Government's financial results for three months ended June 30, 2025
The Government announced today (July 31) its financial results for the three months ended June 30, 2025.
Expenditure and revenue from April to June 2025 amounted to HK$190 billion and HK$77.7 billion respectively, resulting in a deficit of HK$93.9 billion after taking into account HK$45.1 billion received from issuance of Government Bonds and repayment of HK$26.7 billion principal on Government Bonds.
A Government spokesperson said that the deficit for the period was mainly due to the fact that some major types of revenue including salaries and profits taxes are mostly received towards the end of a financial year.
The fiscal reserves stood at HK$560.4 billion as at June 30, 2025.
Detailed figures are shown in Tables 1 and 2.
TABLE 1. CONSOLIDATED ACCOUNT (Note 1)
Month ended
June 30, 2025
HK$ million |
Three months ended
June 30, 2025
HK$ million |
Revenue |
21,728.2 |
77,634.7 |
Expenditure |
(60,218.8) |
(189,993.4) |
Deficit before issuance
and repayment of
Government Bonds |
(38,490.6) |
(112,358.7) |
Proceeds received from
issuance of
Government Bonds |
29,581.0 |
45,115.8 |
Repayment of
Government Bonds* |
(6,555.4) |
(26,675.9) |
Deficit after issuance
and repayment of
Government Bonds |
(15,465.0) |
(93,918.8) |
Financing |
Domestic |
Banking Sector (Note 2) |
15,217.9 |
91,151.6 |
Non-Banking Sector |
247.1 |
2,767.2 |
External |
- |
- |
Total |
15,465.0 |
93,918.8 |
* Being repayment of principal on Government Bonds and does not include the associated interest and other expenses. |
Government Debts as at June 30, 2025 (Note 3)
HK$323,357 million
Debts Guaranteed by Government as at June 30, 2025 (Note 4)
HK$121,369 million
TABLE 2. FISCAL RESERVES
Month ended
June 30, 2025
HK$ million |
Three months ended
June 30, 2025
HK$ million |
Fiscal Reserves at start of period |
575,863.0 |
654,316.8 |
Consolidated Deficit after
issuance and repayment of
Government Bonds |
(15,465.0) |
(93,918.8) |
Fiscal Reserves at end of period
(Note 5) |
560,398.0 |
560,398.0 |
Notes:
1. This Account consolidates the General Revenue Account and the following eight Funds: Capital Works Reserve Fund, Capital Investment Fund, Civil Service Pension Reserve Fund, Disaster Relief Fund, Innovation and Technology Fund, Land Fund, Loan Fund and Lotteries Fund. It excludes the Bond Fund, the balance of which is not part of the fiscal reserves. The Bond Fund balance as at June 30, 2025, was HK$216,709 million.
2. Includes transactions with the Exchange Fund and resident banks.
3. The Government Debts, with proceeds credited to the Capital Works Reserve Fund, comprise:
(i) the Green Bonds (equivalent to HK$194,321 million as at June 30, 2025) issued under the Government Sustainable Bond Programme. They were denominated in US dollars (US$10,950 million with maturity from January 2026 to January 2053), euros (5,580 million euros with maturity from February 2026 to November 2041), Renminbi (RMB32,000 million with maturity from February 2026 to July 2054) and Hong Kong dollars (HK$22,000 million with maturity from February 2026 to October 2026);
(ii) the Infrastructure Bonds (equivalent to HK$74,402 million as at June 30, 2025) issued under the Infrastructure Bond Programme. They were denominated in Renminbi (RMB23,000 million with maturity from December 2025 to June 2055) and Hong Kong dollars (HK$49,230 million with maturity from November 2025 to June 2055); and
(iii) the Silver Bonds with nominal value of HK$54,634 million (with maturity in October 2027 and may be redeemed before maturity upon request from bond holders) issued under the Infrastructure Bond Programme.
They do not include the outstanding bonds with nominal value of HK$168,008 million and alternative bonds with nominal value of US$1,000 million (equivalent to HK$7,850 million as at June 30, 2025) issued under the Government Bond Programme with proceeds credited to the Bond Fund. Of these bonds under the Government Bond Programme (including Silver Bonds with nominal value of HK$96,008 million, which may be redeemed before maturity upon request from bond holders), bonds with nominal value of HK$66,921 million will mature within the period from July 2025 to June 2026 and the rest within the period from July 2026 to May 2042.
4. Includes guarantees provided under the SME Loan Guarantee Scheme launched in 2001, the Special Loan Guarantee Scheme launched in 2008, the SME Financing Guarantee Scheme launched in 2012, and the Loan Guarantee Scheme for Cross-boundary Passenger Transport Trade, the Loan Guarantee Scheme for Battery Electric Taxis and the Loan Guarantee Scheme for Travel Sector launched in 2023.
5. Includes HK$249,784 million, being the balance of the Land Fund held in the name of "Future Fund", for long-term investments up to December 31, 2030. The Future Fund also includes HK$4,800 million, being one-third of the actual surplus in 2015-16 as top-up.
Source: AI-found images
Speech by CE at 2026 WAIC UP! Global Summit
Following is the video speech by the Chief Executive, Mr John Lee, at the 2026 WAIC UP! Global Summit today (January 16):
Mr John Lee, Photo source: news.gov.hk
Distinguished guests, friends from the world of AI, ladies and gentlemen,
A very warm welcome to Hong Kong. It is a pleasure to join you today, at this year's WAIC UP! Global Summit.
A gathering that brings together top experts, industry pioneers and academic leaders, the WAIC UP! Global Summit is a platform under the renowned World Artificial Intelligence Conference. I'm glad to add that the Summit is held for the very first time in Hong Kong this year. The theme of this Summit, "WAKE UP MORE!", underscores the infinite possibilities of artificial intelligence. We must harness the power of AI, not just to innovate, but to build - to build more inclusive economies, more resilient communities, and a more sustainable future for all.
The Recommendations of the Central Committee of the Communist Party of China for Formulating the 15th Five-Year Plan for National Economic and Social Development supports Hong Kong's development into an international innovation and technology (I&T) centre, as well as an international hub for high-calibre talent.
Hong Kong is moving at full steam to develop into an international I&T centre. Central to this vision is our commitment to advancing the development of AI. Our approach is multifaceted, built upon the solid pillars of government investment, world-class research, strategic infrastructure, and a dynamic, open market.
Under the unique "one country, two systems" principle, Hong Kong is the only world city that converges both the China advantage and the global advantage. We are also the only city that counts as many as five universities in the world's top 100. Our institutions equip Hong Kong's next generation with the versatility and knowledge key for future development. They also bring together a world of academics, researchers and talent to contribute to our ever-growing research and innovation capabilities.
We reached a significant milestone in our innovation journey, just last month, with the official opening of the Hong Kong Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone. We will develop the Hong Kong Park into a world-class hub for technological innovation that connects the Mainland with the international community. It will become an important source for fostering and advancing new quality productive forces for China, our country.
Accelerating the flow of talent, data and capital, the Hong Kong Park will allow AI projects to rapidly progress from fundamental research in Hong Kong, to commercialisation and large-scale application in the broader market.
Last September, we launched the Frontier Technology Research Support Scheme to subsidise universities in attracting top-notch scientific researchers from the world in AI, and other fields, to come to Hong Kong to spearhead basic research in frontier technologies.
We have also earmarked HK$1 billion for the establishment of the Hong Kong AI Research and Development (R&D) Institute this year, to facilitate upstream AI R&D, the midstream and downstream R&D outcomes, and the expansion of use cases.
In addition, we have taken a concrete step within the HKSAR (Hong Kong Special Administrative Region) Government by establishing a new AI Efficacy Enhancement Team. More than just showcasing our resolve to AI development, this team has a clear mission - to co-ordinate all government departments in applying AI technology, and to explore process re-engineering and promote technological reform. This will significantly improve government efficacy to better meet public demands, through the important tool of AI.
Ladies and gentlemen, in this era of rapid technological transformation, Hong Kong is in a distinct position. With the robust rule of law, a welcoming business environment, and a vibrant multicultural setting, Hong Kong is the perfect incubator for scientific exploration and technological breakthroughs.
Let us leverage today's summit as a springboard for deeper partnerships. Together, we can pioneer the technologies, establish the standards, and forge the future we wish to see - an AI-empowered future that is equitable, sustainable, and prosperous for all.
I wish you all a most fruitful and inspiring summit. Thank you very much.
The 2026 WAIC UP! Global Summit, Photo source: hkstp.org
