial companies – sectors that have experienced cutthroat competition or what officials have termed 'involution' – have seen share prices move up since the news broke. There is, of course, a counterargument that market forces alone should decide prices. But in such cases of market failure, supervision and regulatory intervention are called for. Companies ought to compete on quality and innovation rather than price. A proper legal framework will work better to guide businesses and promote healthy competition, rather than for authorities to deliver ad hoc admonitions to offending firms when the situation has already become dire. In early July, the Ministry of Industry and Information Technology warned 14 major solar firms against a vicious price war and overcapacity. The share prices of some of them rose on the news, as markets expected price cutting eating into profits would stop. But such intervention is unsystematic. A transparent legal framework should be business-friendly with clear rules and regulations. Moderating or even eliminating involution will allow more time for companies to phase out outdated practices to better compete.


South China Morning Post
18 hours ago
- South China Morning Post
China's new breed of academic paper mills promising a shortcut to grad school
The agency's advertisement promised just the kind of 'cutting-edge' expertise that Chris Wong was looking for. The 21-year-old arts student was aiming to get into a graduate programme overseas after completing his studies in Australia, and the 'commercial research' firm could give him a ticket in. For nearly 20,000 yuan (US$2,800), the Beijing-based agency would guide Wong through a three-month independent online course of study in his field to produce a research paper that would be published in a leading journal. The paper would help him stand out from the ever-growing crowd competing for limited places in graduate programmes in China and abroad. 'I thought it would be better to have some extra academic knowledge and a solid paper as a sample for future applications,' he said. 10:27 Postgraduate degrees in China: golden tickets to employment or overrated qualifications? Postgraduate degrees in China: golden tickets to employment or overrated qualifications? The agency Wong signed up with is part of a rapidly expanding educational consulting sector that has cropped up to help ambitious students fine-tune their applications for graduate programmes or overseas schools.