Chen Maobo, director of the Hong Kong Finance Department, said that Hong Kong debt issuance is a long -term return project with market funds. This approach is common in the world.
Comprehensive Hong Kong Radio Station and Hong Kong Zhongtong News Agency reported that Chen Maobo said on a radio program on Wednesday (March 6) that the purpose of the Hong Kong government's debt was to use market funds.Many government reserves may not be used in the short term.
He said that this approach is common in the world and can promote the development of the Hong Kong bond market.
Chen Maobo also emphasized that Hong Kong's debt ratio is very low, which currently accounts for 6%of the total local production value. It is expected that it will account for 13%in five years, which is lower than any advanced economy in the world.
The Hong Kong government proposed in the latest fiscal budget that it will issue a debt of HK $ 120 billion (about $ 20.5 billion) in the next fiscal annual bond.Two former heads of finance, Zeng Junhua and Tang Yingnian, have different views on this.
Zeng Junhua wrote on Facebook that if the Hong Kong government issued debts in succession and then used to pay daily expenses, it would dry up for a long time.He also said that after reading the latest fiscal budget report, he was worried that Hong Kong would borrow.
Tang Yingnian believes that the short -term and medium -term capital flow with debt issuance belongs to the acceptable range, and the debt issuance should not be demonized.
