Do not push the third phase of job security, budget proposal considers sugar reduction Chen Maobo: All people need to be cautious in distributing money

Political situation

Written by: Zhai Ruimin

2020-10-31 10:52

Last update date: 2020-10-31 11:25

Affected by the new crown pneumonia epidemic, the local economy has suffered. The government announced that the third quarter of GDP contracted 3.4% year-on-year, which was narrower than the 9% decline in the second quarter of this year.

Financial Secretary Chen Maobo said when attending a radio program this morning (31st) that the local economy is consolidating at the bottom of the trough. Among the "three-headed wagons" that it mainly relies on, import and export trade has greatly improved, the decline in local consumption has narrowed, and the market is facing fixed assets. Investment takes a wait-and-see attitude.

In addition to the future economic situation depending on the local epidemic, Chen Maobo said that the government is striving to clear customs as soon as possible and resume business with the mainland.

He mentioned that the government will not launch the third round of the "Protecting Employment" plan. As for whether the "Sugar Distribution" measures will be reduced in the Budget next year, Chen Maobo said that it is still too early to say, but admitted that it is one of the directions that needs to be considered. .

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Send money to all people?

Chen Maobo: Stabilizing the economy cannot be "one trick"

Chen Maobo was interviewed by Hong Kong, Taiwan and Business Taiwan this morning. He mentioned that social distancing measures will be further relaxed. I believe that the local catering industry will improve, while the retail industry will depend on the economy of Tai Wai. The unemployment rate of hotel accommodation services is also due to "staycation". Rise, there was a substantial improvement in September.

The Fifth Plenary Session of the 19th Central Committee that just closed in Beijing mentioned that the central government will further support Hong Kong to consolidate and enhance its competitive advantage and build an international innovation and technology center. Chen Maobo pointed out that the authorities are discussing with Shenzhen to establish a Hong Kong-Shenzhen Innovation and Technology Park in the Lok Ma Chau Loop. It is expected that the land will be handed over and built on top of it in 2022 to establish a complete innovation and technology ecosystem.

He also encouraged Hong Kong people to go to the Greater Bay Area to experience whether it suits them.

The second round of the "Ensure Employment" plan ended in November. Chen Maobo stated that he would not launch the third round. He quoted the International Monetary Fund’s suggestion that the government’s measures should no longer lack specificity after the epidemic is under control and the economy is restarted. In order to avoid waste, some of the hard-hit industries are only scratched.

He denied that the job-guarantee plan would defeat all previous efforts, saying that the plan would provide breathing space for many industries and consider how to coexist with the virus. 

Chen Maobo did not respond positively as to whether he would specifically assist in the emergence of the tourism industry that has closed down, only that the Bureau of Commerce and Economic Development has close communication with the industry.

As for whether the whole people will distribute money again, he said that stabilizing the economy cannot be "one move," and he needs to be cautious.

An HSBC spokesperson said that the response on the first day of iBond sales was overwhelming, compared to the first day of iBond sales in 2016.

(Photo by Lu Yiming)

The budget deficit exceeds 300 billion yuan to adjust the scale of sugar distribution

Chen Maobo predicts that next year's government budget deficit will reach at least 300 billion yuan. In addition, the revenue from land sales will fall due to falling bids, and economic fluctuations will also have a negative impact on profits tax. Government expenditures are now entering the consolidation stage, and it is necessary to "do what you should do"; The scale of "sugar distribution" in the next year's "Budget" will also be considered for adjustment, and it is inclined to use existing resources to improve government services.

However, he emphasized that in order not to shake international confidence in Hong Kong and lack of fiscal discipline, the government does not approve of issuing bonds to pay for recurring expenses; the government relaunched inflation-linked bonds (iBond) as investment bond funds, and returns will continue to roll in. The response is temporarily good. , Consider adding it.

The government will also launch silver bonds at the end of the year. The lowest interest rate is expected to be higher than that of iBond.

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