Hong Kong Civil Servants Proposed for 2% Uniform Pay Rise; Government Promotes Corporate Treasury Center Development and Livelihood Updates
The Hong Kong government today announced the civil servant salary adjustment proposal for the 2026-27 financial year. The Civil Service Bureau has recommended a uniform 2% pay increase for civil servants across the upper, middle, and lower salary bands, effective retroactively from April this year. Secretary for the Civil Service Ingrid Yeung stated that this decision took into account the government's future fiscal burden and that the relevant proposal has been presented to civil service groups.
In the financial markets, the Hang Seng Index performed weakly today, closing down 91 points at 24,565, marking the fifth consecutive trading day of decline. Market analysis pointed out that the downward trend was driven by "Northbound" funds turning to sell-offs and WuXi AppTec's share price weakness due to the shadow of potential sanctions. Although the situation between Iran and Israel remained temporarily stable, leading to a brief rebound in Asia-Pacific markets, the gains in Hong Kong stocks could not be sustained.
Despite recent market volatility, KGI Securities (KGI) maintained its forecast of 30,000 points for the Hang Seng Index this year in its latest global market outlook. They are optimistic about 11 stocks, including Tencent, Alibaba, and China Construction Bank, and advise investors to seize four major opportunities. Additionally, reports indicate that Tencent plans to issue bonds to invest in artificial intelligence (AI) research and development, providing support for its share price.
To enhance Hong Kong's competitiveness as an international financial center, Secretary for Financial Services and the Treasury Christopher Hui today announced the "Action Plan for Corporate Treasury Centre Development." The plan proposes the introduction of a tiered tax incentive system for corporate treasury centers, with a public consultation expected within this year, aiming to attract more multinational corporations to manage their capital and financial operations in Hong Kong.
Regarding consumer safety, the well-known brand "Thermos" announced a recall of nearly 4 million high-vacuum stainless steel food jars in mainland China. It is understood that the product had previously been involved in accidents in the United States, resulting in three cases of blindness. Consequently, the company decided to conduct a large-scale recall in the mainland to ensure consumer safety.
In livelihood news, to celebrate the 29th anniversary of the establishment of the Hong Kong Special Administrative Region, the Leisure and Cultural Services Department (LCSD) will open various fee-charging leisure facilities for free public use on July 1. Furthermore, Hongkong Post announced today that as airmail capacity to the Middle East gradually increases, airmail services to the Middle East and certain other destinations will resume immediately, facilitating mail delivery for the public.
Finally, the LCSD issued a special report today stating that due to heavy waves, the red flag has been hoisted at Hung Shing Yeh Beach on Lamma Island. The government reminds citizens that swimming there is dangerous and urges them not to enter the water at the beach for their own safety.