How to Exit Hong Kong

Some pointers to make it easier to leave Hong Kong these days

Here's a quick rundown on how to exit Hong Kong...

Pay your tax before you leave

Come here to do all your tax paperwork

When you resign from your workplace, be sure to get a letter from the HR department about your termination of employment due to departing Hong Kong, along with the requisite IR56G, the notification form from your employer to inform the Inland Revenue Department that you will depart from Hong Kong.

Do not leave this to the last minute before you leave. Take these two pieces of paper and your HKID to the 1/F of  Inland Revenue and it's best to go before it opens at 9am. You will get a ticket and when your number is called, tell the person at the counter you are leaving and show them these letters from your company.

They will tell you to go to the 26/F, where again you queue up and get the requisite green tax form to fill out (hence the IR56G form is handy). Be sure to bring any receipts that you may have made for charitable donations to declare in this form as well.

Hand in the green form and the person may tell you come back in the afternoon.

You will need to fill out this green tax form

At that time they will give your tax bill, which you pay by going back down to Hong Kong Post on the 1/F. There will be several people in front of you with the same white piece of paper with red ink. You cannot pay by credit, only cash or debit.

When this is processed, go back up to the 7/F to get your release letter. This is important to have in order to apply to withdraw your mandatory provident fund (MPF) if you are a foreign passport holder.

All the above can be completed in one day.

Withdraw MPF

You need to say an oath that is witnessed by the Home Affairs office before you can apply to withdraw your MPF, along with the release letter.

Because of the fifth wave, this oath could only be done by appointment only. Best to go to your closest Home Affairs office and get the phone number to make the appointment -- no walk-ins allowed. It's a very antiquated way of doing this, as you cannot book online. Just press redial on your phone 30, 40 times until you get through. 

In my case the oath service was only available Monday, Wednesday and Friday at select times. You might be lucky and get the next day booking or next week. They will ask for your name and contact phone number.

On the appointed day arrive a few minutes early (there will be a queue). A person will check each person against their appointment list (hence no walk-ins allowed). Your request is processed and then an appointed person will witness you reading out a statement in English or Chinese. It is a basically a run-on sentence in legalese saying that you abide by the Oath and Declarations Ordinance, that everything you have declared in your forms are true. While I was waiting for my turn, I was given the Oath and Declarations Ordinance to read...

Oath office is around the corner on O'Brien Road

Once you have read out the oath, the witness will sign and stamp a chop on a letter saying you have completed the oath. Send this original copy to the MPF provider along with the application to withdraw your MPF from either your provider or the MPF website. 

It will ask for information about where you are moving to, your contact details and which bank account the money should be sent to.

Your MPF provider may contact you for further information; in my case it was my tax number in the country I will reside in, and I filled that in online. 

From there it should take about a month for it to be processed.

Others have told me they received two tax refund cheques from Inland Revenue.

Packing up

Purging can be a tough exercise, but when it comes down to it, try to be as ruthless as possible. Give away as much as you can to friends and family, or to charities that could use clothing, stationary, tableware, kitchenware, and so on. 

Mail as much as you can ahead of time

If you don't have any furniture, best to send back things via Hong Kong Post via ship as the cheapest option. Either find a sturdy cardboard box or use the ones sold at the post office and make sure they are secured well with packing tape. 

When you fill out the form, you will need to itemise everything in the box and put a total value on them, so best to make a list as you pack the box -- once it's sealed it's hard to remember what exactly what was in there! Around 10kg is over HK$600 which will arrive in about three months' time. So best to ship off what you don't need first.

Before I left, SpeedPost was available -- packages under 2kg could be sent in two weeks. To make sure I was under 2kg, I brought the unsealed box to weigh it before using the packing tape. The staff don't mind you weighing the box as long as they aren't busy, hence going in the morning is a good time.

You cannot mail any electronics, liquid like perfume, but something like hand cream is OK. Obviously no batteries, lighters or hand sanitiser (anything with alcohol in it). Here's the list.

Miscellaneous

If you are renting, be sure to inform providers for electricity, gas, water, etc that you are leaving and to pay up the bills. They will return the deposits to you via cheque. Same goes for settling mobile phone and internet, gym memberships and so on.

Most people will keep their bank accounts active to either receive the MPF withdrawal or to keep paying mobile phone fees while abroad to retain their Hong Kong numbers. I have heard it is harder to open bank accounts in Hong Kong now, so if you can keep a basic one open, that could be handy.

Try to complete your "bucket list" if you have one. In my case because of the social-distancing measures during the pandemic, and time was ticking fast, I was just happy to see whoever wanted to meet up. 

Departure

Check once, twice, three times to make sure you are clear of the Covid-19 requirements for your destination, as they can change suddenly. In my case from the time I booked my flight to departure rules had changed so that there was no need for a PCR test in both the transit city or the final destination.

Some countries may require you to download a specific app to input all your flight and passport information.

Even though it's all digital, be old school and print out everything. Wifi doesn't work all the time.

Hong Kong International Airport is a ghost town when it comes to services and shops. Practically all of them were closed in the check-in area, and nothing was open past security and immigration except for washrooms and free water. Bring snacks if you want to nibble on something before your flight, or eat a big meal beforehand.

If you are flying economy, be sure to get there at least three hours beforehand as there will be a big queue to check-in, otherwise those in business and first class won't have much of a wait. Be sure to pack all your electronics in your hand carry luggage, not check-in suitcases for inspection.

OK One more post tomorrow on a few of the final things I did in Hong Kong!

Record Capital Outflows to Canada

Hong Kong families are looking to move to Canada

 

If skeptics are wondering if Hongkongers really are leaving their hometown, then perhaps they can follow the money.

According to electronic fund transfers recorded by Fintrac, Canada's anti-money laundering agency, about CAD$43.6 billion (US$34.8 billion) moved from Hong Kong banks to Canada last year, the highest level on record.

Fintrac, which reports transfers above CAD$10,000, has been recording outflow amounts since 2012. 

Some people are looking to move to Vancouver

One Canadian lender, Equitable Bank, confirmed to Reuters it had seen a surge in deposits from Hong Kong just after the national security law was introduced in late June 2020. 

However, the Hong Kong government claims it has not seen significant capital outflows since the anti-government protests in 2019 which were sparked after the extradition bill was first introduced.  

The record transfers are happening when Hong Kong police froze the bank accounts of several people linked to the pro-democracy protests, triggering concern among some residents about asset safety.

Perhaps the Hong Kong government considers the capital outflows as minimal, as they only represent 1.9 percent of the city's total bank deposits in 2020. But Fintrac's data does not include transfers via cryptocurrencies, between financial institutions, or under CAD$10,000.

Some may move to Canada's biggest city

And then there are lawyers, immigration consultants, and real estate agents fielding lots of enquiries, and say many families are ready to move to Canada along with millions of dollars as soon as the pandemic is under control. 

Canadian visa applications excluding visitors's visas rose 10 percent to 8,121 in 2020, with other highly favoured destinations like the UK and Australia.

There are also about 300,000 Canadian citizens living and working in Hong Kong. Some who immigrated to Canada before 1997 have returned to Hong Kong; however the implementation of the new security law has made people concerned about eroding rights and freedoms and want to move children abroad for better education. 

The UK government is expecting as many as 320,000 Hong Kong residents to migrate there in the next five years.

Harvey has seen five-fold increase in clients

Jean-Francois Harvey is a Canadian lawyer based in Hong Kong who specializes in immigration for high net-worth individuals. He has seen a five-fold increase in clients seeking to move to Canada since mid 2020. His clients have transferred at least CAD$1 million, typically between CAD$5 million to CAD$10 million in the last 12 months.

"There has been an incredible increase in demand especially for Canada in Hong Kong, so much that in the middle of Covid-19, I had to double the team and the size of the office in Hong Kong," said Harvey, worldwide managing partner for Harvey Law Group.

"This is more than a spike. It's a wave."

Ted Hui's Financial Woes Continue

Ted Hui's war of words with HSBC continues with credit cards

 

Exiled former lawmaker Ted Hui Chi-fung is being slowly financially strangled while living in the UK now that HSBC has suddenly cancelled his credit card and those of his family.

He claimed the bank did this due to "political considerations" and "unlawfully embezzling" their money.

Weeks earlier the Hong Kong police accused Hui of misappropriating money from a crowdfunding campaign and froze his bank accounts and those of his parents and wife, including ones with HSBC.

Hui's credit card was suddenly cancelled

In today's Facebook post, Hui said the bank told him that all credit cards belonging to him and his family had been cancelled without notice as a "commercial decision".

"The decision to cancel the credit cards is a political one, taken out of HSBC's own political considerations, with a view to aiding the regime in cracking down on opposition voices," he wrote. "This deed has no legal basis at all."

Hui also accused the bank of "acting like a robber", saying he was told it "might not be possible" for him to receive refunds for certain goods purchased with the cards.

"All private property is protected by Hong Kong's Basic Law. It has now been unlawfully embezzled by HSBC without any explanation," Hui said, adding he and his family had a good credit history. 

He said the move reflected the business community's obedience to the regime under the Beijing-imposed national security law, which he characterized as overriding existing frameworks and constraining regulators, forcing them to be "politically correct".

Hui claims the bank is "acting like a robber"

While HSBC refused to comment on specific accounts, the Hong Kong Monetary Authority only said banks were required to conduct business according to applicable laws and international regulatory standards.

One broker surmised the move may be HSBC's way of trying to cut its ties from politically sensitive figures, while another pointed out Hui was basically unemployed now that he was not a legislator nor a district councillor, so he didn't have a stable income anymore.

Hui was out on bail and facing several criminal charges related to last year's anti-government protests when he fled to Britain via Denmark last month.

The police confirmed they froze HK$850,000 (US$109,600) in Hui's accounts with HSBC, Hang Seng Bank and Bank of China. 

Hui last year during one of the protests

The former legislator denied embezzling funds, saying a law firm was holding the funds in another account. 

It's a war of words Hui is having with banks and the police, and in the meantime his financial resources are shrinking very fast. It seems the Hong Kong government and by extension Beijing is like a snake coiled around Hui and making it harder and harder for him to breathe.

How will he survive? It would be difficult for people in Hong Kong to send money to him, as they could be accused of helping a fugitive and possibly charged. 

It seems starting a new life in Britain will be much harder than Hui thought...

Exile Ted Hui Financially Strapped

Ted Hui has found at least five bank accounts are frozen

 

Former opposition lawmaker Ted Hui Chi-fung arrived in Britain with the intention of starting his new life there in exile, but found his Hong Kong bank accounts were frozen.

There are at least five bank accounts belonging to him, his wife and his parents that have been inaccessible since Saturday. One of the financial institutions is HSBC.

Some of the affected bank accounts are HSBC

Hui called the banks and was told there were "remarks" placed on their accounts and staff refused to divulge what this meant.

"I discovered it when I tried to log into my online bank accounts and found they were not functioning. Those were our life savings," he said. "It's obviously retaliation by economic duress."

The 38-year-old Hui absconded the several criminal charges he was facing in relation to last year's anti-government protests. He apparently crowdfunded HK$3.5 million to help fight five court cases, including a private prosecution of police over a shooting case last year. 

James To Kun-sun, a lawyer and member of the Democratic Party said he had no knowledge of the crowdfunding, but that jumping court bail was not legal grounds to freeze Hui and his family's bank accounts. 

"Unless evidence showed crowdfunding money went to the family accounts," To said. "But crowdfunding itself is not illegal. I think it is political prosecution."

To (centre) says freezing bank accounts illegal

It isn't clear when Hui was given the green light by Magistrate Peter Law Tak-chuen to travel to Denmark, but it obviously did not leave a lot of time for the former Democratic Party lawmaker to clearly plan out everything, including his finances before he and later his family left Hong Kong.

However, what the banks have done is illegal, particularly in the case of freezing the bank accounts of Hui's wife and his parents; it has the hallmarks of a mainland Chinese retaliation for him not appearing in court to face charges.

His case shows those who intend to flee the law need to take everything they need with them -- there is no going back. 

 

Beijing Tempers Jack Ma

Ma's ambition to have the world's largest IPO was deflated

 

Ant Financial is refunding investors who had applied for the record US$39.67 billion IPO after the offering was suspended yesterday. The dual Shanghai and Hong Kong listing, which would have been the world's largest IPO was suspended less than 48 hours before listing because it may not meet listing and disclosure requirements due to changes in the regulatory environment in China.

Ant Financial focuses on small lenders

It's a shocking development for Ant Financial and founder Jack Ma Yun, and one he could not salvage. But it also shows Beijing doesn't want anyone to get bigger or more powerful than the Communist Party and is doing this to temper Ma.

"The party is flexing its muscle," said Victor Shih, associate professor at UC San Diego. "It's saying to Jack Ma, you are going to have the biggest IPO in the world, but that's not a big deal for the CCP, which overseas the world's second-largest economy."

For foreign investors, Bloomberg says the incident raises questions over the viability of Shanghai and Hong Kong as premium financial centres. The suspension of the IPO comes after Chinese President Xi Jinping said China would open up to allow more foreign access and gradually relax controls over the yuan and capital flows.

Maybe "gradual" means glacial gradual.

Xi said China will open up to foreign markets

The conflicting signals will make foreign investors question China's commitment to greater transparency that is needed in modern, open markets.

But there is also the problem of regulating an innovative hi-tech banking giant Ant Financial. 

Ma, who owns 50.5 percent of Ant Financial has said traditional lenders are run like "pawn shops", as banks always demand collateral before lending. In the future, he said, lending decisions should be decided by big data analysis.

Currently it allows people to pay for goods using Alipay, but it can also help clients, particularly small businesses get access to small loans. Ant's strategy is to earn fees by providing a digital platform for banks to reach small borrowers, and more accurately assess the credit risk.  

But perhaps this concept is too risky -- and it does sound risky -- for Beijing. 

Xiao Jianhua was kidnapped from HK in 2017

As a result Ma was summoned to Beijing on Monday for a rare meeting, and the IPO suspended the following day.

Ant Financial is not the first company to be tempered by Beijing. There are numerous previous examples such as Anbang Insurance Group, HNA Group, Tomorrrow Holding (where the founder was kidnapped from the Four Seasons Hong Kong in 2017), and China Evergrande Group.

Will Ma recover from this? He will have to surrender and lick his wounds, but perhaps Ant Financial is too far ahead of its time. Ma may have to bide his time and keep his head down for a while...

Jimmy Lai and his Battle with Beijing

Jimmy Lai when he started Apple Daily in 1995

 

I remember when Apple Daily launched in June 1995. It was a brash upstart in the then crowded Hong Kong media scene, with its distinctive apple logo and name making it easy to remember, and its brightly coloured graphics and layout that founder Jimmy Lai Chee-ying explained, were modeled after USA Today.

Before Apple Daily he started Next Magazine that was known for its racy paparazzi photos of celebrities caught having affairs, along with lots of gossip in entertainment, business and society. Its reporters rushed out to the scenes of accidents, some really gruesome and the pictures had to be pixelated.

So it's not surprising Apple Daily caught on with readers who were looking for alternative information. It was also refreshing in reflecting Lai's anti-communist stance, as most of the papers were starting to change their stance by then or the following year to be more politically correct towards Beijing.

This morning he was arrested at his home

However, despite the newspaper being one of the most popular in the city in terms of readership, which meant companies wanted to advertise in the paper, big clients like property developers stopped dropping millions of dollars to buy ad space in 2003. Ten years later banking giants like HSBC,

Standard Chartered and Heng Seng also stopped advertising with Apple Daily.

Since then the paper and its magazines have been dying a slow death, with individual magazines folding into one, and staff being laid off because of tight budgets.

But if you work there it probably means you believe passionately in the paper, or Lai, are anti-communist, or a combination of those reasons.

So this morning seeing the news that Lai was being arrested (again), but this time for allegedly breaching the national security law on collusion with foreign forces, it was like feeling freedom of the press in Hong Kon

Some 200 police officers raided Apple Daily offices

g had suffered an intense punch in the gut and may not recover.

Lai knew it was coming. He predicted he would be arrested after the national security law was enacted and he prepared. He moved assets outside of Hong Kong, the office shredded documents and uploaded digitized files onto overseas servers. 

But was he prepared for his two sons to be arrested too? Perhaps, knowing how dictatorships work, dragging in family to make it more difficult. Hope they are psychologically prepared for the long haul while the rest of us watch, stressed out, frustrated, angry and sad.

So when some 200 police showed up at the Apple Daily offices in Tseung Kwan O, the reporters did what they naturally did -- report on the situation, which happened to be themselves. Even editor-in-chief Ryan Law Wai-kwong hosted a Facebook Live on what was happening, even going through back stairwells to evade the police.

He also sent a text message to all the staff saying they still had a paper to put out tomorrow. In other words, business as usual. 

Some officers seen rifling through reporters desks

While all this was happening, Next Media's stock price was falling down to HK$0.08, but a few hours later the stock shot up 344 percent to as high as HK$0.40 and ended the day at HK$0.255. While it's not institutional investors buying shares, it was a form of support for Lai and the paper. One person bought 1.2 million shares at HK$0.078 for HK$95,000. 

Don't be surprised if tomorrow's edition is sold out.

Meanwhile the police conduct of the whole operation was an opportunity for officers to throw their weight around and show who's boss. Some were recorded on Apple Daily's live stream flicking through reporters' documents even though the warrant said it would not touch the editorial section of the paper. 

They arrested Lai at his home in the early morning, but a few hours later paraded him handcuffed through the office like a prized animal that had been caught. 

When reporters came into the office to work, officers demanded to see their identification and took down personal contact details. They were also ordered to stop filming the police as they conducted searches in the office (but they continued as best they could).

Later when Steve Li Kwai-wah of the police's national security department finally held a press briefing to explain the situation, the police decided only certain media would be allowed to attend the event, with the criteria being they had to be large organizations that "had not obstructed or posed a safety threat to officers in police operations in the past".

Editor-in-chief Ryan Law arguing with police

Since when did the police get to dictate who covers a press briefing? It's not an exclusive interview!

Media organizations like RTHK, AFP Associated Press and Stand News were not allowed to attend the briefing.

Chris Yeung Kin-hing, chairman of the Hong Kong Journalists Association described the police raid as "shocking and horrifying", and called on journalists to be prepared for the worst.  

"I believe many who have been in the industry for decades have not seen this before," he said. "This is what we have seen in some of the third-world countries where the press and freedom of the press are suppressed. But I could not imagine seeing this in Hong Kong."

Well, Mr Yeung, it did happen. And it happened in Malaysia last week with the police raiding the Kuala Lumpur offices of Al Jazeera, and in the Philippines with police arresting Maria Ressa of Rappler in Manila. It also happened in Sydney when the federal police raided the offices of the public broadcaster, the Australia Broadcasting Corporation.

So yes there is a war against the media, who are only trying to report what they see as the truth.

Today was summed up by someone working at the paper.

"I had prepared myself mentally for this. But emotionally I feel a little conflicted. It's happened so quickly. The government is finally taking this drastic step to destroy the city's media freedoms."

One journalist pointed out that press freedom in Hong Kong was not dead -- yet, and that there was still a space to operate in.

But when you see a media organization that prides itself on giving Beijing the finger, the underdog you rooted for may not be around much longer.

Pro-Beijingers Completely Out of the Loop

Beijing kept the national security law under wraps from HK

It is shocking to read in an article today in the paper that pro-Beijing politicians had no idea the national security law bombshell was going to be dropped until 48 hours beforehand.

They apparently only knew about it after they arrived in Beijing for the "two sessions", the annual session of the nation's legislature that had been postponed until May because of the coronavirus pandemic.

The NPC voted for the national security bill

In addition, they only had 48 hours to submit their views earlier this week about the impending law that is being drafted.

On Friday the liaison office reported having received 130 piece of written feedback from local deputies from the National People's Congress and the Chinese People's Consultative Conference.

Many local deputies believed they had little room to make substantive changes to the national security law, as the matter was out of Hong Kong's hands.

The only thing Chief Executive Carrie Lam Cheng Yuet-ngor hinted was that a new institution that Hong Kong had to set up would likely fall under the charge of the police force, which is why police chief Chris Tang Ping-keung was in Beijing with Lam this week.

One of the 36 deputies who went to Beijing via Shenzhen to take the Covid-19 test, said: "When we received the agenda on the afternoon of May 21, the bill was still unnamed on the paper. Beijing's liaison office head Luo Huining then appeared and told us briefly that it was about national security. We still didn't know clearly how it could be done."

The liaison office was mum on the announcement

Another NPC deputy had no idea the announcement of the national security bill would be made, though he had heard rumours that Beijing had been studying ways to introduce some form of a national security law according to Article 23 of the Basic Law following last year's protests.

Some CPPCC delegates said they had seen media reports about the possibility of Article 23 being pushed forward before they met Chinese officials that evening.

"I was caught off guard. I had been prepared to talk about Article 23 at the upcoming CPPCC meeting, which would have made me look like a fool if I failed to change my script," a delegate said. "The whole thing was airtight. I think Beijing didn't trust us and didn't risk leaking the news."

That comment is a damning indictment against the pro-establishment bloc in Hong Kong. Beijing didn't take any chances of giving them even a heads-up for fear that it might be leaked or there might be some opposition. It was a done deal right from the beginning and they had no choice but to fall into line.

The NPC delegates finally got to see the resolution on May 22 and then it was voted on on May 28 with 2,878 for drafting the national security law, and one against.

While the delegates were only given 48 hours to submit feedback on the law, it's hard to write something when you don't know exactly what will be in it.

"I believe Beijing has already drafted the law, based on different scenarios," one delegate said.

Meanwhile university presidents, banks and businesses are being pulled into line to support the law, despite not knowing any details about it and how it pertains to them. It's hard to fathom how someone can personally endorse something they haven't even seen -- how can they do that in good conscience?

But Beijing demands complete loyalty and no one wants to mess with that which is why Hongkongers are figuring out their exit plans. They probably would have left already had it not been for the pandemic still raging and now riots in the United States over the death of George Floyd.

British Prime Minister Boris Johnson is still ironing out details how those holding BNO passports can come into the UK, but they may not be allowed in unless under dire circumstances.

When will we reach that point and what will that look like?

So many questions but in the meantime we are all waiting with baited breath to see what's in this new law and how compatible (if at all) it is to the Basic Law. If not it renders Hong Kong's judiciary completely useless and the city has no foundation to stand on as a financial hub.

Shanghai's Dreams of Global Financial Hub Dashed

Shanghai's dreams of becoming a global financial hub will be delayed (again)

It doesn't seem like Shanghai will become a fully-fledged international financial centre by next year, according to a survey by the American Chamber of Commerce in Shanghai.

This opinion should give Hong Kong a big sigh of relief.

Back in 2009, Shanghai officials at the time pledged to make the city on equal footing with New York, London and Hong Kong by 2020.

One factor is restrictions of capital going in and out of China

However, Shanghai is still a commercial and shipping capital, with restrictions on moving capital in and out of China is a big hindrance to the city becoming an international market. There is also heavy government intervention in the markets, and the limited use of the yuan in international markets have also been obstacles.

US bankers say it will be another five to 10 years before Shanghai regains its pre-Communist era status as the financial capital of the East.

More than half of the 26 financial industry executives surveyed by AmCham Shanghai said the city was struggling to strike a balance between being a loyal base for the Communist Party and offering a safe haven for global capitalists.

While Shanghai has made some progress in the past decade, such as linking up with the Hong Kong stock exchange, there are still unfair practices that persist.

One example American executives cited is that Chinese regulators often notify foreign banks of informal policy changes, known as "window guidance", much later than domestic banks, raising the question of fair treatment.

Another is the government's intervention in the stock market

"While Chinese banks represent a far greater systemic risk than their foreign peers and therefore may require more regulatory interactive, their ties with regulators mean that Chinese banks enjoy the unfair competitive benefits of receiving policy change alerts ahead of others," the report said.

Another factor is the government's heavy intervention in the stock market. More than half the respondents gave "unfavourable" views of their access to the Shanghai stock market, their trust in the market and stock settlement times.

The lack of high-quality financial professionals was also an issue, with respondents saying the authorities need to invest in ethics training for financial workers, covering areas such as conflict of interest and insider trading.

The respondents also feel Shanghai's destiny is actually controlled by Beijing. "The reasons for this [missing of the goal] are complex, not least the fact that Shanghai has little autonomy to determine key policies. The city's financial regulators can work to burnish its reputation at the margins, but the power to remove the largest structural hurdles to Shanghai's success lies solely in Beijing," the report said.

Major decisions still come from Beijing and Xi Jinping

And the situation has been further delayed thanks to President Xi Jinping's increasing grip on power, tightening control of the internet and media.

Will it take Shanghai another five, or 10 years to become an international financial hub? Perhaps it depends on how long Xi is in power and who succeeds him...

Helping Dementia Sufferers with Banking

The banking institution has trained 45 "dementia ambassadors"

There is greater awareness of dementia in Hong Kong, and it's good to see HSBC trying to tackle the situation by deploying 45 "dementia ambassadors" to help sufferers with banking issues.

The banking institution conducted a survey which found those suffering from dementia had problems understanding account information and remembering passwords.

As a result HSBC will be rolling out such services as voice identification systems, and more modern ATM services.

ATM machines will be quipped with voice identification

This is good news for Maggie Lee Nga-yee, executive director of the Alzheimer's Disease Association.

"Some elderly people with dementia repeatedly withdraw cash from their account and forget they have done it," she says.

According to the survey, more than 80 per cent of those suffering from the disease need help with banking from family members or carers, and nearly half said they helped sufferers with banking by opening a joint account with them. That's because they worried their loved ones with dementia could be a target for scammers.

Lee said a common problem was for dementia sufferers to have difficulty in understanding passbook information and bank statements, trouble talking to staff, and remembering their PIN or signature.

It is projected the number of people over 65 in Hong Kong will more than double in the next 20 years. Data from the Census and Statistics Department estimates the elderly will make up more than 36 percent of the population in 2066.

HSBC says it will have 160 dementia ambassadors in force by the first quarter of next year.

Some with dementia forget they have withdrawn money

It'll be interesting to see how these ambassadors have been trained to deal with various situations, as there are different degrees of dementia severity, and sufferers have different reactions to different circumstances.

Not only banking staff, but also front-line workers from bus drivers and taxi drivers, restaurant and retail staff need to be able to identify dementia sufferers and have some tools or training to deal with them in a positive and sympathetic way.

This is the reality Hong Kong is facing and needs to be prepared to deal with dementia. We cannot hide from this serious issue that should not be swept under the carpet.

China Names and Shames Outrageous Capital Outflows

People and companies have creative ways to get money out of China

The State Administration of Foreign Exchange (SAFE) in China has uncovered some creative ways people and companies are moving money out of the country.

It released a list of 10 top covert cases, naming and shaming five companies, accusing them of forging contracts or invoices to remit a combined US$226 million offshore since 2015.

One of the alleged offenders was Ningbo Big Fortune International Trade, which SAFE claimed colluded with several overseas companies, forged trade contracts, inflated prices to 5-20 times the market price, and moved US$119 million overseas between August and September 2015.

The Chinese government is still trying to stem capital outflow

As a result the company was fined 22.8 million yuan for "seriously disturbing foreign exchange market order".

Sounds intense if the withdrawals disturbed "foreign exchange market order"...

There were five individuals who were also fined for moving up to US$4.35 million through underground banks to their foreign accounts.

In one case, a Guangdong resident enlisted 84 people to use each of their US$50,000 annual foreign exchange purchase quota to remit US$4.35 million to his own accounts in Australia and Hong Kong from December 2015 to January this year. He was fined 1 million yuan, according to SAFE.

But how else is someone supposed to move money overseas if they want to buy property or a company when they have the money? It's not like he stole it, though getting 84 people to help out is excessive.

Beijing continues to be concerned about capital outflows and regulators are discouraging companies from too much outbound investment and tightening checks on people exchanging foreign currency.

The extensive impact has led to the devaluation of the yuan

From July 1, the government will also tighten rules for banks to report cross-border customer transactions to curb money laundering and funding terrorism. That's a good cover to try to stem money from flowing out -- but will it?

Li Youhuan from the Guangdong Academy of Social Sciences, said capital outflow was undeterred by stricter scrutiny "given the robust business I've seen by underground banks".

"Measures to hold back company transactions definitely cannot work," he said. "Such demand cannot be eliminated as long as China opens its door to trade and exchange with other countries."

Finance professor Zhao Xijun at Remin University seems to think SAFE is sending a message of punishment, that financial institutions will be held responsible if they collude.

However, Andrew Collier of Oriental Capital Research says it's impossible to stop capital outflow altogether because companies need to conduct external transactions.

"I expect China will need to depreciate the currency in 2018 to reduce the pressure on capital flows," he said.

Will that be when US President Donald Trump will brand China as a "currency manipulator"? China seems to have too many domestic financial problems of its own to worry about what The Donald says...

Number of the Day: HK$10 Billion

Macau seems to be another place for mainlanders to move their money

That is the amount of money that is withdrawn from ATMs in Macau per month.

Per month!

And the banks have received instructions to make sure these automatic teller machines never run out of bank notes too.

The 1,300 machines around the former Portuguese enclave are monitored 24 hours a day, and if they start getting low, a team is ready to refill them with more cash.

Looks like Macanese ATMs are another avenue for capital outflows.

What's also interesting is that since December last year, the maximum amount of withdrawals dropped from 10,000 patacas to 5,000 patacas, but that doesn't seem to have prevented mainlanders from getting money out.

Facial recognition technology will soon be installed at ATMs

There are reports that mainland racketeers use hundreds of bank cards to withdraw cash from Macau ATMs as part of a multi-million-dollar foreign exchange scheme.

In one case last January, the court heard evidence that one couple used 402 cash card accounts to make withdrawals from Macau ATMs as part of a 105 million yuan illegal foreign exchange racket.

A similar case in the same court last October had evidence showing 222 cash card accounts were used by a gang to make ATM withdrawals in the casino hub as part of a 139 million yuan foreign exchange scam.

Another interesting statistic is that the number of ATMs in Macau has quadrupled since the gaming industry was liberalized in 2001.

Either local Macanese like playing with ATM machines, or they are specifically geared towards mainlanders.

But maybe it'll be game over soon, as facial recognition technology will be used to scan millions of bank card users at ATMs in Macau.

The Macau government said all holders of mainland-issued China UnionPay bank cards "will be require to scan their mainland identity card and undergo a facial recognition check".

Officials did not have a time frame when the new scheme would be implemented, but one can imagine even more cash is being withdrawn now as we write this.

The vast majority of visitors to Macau are from mainland China at 30 million last year, 20 million of which were from Guangdong province.

The Chinese government is desperately trying to stop capital outflows any way it can, and yet people still find a way to get their money out. It is normal for people on the mainland to have a number of bank accounts, so facial recognition may not be all that helpful.

This cat and mouse game will continue, and Beijing might be the loser in the end.

Questions Over Missing Billionaire

A file photo of Xiao Jianhua, who has disappeared from Hong Kong

There are reports that a mainland Chinese billionaire was taken away from his apartment in the Four Seasons Hong Kong and taken across the border on Friday.

The latest is that Xiao Jianhua, 46, was last seen leaving the hotel in Central with a group of people. And then it was reported he crossed the border to Shenzhen at 3pm that day.

It's all very mysterious, but It is eerily reminiscent of the five booksellers who went missing over a year ago.

He was last seen at the Four Seasons Hong Kong (left)

This time it's not sure what has happened to Xiao, as he is considered to be highly connected to Beijing circles.

He's been known to be a banker to Beijing elites and their relatives, and made many business deals in areas from banking to coal, cement, insurance and property that have made him and his company Tomorrow Group worth about US$5.8 billion.

However suspicions arose this week when two statements were issued in Xiao's name apparently on his WeChat account claiming he was on the mainland.

The first one, issued on Monday said: "I, Xiao Jianhua, am recuperating overseas now and all is good! Business is normal at Tomorrow Group!"

The second statement released yesterday said the tycoon had not been "captured" and taken back to the mainland, and would appear "very soon after the treatment".

Xiao is highly connected to Beijing

It added Xiao was a Canadian citizen, and that he enjoyed consular protection from Canada, and as a Hong Kong permanent resident, he was covered by the city's laws. He was even quoted as saying he held a "diplomatic passport", that was issued from Antigua.

"I have diplomatic protection as I hold a diplomatic passport. Please don't worry about me," it said.

These two statements were later deleted from the account.

Then today there was an ad taken out in Ming Pao newspaper that basically reiterated the second statement, and said Wang loved his country and had never been involved in any situation that might damage the country's interests or the government's image, or supported an opposition organization.

It's all very strange, as Xiao is considered to be very well connected, but the two messages and in particular the advertisement seem very contrived and hard to believe. Why would anyone take out an ad like that?

If these messages were meant to be reassurances, they had the opposite reaction. Just because a mainlander has a Canadian passport means nothing to Beijing -- especially if he did not cross the border using his passport (with a visa in it).

This case may not garner as much sympathy in Hong Kong because Xiao is a mainlander, but the principle is the same -- a Hong Kong resident cannot be taken across the border against his will which is in Article 28 of the Basic Law.

Here we have the chills again, that anyone can be spirited away across the border without any signs. The fact that he was taken away in such a public place is quite daring.

We will have to see what happens, but it may be weeks or months before we hear something...

Facts on Lai See

Fresh new banknotes are usually handed out during Lunar New Year

In Hong Kong, for those who are single, and young, Lunar New Year is about receiving lai see (利是). In China, young people who are working give red envelopes (紅包) to their parents as a gesture of thanks for raising them.

The elderly and companies in Hong Kong like to follow the tradition of giving brand new bills -- starting new year -- which has led to a whole industry of printing new banknotes.

Lai see packets are usually filled with $20 or $100 notes

Here are some interesting facts:

HK$8 billion -- the total amount of money people exchanged to get new banknotes this year.

400 million -- the number of new banknotes needed in the run-up to the Lunar New Year.

200 million -- the number of new banknotes printed this year.

1 tonne of cotton -- needed to make 1 million banknotes.

200 million -- the number of banknotes that are yin-san or "good as new" for lai see. Banks have machines that sort out these notes.

Banks sort out notes that are good as new for lai see use too

HK$20 and HK$100 -- the most common denominations used for lai see. These bills are used most frequently and need to be replaced within 18 months.

HK$500 and $1,000 -- these higher denomination bills aren't used often and are usually replaced in two to three years.

Typhoon Haima Shuts Down HK

No traffic on the roads in Kennedy Town this morning

This morning at 6.10am, the Hong Kong Observatory raised the Typhoon No. 8 signal, which would last for most of the day, as Typhoon Haima came close to the east side of the territory.

In Kennedy Town just before 9am, winds started picking up with only a few drops of rain. Hardly any traffic was on the roads, save for some taxis trying to gauge passengers, but the MTR was running.

In Belcher Bay Park, a handful of people could not forego their exercise regime and continued doing laps around the park, while leaves and small branches were scattered on the ground.

Many had the day off work today with the T8 signal

The commute to Taipo was painless with hardly any cars on the road. But around 11am the winds got stronger as Typhoon Haima made its approach around noon.

One of the trees in front of one of our fourth floor windows started bending almost horizontally. We saw it and ran to the window. But when we got there, it didn't bend back as far again. It was also raining very heavily at times.

However, after lunch I looked out the window and the tree was gone! It had snapped and fallen along with a few others.

Not until 5.20pm did the observatory lower the signal to Typhoon No. 3 and by the time I came home from work at 7.20pm, it was like this morning -- windy and light showers.

For most people it was a day off work and many businesses were shut. Francis Lun Sheung-nim, chief executive of financial group GEO Securities estimated Hong Kong may have lost over HK$5 billion in business.

This tree in the foreground had fallen after lunch!

That's a massive sum, but probably true, seeing as most of the city was shut down, including the airport, the stock exchange, banks, schools and then all the way down to independent businesses.

Now at midnight the typhoon signals have been cancelled. What a week! We had black rain on Wednesday where lots of roads particularly on the east side of Hong Kong were flooded, and then yesterday was sunny and calm. And then today's chaotic mess.

Tomorrow we could see the sun again...