appConfigEntityId

bodyType

customContents

entityId

entityUuid

isVideo

articlePageQuery

article

articleSchemaContent

content

hooksArticlePageAdvertisementConfigArticle

hooksArticlePageFloatingButtonConfigArticle

appConfig

filter

json

liveArticle

Willa Wu

Hong Kong’s finance chief has confirmed that the city is set to achieve an early operating account surplus, driven by strong financial market performance and increased stock trading stamp duty revenue.
Financial Secretary Paul Chan Mo-po on Saturday vowed to make the “utmost” effort to address older residents’ concerns over the high cost of living, as he responded to calls for additional welfare measures during the first public forum for the coming budget.
He also stressed that the government had not reduced public spending on the social welfare sector in the past financial year, despite a budget deficit.
Chan was speaking to about 100 residents who attended a public forum to express their views ahead of the 2026-27 budget, scheduled to be unveiled in late February.
“Despite the trade war and rising geopolitical tensions last year, Hong Kong still recorded 3.2 per cent economic growth, with the economy now showing steady and orderly development,” he told the forum.
“Thanks to the financial market performance, we gained more [stock market] stamp duty, which enabled us to achieve [operating account] surplus earlier.”
In last year’s budget, Chan forecast the government’s operating account would return to a surplus only in 2026-27 after recording a deficit for three consecutive years.
But the finance minister acknowledged that the government’s capital account, under which public money was used to speed up the Northern Metropolis and other infrastructure projects, would still face pressure.
He also noted an uneven pace of industry development in different sectors, but acknowledged that economic transformation required time.
“Despite that, authorities did not reduce spending on livelihood areas such as healthcare, social welfare and education, which account for 59 per cent of recurrent expenditure in the current financial year,” Chan told the forum.
In response to calls to take better care of the city’s ageing population, he said authorities must precisely address such needs, while emphasising the “user-pays” principle and the city’s continued commitment to ensuring proper care for the general public.
A total of 114 companies raised US$37.22 billion on the Hong Kong stock exchange’s main board in 2025, a 229 per cent increase from the US$11.3 billion raised in 2024.
It has put the city’s bourse, which finished fifth in 2024, well ahead of the Nasdaq, which ranked second in 2025 with US$27.53 billion.

The government earlier said it expected stamp duties to generate HK$67 billion in 2025-26, and that the operating account would return to a surplus in 2026-27.
Six of the 25 participants who spoke at the forum asked whether the government would allocate more resources to support the city’s elderly.
One of the participants, surnamed Lau, raised a question about whether the government would provide free transport for residents aged 70 and above, similar to many other places around the world.
Starting this April, adjustments will be made to the HK$2 concessionary transport scheme for the elderly, with fares above HK$10 eligible for only an 80 per cent discount.
Another participant, a woman surnamed Fung, asked how the government would allocate more resources to support the elderly despite the deficit, rather than simply pushing them to relocate to other Greater Bay Area cities.
The bay area refers to Beijing’s ambitious scheme to turn Hong Kong, Macau and nine Guangdong cities into an integrated economic powerhouse.
“We are well aware of the concerns of elderly people regarding the rising cost of living, and we will do our best to support them to the best of our ability,” Chan said.
Billy Mak Sui-choi, an associate professor at Baptist University’s accountancy, economics and finance department, said government welfare spending on elderly residents would inevitably increase due to the city’s ageing population.
But he was optimistic about the city’s financial market performance, noting that he expected the positive momentum would continue in 2026, helping bring in extra capital for the local government.
He attributed his outlook to the mainland Chinese government’s support of enterprises listing in Hong Kong.
In 2024, the China Securities Regulatory Commission announced it would encourage leading mainland companies to list in Hong Kong.
“But that doesn’t mean we can spend all that we gain … the key is [determining] what areas in social welfare should be prioritised and allocated more resources, as well as where we can further optimise resources,” Mak said.
The academic, who attended Saturday’s forum, also touched on calls from attendees to make public transport free for residents aged 70 and above.
He said the main challenge would be determining the eligibility age, noting that different jurisdictions worldwide had varying definitions of who qualified as senior citizens.
The government launched public consultations for this year’s budget on December 17, with Chan saying authorities would focus on how the city could boost economic development and better integrate into the nation’s next five-year plan.
Authorities recorded a deficit of HK$56.8 billion in the first seven months of the 2025-26 financial year, while their reserves stood at HK$597.5 billion as of October.


Foreign chambers back Hong Kong 5-year plan, urge progress on Northern Metropolis

Why a hawkish US Fed won’t derail Hong Kong’s property recovery

Once the world’s most-visited city, Hong Kong now converts hotels into student dorms

Over 11,000 sign up for Hong Kong taxi, ride-hailing test, beating expectations

Hong Kong economy

Hong Kong’s finance chief confirms early surplus, vows more elderly support

Financial Secretary Paul Chan attends a public consultation forum on Saturday. Photo: Edmond So 

Exchange Square in Central. Paul Chan has cited the strong financial market performance and increased stock trading stamp duty for the surplus. Photo: Jelly Tse

Hong Kong to boost tech, financial services integration during AI boom: Paul Chan

Financial Secretary Paul Chan (second from right) attends the listing ceremony for Biren Technology with the firm’s CEO Zhang Wen (second from left). Photo: Jonathan Wong

Paul Chan has said the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone will strengthen innovation ties within the Greater Bay Area. Photo: Eugene Lee

Hong Kong finance chief upbeat about 2026 outlook on back of 3.2% growth

Hong Kong’s IPO fundraising ranked first globally, exceeding HK$270 billion by mid-December. Photo: Nora Tam

Paul Chan chats to children in Tamar Park on Christmas Eve. Photo: Handout

Some economists have cast doubt on Chan’s predictions. Photo: Sam Tsang

News

Hong Kong

Hong Kong Economy

Paul Chan cites financial market performance and stock trading stamp duty for surplus, as he addresses calls for more welfare at public forum


Paul Chan cites financial market performance and stock trading stamp duty for surplus, as he addresses calls for more welfare at public forum.


Hong Kong’s finance chief confirms early surplus, vows more elderly support

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Paul Chan cites financial market performance and stock trading stamp duty for surplus, as he addresses calls for more welfare at public forum

Paul Chan cites financial market performance and stock trading stamp duty for surplus, as he addresses calls for more welfare at public forum