Wang Fook Court Fire Inquiry Continues With Expert Testimony

The independent commission investigating the Wang Fook Court fire in Tai Po held its fifth round of hearings on Wednesday (June 24), hearing from three expert witnesses. Those testifying included government-appointed fire engineering expert Professor Yuen Kwok-kit, Chair Professor of Building Engineering at City University’s Department of Architecture and Civil Engineering; Fire Services Division Commander (Airport) To Chi-wing; and cross-departmental investigation team leader Yu Man-yeung, Assistant Director of Fire Services (New Territories South).

To Chi-wing testified that 12 “fire dragons” — vertical columns of flame — were observed at the scene, with 11 forming within the first two hours of the blaze. More than 560 units were severely or extremely severely damaged, with over 90% of affected units located on either side of these fire dragons. The first fire dragon is suspected to have originated from a cigarette butt.

The investigation team ruled out several potential causes, including LPG leakage, electrical short circuits, welding works, or naturally combustible materials. To noted that expanded polystyrene (EPS) insulation materials contributed significantly to the fire’s spread into units, as the combustible material would fall onto scaffolding and “bake” glass windows until they shattered.

Professor Yuen Kwok-kit testified that had Wang Fook Court used compliant flame-retardant scaffolding nets, “basically the fire would not have happened”. He identified the presence of large quantities of combustible materials on site — particularly bamboo, followed by wooden planks — as critical to the fire’s escalation.

Inquiry Chairman Justice Loke Keng-hong emphasized that the commission’s recommendations must not be “too detached from reality,” warning that otherwise renovation costs could exceed the already estimated HK$330 million.

Customs Seizes HK$46 Million in Drugs From Netherlands Shipment

Hong Kong Customs arrested two men after intercepting 100 kilograms of ketamine with a market value of approximately HK$38 million hidden inside paint cans shipped from the Netherlands. The shipment consisted of 180 boxes weighing 1,172 kilograms that arrived at the airport on June 19.

Customs officers used X-ray inspection to identify inconsistencies in density among the paint containers. Upon opening the suspicious cans, they discovered bags of crystalline substance that tested positive for ketamine. Of the 1,080 paint cans, 413 were found to contain the drug.

Following a controlled delivery operation, officers arrested a 63-year-old man in Kwun Tong who received the shipment, and a 28-year-old man monitoring the delivery. Both are unemployed and were taken into custody. Authorities also raided an industrial unit in Kwun Tong believed to be used for temporary storage and processing of the drugs.

In a related operation on Wednesday, Customs seized an additional 3.5 kilograms of etomidate — a controlled anesthetic increasingly used as a recreational drug — from a courier center in Yuen Long, with an estimated street value of HK$8.3 million. The total value of all drugs seized in the operations amounted to approximately HK$46 million.

Lawmaker Urges Telecom Liability for Fraud; Government Cites Business Confidence Concerns

Lawmaker Chong Ho-fung of the Roundtable political group raised questions in the Legislative Council on Wednesday about holding telecom operators and social media platforms legally responsible for failing to screen suspicious messages.

Citing the Hong Kong Monetary Authority’s disciplinary actions against banks for anti-money laundering lapses — which resulted in HK$16.2 million in fines against three banks last year — Chong asked why telecom operators should not face similar accountability for phone scams.

Secretary for Commerce and Economic Development Algernon Yau responded that imposing liability would be operationally complex and could affect business confidence. “We must carefully consider whether implementing such a system would lower the public’s vigilance against scams,” Yau said. “If we require telecom operators or other institutions that have reasonably fulfilled their due diligence responsibilities to still make compensation or contribute certain amounts as part of a simplified compensation procedure, it might reduce the confidence and willingness of general enterprises to invest and operate in Hong Kong”.

Yau repeatedly emphasized that public vigilance remains the most important defense against fraud, noting that operators already have filtering programs that have shown some effectiveness. For recovery of losses, he suggested that citizens could use the Small Claims Tribunal, which provides a relatively fast and low-cost avenue for claimants without legal representation.

According to government figures, while fraud cases in 2025 still reached approximately 43,000, this represented a slight decline of about 3% from 2024.

Police Arrest 11 in “New-Style Crash-for-Cash” Scam Ring

Police arrested 11 people on Wednesday in connection with a “new-style crash-for-cash” scam ring, bringing the total number of suspected cases to 500 involving HK$135 million. The arrestees — eight men and three women aged 28 to 47 — include professionals such as engineers, property agents, and fitness coaches.

Superintendent of Police’s Commercial Crime Bureau Lo Oi-kin said the suspects are all claimants in traffic accident insurance cases who used similar methods, including falsely claiming loss of work income during sick leave periods and submitting forged documents. The highest single claim amount among the cases reached approximately HK$8 million.

Approximately 320 of the cases are linked to the same law firm. Police had previously arrested 25 people in two operations in February and searched the law firm in question. Two of the arrestees — a married couple working as a taxi driver and a nurse — were charged this month with 10 counts of fraud and attempted fraud, as well as 10 counts of perverting the course of justice, in connection with 22 claims. They are scheduled to appear in Eastern Magistrates’ Courts on Thursday.

Tsim Sha Tsui Car Crash Driver Arrested for Drunk Driving

A private car crashed into a safety island in Tsim Sha Tsui early Wednesday morning, destroying about two meters of railing and hitting a lamppost. The incident occurred at approximately 6am when the vehicle, turning from Chatham Road South onto Cheong Wan Road, lost control and mounted the pedestrian safety island.

The 37-year-old male driver was unhurt and had arranged his own tow truck before police arrived. Officers who responded to reports from passersby detected alcohol on the driver’s breath and administered a breathalyzer test. The driver recorded more than 90 micrograms of alcohol per 100 millilitres of breath — over three times the legal limit. He was arrested for drink driving. The vehicle’s front end was severely damaged, with the bumper detached and debris scattered across the road.

Police Arrest Father and Son Over Unlicensed Driving

In a separate traffic enforcement operation, police arrested a 48-year-old non-Chinese father and his 15-year-old son in Wan Chai on Tuesday night. Officers from the Hong Kong Island Regional Traffic Department set up a roadblock at the junction of Marsh Road and Hung Hing Road around 10pm when they intercepted a suspicious private car.

The teenager was driving without a license and without third-party insurance. His father, who was sitting beside him, was arrested on suspicion of aiding and abetting unlicensed driving. Initial investigations suggest the father had been drinking and asked his son to drive him home.

Two Mainland Men Arrested for Using Fake Documents at Bank

Two mainland Chinese men were arrested Wednesday morning at a HSBC branch in Mong Kok for attempting to open bank accounts using suspected forged documents. Staff at the bank at 673 Nathan Road reported the incident around 9:56am. Police arrived and arrested both men on suspicion of “using false instruments”.

The arrests came a day after a similar case at HSBC’s Central branch, where a 65-year-old man and a 50-year-old woman were arrested for allegedly using fake documents in an attempt to transfer HK$50 billion into a designated account.

Hong Kong Stocks End Five-Day Losing Streak With Modest Gains

Hong Kong stocks rebounded slightly on Wednesday, with the Hang Seng Index rising 75 points to close at 23,412, ending a five-day losing streak that had wiped out 1,506 points. The market opened 84 points higher but fluctuated throughout the day, briefly dipping 87 points to a low of 23,248 before recovering in the afternoon to a high of 23,565. Turnover shrank to over HK$322.9 billion.

The rebound came after technology stocks triggered a 10% plunge in South Korea’s KOSPI index on Tuesday, which activated circuit breakers. US tech stocks also fell overnight, with SpaceX shares dropping more than 16%. The Hang Seng Tech Index rose 1.8% on Wednesday, led by gains in semiconductor and biotech stocks.

CICC’s chief overseas and Hong Kong equity strategist Liu Gang said the Hang Seng Index has underperformed major US, South Korean, and Taiwanese indices this year because it has fewer constituents benefiting from AI capital expenditure. He maintained the firm’s year-end target of 27,000 to 28,000 points but noted that the outlook would depend on interim results from Hang Seng constituents in July and August, as well as the Federal Reserve’s interest rate trajectory.

JPMorgan: Property Price Growth to Slow in Second Half

JPMorgan projected that Hong Kong’s property price growth will slow to below 5% in the second half of the year, having already risen 10.4% year-to-date and 17.9% from the market bottom. The bank noted that while the recovery cycle is expected to continue, the biggest downside risk to prices is persistent weakness in the Hong Kong stock market.

Historical data shows a high correlation between the stock market and local property prices, typically with a three-to-six month lag. Other fundamentals — including inventory levels, rental growth, and demographics — remain robust.

The bank recommended a stock-picking approach favoring CK Asset Holdings and Sino Land, while predicting underperformance for New World Development and Henderson Land. Sun Hung Kai Properties was recommended as a buy-on-dips candidate despite having risen 21% year-to-date against a 7% drop in the Hang Seng Index.

Meanwhile, secondary market transactions in the “top 10 new communities” fell 37.2% in the first half of June compared to the same period in May, reflecting the impact of stock market volatility on sentiment.

Mainland Mining Executive Buys Stanley House for HK$220 Million

The president of a Shanghai-listed mining company has been identified as the buyer of a luxury house in Stanley for HK$220 million (US$28 million) in a receivership sale. The buyer is Mao Yuankai, president of Tibet Zhufeng Resources, who purchased the property through a company called Permanence International Hong Kong Limited.

The Stanley property was sold at a steep discount, reflecting banks’ urgency to clear distressed assets as wealthy mainland Chinese buyers return to the luxury market.

Mainland Capital Outflow Restrictions Cast Shadow Over Hong Kong

Bloomberg reported that mainland China’s large-scale measures introduced last month to restrict capital outflows have cast a shadow over Hong Kong. Thousands of billions of dollars in mainland wealth support multiple sectors in Hong Kong — from luxury consumption and real estate to the stock market — making the city the world’s largest offshore wealth center, surpassing Switzerland.

Some Chinese brokerages have restricted clients from making fresh investments in cross-border swaps, a move seen as aimed at putting the brakes on overseas investment. Mainland regulators have also cracked down on illegal cross-border investment activities, fining three online brokers a total of approximately US$330 million.

Secretary for Justice: National Security Laws More Complete Than Five Years Ago

Secretary for Justice Paul Lam said the city’s national security laws are more complete than they were five years ago. Speaking as the current administration approaches its fourth anniversary, Lam said the government needs to continue refining laws and will persist in explaining them to eliminate unnecessary public concerns.

A working group under the Department of Justice made seven recommendations last week to enhance the city’s mediation regime, with an amendment bill set to be tabled to the Legislative Council in the second half of the year.

Takeaway Tea Shops Expand as Traditional Restaurants Struggle

Hong Kong’s catering industry continues to undergo significant structural change, with takeaway tea shops expanding rapidly while traditional Chinese restaurants and bars face headwinds. According to a study, the number of tea drink outlets in Hong Kong grew from 330 in 2018 to 580 last year — an increase of 76%. Takeaway outlets and food stalls without seating also expanded significantly, rising 17% over the same period.

By contrast, the number of Chinese restaurants fell 9% to 4,470, with Cantonese-style restaurants seeing the sharpest decline at 16%. Hong Kong’s first-quarter catering revenue was 7.2% below pre-pandemic levels in 2018.

Hong Kong Catering Industry Association chairman Leung Hei noted that major events do not benefit every district or every restaurant equally, with benefits concentrated around venues such as Kai Tak, Tsim Sha Tsui, Central, or AsiaWorld-Expo.

In Other News

• The government announced that all civil servants will receive a 0.45-month mid-year bonus, with junior officers receiving an additional one-time payment of up to HK$400.
• The Hong Kong Sports Institute announced the winners of the Hong Kong Football Girl award, with Kitchee defender Danielle, a Dutch center-back, winning the honor.
• Hong Kong’s fencing team advanced to the men’s foil team final at the Asian Fencing Championships in New Delhi, defeating South Korea 45-36 in the semifinals.
• Two universities in Hong Kong were ranked among the world’s top 20 for the first time, with the city’s competitiveness rankings also surging.
• A worker was seriously injured in an industrial accident at a Water Supplies Department worksite outside Pang Ching Court in Wong Tai Sin on Wednesday morning.