11th January 2026 – (Hong Kong) Financial Secretary Paul Chan has indicated that Hong Kong’s capital account will record a deficit for the current financial year, framing it as a necessary investment in the city’s long-term economic future. In a blog post published ahead of the formal Budget address on 25th February, Chan attributed the shortfall to accelerated public works spending, particularly on the ambitious Northern Metropolis development strategy.
The Financial Secretary explained that the returns on such foundational infrastructure projects typically materialise over the long term, well after their completion. To support this sustained investment without over-extending public finances, the government plans to “appropriately issue bonds” to leverage market capital for development funding.
Chan sought to reassure the public regarding the territory’s fiscal health, noting that the ratio of the Hong Kong Special Administrative Region’s outstanding debt to its Gross Domestic Product remains at approximately 12 per cent. He described this level as “very healthy” by international standards, suggesting significant headroom for strategic borrowing.