HK to start new projects in bid to boost growth
Only some folks arrive at Hong Kong Worldwide Airport on Friday, someday earlier than the native authorities imposes a compulsory quarantine on anybody arriving from Italy, areas of France, Spain, Germany and Japan. Picture: cnsphoto
Fluctuations in international economies attributable to the unfold of COVID-19 will inflict a heavy financial blow on Hong Kong, and the native authorities is anticipated to roll out robust stimulus measures to drive consumption, together with tax cuts and infrastructure funding, consultants stated on Monday.
The jobless price of Hong Kong (from December 2019 to February 2020) is anticipated to achieve a brand new nine-year excessive because of native financial downturn, ensuing from a large social unrest, the coronavirus outbreak, drastic decline in oil costs and a pointy plunge in inbound funding, Monetary Secretary Paul Chan Mo-po wrote in a weblog publish on Sunday.
The worst-hit sectors are catering, retail, resort and building, Chan stated.
The variety of journeys by international guests to Hong Kong fell by greater than 96 p.c year-on-year to 199,000 in February due to the novel coronavirus assault, the native tourism board stated on Monday. In the course of the 2003 SARS outbreak, the quantity was about 400,000 every month.
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Other than the virus’ impression, the important thing issue of the stranded Hong Kong financial system is that its progress expectations have been hit by the social turmoil there and extra efforts are urgently wanted to enhance employment to safe native folks’s livelihoods, Dong Shaopeng, an adviser for the China Securities Regulatory Fee, advised the International Occasions on Monday.
Dong stated that in an effort to assist ease financial strain, the native authorities is anticipated to supply subsidies to enterprises to assist elevate employment and cut back tax cuts for native energy and telecommunications companies.
The native authorities can be anticipated to start out funding within the infrastructure sector to supply extra jobs and roll out robust stimulus measures to advance native consumption, Qi Mingyang, chairman of Shenzhen-based asset administration agency Fortune Valley Capital Funding Group, advised the International Occasions on Monday.
The Hong Kong Financial Authority on Monday lowered its benchmark rate of interest by 64 foundation factors to 0.86 p.c, following the US Federal Reserve’s lower of 100 foundation factors. This was the second price lower by each the financial authority in March.
Since Hong Kong’s greenback is pegged to the US greenback, a follow-up price lower is a routine “prescribed motion,” and such a transfer could have restricted impact in boosting Hong Kong’s financial system, Dong stated.
Liu Yang, president of Hong Kong-based Blessed Exaltation International, stated “the speed lower may decrease working prices for native companies and assist small companies survive… However it will not have a big impact.”
Consultants confirmed a pessimistic perspective towards Hong Kong’s financial restoration within the second half. Confidence in consumption and international financial actions can’t be resumed within the quick time period because the virus has unfold wildly internationally, Qi stated.
In a bid to ease financial strain, Hong Kong is anticipated to make use of its edge as a worldwide monetary middle by way of providing commerce financing aids to Chinese language and international capital, Qi stated.
The Hong Kong Particular Administrative Area authorities is anticipated to press forward with financial improvement by way of additional involvement within the improvement of the Guangdong-Hong Kong-Macao Larger Bay Space, Liu advised the International Occasions on Monday.
By greedy alternatives of the Larger Bay Space, firms from Hong Kong and the Chinese language mainland will see extra cooperation in sectors comparable to know-how analysis and improvement and public companies, in line with Dong.