〈Hong Kong Business, Feb 1, 2025〉Hong Kong’s fiscal reserves stood at $664.1b, whilst government debt reached $293.2b, according to its financial results for the nine months ended 31 December 2024.
In addition, debts guaranteed by the government amounted to $132.4b.
From April and December 2024, total expenditure and revenue amounted to $524.2b and $349.7b, respectively, resulting in a deficit of $70.5b after taking into account $114.6b received from the issuance of government bonds and repayment of $10.6b principal on government bonds.
A government spokesperson explained that the deficit for the period was primarily due to the timing of some major revenue streams, including salaries and profits taxes, which are mostly received towards the end of a financial year.
〈RTHK News, Feb 1, 2025〉Financial Secretary Paul Chan has vowed to beef up efforts in promoting Hong Kong to the rest of the world, saying some of those attending the World Economic Forum in Davos have signalled their intention to set up shop in the SAR.
Chan also said on Sunday that he has invited delegations to explore the "tremendous opportunities" offered by Hong Kong, the Greater Bay Area as well as the mainland, during the high-level conference in Switzerland.
"Some fintech companies in Europe said they are planning to set up shop in Hong Kong, and use the city as a base for expanding business in Asia," he wrote on his weekly blog.
"This year, we will continue to step up our efforts to promote Hong Kong, so that more friends can learn about, make good use of, and contribute to Hong Kong."
〈Hong Kong Business, Jan 31, 2025〉The property market in HK is set for a strong recovery in 2025, with residential prices projected to rise by 3% and retail sales value expected to grow by 5%, according to a report by CGS International.
A major driver for the residential market is the anticipated decline in interest rates. With the U.S. Federal Reserve expected to cut rates by 25-50 basis points in 2025, mortgage costs in Hong Kong are likely to decrease, making housing more affordable for both homebuyers and investors.
Residential rents are also expected to increase by 6% in 2024 and 4% in 2025, supporting the overall residential market.
〈The Standard, Jan 30, 2025〉The Hong Kong Monetary Authority said on Thursday there is a chance that interest rates in the city will remain at "relatively high levels" for a while, after the US central bank kept the target range for the federal funds rate unchanged.
The Federal Reserve had left key overnight interest rates steady in the 4.25 percent to 4.50 percent target range, with its chair Jerome Powell saying there would be no rush to cut them again.
Hong Kong's de-facto central bank said in response that the policy decision was "in line with market expectations".
"However, the pace of future rate cuts remains uncertain as it is dependent on US inflation and labour market data developments, the effect of previous rate cuts, as well as the impact of fiscal, economic and trade policies adopted by the new administration on economic activity," the authority said in a statement.
〈Asian Post, Jan 29, 2025〉An estimated 39,389 cases of residential mortgage loans (RML) in negative equity were recorded as of end-December 2024, according to a survey by the HKMA.
This is lower than the 40,713 cases recorded as of end-September 2024.
The aggregate value of RMLs in negative equity is HK$195.1b as at end-December 2024, lower than the HK$207.5b at end-September 2024.
The cases were mainly related to bank staff housing loans or RMLs under mortgage insurance programmes, which generally have a higher loan-to-value ratio, the HKMA said. The mortgage portfolios of the surveyed authorized institutions represent about 99% of the industry total.
