CONSOLIDATING HK’S GLOBAL HUB STATUS

Financial Secretary Paul Chan today announced a series of measures in the 2023-24 Budget with a view to consolidating Hong Kong’s status as an international financial centre.

Delivering the Budget at the Legislative Council this morning, Mr Chan said the Government will continue to adopt a multipronged approach in developing the retail bond market.

It includes a plan to issue no less than $50 billion of Silver Bond and $15 billion of retail green bonds in the next financial year to facilitate market development, while offering the public investment options with steady returns.

Noting that society has clear aspirations for mandatory provident funds (MPF) that offer stable returns at low fees, Mr Chan has instructed the Monetary Authority and the Mandatory Provident Fund Schemes Authority to conduct a study on it. 

“To start off, I plan to earmark a certain proportion of the future issuances of government green bonds and infrastructure bonds for priority investment by MPF funds, thereby providing MPF scheme members with an additional investment option.”

On fintech development, Mr Chan said the Government will continue taking forward the application testing and preparatory work for various technology infrastructure projects, including "e-HKD" and "e-CNY" as cross-boundary payment facilities.

Additionally, the Monetary Authority is working with the Bank of Thailand to explore the use of Hong Kong's Faster Payment System and Thailand's PromptPay by visitors from the two places for local payment to provide them with a safe, fast and effective payment option.

To deepen financial ties with the Mainland, Mr Chan noted that the Government will explore with the Mainland various proposals on the expansion of mutual market access and enhancement arrangements.

These include enhancing the Cross-boundary Wealth Management Connect Scheme in the Greater Bay Area, the Bond Connect as well as further expanding the scope of eligible securities under the Stock Connect.

Regarding the securities market, Hong Kong Exchanges & Clearing will study proposals on optimising the trading mechanism, including exploring arrangements for maintaining the market’s operation under inclement weather, and reviewing the Self‑Trade Prevention function and the relevant restrictions to facilitate investors’ transactions and dovetail with the market trend.

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