Government's financial results for four months ended July 31, 2026
The Government announced today (August 31) its financial results for the four months ended July 31, 2026.
Expenditure and revenue from April to July 2026 amounted to HK$249.7billion and HK$193.6 billion respectively, resulting in a deficit of HK$19.6billion after taking into account HK$48.2 billion received from issuance of Government Bonds and repayment of HK$11.7 billion principal on Government Bonds. The fiscal reserves stood at HK$645.9 billion as at July 31, 2026.
A Government spokesperson said that the deficit for the period was mainly due to the fact that major revenue items including salaries and profits taxes are mostly received towards the end of a financial year.
Detailed figures are shown in Tables 1 and 2.
TABLE 1. CONSOLIDATED ACCOUNT (Note 1)
| Month ended July 31, 2026 HK$ million | Four months ended July 31, 2026 HK$ million |
| Revenue | 29,705.2 | 193,623.5 |
| Expenditure | (64,222.0) | (249,677.0) |
| | |
| Deficit before issuance and repayment of Government Bonds | (34,516.8) | (56,053.5) |
| | |
| Proceeds received from issuance of Government Bonds | 6,281.1 | 48,146.6 |
| | |
| Repayment of Government Bonds* | (4,173.3) | (11,680.9) |
| | |
| Deficit after issuance and repayment of Government Bonds | (32,409.0) | (19,587.8) |
| | |
| Financing | | |
| Domestic | | |
| Banking Sector (Note 2) | 32,527.9 | 18,166.9 |
| Non-Banking Sector | (118.9) | 1,420.9 |
| External | - | - |
| | |
| Total | 32,409.0 | 19,587.8 |
| * Being repayment of principal on Government Bonds and does not include the associated interest and other expenses. |
July 31, 2026
HK$ million
July 31, 2026
HK$ million
and repayment of
Government Bonds
issuance of
Government Bonds
Government Bonds*
and repayment of
Government Bonds
Government Debts as at July 31, 2026 (Note 3)
HK$448,704 million
Debts Guaranteed by Government as at July 31, 2026 (Note 4)
HK$106,357 million
TABLE 2. FISCAL RESERVES
| Month ended July 31, 2026 HK$ million | Four months ended July 31, 2026 HK$ million |
| Fiscal Reserves at start of period | 678,361.8 | 665,540.6 |
| Consolidated Deficit after issuance and repayment of Government Bonds | (32,409.0) | (19,587.8) |
| | |
| Fiscal Reserves at end of period (Note 5) | 645,952.8 | 645,952.8 |
July 31, 2026
HK$ million
July 31, 2026
HK$ million
issuance and repayment of Government Bonds
(Note 5)
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 July 31, 2026, was HK$152,842 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$188,691 million as at July 31, 2026) issued under the Government Sustainable Bond Programme. They were denominated in US dollars (US$9,050 million with maturity from July 2027 to January 2053), euros (6,550 million euros with maturity from November 2026 to November 2041), Renminbi (RMB31,000 million with maturity from November 2026 to July 2054) and Hong Kong dollars (HK$22,500 million with maturity from October 2026 to November 2027);
(ii) the Infrastructure Bonds (equivalent to HK$151,555 million as at July 31, 2026) issued under the Infrastructure Bond Programme. They were denominated in US dollars (US$500 million with maturity in May 2031), Renminbi (RMB56,500 million with maturity from November 2026 to May 2056) and Hong Kong dollars (HK$81,980 million with maturity from August 2026 to May 2056); and
(iii) the Silver Bonds with nominal value of HK$108,458 million (with maturity in October 2027 and October 2028 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$100,289 million and alternative bonds with nominal value of US$1,000 million (equivalent to HK$7,843 million as at July 31, 2026) 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$53,189 million, which may be redeemed before maturity upon request from bond holders), bonds with nominal value of HK$53,189 million were repaid upon maturity on August 18, 2026; bonds with nominal value of HK$16,600 million will mature within the period from September 2026 to July 2027, and the rest within the period from August 2027 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, 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, and the commercial loan under the Guaranteed Medium Term Note Programme of the Hong Kong Cyberport Management Company Limited.
5.Includes HK$249,845 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
Provisional statistics of retail sales for July 2026
The Census and Statistics Department (C&SD) released the latest figures on retail sales today (August 31).
The value of total retail sales in July 2026, provisionally estimated at $31.0 billion, increased by 4.5% compared with the same month in 2025. The revised estimate of the value of total retail sales in June 2026 increased by 4.6% compared with a year earlier. For the first 7 months of 2026 taken together, it was provisionally estimated that the value of total retail sales increased by 8.9% compared with the same period in 2025.
Of the total retail sales value in July 2026, online sales accounted for 9.1%. The value of online retail sales in that month, provisionally estimated at $2.8 billion, increased by 9.5% compared with the same month in 2025. The revised estimate of online retail sales in June 2026 increased by 11.7% compared with a year earlier. For the first 7 months of 2026 taken together, it was provisionally estimated that the value of online retail sales increased by 24.9% compared with the same period in 2025.
After netting out the effect of price changes over the same period, the provisional estimate of the volume of total retail sales in July 2026 increased by 2.3% compared with a year earlier. The revised estimate of the volume of total retail sales in June 2026 increased by 2.3% compared with a year earlier. For the first 7 months of 2026 taken together, the provisional estimate of the total retail sales increased by 6.6% in volume compared with the same period in 2025.
Analysed by broad type of retail outlet in descending order of the provisional estimate of the value of sales and comparing July 2026 with July 2025, the value of sales of jewellery, watches and clocks, and valuable gifts increased by 19.7%. This was followed by sales of other consumer goods not elsewhere classified (+10.5% in value); commodities in supermarkets (+0.3%); medicines and cosmetics (+7.3%); electrical goods and other consumer durable goods not elsewhere classified (+11.5%); food, alcoholic drinks and tobacco (+1.7%); commodities in department stores (+0.5%); and optical shops (+1.8%).
On the other hand, the value of sales of wearing apparel decreased by 1.8% in July 2026 over a year earlier. This was followed by sales of books, newspapers, stationery and gifts (-2.8% in value); motor vehicles and parts (-18.2%); fuels (-18.0%); footwear, allied products and other clothing accessories (-0.3%); furniture and fixtures (-2.4%); and Chinese drugs and herbs (-13.7%).
Based on the seasonally adjusted series, the provisional estimate of the value of total retail sales decreased by 1.7% in the three months ending July 2026 compared with the preceding three-month period, while the provisional estimate of the volume of total retail sales decreased by 0.1%.
Commentary
A government spokesman said that retail sales growth momentum remained resilient in July, marking the 15th consecutive month of expansion. Total retail sales value growth was steady at 4.5% year-on-year, while stronger online retail sales growth suggests that consumer spending continued to shift toward digital channels.
Looking ahead, continued economic expansion, rising household incomes, and stable labour market conditions should bolster consumer sentiment. A series of upcoming mega-events is also expected to sustain growth in visitor arrivals, providing further support to retail businesses. However, external headwinds are still evolving. The Government will continue to monitor the relevant potential impacts on the local consumption market closely.
Further information
Table 1 presents the revised figures on value index and value of retail sales for all retail outlets and by broad type of retail outlet for June 2026 as well as the provisional figures for July 2026. The provisional figures on the value of retail sales for all retail outlets and by broad type of retail outlet as well as the corresponding year-on-year changes for the first 7 months of 2026 taken together are also shown.
Table 2 presents the revised figures on value of online retail sales for June 2026 as well as the provisional figures for July 2026. The provisional figures on year-on-year changes for the first 7 months of 2026 taken together are also shown.
Table 3 presents the revised figures on volume index of retail sales for all retail outlets and by broad type of retail outlet for June 2026 as well as the provisional figures for July 2026. The provisional figures on year-on-year changes for the first 7 months of 2026 taken together are also shown.
Table 4 shows the movements of the value and volume of total retail sales in terms of the year-on-year rate of change for a month compared with the same month in the preceding year based on the original series, and in terms of the rate of change for a three-month period compared with the preceding three-month period based on the seasonally adjusted series.
The classification of retail companies follows the Hong Kong Standard Industrial Classification Version 2.0, which is used in various economic surveys for classifying economic units into different industry classes.
These retail sales statistics measure the sales receipts in respect of goods sold by local retail companies and are primarily intended for gauging the short-term business performance of the local retail sector. Data on retail sales are collected from local retail companies through the Monthly Survey of Retail Sales (MRS). Local retail companies with and without physical shops are covered in MRS and their sales, both through conventional shops and online channels, are included in the retail sales statistics.
The retail sales statistics cover consumer spending on goods but not on services (such as those on housing, catering, medical care and health services, transport and communication, financial services, education and entertainment) which account for over 50% of the overall consumer spending. Moreover, they include spending on goods in Hong Kong by visitors but exclude spending outside Hong Kong by Hong Kong residents. Hence they should not be regarded as indicators for measuring overall consumer spending.
Users interested in the trend of overall consumer spending should refer to the data series of private consumption expenditure (PCE), which is a major component of the Gross Domestic Product published at quarterly intervals. Compiled from a wide range of data sources, PCE covers consumer spending on both goods (including goods purchased from all channels) and services by Hong Kong residents whether locally or abroad. Please refer to the C&SD publication "Gross Domestic Product by Expenditure Component" for more details.
More detailed statistics are given in the "Report on Monthly Survey of Retail Sales". Users can browse and download this publication at the website of the C&SD (www.censtatd.gov.hk/en/EIndexbySubject.html?pcode=B1080003&scode=530).
Users who have enquiries about the survey results may contact the Distribution Services Statistics Section of the C&SD (Tel: 3903 7400; email: mrs@censtatd.gov.hk).
