Hong Kong Special Administrative Region's 2025-26 Budget Photo: VCG
Financial Secretary of Hong Kong Special Administrative Region (HKSAR) Paul Chan Mo-po delivered the 2025-26 Budget on Wednesday, aiming to enhance Hong Kong's role as a "super connector" under the framework of "One Country, Two Systems."
Under the principle of "One Country, Two Systems," Hong Kong is the only place in the world that combines global advantage and China advantage, said Chan during his speech, noting that actively integrating into the country's development and proactively aligning with national development strategies, we will definitely continue to seize new opportunities arising from the economic development of country and the world, creating a bright future.
John Lee Ka-chiu, chief executive of HKSAR, said in a statement that the budget put forward a series of practical and effective measures on Hong Kong's economic development and public fiscal consolidation, and will reinforce the SAR government's financial strength, and create new momentum and advantages for Hong Kong's economic development.
The budget outlines various measures to accelerate growth across Hong Kong's finance, technology and infrastructure sectors.
Hong Kong is committed to fostering high-quality innovation-driven industries, such as artificial intelligence, robotics, smart manufacturing, low Earth orbit satellites, life and health technology and low-altitude economy.
Hong Kong ranked among the top three international financial centers and the top four initial public offering markets in the world in 2024. The budget vows to further enhance its international cooperation with ASEAN and Middle East and attract more overseas companies for secondary listings in Hong Kong.
A payment system enabling fast and low-value cross-border remittances for residents in Hong Kong and Chinese mainland is expected to be launched in mid-2025 as early as possible, Chan said.
In addition, Chan said that the HKSAR government plans to issue approximately HK$150 billion ($19.3 billion) to HK$195 billion worth of bonds to support infrastructure projects during the five-year period from 2025 to 2030, and pledged that proceeds from bond issuance will be used to invest in infrastructure, but not to fund government recurrent expenditure.
Infrastructure construction is the cornerstone of economic development, which generates jobs, boosts productivity and stimulates related industries, Liang Haiming, chairman of the Hong Kong-based China Silk Road iValley Research Institute, told the Global Times on Wednesday.
Issuance of bonds not only mobilizes market capital for infrastructure but also fosters the development of Hong Kong's bond market, expanding development opportunities and boosting fiscal revenue, said Liang. "Issuing bonds appropriately is an effective means to promote economic recovery and long-term growth."
Speaking of the economic outlook for 2025 and the medium term, Chan pointed out that trade protectionism affects global trade and capital flows, as well as weighs in global economic growth. However, Chinese mainland's steadily economic growth and high-standard opening-up benefit external trade.
It is estimated that Hong Kong's economy will continue to grow moderately in 2025 with a 2 to 3 percent growth, and an average growth rate of 2.9 percent in real terms from 2026 to 2029, said Chan.
Global Times
