Hong Kong File photo

 
Hong Kong is expected to see a growth raging from 3.5 percent to 5.5 percent in 2021 and will continue to give financial support to small and medium-sized enterprises (SMEs), Hong Kong Special Administration Region (HKSAR) authorities announced on Tuesday at the Hong Kong Economic Summit 2021.

This year’s Economic Summit will explore how Hong Kong can prepare for a post-epidemic recovery in a bid to “recover, rebuild and regenerate.”

“The year 2021 will be a year of recovery. The threat from the epidemic has gradually subsided and global economic recovery is expected to gain momentum in the second half of the year. Strong growth of the Chinese mainland economy will be conducive to Hong Kong's exports,” said Paul Chan Mo-po, Financial Secretary of HKSAR, during the opening ceremony of the summit on Tuesday.

He noted that considering the latest developments at home and abroad and the boost from the government's measures, Hong Kong’s economy is forecasted to grow in real terms by 3.5 to 5.5 percent this year.

“The HKSAR government needs to make appropriate investments for our future. Over the past three and a half years, we have invested more than HK$110 billion ($14.2 billion) in technology innovation, which will bring numerous benefits and create more quality jobs,” said Carrie Lam, Chief Executive of the HKSAR, on Tuesday.

Apart from macroeconomic measures, the Hong Kong Monetary Authority (HKMA) also revealed plans to give financial support to SMEs, including the extension of the Pre-approved Principal Payment Holiday Scheme until October. 

The aid plan was launched in May last year, under which enterprises only have to pay back interest but not capital. According to the HKMA, the scheme has thus far granted 91,000 applications for loan tenor extension, involving HK$800 billion.

“It is vital that the banking industry works with us to implement extraordinary measures in extraordinary times. Meanwhile, Hong Kong's financial and banking system is well grounded and has a strong backing,” Eddie Yue, Chief Executive of HKMA, said on Tuesday during the summit.

Capital had continued to flow in the Hong Kong market last year, with the HKMA draining $50 billion from the market and injecting HK$400 billion into the banking system to ensure that the market was well capitalized, Yue added.

Total bank deposits in Hong Kong have grown 8.4 percent over the past two years.

Global Times