Xu Zhengyu: The transfer of foreign exchange funds is expected to attract diverse capital and does not harm the ability to resist risks and financial stability.

The new Hong Kong "Budget" proposes to transfer 150 billion Hong Kong dollars from the Exchange Fund to support infrastructure projects in the northern metropolis and other areas. The Secretary for Financial Affairs and Treasury of Hong Kong, Paul Chan, said on a radio program that transferring funds from the Exchange Fund to invest in infrastructure projects is not a regular arrangement. He hopes that with more government investment, it can stimulate the market and attract diverse capital to participate in the development of the northern metropolis. He believes that this arrangement will make the Hong Kong economy more diversified, better combining the "capable government" and "efficient market", and strengthening the foundation of the industry, rather than just focusing on the service sector. Regarding concerns raised five years ago about using the Exchange Fund indiscriminately possibly undermining confidence in the Linked Exchange Rate System, Paul Chan stated that after communication with the Hong Kong government and rating agencies, although the transfer may reduce the profitability of the Exchange Fund, the Fund itself has a positive growth and does not compromise its risk mitigation and financial stability capabilities. There are claims that the government's fiscal "issuance of bonds as revenue," to which Paul Chan responded that the Hong Kong government's fiscal accounts are cash-based and highly transparent, and the estimated government debt-to-GDP ratio for the 2030-31 mid-term forecast is 19.9%, which he considers a manageable level.