Hong Kong's Financial Secretary, Paul Chan, announced that the government will not make further withdrawals from the Exchange Fund over the next five years, following a recent HKD 150 billion withdrawal. Chan emphasized that this withdrawal, which represents only half of last year's investment income, will not affect financial stability or the linked exchange rate system. The Exchange Fund's total assets exceed HKD 4.1 trillion. Additionally, Chan plans to increase the issuance of long-term bonds to better align infrastructure project cash flows with debt maturities. Government debt as a percentage of GDP is expected to rise from 14.4% to approximately 19.9% over the next five years, remaining low by international standards.
Hong Kong to Halt Further Withdrawals from Exchange Fund for Five Years
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.
