Hong Kong’s Paul Chan aims for ‘balanced measures’ in budget to boost public confidence, economic vitality

“When preparing for the new budget … we will try our best to introduce appropriate and balanced measures while fully taking into account the public financial situation, striving to maintain Hong Kong’s economic vitality while strengthening public confidence in the economy.”

The finance chief will unveil his latest budget on February 28, reporting on the city’s financial and economic performance over the past year, as well sharing plans for the coming year.

Chan last month warned that the deficit was expected to exceed HK$100 billion (US$12.7 billion), nearly twice as much as his estimate from last February.

The minister on Sunday also touched on opportunities to attract and explore new markets that arose from the Davos summit.

He said he met a wide range of business leaders from “large multinational corporations to unicorn companies”, taking the chance to tout the city’s financial and professional services, as well as its innovation and technology sector.

“More importantly, we invited them to visit Hong Kong to learn first-hand the development opportunities in related industries and attract them to settle and invest,” he wrote.

Hong Kong business, not national security, tops Davos discussions: finance chief

Chan also spoke with foreign government officials and the leaders of international organisations, especially those from the Middle East region and belt and road countries.

The latter refers to countries taking part in Beijing’s push to link dozens of economies in Asia, Europe and Africa into a China-centred trade network.

Many representatives took the initiative to speak to Hong Kong’s delegation at Davos to gain a deeper understanding of developments and opportunities in mainland China and Hong Kong, he added.

Chan said many leaders agreed that China and the developing Asia region would be important sources of global economic growth in the future, and hoped to further explore the mainland by using Hong Kong as an international platform.

The minister added that his trip was also intended to “tell Hong Kong and China’s story”, as well as emphasise the country’s “overall long-term positive economic trend remained unchanged, and its national policy of opening up was unswerving”.

Hong Kong finance chief rules out capital gains tax for ‘foreseeable future’

But the global economy was currently “fragmented and more fragile” amid a complex geopolitical situation, he said.

Chan also cited that most business leaders at the forum had expressed a negative outlook concerning the global economy in the next two years, with middle- and low-income communities across the world to come under significant pressure.

“Many political and business leaders agreed the world should strive to return to a rules-based multilateral trading system with the World Trade Organization at its core,” he said.

The minister added that everyone should strengthen their communication, rebuild trust, as well promote free trade and investment to spur faster economic recovery and achieve mutually beneficial developments.