26 February 2020
Sandpiper has prepared a two-page summary of today’s Hong Kong Budget announcement, given by Paul Chan Mo-po, the Financial Secretary of Hong Kong. He has proposed a number of measures to help the community and local enterprises ride out the current challenging environment. A key highlight is a HK$10,000 cash handout for all permanent residents over the age of 18. Chan also proposed a lower profit tax for companies, government rents and rates to be reduced, and electricity bills to be subsidised.
The Financial Secretary said he expected the rapid spread of COVID-19 to have dealt a severe blow to economic activities and sentiment in Hong Kong. He forecast that the economy will experience growth between -1.5% to 0.5% in 2020, and the headline inflation rate and underlying inflation rate will ease to 1.7% and 2.5%, respectively. In our summary, we’ve included additional takeaways that are relevant to the financial services, asset and wealth management, professional services, healthcare and technology sectors.
The full budget details can be found at https://lnkd.in/fXMRGE8