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
The Standard
41 minutes ago
- The Standard
China's revived bond interest tax expected to benefit stocks, say analysts
A logo of the Shanghai Stock Exchange is seen on a screen at the new building of the Shanghai Stock Exchange in Shanghai on April 25, 2025. AFP
South China Morning Post
2 hours ago
- South China Morning Post
China's copper smelters to curtail record output on ore shortage
China's copper smelters could be at a turning point, as a persistent shortage of ore forces them to trim production from record levels – just as the government ramps up its campaign against overcapacity across industries. Research firm Shanghai Metals Market (SMM) projects output this month at 1.168 million tonnes, 0.5 per cent less than its peak in July, according to its monthly survey of smelters. A further drop is forecast for September. As capacity has expanded, Chinese production has hit a succession of record highs in recent months, defying tight feedstock markets and cratering profitability. But that resilience could now be reaching its limits. It also coincides with greater urgency among policymakers to fix the ruinous competition and overproduction driving deflationary pressures in the economy. While still deeply in the red, the spot fees charged by plants to treat copper concentrate have turned higher over the past month, indicating that smelters may have begun to better align their capacity with the availability of ore. A copper and aluminium foil workshop in Huzhou, Zhejiang province. Photo: CFOTO/Future Publishing via Getty Images Some overseas rivals, which lack the state backing enjoyed by many Chinese operators, have already begun to curtail production. A similar move in China would be highly consequential for the market, as its accounts for over half the world's refined metal. Official output figures for July are due for release by the statistics bureau on August 18.
South China Morning Post
2 hours ago
- South China Morning Post
Can Hong Kong afford to jump on the mainland Chinese tech bandwagon?
Feel strongly about these letters, or any other aspects of the news? Share your views by emailing us your Letter to the Editor at letters@ or filling in this Google form . Submissions should not exceed 400 words, and must include your full name and address, plus a phone number for verification President Xi Jinping's recent criticism of local governments for blindly pursuing hot industries like artificial intelligence and new energy vehicles should serve as a wake-up call for Hong Kong. The warning highlights the risk of 'involution' or vicious competition, especially if Hong Kong simply takes 'industrial diversification' to mean following mainland trends. In recent years, Hong Kong has promoted innovation and technology, yet a closer examination reveals a concerning sameness. Although the Northern Metropolis and Cyberport appear to focus on diverse areas – life sciences, microelectronics, Web3 – they often mirror similar innovation corridors on the mainland. Xi's question – of whether all provinces in the country have to develop the same few industries – might also be asked of Hong Kong. Given that Hong Kong is spending a lower share of its gross domestic product on R&D and that these resources are spread across multiple fields, the city is less likely to achieve breakthroughs in these areas. In the meantime, as mainland provinces strengthen their industrial chains, Hong Kong's role as a connector may diminish. The Central Urban Work Conference Xi presided over also proposed improving the efficiency of existing capacity and assessing debt risk, ideas that could apply to Hong Kong.
