Hong Kong will review bond issuance, says Hui

Staff reporter

The Hong Kong government will review the scale and methods of bond issuance in the coming years while formulating the budget, said Secretary for Financial Services and the Treasury Christopher Hui Ching-yu.

Hui told the Legislative Council that after considering the proceeds from government bond issuance, the latest estimate for the overall deficit for the current 2024-2025 year is expected to be below HK$100 billion.

Late in October, Financial Secretary Paul Chan Mo-po had stated that authorities will continue to issue bonds, with an initial plan to raise between HK$120 billion and HK$130 billion annually.

Hui told lawmakers that government is actively researching ways to enhance fiscal consolidation and further control the growth of expenditures as well as reviewing the scale, prioritization, and urgency of infrastructure spending.

Land formation and infrastructure projects in the Northern Metropolis will be prioritized and progressed according to plan, he said.

Hui said some projects are still in the early planning or conceptual stages and will have their schedules adjusted based on factors like their importance.

Regarding civil servant salaries, the vice chairman of the Federation of Trade Unions, Bill Tang Ka-piu, urged the authorities to reassess the efficiency of the employees and recommended the use of technology to enhance the capabilities of government departments.

The Hong Kong Federation of Trade Unions has affirmed the performance of civil servants and believes they should not be blamed as the source of the government's financial issues, said Tang, noting no requests for their salary cuts or layoffs.

Separately, Hui said the government plans to regulate stablecoin issuers and to have a public consultation on oversight of over-the-counter virtual asset trading and custodians.