Hong Kong Bank Association: Support Hong Kong Government to Increase Bond Issuance Size and Establish Infrastructure Bond Program

On February 28, the Hong Kong Association of Banks expressed its support for the measures announced by the Financial Secretary in the new "Budget" The budget covers a wide range and the measures are practical, especially in revising the countercyclical macroprudential measures for property mortgage loans and extending the application period for the "SME Financing Guarantee Scheme" for 80% and 90% guarantee products. With the premise of creating favorable conditions for economic activities and maintaining the banks' prudent risk management, the industry will actively cooperate and implement the relevant measures to alleviate the short-term liquidity pressure on businesses and promote the recovery of the Hong Kong economy. On the other hand, the Financial Secretary has introduced a number of forward-looking measures to consolidate Hong Kong's position as an international financial center, including offshore RMB business, connectivity with the mainland financial markets, asset and wealth management, securities market, and insurance services. The Association of Banks supports the government's increase in bond issuance size and the establishment of the "Infrastructure Bond Program". These arrangements will not only help expand the local bond market but also provide financing for infrastructure projects, allowing projects that benefit the economy and people's livelihood to be completed sooner.