‘Hong Kong deficit woes won’t stop funding of Northern Metropolis with bonds’

Finance chief Paul Chan says GDP to debt ratio remains low, as economist acknowledges ‘difficult but sensible choice’ to issue bonds

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The Northern Metropolis will turn 30,000 hectares of land in the New Territories into an economic powerhouse and housing hub. Photo: Eugene Lee

Published: 1:36pm, 16 Feb 2025Updated: 6:56pm, 16 Feb 2025

Hong Kong’s finance chief has vowed to press on with the Northern Metropolis megaproject by issuing bonds to fund the plan, insisting that the policy is a step in the right direction for long-term development despite worries over the city’s budget deficit.

Financial Secretary Paul Chan Mo-po also said that the development of the project and others, such as public housing creation and the expansion of North District Hospital, would see construction expenses enter a peak period.

The minister is under pressure to rein in the government’s budget deficit, which is forecast to reach nearly HK$100 billion (US$12.8 billion) in the current financial year. He will unveil his next budget blueprint on February 26.

“We will issue government bonds to ensure the progress of the Northern Metropolis,” Chan said, adding that the project would not be constrained by the public finance situation.

Local developers have reacted cautiously to the project despite earlier pledges to take part in the plan that is set to turn 30,000 hectares (74,130 acres) of land in the New Territories into an economic powerhouse and housing hub.

Zheng Yanxiong, director of the central government’s liaison office in Hong Kong, on Friday called for mainland Chinese companies to bolster their investments in the city, particularly in the Northern Metropolis scheme.