Borrowing boost for Hong Kong urban renewal body as third deficit in row recorded
Urban Renewal Authority’s borrowing limit has been increased to HK$35 billion
The cash-strapped statutory body also said on Monday that it would review and introduce a more comprehensive compensation mechanism to cut its acquisition costs for redevelopment and provide better rehousing options for affected owners.
Authority chairman Chow Chung-kong said he was “not too optimistic” about profits in the current 2025-26 financial year ending next March, while the body recorded a deficit of HK$2.72 billion in 2024-25.
The figure comprised an operational deficit of HK$41 million and HK$2.68 billion in impairment provisions as a result of the market downturn. The body recorded a net asset value of HK$43.6 billion and a cash flow of HK$21.2 billion.
“The body is still financially sound ... We will take forward projects that have relatively small scale ownership but provide greater planning benefits when combined with other ongoing projects,” Chow said.
Managing director Donald Choi Wun-hing said the authority had immediately checked the market situation last week after the government revealed that it would increase the body’s borrowing limit from HK$25 billion to HK$35 billion.