Britain in Hong Kong September-October 2023

BRITAIN IN HONG KONG

BRITISH

C O N T E N T S

UNVEILING THE IMPACT AND KEY LEGAL CONSIDERATIONS WHEN USING ARTIFICIAL

CHAIR'S MESSAGE

Dear Members,

Since the last edition of the magazine, we have continued to enjoy an upswing in activities relating to the British Chamber of Commerce. These activities and events are not confined to Hong Kong, but we are also planning events in the latter part of this year in the UK as well as with other British Chambers of Commerce in China, and not just in the Greater Bay Area (GBA)

Through the hot and sticky summer, we have been continuing our planning for the upcoming Summit in earnest The Summit, which is planned for the 26 October 2023, has a very topical theme of “Hong Kong’s Rebound” This theme has been underpinning many of the events we have been holding and is also central to the submission we have recently made to Hong Kong Government in respect of the Chief Executive’s Policy Address. Watch out for more communications around the Summit, and please mark your diaries if you have not done so already – a great line-up of speakers and contributors is being planned, and there are plenty of opportunities for great networking and making those all important business connections

I would like to offer a huge thank you to all who have contributed and provided input to the Chamber’s Policy Address, which is again an incredibly well prepared and well thought-through submission focusing on aspects that are most relevant for business today This year we focused on the short term issues, including but not limited to those around talent and the need for an injection of talent from a wide spectrum of perspectives in order to encourage a rebound, reinvention and redefinition of Hong Kong in the business context. In addition, we put forward a series of actions which are needed for the medium term that need to be taken now were identified. And

furthermore, a couple of issues including the all crucial redefinition of Hong Kong as an international financial centre and healthcare were considered too significant to synthesis into the submission and will be presented as submissions in their own right. Thanks particularly go to Jim Taylor, Chair of the Business Policy Unit, and Christy Ng, Business Policy & Corporate Relations Manager at the Chamber for their sterling contributions to this paper as well as the committee’s input

As noted above, one of the Policy Address’ key themes relates to talent Various activities have taken place and are planned, including a most engaging and inspiring event held in early June called the BritCham Impact Hackathon 2023 This was curated and run by the Future Leaders Committee with support and direction and guidance from Andrew MacGeoch, Bryan Cave Leighton Paisner LLP (BCLP). Andrew worked alongside the committee with all working hard to ensure a quality and relevant event, and this was borne out on the day. The focus of the hackathon was on the allconsuming issue of talent in every sector and at all levels This is not solely an Hong Kong issue, and

this is what makes the challenge even more grave. However, the discussions and debates were centered on solutions and opportunities, and these are now being synthesised into a White Paper which will be issued shortly to some Government departments with various suggestions and practical proposals Andrew shares, “It was humbling and inspiring to see the engagement and energy from over 50 of our future leaders (mostly aged between 25-35) offering constructive solutions to the critical questions of attracting talent to Hong Kong and retaining Hong Kong’s talent across a diverse range of industry sectors Short and long term solutions are being proposed from short term tax benefits, to developing more co-living product, enhancing student exchange schemes and scholarships, annual leave improvements, and stronger nurturing of creative talent. These young members also want to see better use of influencers, an all year round calendar for ‘wow’ events in Hong Kong and an accelerated programme of digitalisation for smarter city living. Hopefully our young members will find listening ears when they pitch their ideas to relevant senior Government leaders ”

We continue to see more visitors coming into Hong Kong, and the airport is happily becoming very busy again We also continue to receive inquiries about doing business in Hong Kong, especially as a gateway to the Greater Bay Area We are always happy to talk to our members and senior colleagues when they visit Hong Kong, and we have quite a few visits planned for the last quarter of this year. Coming and seeing the opportunities for oneself and talking to members is a good way to get a sense of the “rebound”. Indeed, we are taking the chance to share some of the opportunities when we go to London in September to attend the Hong Kong

Trade Development Council (HKTDC) Dinner. During the week of 18 September, there are a variety of events planned by the Chamber as well as others taking place in London to share what is happening, planned and promulgated in Hong Kong, and to share the sheer scale of “business getting done, and still to be done”

The first event of BritCham door knock week in London is an event curated around the Northern Metropolis The purpose of this event is to explain more about the number of services and sectors that will be needed to deliver the programme of work, to share the scale, the ambition, and the opportunities, and perhaps to excite and inspire. The event will be opened with a keynote address from the President of the Institution of Civil Engineers (ICE), Keith Howells. The first place Keith visited in his presidential year, outside of the UK was Hong Kong. For him, it was a bit of a homecoming, as he had spent several years working in Hong Kong early in his career. He therefore understands what is needed to deliver the ambitions set out in the Northern Metropolis and the other mega programmes of work It’s not all about design and engineering, but rather a vast spectrum of expertise is needed to deliver the plans

Later in the week, we are also arranging events around the creative industries, as well as a series of meetings with some closed-door discussions with government and industry officials. Do let us know if you wish to know more about the events of the week, and be sure to watch social media as well as this page for updates.

Another focus area that is being driven by the Environment and Energy Committee (EEC) but also

relevant across most businesses today is environmental, social and governance (ESG) The issues relating to governance around ESG, management of stakeholder engagement, and the quality of professionals providing advice in terms of the ESG agendas have been identified as a particular concern, and representatives of the Chamber and the EEC have engaged with the suggestions and solutions. This is an ongoing dialogue and one which has a way to run as various initiatives start to be rolled out

With networking and making connections being a key component of the Chamber’s remit, we have been enjoying a range of connections not just with BritCham HK members but also engaging with other businesses through, but not limited to, the European Business in China event in July, the China British Business Council meetings in August, and a joint chamber networking event with the Irish Chamber in June. In the same vein, there will be an InterChamber Diversity, Equality and Inclusion (DEI)

Mixer event, supported by Women in Business Committee, bringing together members from various chambers at the end of August.

We look forward to seeing you at upcoming events, including the Annual General Meeting (AGM) on 12 September and the Summit: Hong Kong Rebound “Explore the business opportunities and challenges in rethinking, reinventing and redefining Hong Kong in the region” on 26 October.

Ir Dr Anne Kerr Chair The British Chamber of Commerce in Hong Kong

2023 POLICY ADDRESS SUBMISSION

On Monday 31 July, the Chamber issued its annual Policy Address Submission for 2023, outlining its key priority policy recommendations for the Chief Executive and his administration.

This year, our Submission outlines a ten point plan for a brighter Hong Kong, highlighting 5 short-term issues and 5 medium-term issues on which we feel the current Administration should be focusing on as a matter of priority, as shown below

Short-term

Increasing affordable housing supply and development

Assembling resources needed to deliver Government KPIs

Building momentum for businesses to enter and grow in the GBA

Cutting red tape around trade, investment, and talent

Promoting the Hong Kong brand

Medium-term

Reducing the housing and land deficit supply

Financing long-term growth

Facilitating Hong Kong's decarbonisation journey

Investing in the education sector and nurturing young talent

Enhancing the healthcare sector, with investments focused on prevention

As we move on from COVID-19, the next 2-3 years will be a critical period for Hong Kong and its vibrant business community. As a Chamber, we believe our community will add great value in facilitating the delivery of the Administration's solution-driven outcomes.

The Chamber extends its deepest appreciation to all members who contributed their time and expertise to help prepare the submission

Response to the HKEX Consultation Paper on Enhancement of Climate-related Disclosures under the ESG Framework

The Chamber writes to the Secretary for Development in regards to land and housing supply measures

Response to the the Consultation on Refinements to Hong Kong’s Foreign-sourced Income Exemption Regime for Foreign-sourced Disposal Gains

Letter to comment on the proposed amendments to the Classification and Measurement of Financial Instruments (Proposed amendments to IFRS 9 and IFRS 7)

Letter to HKEX regarding Core Climate, Hong Kong's International Carbon Marketplace

Letter to comment on the proposed amendments to IAS 12 in the IASB Exposure Draft: International Tax ReformPillar Two Model Rules

Response to the Government's public consultation on Strategic Studies on Railway and Major Roads beyond 2030

2023 British Chamber Policy and Budget Address Matching and Highlights

The Chamber meets with Mr Tommy Yuen, JP, Commissioner for the Development of the Guangdong-Hong Kong-Macao Greater Bay Area

BRITCHAM'S STERLING MEMBERS

WELCOME OUR NEW MEMBERS

PROPELLINGTHEHONGKONGINSURANCE INDUSTRYTOGREATERHEIGHTS

ByLilianNg,ManagingDirector,StrategicBusinessGroup,Prudentialplc

Last year, the Hong Kong government issued a development roadmap to position Hong Kong as a sophisticated insurance hub. It outlined visions and missions on how to realise this, while attaching great importance to bridging protection gaps and promoting financial inclusion in our society.

Insurers play an instrumental role in contributing to the competitiveness of the industry. At the same time, there is a lot of effort to educate consumers on financial planning and the importance of having a financial safety net.

Narrowing the protection gap in Hong Kong

Hong Kong is one of the more advanced insurance markets globally with more than 160 insurance companies operating in the city

However, increasing life expectancies, rising cost of medical attention and very limited employer contribution schemes require more attention to health and financial protection. A study by the Hong Kong Insurance Authority estimated the protection gap to have been around HK$6.9 trillion in 2019 and the life insurance penetration rate at less than 20 percent . While the latter number is significantly higher than most

[1] SCMP: Hong Kong can overtake London, Tokyo and Singapore as international insurance hub due to its connector role with China, Greater Bay Area, industry experts say (20 June 2023)

[2] Insurance Authority: Mortality Protection Gap Study 2021

economies globally, there is still a significant portion of the population that is either uninsured or underinsured

Furthermore, an ageing population means that financial security in retirement is a cause for concern

According to research commissioned by Prudential plc, “Fulfilling Futures - Re-thinking well-being in Asia: How outlooks on life are changing”, residents in Hong Kong cited financial means as a major motivator to prolong one’s working life Only half of the respondents from the city said they are satisfied with the current state of their financial health today, while almost three in five are confident of saving enough financially to enable living to or beyond age 80.

So what are insurers doing to narrow the protection gap?

Leveraging technology to drive health and financial inclusion

Technology is an enabler on many fronts Insurers have been investing significantly in their digital capabilities so that products and services can be made more accessible as well as affordable to more people

At the front end, many insurance companies equip their agents or financial consultants with tools that increase productivity so that they can focus on engaging the customer They are also provided with datadriven insights to start authentic conversations on health and financial risks with customers

As people in Hong Kong become more health conscious, there is an increasing demand for accessible wellness solutions and healthcare services. Apps like ‘Pulse by Prudential’ deliver curated health information and key healthcare services, such as telemedicine and Traditional Chinese medicine assessment.

Insurers are increasingly collaborating with partners across diverse industries from technology to healthcare and consumer goods, to expand multiple offerings that combine health, wealth, retirement and lifestyle knowledge and solutions.

Technology also enhances back-end processes, such as supporting claims assessors in risk monitoring, and helping underwriters to come to a decision much more quickly by providing artificial intelligence (AI)-backed

recommendations. Underwriting decisions today can be available in a matter of minutes instead of days, allowing policies to be issued much more quickly.

Such efficiencies could translate to more affordable premiums, which in turn could boost affordability of protection for customers, widens coverage, and enhances financial inclusion.

Underlying all of this is the critical need for continuous and regular financial education and engagement, to equip people with sufficient knowledge, confidence, and skills necessary to make the right decisions There are various channels for people to obtain financial knowledge; for example, digital wealth tools make it easier for consumers to access and learn about insurance AI-powered digital assistants or chatbots offer users wealth tips and answers frequently asked questions about retirement and insurance topics Consumers can also be connected to a real-life financial advisor or insurance agent to get in-depth, personalised advice

Enhancing connectivity to the Greater Bay Area

As Hong Kong progresses to strengthen its domestic insurance market, there are abundant opportunities to enhance the insurance sector by leveraging its strategic geographical location in the Greater Bay Area (GBA)

Mainland Chinese customers provide a significant long-term opportunity for the Hong Kong insurance industry Since the re-opening of the Hong Kong and Mainland China border in February this year, insurance sales have grown significantly as Mainland Chinese visitors returned Reasons for Mainland Chinese interest in Hong Kong insurance products include diversification in currency and asset class, access to professional financial advice with a broad product spectrum, and easy access to high-quality medical care available in Hong Kong, amongst other factors.

With a population of more than 86 million and a much lower penetration rate than Hong Kong, the GBA presents significant growth opportunities into an untapped market. The "Dual Circulation" strategy will also enhance connections between insurance markets in the Mainland and Hong Kong. With Hong Kong’s sophisticated insurance market and a wide range of products, it has an advantage of being the insurance hub of the area.

[3] HKTDC Research

The anticipated cross-border insurance initiatives such as the establishment of customer service centres in the GBA, allow insurance companies to provide after sales service that includes premium renewal and claims for Mainland Chinese customers who have bought insurance policies in Hong Kong. These service centres will attract Mainland Chinese visitors travelling to Hong Kong to purchase insurance which enhances the growth prospect for the industry

In order to drive greater accessibility and affordability of financial services and healthcare, stakeholders from the public and private sectors should work even more closely together As technology and customer expectations are evolving at pace, it is essential that the insurance sector and policymakers have an open, ongoing and collaborative dialogue to propel the Hong Kong insurance industry to greater heights

About Prudential plc

Prudential plc provides life and health insurance, and asset management in 24 markets across Asia and Africa This year, it celebrates its 175th anniversary, including 100 years in Asia Prudential's mission is to be the most trusted partner and protector for this generation and generations to come, by providing simple and accessible financial and health solutions

Lilian Ng Managing Director, Strategic Business Group Prudential plc

More than half a year since the public launch of ChatGPT in late 2022, AI and generative AI remains a hot topic all around the globe Companies and businesses of all sizes and from all regions are still looking for ways AI can help them deliver better products and services, but many are facing the same question – what are my regulatory compliance obligations?

The answer at this stage really is to an extent still a question mark, as nations continue to grapple in finding the right balance between regulating AI and protecting the rights of individuals and encouraging and not impeding AI innovation.

While several countries in APAC have up to this point taken a more wait-and-see approach, given the speed of AI innovation and rising demands from consumers and businesses alike, more jurisdictions in the region are being forced to take a more proactive approach to address AI innovation and regulation or risk being left behind

So, what is the current state of play of AI in Asia?

PRC

China is currently leading the region in terms of AI innovation and regulation The government has

passed the first set of regulatory measures in Asia to regulate “generative AI” services, given the rise of ChatGPT alternatives in China The key message coming from these new rules is one of actively encouraging greater collaboration between industry players (both domestically and internationally), to promote the development of AI solutions and ensure innovation is not stifled. However, providers will still need to navigate and operate within the confines of the existing Chinese regulations, particularly in respect of content control rules. In addition, specific measures were previously introduced to regulate “recommendation algorithms” and “deep synthesis” AI services. That said, it remains to be seen whether China will continue this piecemeal / incremental approach in regulating different subcategories of AI moving forward, or transition to an omnibus approach regulating all types of AI akin to the draft EU AI Act (which is a similar approach we have seen China take in regulating personal data for example) What we do see from the new generative AI measures is that China is also promoting a sector-based approach, so we can expect more industry-specific rules to be released in the future.

Hong Kong

Hong Kong government recently announced that Digital Economy is a key focus area of growth, and

that there are plans to promote the AI industry in Hong Kong, including setting up an AI supercomputing centre, to attract top talents and technology enterprises While Hong Kong does not yet have AIspecific legislation (apart from voluntary ethical AI codes), it is anticipated that a pro-innovation policy will continue to be adopted within the city to attract talent and investment

Singapore

Singapore aims to be a global leader in AI by 2030, and the government has taken various AI initiatives with the most recent being the establishment of an AI Government Cloud Cluster for Singapore’s public sector, and the launch of AI Verify which is an AI governance testing framework and toolkit Like most of Asia, Singapore does not yet have an AI-specific legislation and guidance is currently provided through voluntary model AI governance frameworks and selfassessment guidance

Malaysia

Aiming to leverage AI technologies to become a hightech nation by 2030, Malaysia has already taken initiatives at federal and state level to promote AI innovation and adoption. For instance, certain Malaysian states have begun testing AI systems for court sentencing The Malaysian government has recently announced plans to look into developing AIspecific regulation, including the need to label AIgenerated content The government plans to begin policy development and an in-depth review of existing laws to promote and regulate AI in 2023 and 2024, so this will be a space to watch out for

South Korea

After the US and China, South Korea aims to be one of the world’s top three AI powerhouses by 2027. With significant investment in AI chip research and development, South Korea is seeking to leverage on its dominance in the memory chips field to maintain its edge in the AI race The nation is also in the final stages of passing its first omnibus AI regulations In the

meantime, the government has published various guidelines to establish ethical standards for the development and use of trustworthy AI systems

Japan

Japan has recently signaled its intention to develop an approach for AI which will likely adopt a more lenient and pro-innovation approach compared to the EU. Similar to Hong Kong, the Japanese government has also declared plans to build a supercomputer to drive AI innovation. Despite the absence of overarching AI-specific legislation, the Japanese government has established social principles along with guidelines on using AI in Japan. The Japanese government is also setting a precedent by reaffirming that copyright does not apply to training data used for AI systems training It would be interesting to see whether other major economies will adopt the same approach to keep ahead of the AI competition

Thailand

Thai authorities are putting forward initiatives to promote AI workforce development and to establish a central platform for AI services in Thailand to further the country’s national AI plan. While there is currently no overarching AI-specific legislation in Thailand, a draft Royal Decree, which adopts a risk-based approach to regulate AI, was introduced late last year for public comment The Thai government has also approved guidelines which provide guidance for AI researchers, designers, developers, and service providers in relation to AI use and their rights and risks associated with the same

So, what comes next?

Asia’s economic growth is widely forecasted to continue to outpace the rest of the world for this year and the next, driven in large parts by emerging technologies, including AI Given the strength and pace of advancement, it will be interesting to see how laws will be shaped to encourage AI innovation and investment balanced against the region’s rules around content control, data privacy and IP rights

For now, while not every country in Asia has taken legislative steps in regulating AI, there are at least national strategies and ethical guidelines and frameworks in place to guide the industry on AI implementation while governments figure out the right approach to take

However, one of the main challenges businesses in the APAC region may face is the lack of a unified approach Asia is constituted of many independent countries each having its own unique value, culture and importantly, national objectives which may lead governments to take approaches on AI. As a result, businesses may face difficulties in navigating and complying with competing sets of regulatory frameworks in the region.

In the meantime, those that are already using or planning to implement AI within their operations in Asia should monitor developments in the area closely To find out more on AI and AI laws and regulations, visit DLA Piper’s Focus on Artificial Intelligence page and Technology’s Legal Edge blog

If your organisation is deploying AI solutions, you can undertake a free maturity risk assessment using our AI Scorebox tool

Lauren Hurcombe is a Partner in DLA Piper’s Intellectual Property and Technology Practice, and Hwee Yong Neo is a senior associate. They advise on all aspects of technology and commercial law, including negotiating complex technology transactions, sourcing, digital transformation and strategic commercial arrangements). She can be reached at Lauren.Hurcombe@dlapiper.com.

About DLA Piper

DLA Piper is a global law firm with lawyers located in more than 40 countries throughout the Americas, Europe, the Middle East, Africa and Asia Pacific, positioning us to help clients with their legal needs around the world. In certain jurisdictions, this information may be considered attorney advertising.

www.dlapiper.com

Lauren Hurcombe Partner DLA Piper Hong Kong bio

Hwee Yong Neo Senior Associate DLA Piper Hong Kong bio

As Hong Kong rebounds post-Covid, it’s the dawn of a new era for the city, where world-class cultural attractions including M+ and the Hong Kong Palace Museum lure visitors and locals alike In the heart of Kowloon, on the edge of Victoria Harbour, one of the city’s most famous hotels has come back to life –returning as the reimagined Regent Hotel – its reopening perfectly timed with the momentum of the city’s revitalisation. The epitome of modern style and glamour when it first opened as The Regent Hong Kong in 1980, the hotel was rebranded to InterContinental Hong Kong from 2001-2020. Now three years after its closure and the most extensive transformation in its history, the harbourfront property is building on its storied heritage while debuting a serene aesthetic and sensorial hallmarks of the revitalised Regent brand since IHG acquired Regent Hotels & Resorts in 2018.

Managing Director Michel Chertouh shares, “The extended pause in Hong Kong has allowed us the opportunity to undergo a total metamorphosis – from the hotel façade and entrance to all public areas and guestrooms Over the past many months, we have been gradually unveiling our reimagined facilities and immersive new experiences while building the momentum of our relaunch The timing is ideally aligned with the city’s revitalisation as visitor arrivals gradually rebound with the return of both business and leisure travellers ”

He adds, “I am thrilled by my team’s passion in bringing the Regent back to Hong Kong It is also humbling and inspiring to witness the emotions and hear the memories evoked by the property among the local community I look forward to seeing Regent Hong Kong contribute to the success of this incredible city as a global travel destination.”

The hotel first ‘soft opened’ its Dining Destination at the end of 2022 with re-envisioned dining experiences at beloved restaurants which include Harbourside, a local favourite known for its vibrant market ambience and lavish international buffets, and The Steak House, a paradise for meat and wine lovers. Here you’ll find a curated collection of the world’s finest meat, perfectly grilled on the open fire of the original charcoal grill. Favourites like the elaborate salad bar have been elevated, with the quality and detail evident in every aspect of the dining journey, from the premium Nesmuk knives to the homemade mustard, crafted from mustard seeds in a process that takes weeks.

Meanwhile in The Lobby Lounge, cinematic harbourviews can be savoured over afternoon tea and evening cocktails with a unique selection of Champagnes from small growers, boutique wines and craft cocktails. The venue transforms throughout the day like a chameleon. As the sun sets over Victoria Harbour and the skyline morphs into “A Symphony of Lights”, you’ll be enveloped in the spectacular vista from large semi-circular banquettes and armchairs with cleverly hidden revolving mechanisms, allowing you to swivel your chair to enjoy the panoramic view.

The two-MICHELIN star Lai Ching Heen (formerly Yan Toh Heen) which remained open throughout the hotel transformation, has returned to its original name, which translates to “scenic Regent pavilion” The elegant jade-encrusted venue overlooking Victoria Harbour serves exquisite Cantonese cuisine of the highest quality

Michel Chertouh shares, “Whether it’s pent-up demand, loyal patrons returning to their favourite dining spots or the buzz created by our revitalised venues, our restaurants are doing extremely well While you’ll still find classic dishes and all-time favourites, the dining experiences have been thoughtfully reinvented, from the décor and menus to the guest journey which engages all the senses Our Dining Destination is a showcase of emerging culinary talent and innovation with the focus on top quality ingredients – responsibly sourced, intuitive service and a touch of decadence.”

This fall will see the long-awaited return of Nobu, showcasing the innovative Japanese cuisine of world renowned chef Nobu Matsuhisa. Also soon to launch is the exclusive Regent Club, designed as a private haven of residential luxury with sweeping harbourviews and a bespoke range of services and immersive culinary offerings. This will be followed by Qura, a decadent new destination bar with mesmerising harbourviews. Meanwhile Regent Spa & Wellness is anticipated to debut in early 2024.

The hotel is also a renowned venue for glamorous galas and weddings. To the delight of generations of guests who have celebrated milestones at the hotel, its iconic white marble “Fred and Ginger” staircase leading to the Regent Ballroom has been preserved and pristinely restored The first major event was held here earlier this year when Robb Report Hong Kong hosted a glamorous launch gala with a fleet of super cars on display at the hotel piazza – heralding a new era of glamour and sophistication for the hotel and Hong Kong

Upon approaching the hotel, which is perched over the harbour, removed from the bustle of Tsim Sha Tsui, the calming sound of the glistening fountain sets the tone, as welcoming doormen open enormous castle-like doors. Sixteen vertical glass brick “Golden Illusion” screens, designed as floor-to-ceiling chandeliers, form an enticing passageway as you enter the soul-rejuvenating aesthetic by Hong Kong born design visionary Chi Wing Lo. With over 30 years of architecture and design experience in the United States, Greece and Italy, Chi Wing Lo blends artisan craftsmanship with a subtle yet sublime sensibility for his reimagining of Regent Hong Kong, his first hotel project. His timeless design integrates aspects of the hotel’s storied heritage and the Regent signature Beauty of Contrasts, with spectacular views of bustling Victoria Harbour juxtaposing serene interiors layered with textured materials and quietly decadent touches

Inspired by the hotel’s unique location and panoramic vistas, Chi Wing Lo shares, “My vision is to create something different and unique – a design that can represent Hong Kong and create a sense of peace, tranquillity and balance within the city From the moment of arrival, we are setting the tone for a journey of discovery – a seamless sequence, like a cleansing ritual preparing you for the unexpected harmony that lies within ”

In the Lobby the dark granite floor encased with glass inserts creates an intricate pattern of reflections. A long softly lit translucent onyx check-in counter is framed by a 15-meter LED screen with abstract cinematic local art, while “The Spirit of Regent Retrospective” screen, crafted from juxtaposing pieces of the hotel’s original art collection, recalls the essence of the art which graced the walls in the early Regent years. A few steps further and the dramatic wall of windows reveals Victoria Harbour in all its glory – the misty effect on glass balustrades dissolving the foreground, as panoramic views of the dazzling harbour and skyline unfold.

Guestrooms and suites have gradually been unveiled floor-by-floor since late March 2023. While not all of the 497 guestrooms including 129 suites are ready, a variety of room types are currently on offer, each reimagined as a Personal Haven of peace and tranquillity It’s worth splurging on at least a Classic Harbourview Room

unwind and enjoy the room and the many thoughtful touches. The scalloped ceiling resembles a canopy, while custom-designed oak furniture with sleek curved lines and an armchair that swivels so you can take in the full view, showcase Chi Wing Lo’s attention to detail. A wellness amenity such as a hand or lip balm or eye cream, is placed bedside in lieu of a traditional chocolate on the pillow each evening. This is just one of many Day to Evening Rituals throughout the hotel as the skyline transforms at dusk. Staff emerge in chic evening uniforms, while the lighting and playlist morph into evening mode, heightening the senses and mesmerising harbourviews.

When it comes to service, it’s definitely on your terms with a Regent Experience Agent at your beckoned call to ensure a seamless journey Throughout the hotel, the staff are approachable and knowledgeable, with many familiar faces who have worked at the hotel in the past and amazingly still remember guests’ preferences You can simply pick up the in-room phone to connect with the Regent Service Centre or use the Regent Chat App from wherever you are inside or outside the hotel 24/7

Here the luxury feels discreet; the grandeur intimate The views are awe inspiring; while the experience is personal It’s the Beauty of Contrasts, which also describes the enduring allure of Hong Kong, with its unique blend of East and West, old and new, skyscrapers and scenic green spaces. At the reimagined Regent you’re privy to a serene and indulgent haven removed from the bustle of the city, while in the heart of it all, with Kowloon’s newest attractions all within easy reach. It’s the dawn of a new era for Regent and Hong Kong, filled with inspiring discoveries.

Regent Hong Kong

Reborn and reimagined

A new chapter unfolds on Victoria Harbour with the return of Regent Hong Kong. Generations of unforgettable experiences, thoughtfully re-envisioned, along with immersive new delights.

Carole L. Klein Freelance writer & Marketing Communications Consultant

Discover a rare haven for those seeking discreet luxury Amidst the unexpected harmony of Chi Wing Lo’s visionary design – majestic yet serene – find balance and connect over seamlessly curated moments that uplift and inspire Here the experience is personal, the grandeur intimate, the dining decadent – all stunningly staged with the city’s best harbourviews

Inspiring discoveries await https://hongkong regenthotels com/

About Regent® Hotels & Resorts

Guests have made grand entrances through the doors of Regent® Hotels & Resorts for nearly half a century. Born in 1970, our collection of modern hotels and resorts are home to stays both serene and sensational. The type of experiences that spark stories and charm even the most seasoned of travellers Regent Hotels & Resorts hotels are located in some of the globes most inspiring must-see destinations, from urban streetscapes rich in culture to ports with breath-taking seaside views An invitation to life’s most scenic moments Regent hotels are amongst the most well-known luxury hotels in the world, with nine open hotels including the exclusive Regent Hong Kong, Carlton Cannes - a Regent Hotel, Regent Phu Quoc, Regent Chongqing, Regent Shanghai, and Regent Porto Montenegro Ten further properties are due to open in the next five years in Bali, Santa Monica, Jakarta, Kuala Lumpur, Chengdu, Sanya, Shanghai, Shenzhen, Jeddah and Kyoto For more information and to book, visit www regenthotels com

Today an established International Financial Centre

It was a clear and sunny Wednesday morning in June, when Paul McComb, the British Chamber’s Executive Director and I went over the final preparations for the upcoming panel that was about to start in an hour in the Victoria Suite of the Hong Kong Club.

The Hong Kong Club was founded in 1846 as gathering place for the Taipans (literally “big boss”) of the hongs (British trading houses including household names like Hutchison Whampoa, Jardine Matheson, Swire, and Wheelock-Marden). It was in its historic and iconic building, where my attention was caught by one of the eagles that frequent the Central business district soaring near the top of 88-floor tall IFC building, which saw its light in 1998 (one year after the Handover and during the Asia Financial Crisis).

Hong Kong grew to become the premier International Financial Centre [1] (IFC) as we know it today, on par with the likes of London and New York, in the last century and a half, with the purpose to raise capital for companies and finance their growth plans in Mainland China and the rest of Asia.

As a result, and solidifying its current role as an IFC, Hong Kong built a robust financial services ecosystem, second to none in Asia, and supporting infrastructure of financial institutions (banks, insurers, investment managers), professional services providers (accounting firms, law firms, etc.), regulators (HKMA, HK Insurance Authority, SFC).

Tomorrow a flourishing International Insurance Centre?

To help answer the question whether Hong Kong is also a premier International Insurance Centre (IIC), the British Chamber of Commerce Financial Markets Committee (with a soon to be established Insurance sub-Committee to underscore its importance) curated an expert panel with Christina Bao, HKEX’s Co-Head of Sales and Marketing, Patrick Bowes, Prudential’s Chief of Investor Relations, Fulin Liang, Manulife AVP for Investor Relations in Asia, moderated by myself representing the Financial Markets Committee as its Vice Chair.

[1] An international financial centre is an intense concentration of a wide variety of international financial businesses and transactions in one location, according to the World Alliance of International Financial Center

It is probably fair to say, Hong Kong, capitalising on Hong Kong’s strengths as an IFC and the earlier mentioned supporting infrastructure in place, is already a mature and vibrant International Insurance Centre with 165 authorised insurers, commanding Asia’s highest and globally the second highest insurance density (i.e., USD 9,700 insurance premium per capita) with an insurance penetration (of close to 20% direct gross premium to GDP) in 2020 You will find fourteen out of the twenty global top insurers present in Hong Kong with three so-called Internationally Active Insurance Groups (IAGs) – AIA Group Limited, FWD Group Holdings Limited, Prudential PLC – calling Hong Kong home with the Hong Kong Insurance Authority (IA) as their group regulatory supervisor

While the status quo is not an unimpressive feat, Hong Kong should not be resting on its laurels with further untapped opportunities related to the Greater Bay Area (GBA), Hong Kong as a global risk management centre and regional reinsurance hub, or insurancelinked securities (ILS) hub for example catastrophe bonds, which was highlighted on Hong Kong SAR government’s 2023-2024 development roadmap for the insurance sector, as well as an InsurTech innovation hub

The local Hong Kong insurance industry appears to agree and be onboard with Hong Kong’s untapped

potential as the Hong Kong Federation of Insurers (HKFI), which counts the lion share of the 165 authorised insurers in Hong Kong as its members, conducted a member survey and subsequently released a proposal with three key recommendations to help reinvigorate Hong Kong’s status as an IIC.

Risk management Centre of Excellence (CoE) -

To position Hong Kong as a professional risk management centre, drawing on its risk capability and expertise and providing capacity to meet the growing insurable needs of the GBA, the Belt and Road and other national strategies.

Source of capital - To position and reinforce the insurance sector’s role as an institutional investor in infrastructure investment in Greater China in the transition journey to a low-carbon economy with capital allocation on ESG instruments The HKFI calls on the Government to facilitate insurance investment into Infrastructure Debt, and Green & Sustainable Finance (GSF) assets under the Hong Kong Risked-Based Capital Regime (RBC).

Talent - To position and promote Hong Kong in attracting enterprises through fiscal incentives and support to set up broking, underwriting and other core business functions in Hong Kong, building international insurance capacity and capability, and cultivating a talent training pathway for local citizens in partnership with renowned academic institutions and the industry sector.

2.

3.

Hong Kong as a Risk Management Centre of Excellence

93% of HKFI members surveyed, stated Hong Kong playing a bigger role within GBA and the Belt and Road initiatives will positively impact the development of the insurance industry in Hong Kong

To support the potential size of the prize for Hong Kong as an IIC, I wanted to repeat Patrick Bowes’ statement made during our panel session: “According to research by Allianz SE, the expected life gross written premiums in (Greater) China are expected to double from USD 486b in 2022 to USD 974b in 2033.” The GBA market is expected to experience the same growth, if not at an accelerated pace, to close the GBA protection gap, which puts Hong Kong in a pool position to become China’s and the region’s professional risk management hub to meet the growing insurable needs of the GBA, the Belt and Road.

Hong Kong’s Story as an International Insurance Center Brand

85% of HKFI members surveyed, stated Hong Kong improving its international branding and positioning will positively impact the development of the insurance industry in Hong Kong

Hong Kong has the second highest insurance density (i e , USD 9,700 insurance premium per capita) with an insurance penetration (of close to 20% direct gross premium to GDP) in 2020, second only to the Cayman Island.

A significant growth driver of the Hong Kong insurance industry is the Mainland Chinese Visitor (MCVs) customer base, including from the GBA, who generally perceive the Hong Kong insurance industry as mature, with well-known international insurer brands providing access to more sophisticated products. COVID-19 reinforced the perception with access to cross-

boundary reliable medical services becoming more front of mind.

One of the questions raised at the panel session was that while it is clear Hong Kong and Mainland Chinese residents buy insurance products and services as evidenced the insurance density and insurance penetration, but why do they not invest as much in insurers listed in Hong Kong? A number of the world’s largest insurers by market capitalisation are listed in the Pearl of the Orient, such as AIA, China Life, and Ping An, with a market capitalisation each exceeding USD 100b, Prudential, and others

The HKEX introduced the dual counter model, where designated shared listed in both HKD and RMB counters can be traded and settled in HKD or RMB, where a number of the aforementioned insurers are on the designated list

The Hong Kong SAR government, HKEX, insurance regulators, the insurance industry and insurers with their expert Investor Relations teams, with support from professional actuarial and risk consulting firms, public relations firms, should embark on a concerted effort to educate and promote the general investor public on the strategic importance and role of the insurance industry, and the (financial) performance of listed insurers, which in turn will attract future talent to embark on a career in insurance

Hong Kong as an Insurance Talent hub

93% of HKFI members surveyed, stated Hong Kong deepening its local and international talent and human capital pool will positively impact the development of the insurance industry in Hong Kong

One of Hong Kong’s advantages is not only its insurance density but also its actuary density, where Hong Kong is probably is one of the highest globally. Actuaries, data scientists, marine insurance and other designated professionals, are on Hong Kong’s Talent List, under which companies can hire international professionals without providing proof that no suitable candidates were available locally with a relatively short working visa application processing time.

Hong Kong’s academia – Hong Kong has four universities in the global top 100, i.e., University of Hong Kong, the Chinese University, Hong Kong University of Science and Technology, and Hong Kong Polytechnic University, should work collaboratively and structurally with the Hong Kong SAR government, the insurance industry and insurers, professional bodies such as the Hong Kong Federation of Insurers (HKFI), the Actuarial Society of Hong Kong (ASHK), and professional risk and actuarial services firms to create supply and demand of insurance professionals to unlock Hong Kong’s potential as an International Insurance Hub

THIS OCTOBER, BRITCHAM SUPPORTS: BREAST CANCER AWARENESS

UNVEILINGTHEIMPACTAND KEYLEGALCONSIDERATIONS WHENUSINGARTIFICIALINTELLIGENCE

ByJenniferWu,TMTPartner,PinsentMasons

Artificial Intelligence (AI) is the latest buzzword. We often hear about virtual assistants like Siri and Alexa, more recently the AI-powered language model ChatGPT, but how much do we actually know about this latest technology? With so many AI options out there, are we able to make informed choices about these latest AI tools?

AI is special because it makes it possible for machines to learn and make decisions to perform human-like tasks. These AI tools are usually supported by algorithms and computational models. Large amounts of data are often fed into these models, whether at the training or operational stages, where the data will be processed and analysed to uncover patterns or solve problems.

What can AI offer and why does it matter

The impact of AI is far and wide. AI has a wide range of applications across various industries. For instance, in healthcare, AI can assist in diagnosing diseases and analysing medical images. In finance and commerce, AI algorithms can be used for risk assessment and fraud detection.

AI systems are malleable and can be tailored for different purposes, depending on how the algorithms are written and designed For businesses, AIs could be integrated into different stages of production to perform different functions With AI’s assistance, businesses are able to automate repetitive tasks, improve decisionmaking, enhance productivity, and uncover new opportunities

AI is becoming more and more sophisticated. The growth of data and advancements in computing power in recent years have fueled the development of AI algorithms. With this development, authorities globally are contemplating the best approach towards regulating AI and how to balance the need for consumer protection whilst not curbing innovation.

Before AI-specific regulations come into play, businesses should be aware of the legal risks and concerns in data privacy, intellectual property and contractual liability as AI continues to advance

Part I: Key considerations when using AI

(1) Data privacy

As more companies begin to apply AI to their business operations, data privacy risks start to come to the fore.

Privacy is a significant concern in the AI landscape Whilst AI adoption and working with AI is an inevitable future, companies should be mindful of some privacy risks that are associated with the use of data in AI

This is because most AI systems learn how to simulate human intelligence by relying on vast amounts of data, as part of the training process These data can be gathered from various sources For example, some data is directly provided by users, such as contact information or purchase history, while other data is collected through behind-the-scenes methods like cookies and tracking technologies Because of the vast amount of data available online, companies nowadays are able to obtain data from different sources - whether with or without the individuals’ consent or knowledge.

ChatGPT is a form of generative AI, an AI chatbot that uses natural language processing to create human-like conversations, trained by human feedback and reward models for reinforcement learning. With regard to ChatGPT, some data protection experts suspected that the data that was used to train the model was obtained by trawling the internet. Even though the specifics for training ChatGPT have not been disclosed, these experts warned that it may not be legal to obtain training data this way, revealing doubts about data protection and potential misuse of personal data in AI

Another common concern with this type of AI is that these systems may learn from user prompts (i e users’ questions and instructions) and add such user prompt to their database This is particularly concerning when users are not always aware that the information they provide to the AI language model could potentially be used to answer questions of another individual enquiring about the matter For businesses, the risk here is the potential leakage of confidential information or commercially sensitive information

At present, it is said that the language model AI, including ChatGPT, does not automatically incorporate information from a query into its model for other users. However, the company providing the language model may still have visibility on the information shared by its users in the prompts.

AI developers typically store these prompts because these data could be used as training materials to enhance future versions of the language model. However, this will be a risk to the business and the users as the information they divulge in the user prompt can potentially be shared with the system developer, provider, or their partners and contractors in the supply chain, who may further incorporate the prompts and the information they learned into future iterations.

Before using AI, the AI systems’ terms of use and privacy policy should be thoroughly understood before users can use such tools on sensitive tasks There is also a need to educate employees within the business on the types of task they can use AI for and the types of task they should not

A question may be sensitive because of the data contained in the query, or because of who is asking the question and when This will be especially relevant for business managers who make business decisions

everyday. This is because information from multiple queries using the same login name could be aggregated. For example, if a manager asks “how best to fire an employee?” whilst also indicating that the employee was a lawyer and had covid in early 2020, these prompts may have already provided enough information as to make some deductions

Tips for businesses – Businesses should be proactive in reviewing the AI systems’ terms of use and privacy policy When using AI as part of the operation, businesses need to ensure that data collection, processing and storage are compliant with their internal policy as well as compliant with the applicable data protection laws Businesses that wish to use AI should consider the following:

Consent or purpose of data collection: Is there a new purpose to collection of data?

Data usage: How will the data be used?

Data sharing: Is data shared in isolation or in aggregation with other organisations? Is the data available to the vendor’s researchers or partners?

Data security: What are the protections and measures adopted? Is encryption used?

Cybersecurity: Is there a cybersecurity protocol and crisis management plan?

Data accuracy: How to correct outdated or inaccurate information?

Anonymisation: Can personal data be anonymised?

There will also be a need to update the website data privacy notices depending on how AI is adopted into the business

(2) Intellectual property rights

Another concern is the ownership and protection of intellectual property rights in works created with AI’s assistance. This can be a tricky issue because most existing legal framework surrounding intellectual property rights are unable to keep up with the rapid development of AI and are unable to provide clear guidance in this respect.

Apart from language models, there are also AI tools that generate art works – such as images and music. Similar to how language model operates, AI-generated images and art works are typically created using

Tips for businesses

Businesses should consider the extent of liability in intellectual property rights infringement, especially copyright infringement, because of the way these AI systems gather and use training data as well the way they generate “creative” works Businesses should also consider ownership and protection of their own intellectual property rights in works

(3) Contractual liability

AI systems are not perfect and contractual disputes may arise when AI systems fail to perform as expected. When that happens, the terms of use or any contractual agreements will be relied on to account for the roles, responsibilities, and liabilities of AI.

Tips for business - If businesses would like to use or adopt AI systems in their operations, issues of accountability and liability should be carefully considered to prevent and minimise its legal liability. When entering into contracts, it is important for the contracts to be negotiated to ensure there is a fair(er) balance of the risks

Part II: Takeaway and practical points

When using AI in business, always consider the following steps:

Review AI’s privacy policy and terms of use to ensure compliance with data protection laws. At the same time, review and update the company’s website data privacy notices. Ensure that the company’s intellectual property rights are protected and any unauthorised usage is addressed promptly.

Maintain human oversight in and employee training on AI processes, especially in sensitive areas, to address errors and unexpected outcomes At the same time, implement internal guidelines and standards for AI applications to ensure fairness, transparency, and accountability

About Pinsent Masons

Pinsent Masons is an international law firm with offices in Asia Pacific, Europe, Africa and the Middle East, serving client demands in our 5 core sectors, including Technology Science & Industry Our Technology and Data team handles commercial, regulatory and dispute matters Contact Jennifer Wu for more information or to discuss technology or data related matters in Asia Pacific: https://www pinsentmasons com/people/jennifer-wu

Jennifer Wu

TMT Partner Pinsent Masons