Hong Kong Customs detects suspected infringing case involving circumventing game consoles
Hong Kong Customs conducted an enforcement operation on November 24 to combat infringing activities involving circumventing game consoles. Eight game consoles suspected to be connected with the case, 13 sets of suspected infringing game consoles, 29 memory cards containing suspected infringing games, a desktop computer with an external hard disk used for dealing with infringing games and a batch of computer equipment were seized. The total estimated market value was about $150,000.
Customs earlier received information alleging that someone offered paid services to circumvent game consoles and sold suspected infringing electronic games through a social media platform page. After a thorough investigation and with the assistance of the copyright owner, Customs officers took enforcement action on November 24. An industrial unit in Kwun Tong and a retail shop in Tsuen Wan were raided, and the batch of game consoles connected with the case and the suspected infringing game consoles were seized. Customs officers from the Computer Forensic Laboratory were also summoned to the scene to support the operation. Through an on-site digital examination, more than 5 000 suspected infringing game files were found from the computer connected with an external storage media, which was used to process infringing games.
During the operation, two men, aged 42 and 38, were arrested.
An investigation is ongoing, and the arrested persons have been released on bail pending further investigation.
Customs noted that the copyright owner had applied an effective technological measure in his game consoles to prevent any unauthorised games being played on any devices, and the arrested persons are suspected of using circumvention technology to enable the infringing games to run on the game consoles.
Customs reminds traders not to take part in circumvention activities since selling a circumvention device or providing a circumvention service is a serious crime. Also, members of the public should respect intellectual property rights and not buy any circumvention devices. Unknown websites connected with circumvention devices might contain computer viruses or malware which can pose a risk to users.
Under the Copyright Ordinance, any person who possesses an infringing copy of a copyright work with a view to selling it commits an offence. The maximum penalty upon conviction is a fine of $50,000 per infringing copy and imprisonment for four years. Any person who, for the purpose of a circumvention business, or in the course of a circumvention business, sells or lets for hire a relevant device, or provides relevant services in order to allow circumventing an effective technological measure which has been applied in relation to a copyright work, is liable to a maximum penalty of a fine of $500,000 and imprisonment for four years.
Members of the public may report any suspected infringement activities to Customs' 24-hour hotline 182 8080 or its dedicated crime reporting email account (crimereport@customs.gov.hk) or online form (eform.cefs.gov.hk/form/ced002).
Hong Kong Customs detects suspected infringing case involving circumventing game consoles Source: HKSAR Government Press Releases
LegCo Secretariat releases Research Brief on "The 2026-2027 Budget"
The following is issued on behalf of the Legislative Council Secretariat:
The Financial Secretary (FS) presented the fourth Budget of the current-term Government on February 25. The Legislative Council Secretariat (the Secretariat) today (April 2) released a Research Brief on "The 2026-2027 Budget".
Supported by strong stock-trading stamp duty income and bond issuance, total government revenue soared by 21.9per cent year-on-year to HK$688.8 billion in the 2025-2026 fiscal year (see Annex 1). With a HK$2.9 billion surplus for the Consolidated Account, Hong Kong recorded a fiscal surplus for the first time after three consecutive years of deficits. While this arrived three years earlier than the Government projected, when excluding net bond proceeds, the underlying deficit remained at HK$100.4 billion. This equates to 3per cent of Gross Domestic Product (GDP), which is still below the average (4.6 per cent) of the 37 advanced economies tracked by the International Monetary Fund.
The Research Brief examined the Government's near-term fiscal position and the reinforced fiscal consolidation programme already implemented, as well as analysing the fiscal space for expanded bond issuance. The Research Brief pointed out that total public expenditure grew 5.4per cent to HK$844.2 billion. This is estimated to rise a further 7.2per cent to HK$904.7 billion in this fiscal year. Driven mainly by an ageing population, health and social welfare remain the largest spending areas, with infrastructure replacing education as the third-largest (see Annex 2). Over the past five years, infrastructure expenditure has surged by over 40 per cent. As Northern Metropolis-related (NM) projects are rolled out progressively, capital works expenditure is expected to average around HK$120 billion per annum over the next five years.
As part of the fiscal consolidation programme in the 2026-2027 fiscal year (see Annex 3), FS proposed transferring HK$150 billion of the Exchange Fund's (EF) investment income to finance the development of NM and other infrastructure projects. This withdrawal, which is the first in 42 years, has drawn considerable debate. Some argue that it could undermine the EF's capacity in preserving Hong Kong's financial stability, and question whether such a drawdown might become a "regular practice". Others, however, regard this proposal as an "innovative" measure that is "safer" than expanding bond issuance.
Meanwhile, FS also proposed raising the bond issuance ceiling from HK$700 billion to HK$900 billion, with a greater share of longer-term bonds. The Research Brief noted that concerns over the trajectory of government debt persist, given mounting repayment pressure on the bonds issued in recent years. Net bond proceeds are projected to be compressed by 43.3 per cent between 2026-2027 and 2030-2031 fiscal years, and the gross government-debt-to-GDP ratio is expected to increase to 19.9 per cent. However, this ratio remains far below the average of advanced economies (see Annex 4), and interest expenses amount to just 1.2per cent of government revenue. As reflected in a range of key financial indicators, Hong Kong's fiscal position remains resilient by international standards and its creditworthiness continues to rank among the strongest of any major advanced economy.
The Research Brief also suggested that as the Government moderates expenditure growth to restore fiscal balance, the recovery of the private sector will be key to sustaining economic growth momentum. To actively support and proactively align with the National 15th Five-Year Plan, Hong Kong is formulating the first-ever Five-Year Plan, which could provide a framework for sequencing public investment commitments alongside the fiscal consolidation timetable.
On long-term fiscal health, the Research Brief pointed out that population ageing, low fertility and the impact that AI will bring to the labour market could further strain public finances. Despite the pro-natalist measures introduced by the Government, registered births fell to a record low in 2025. The Research Brief compared the pro-natalist policies in Hong Kong with those in selected advanced economies in Asia and Europe, noting that effective responses require early, sustained and comprehensive intervention, rather than relying primarily on financial incentives. International experience points to facilitating workforce transition as crucial to safeguarding the tax base. As profits tax and salaries tax account for a large share of the Government's recurrent revenue, the ability to steer workforce towards high complementarity with AI has direct implications for the tax base. The Research Brief observed that the upgrading of the Employees Retraining Board into Upskill Hong Kong with a mandate to provide skill-based training, specifically incorporating AI applications, is a timely policy response.
The Legislative Council (LegCo) will resume the Second Reading debate on the Appropriation Bill 2026 at its meeting of April 22 and Members will speak on the Bill.
The Research Brief is prepared by the Secretariat's Research Office of the Research and Information Division with a view to enhancing information support for Members. The Research Brief is now available on LegCo website: app7.legco.gov.hk/rpdb/en/uploads/2026/RB/RB01_2026_20260402_en.pdf.
Source: AI-found images
