Hong Kong may return to operating account surplus in 2025-26: Paul Chan
Advertisement
Financial Secretary Paul Chan Mo-po made his prediction of a surplus – set to occur a year earlier than previously estimated – on Sunday, while cautioning that economic growth in the second half of the year would be less pronounced than in the first, without the export surge driven by 'rush shipments' ahead of renewed US tariffs.
'For stamp duty, we expect to gain around HK$130 million [US$16.5 million] for every HK$100 billion of transactions because some transactions, such as the exchange-traded products, are exempt from stamp duty,' he told a radio programme.
The Hang Seng Index has recorded an increase of more than 25 per cent so far this year. The average daily turnover in the stock market for the first half of the year was around $240 billion, an increase of 120 per cent year on year.
Hong Kong's stock exchange earlier reported a surge in IPO activity in the first quarter of the year, with 17 new listings attracting a total of HK$18.7 billion, nearly quadrupling year-on-year figures.
Advertisement
'If the momentum goes on, the operating account in the 2025-26 financial year, which we earlier predicted to suffer a deficit of several billion dollars, may return to surplus,' Chan said.
The government earlier predicted that the operating account would return to a surplus in the 2026-27 financial year or later.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South China Morning Post
38 minutes ago
- South China Morning Post
China's beef prices are still low – Beijing's new plan aims to wrangle up consumption
Amid falling prices and stiff competition from imports, China has unveiled plans to bolster the cattle industry – the latest in a series of policies aimed at strengthening key agricultural sectors. China will step up its beef production and implement a quality-grading system for locally produced beef to promote consumption of high-quality versions of the meat – part of an effort announced by the nation's top economic planner and nine government departments to boost consumption of farm produce. A top producer and consumer of agricultural products, China will unleash new consumption potential for a range of diverse, high-quality and differentiated products, while enhancing the appeal of domestic products amid increasing competition from imports, the ministries said in a plan released last week. The nutritional structure of Chinese residents' diets is still not well balanced Jiang Wensheng, vice-minister 'Currently, the nutritional structure of Chinese residents' diets is still not well balanced, with an insufficient intake of high-quality proteins,' said Jiang Wensheng, vice-minister of agriculture and rural affairs, at a press conference last week. 'This leaves significant room for consumption growth.' While China's annual beef consumption has been rising steadily for the past few years, much of that demand has been met with imports, weighing on domestic prices as the local cattle industry struggles with financial losses The average wholesale price of beef stood at around 63.8 yuan (US$8.90) per kilogram between July 21 and July 27, according to the Ministry of Agriculture and Rural Affairs. This marked a slight rebound from March prices of around 57.2 yuan per kilogram – the lowest in eight years – but remained 17 per cent lower than its average of around 77 yuan per kilogram before prices started slipping in 2023.
South China Morning Post
38 minutes ago
- South China Morning Post
Hong Kong stablecoin regime a ‘double-edged sword' for market's growth, analysts say
Published: 11:00am, 5 Aug 2025 Hong Kong's new stablecoin law sets a global standard but might initially sideline innovative start-ups while encouraging big local and mainland financial firms to participate in the cryptocurrency sector's growth, industry experts said. The city rolled out one of the most stringent stablecoin regimes globally and kick-started the application process for potential issuers on Friday, part of a broader effort to be a leading digital asset hub connected to China's vast economy. The move aims to ensure a prudent approach for the issuance of stablecoins , a type of cryptocurrency backed by fiat currencies or other reserve assets. The regime's upfront capital requirement of HK$25 million (US$3.2 million) presented a barrier for smaller firms, according to Florian Spiegl, founder and CEO of Evident Group, which operates a digital investment platform for alternative assets and is licensed by the Securities and Futures Commission . In addition, a requirement that every applicant be a locally incorporated company with management on the ground added cost and friction for global players, he said. A limited number of issuers would initially emerge in Hong Kong, analysts said. These would primarily be major local and mainland Chinese firms, as some smaller start-ups and fintech innovators would be deterred, they said. 'For applicants, it's a double-edged sword, as the costs of entry and operations are too high for some,' Spiegl said. 'For major banks and large, well-capitalised global crypto firms that want a 'gold standard' licence to minimise risk and signal trust, Hong Kong's tough stance might actually be a draw.' Hong Kong's strict rules contrast with Singapore's base capital requirement of at least S$1 million (US$776,367) and the rules in the US, which just require that the amount be sufficient to ensure ongoing operations.
RTHK
2 hours ago
- RTHK
Hong Kong stocks marginally higher at opening
Hong Kong stocks marginally higher at opening The Hang Seng Index rose 13.36 points or 0.05 percent at the opening. File photo: RTHK The Hang Seng Index rose 13.36 points or 0.05 percent to open at 24,746.81 on Tuesday. Mainland stocks also opened slightly higher, with the benchmark Shanghai Composite Index up 0.15 percent at 3,588.81 and the Shenzhen Component Index 0.34 percent higher at 11,078.58. Meanwhile, the mainland's services activity expanded at its fastest pace in 14 months in July, fuelled by stronger demand, including a rise in new export orders, a private-sector survey showed. The S&P Global China General Services PMI rose to 52.6 in July from 50.6 the previous month, marking the fastest pace since May last year. The 50-mark separates expansion from contraction. (Xinhua/Reuters)
