Chen Maobo: Need to prove to credit rating agencies that Hong Kong's finances are stable and there is sufficient justification for borrowing.

Recently, a credit rating agency warned that Hong Kong's credit support may be weakened due to deepening deficits. Hong Kong Financial Secretary Paul Chan Mo-po stated at a luncheon that Hong Kong needs to prove to the rating agencies that its financial situation is stable, borrowing reasons are sufficient, and there is a reliable "enhanced version" of financial consolidation plan to control spending growth and achieve a balanced budget. Paul Chan Mo-po stated that Hong Kong's current financial situation is good and will continue to borrow more in the coming years, but loans are not used to fund recurrent expenses, but are borrowed for future investment purposes. He noted that unilateralism is appearing more frequently, which may lead to market volatility, and Hong Kong needs to ensure financial stability so that even in fluctuating markets, its financial system remains stable and resilient, and the linked exchange rate system can continue to operate smoothly. He mentioned that considering the geopolitical situation, some overseas narratives or views on Hong Kong may be based on incorrect information due to lack of understanding. Therefore, he will invite overseas industry professionals to attend various summits and forums to explain the Hong Kong story and reaffirm the trust and confidence of different stakeholders through the implementation of development strategies and financial restructuring plans. The Financial Budget proposed actively discussing the regulation of basketball betting activities and inviting the Jockey Club to submit proposals. He explained that the main idea is to try to bring illegal betting into an appropriate regulatory framework. When asked whether the government will allow the construction of a casino at the airport to attract tourists, Paul Chan Mo-po stated that the government currently has no plans to operate or open a casino. The Hong Kong Home Affairs Bureau is consulting on basketball betting, and any suggestions can be submitted. When asked about the upcoming cryptocurrency summit hosted by US President Trump on Friday, where 5 cryptocurrencies are expected to be included in the US strategic reserve, Paul Chan Mo-po mentioned that Hong Kong was one of the first jurisdictions to announce policies on virtual assets. Industry professionals welcome the inclusion of virtual assets in an appropriate regulatory framework, believing that Hong Kong's permission as an international financial center will make operations legitimate and beneficial for marketing. He emphasized that Hong Kong is not afraid of competition and that competition can bring a good business environment.