HKSAR Government's response to Fitch's affirmation of Hong Kong's "AA-"credit rating and "stable" outlook
In response to the report from Fitch today (May 23) on maintaining Hong Kong's "AA-"credit rating and "stable" outlook, a Government spokesman made the following response:
We noted Fitch's decision to maintain Hong Kong's credit rating at "AA-" with a "stable" outlook. Fitch recognised Hong Kong's strong credit fundamentals, including large fiscal buffers, robust external finances, and a low level of fiscal debt. It also pointed out that our banking sector is resilient, with solid funding and liquidity.
Hong Kong's financial system remains robust, with a consistently healthy level of overall asset quality in the banking sector according to international standards. Bank deposits have continued to grow. As of the end of March this year, the total amount of bank deposits in Hong Kong was near $18 trillion, marking an 11 per cent year-on-year increase.
Data have demonstrated the continuous reinforcement and enhancement of Hong Kong's status and functions as an international financial centre. The confidence of global investors in Hong Kong is strengthening. The capital markets are active. For the stock market, the Hang Seng Index rose by 18 per cent last year, and has increased by over 15 per cent since the beginning of this year. The total market capitalisation of Hong Kong stocks has exceeded $41 trillion. The average daily turnover in the first four months of 2025 surpassed $250 billion, representing a 144 per cent increase compared to the same period last year. The initial public offering (IPO) market is also thriving, with cumulative funds raised exceeding $60 billion. This week, the Hong Kong Exchanges and Clearing Limited welcomed the world's largest IPO activity so far this year.
The fiscal situation of the Hong Kong Special Administrative Region Government has remained robust. In the 2025-26 Budget, reinforced fiscal consolidation was set out. It focuses primarily on containing expenditure growth, supplemented by revenue increase. It will gradually restore balance to government accounts. According to the Government's medium-range forecast, the Operating Account (i.e. the Government's daily income and expenses) is expected to be largely balanced in this financial year, and will return to surplus in the next financial year (2026-27). The Capital Account mainly involves capital works expenditure, which represents investments for the future, such as the development of the Northern Metropolis. Therefore, the Government will make flexible use of market resources, including increasing the scale of bond issuance, to fast-track the related projects. Even if so, the level of deficit in the Capital Account will gradually decrease starting from the 2026-27 financial year. Overall, after counting the proceeds from bond issuance, the Consolidated Accounts will return to surplus in the 2028-29 financial year.
The tariff war has increased global economic uncertainty, and the world economy is facing broad challenges. However, international trade tensions have recently eased to a certain extent, and the Mainland's economy has continued to grow steadily, supported by more proactive fiscal policies and moderate expansionary monetary policies. These will benefit the trade performance in Hong Kong and the region. Meanwhile, the Mainland's high-level two-way opening up, as well as its pursuit of green transition, innovation and technology, and digital economy, will continue to create business and investment opportunities for Hong Kong.
Leveraging its unique advantages of connecting with both the Mainland and the rest of the world under the "one country, two systems" arrangement, Hong Kong will aptly adjust to the global trade realignment and seize opportunities. In fact, more Mainland and international companies are establishing international headquarters, research and development centres and regional offices in Hong Kong to expand their global business. For example, in 2024, the number of companies in Hong Kong with parent companies located outside Hong Kong increased by about 10 per cent to nearly 10 000, reaching a new historical high. The Office for Attracting Strategic Enterprises and Invest Hong Kong have also achieved good results in attracting businesses and investments.
As a "super connector" and "super value-adder", Hong Kong will continue to actively link the Mainland with the world. While reinforcing connections with traditional markets, we will also forge more economic and investment networks with new markets, particularly those in the Global South. Furthermore, Hong Kong will deepen integration with the Guangdong-Hong Kong-Macao Greater Bay Area. These will allow us to open up new growth points and inject greater impetus into our economy.
Speech by CS at Nobel Heroes Forum: Shaping Science and Future
Following is the speech by the Chief Secretary for Administration, Mr Chan Kwok-ki, at the Nobel Heroes Forum: Shaping Science and Future today (January 12):
Dr Wong (Chairman of the University of Hong Kong (HKU) Council, Dr Peter Wong), Professor Zhang (President and Vice-Chancellor of the HKU, Professor Zhang Xiang), Mr Turner (Executive Director of Foundation Lindau Nobel Laureate Meetings, Mr Nikolaus Turner), distinguished Nobel Laureates, esteemed scientists,ladies and gentlemen,
Good morning. It is my great pleasure to join you today for the Nobel Heroes Forum: Shaping Science and Future.
To our Nobel Laureates – we are truly privileged to have you with us. You represent the very best of human curiosity and perseverance. Your ground-breaking work expands our understanding of the universe, lights the path for future discovery, and inspires generations. Thank you for joining this extraordinary gathering.
And to all our distinguished guests from around the world – a very warm welcome to Hong Kong.
Today's dialogue is more than an academic event. It is a powerful convergence of the world's finest scientific minds, right here in a city that is determined to play its part in global innovation.
Hong Kong's mission is clear and unwavering: to become a premier international innovation and technology centre. A hub where top scientists, scholars and entrepreneurs can thrive, collaborate and serve the world.
To achieve this, the Government is fully committed. We are building a world-class ecosystem and nurturing the talent to power it.
First, we are building the infrastructure for greatness.
We have established a strategic I&T framework centred on three major I&T (innovation and technology) parks and five key research and development institutions.
Building on the success of the Science Park and Cyberport, we officially launched the Hong Kong Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone last month.
The Hetao Co-operation Zone is a major co-operation platform in the Guangdong-Hong Kong-Macao Greater Bay Area under the National 14th Five-Year Plan. The Hong Kong Park is envisioned as a world-class hub for technological innovation, connecting the Chinese Mainland with the international community, and serving as an important source for fostering new quality productive forces.
Together with our five key R&D (research and development) institutions focus on frontier technologies, these developments will create more favourable conditions for Hong Kong to attract global I&T resources and talent.
Second, we are investing decisively.
We back our words with resources. We have launched significant funding schemes across the entire innovation chain.
To support excellent and impactful research, the Research Grants Council (RGC) under the University Grants Committee administers more than 20 competitive research grant and fellowship schemes.
Furthermore, last year we launched the 3 billion HK dollars Frontier Technology Research Support Scheme to empower ground-breaking basic research led by world-class researchers and academics.
To accelerate the midstream and downstream development, we rolled out three separate 10 billion HK dollars initiatives to drive the commercialisation of R&D outcomes and new industrialisation.
Third, and most crucially, we are nurturing and attracting top talent.
Talent is our ultimate driving force. We are expanding our talent pool through multiple strategies.
On nurturing young research talent, the Government has launched the Young Collaborative Research Grant to support early-stage researchers in leading and managing collaborative research. We are also actively fostering research collaboration between Hong Kong, the Chinese Mainland and overseas research funding agencies through operating various Joint Research Schemes. These partnerships not only foster academic exchange but also provide opportunities to nurture researchers in exploring new frontiers in their respective fields.
On attracting global talent, the RGC Junior Research Fellow Scheme has supported some 300 doctoral graduates from Hong Kong and around the world to pursue research careers at our universities.
Our international research flagship, the InnoHK research clusters, is also there to bring together brilliant minds from all over the world to conduct world-class scientific research. To date, our two existing InnoHK research clusters – one focusing on healthcare technology and another on AI and robotics – have successfully built links with over 30 world-class universities and research institutes from 12 economies, pooling together around 3 000 researchers locally and across the globe.
To go further, the Government is now expediting the development of the third InnoHK research cluster, with the focus on sustainable development, energy, advanced manufacturing and materials.
Our strategy follows a powerful cycle: promoting technology with talent, leading industries with technology, and attracting talent with industries.
And we are seeing results. Hong Kong ranks third globally in "Technology" in the World Digital Competitiveness Ranking. The Shenzhen-Hong Kong-Guangzhou cluster ranks first in the 2025 Global Innovation Index Ranking of the World's Top 100 innovation clusters.
Our startup community has grown nearly fivefold in the past decade, producing homegrown unicorns.
This progress is no accident. It is built on Hong Kong's unique strengths. Under "one country, two systems", we enjoy unwavering national support and unparalleled global connectivity. Our robust rule of law, free-flowing capital and vibrant multicultural society make Hong Kong the perfect incubator for scientific exploration and technological breakthroughs.
To every scientist, researcher and innovator here today: Hong Kong is open for you. We provide the platform, the funding, the freedom and the connections to turn visionary ideas into reality.
We invite you to build your legacy here. To join us in shaping not just the future of Hong Kong, but the future of science for humanity.
On this note, let the dialogue begin. I look forward to the fruitful and inspirational exchanges. Thank you.
Source: AI-found images
