HKSAR Government responds to Hong Kong credit ratings affirmations by S&P and Moody's
In response to reports by two rating agencies, namely S&P and Moody’s which affirmed Hong Kong's credit ratings today (May 27), a Government spokesman made the following response:
The Government noted that S&P has maintained Hong Kong's "AA+" credit rating with a "stable" outlook, while Moody's has affirmed Hong Kong's "Aa3" credit rating, and upgraded the outlook from "negative" to "stable".
Both S&P and Moody's provided positive evaluations of Hong Kong's credit profile, including its substantial fiscal buffers and foreign exchange reserves, a strong external balance sheet, and high per-capita income levels. Moody's highlighted that, despite global trade tensions and lower trade growth, Hong Kong's effective policy framework, along with the resilience of its economy and financial system, will continue to support its creditworthiness. S&P noted that the Hong Kong Special Administrative Region (HKSAR) Government's policy flexibility and effectiveness have improved, while Hong Kong's Linked Exchange Rate System has provided an anchor for the financial system, even through episodes of volatility.
The recent affirmations of Hong Kong's credit ratings by Fitch, S&P and Moody's, all with "stable" outlooks, demonstrate Hong Kong's resilience in maintaining stability amid increasing global economic and financial uncertainties.
Recent data has further underscored the robustness of Hong Kong's financial system. Bank deposits have continued to grow, capital markets remain active, and the IPO (initial public offering) market is thriving. For example, IPO fundraising in Hong Kong has exceeded HK$76 billion so far this year, more than seven times the amount raised during the same period last year and nearly 90 per cent of the total raised in all of last year.
Both S&P and Moody's have highlighted the HKSAR Government's substantial fiscal reserves. Despite pressures on public finances following the pandemic, the Government has implemented a series of measures to maintain a robust fiscal situation. The 2025-26 Budget outlined a reinforced fiscal consolidation programme, focusing primarily on expenditure control, supplemented by revenue generation, to gradually restore balance to government accounts.
According to the HKSAR 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 a surplus in the next financial year (2026-27).
As for the Capital Account, which primarily involves capital works expenditures, which represents investments for the future, such as the development of the Northern Metropolis, the Government will make flexible use of market resources, such as public-private partnerships and increasing the scale of bond issuances, to fast-track the related projects. Even 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 issuances, the Consolidated Accounts will return to a surplus in the 2028-29 financial year. Over the next five years, fiscal reserves are projected to remain at a level well above HK$500 billion.
On the economic front, Hong Kong's economy saw robust growth in the first quarter of this year. While the tariff war continues to affect the global economy, the recent easing in international trade tensions has slightly alleviated external unfavourable factors and uncertainties. Meanwhile, the Mainland continues to advance high-level opening up, with steady economic growth supported by ample policy room and tools to address and resolve various risks and challenges. With breakthroughs and expedited developments in technology innovation, green transformation and the digital economy, the Mainland offers the greatest backing for Hong Kong's economic development.
Looking ahead, the Government is confident in addressing external challenges while seizing new opportunities in this evolving landscape. The HKSAR Government remains committed to leveraging Hong Kong's institutional advantages under the "one country, two systems" framework, reinforcing and enhancing its status as an international financial, shipping and trade centre. At the same time, the Government will make great strides to promote Hong Kong’s development as an international innovation and technology centre. These factors will drive high-quality, sustainable economic and social development.
CFS to follow up certain batches of powdered infant and young children formula with possible presence of Cereulide produced by Bacillus cereus
The Centre for Food Safety (CFS) of the Food and Environmental Hygiene Department (FEHD) today (January 10) said that, it took initiative to meet with Nestlé Hong Kong again today, and confirmed the company's today announcement of an additional batch of powdered infant and young children formula suspected to have possibly used the raw material concerned. Nestlé Hong Kong has voluntarily stopped sales, removed from shelves the affected products and has initiated a precautionary recall. The CFS has collected samples of powdered infant and young children formula from the market for Bacillus cereus testing, the test results so far were satisfactory. The Environmental and Ecology Bureau is also closely monitoring the supply situation of other formula milk powder and maintaining communication with other major suppliers. It is noted that there is sufficient formula milk powder to meet the demand.
The spokesman said, the CFS has been actively following up on Nestlé company's voluntary and precautionary recalls of certain batches of its powdered infant and young children formula in certain areas in Europe due to possible presence of Cereulide produced by Bacillus cereus in the individual raw material. According to the latest information from Nestlé Hong Kong today, an additional batch of its powdered infant and young children formula imported into Hong Kong might have used the raw material concerned. The CFS had earlier enhanced surveillance in the market and collected a sample from the above batch for testing of Bacillus cereus. The test result of the sample was satisfactory. Nevertheless, as a precautionary measure, Nestlé Hong Kong has voluntarily stopped sales, removed from shelves the affected products and has initiated a precautionary recall.
Product details are as follows:
Product name (Net weight): NAN PRO 1 2 HMO (800g)
Batch number: 51670742F2
Best-before date: June 16, 2027
Place of Origin: Germany
"The CFS met Nestlé Hong Kong again today, urging them to properly handle the product recall issue and respond to public enquiries, in order to safeguard consumers' legitimate rights and interests. In addition, the CFS and Nestlé Hong Kong have jointly followed up, six suspected affected batches of infant and young children formula products that had not entered the market were marked and sealed. An additional 15 batches are currently en route to Hong Kong and will also be marked and sealed upon arrival. The CFS will continue to closely monitor the recall matters and remain fully committed to ensuring food safety, " the spokesman said.
Nestlé Hong Kong has initiated a recall of the affected batches of the products concerned. For enquiries about the recall, members of the public may contact the company through the following channels:
Consumer services hotline: 2599 8874 / 2797 6031/ 2179 8136 (Monday to Sunday, 9am to 9pm)
Email: consumerservices@hk.nestle.com
WhatsApp: 5283 4139 (NESTLÉ® NAN®) / 2599 8871 (Wyeth® Nutrition)
Online form: forms.office.com/e/BhqMhWfsUG?origin=lprLink
Consumers may choose to bring along the products (brand new or opened) for refund at place of purchase, or at exclusive service counters of Nestlé Nutrition Services from January 13 (Tuesday) onwards, to settle the recall and refund of the batches of the products concerned. Details of the exclusive service counters are as follows:
Kowloon Services Counter
Address: G/F, Park Hovan Commercial Building, 18 Hillwood Road, Tsim Sha Tsui, Kowloon (MTR Jordon Station Exit D)
Contact number: 3996 8196
Office hour: Monday to Saturday, 11am to 7.30pm; Sunday, 1pm to 5.30pm (except public holidays)
Hong Kong Services Counter
Address: 1/F, Ka Nin Wah Commercial Building, 423-425 Hennessy Road, Hong Kong (MTR Causeway Bay Station Exit B)
Contact number: 3996 8197
Office hour: Monday to Saturday, 11am to 7.30pm (except Sundays and public holidays)
The CFS, through its Food Incident Surveillance System, noted earlier that certain batches of Nestlé powdered infant formula were being voluntarily recalled in Europe due to possible contamination with Bacillus cereus. Upon learning of the incident, the CFS has immediately initiated follow up actions, published food incident posts to inform the public and the trade about the issue, and has been actively following up on the incident and enhanced surveillance.
Over the past three days (as of 4pm on January 9), the FEHD received a total of 18 food complaints and enquiries suspected to be related to the infant and young children formula products, including one anonymous complaint without contact information. The CFS and the Environmental Hygiene Branch have promptly followed up on all cases, including contacting the parties concerned to obtain details and collecting samples for testing. In addition, the CFS has referred the cases to the health department for follow-up. At present, no food poisoning cases related to the formula have been recorded.
Bacillus cereus is commonly found in the environment. Unhygienic conditions in food processing and storage may give rise to its growth. Cereulide is a heat-stable toxin produced in food by some strains of Bacillus cereus. Consuming food contaminated with excessive Bacillus cereus or its heat-stable toxins may cause gastrointestinal upset such as vomiting and diarrhoea.
The spokesman urged members of the public not to let infants and young children consume the affected batches of the products, and to seek medical treatment for infants or young children who felt unwell after taking the products concerned. The trade should also stop using or selling the affected batches of the products immediately.
"The CFS continues to closely monitor the developments of the situation, follow up and take appropriate action," the spokesman said.
Source: AI-found images
