Civil Service Pay & Appraisal: Hong Kong approved a flat 2% pay rise for civil servants, with officials citing fiscal prudence amid geopolitical volatility, while Chief Executive John Lee defended a tougher appraisal system that will withhold increments for the bottom 10% starting in October, drawing union backlash. National Security Law Tightening: The government proposed legislation letting the chief executive classify criminal acts as national security offences, with Lee saying the mechanism will reduce court disputes and that sensitive cases often involve “state players.” Pentagon Blacklist Hits HK-listed Firms: The US added major Chinese tech and industrial names, including Alibaba and Baidu, to a Pentagon list tied to alleged military links; Hong Kong trading saw Alibaba and WuXi AppTec fall. Hong Kong Five-Year Plan Consultation: A two-month public consultation on the city’s first five-year blueprint begins June 15, covering economy, infrastructure, healthcare and education. Local Governance & Education: A Hong Kong school that sacked its principal after a Singapore swearing incident has posted a new head recruitment ad requiring “excellent character.” Economy/Markets: Asian stocks steadied after a tech-led sell-off, with Hong Kong’s Hang Seng slightly down as investors returned to AI-related trades. Transport/Business: Cathay Pacific CEO said the airline remains on track despite jet-fuel pressure, while Hong Kong’s Labour Department announced a Tai Po job fair with 2,700 vacancies.