Chen Maobo: The policy of bond issuance is only used for infrastructure investment. The government debt level is still at a very stable level.

The new Hong Kong "Budget" proposes to develop the Northern Metropolis or other large-scale projects through issuing bonds. Hong Kong Financial Secretary Paul Chan Mo-po stated that the policy of bond issuance is only used for infrastructure investment and will not be used for daily operating expenses. He also mentioned that the ratio of government debt to GDP will increase from 14.4% to around 19.9% in 5 years, which is still a very stable level. He is confident that with the return on investment from CKH HOLDINGS, the relevant debts can be repaid. He mentioned that the development of the Northern Metropolis is being accelerated, and attracting companies, technology firms, and manufacturing industries to settle in can bring about employment, tax revenue, and local GDP growth. He believes that investing in the Northern Metropolis is not just focusing on the next few years, but it is an important growth engine for Hong Kong in the next 20 years. Paul Chan Mo-po emphasized that Hong Kong's financial system is stable and robust, but geopolitical uncertainties will persist for some time, so it is necessary to ensure sufficient buffer to cope with related fluctuations. He stated that it is important to seize the opportunities brought by challenges, such as the influx of significant funds into Hong Kong last year due to the trade war, making it a "safe haven". Regarding concerns from the audience about whether the Homantin Hillside Estate in Tai Po can be rebuilt on its original site, Paul Chan Mo-po stated that a survey was conducted among residents, who had different expectations and ideas. Some residents hope to reside on the original site, while others see the events as a tragedy and want to move away from the area. He mentioned that different options have been provided to residents, emphasizing that land will not be wasted. If residential buildings are not constructed on the original site, it can be used for community facilities, parks, etc. Discussions will be held with various stakeholders.