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Wednesday, February 24, 2016, 14:23

Tsang predicts GDP growth rate 1-2% in 2016


Tsang predicts GDP growth rate 1-2% in 2016
Graphic: Hong Kong Government


The Hong Kong government will set up a HK$2 billion Innovation and Technology Venture Fund to co-invest with private venture capital funds on a matching basis to provide financial support for local technology start-ups, Financial Secretary John Tsang Chun-wah announced in his 2016 Budget speech.

According to Invest Hong Kong, the city’s business promotion agency, there are 1,600 local start-ups at present, representing an increase of 50 percent over 2014.

The Science Park will expand in stages to provide additional floor area of 70,000 square meters for start-ups and other technology companies by 2020, with the project cost estimated to reach HK$4.4 billion.

Also, Cyberport will earmark HK$200 million to invest in its incubated start-ups.


The administration will set up a dedicated team under Invest Hong Kong to attract global financial technology (FinTech) companies to establish their presence in the city, John Tsang said.

Cyberport will set aside a dedicated space of 3,000 square meters in its Smart-Space co-working area and roll out a designated program to provide support to 150 FinTech start-ups over the next five years.

The Hong Kong Monetary Authority is working to set up a cyber security program, including the establishment of a cyber intelligence-sharing platform, and carrying out risk assessment and professional certification.

Belt and Road

The government and Hong Kong Trade Development Council will jointly organize the inaugural Belt and Road Summit in May this year to explore the unique role Hong Kong can play in the Belt and Road initiative.

The Hong Kong Monetary Authority will establish an office to facilitate the financing of infrastructure projects and provide a platform for pooling the efforts of investors, banks and the financial sector to offer comprehensive financial services for various infrastructure projects.

Offshore yuan business

Hong Kong continues to be the world’s largest offshore renminbi business hub with the world’s largest renminbi liquidity pool, Financial Secretary John Tsang Chun-wah noted.

In 2015, renminbi trade settlement conducted through Hong Kong banks totaled 6.8 trillion yuan (US$1.04 trillion), representing a 9 percent increase over 2014.

Renminbi outstanding loans amounted to 300 billion yuan at end-2015, registering an increase of 58 percent as compared with 2014.

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