CEDD 立法會上會準備系統

{ "RundownID": 1464895, "HansardID": 8301, "MeetingDate": "2026-04-22T00:00:00", "HansardType": "English", "SectionID": 88, "SectionName": "RESUMPTION OF SECOND READING DEBATE ON GOVERNMENT BILL", "SpeakerID": 259, "SpeakerName": "ALAN CHAN", "Speeches": "MR ALAN CHAN (in Cantonese): Thank you, President. President, the theme of this year’s Budget is “Driving High-quality, Inclusive Growth with Innovation and Finance”. It has set out a clear direction and incorporated Members’ suggestions, including the two proposals and certain key points submitted by me earlier on, namely the “Ten-Year Plan for Hong Kong as an International Financial Centre” and the “Ten Major Tourism Policies”. I commend the Financial Secretary’s team for heeding advices and suggestions.However, instead of being merely an annual plan, the Budget should serve as a blueprint promoting the joint advancement of Hong Kong and the country. The requirements for Hong Kong under the 15th Five-Year Plan have gone a step further than those under the 14th Five-Year Plan. Hong Kong is not only required to integrate into the overall development of the country, but also to contribute to the needs of the country with our strengths. The country explicitly proposes to construct a “financial powerhouse” in its Five-Year Plan for the first time, which is indeed a strategic opportunity for Hong Kong. We must not be absent. I am pleased that the Budget has responded in this regard.Instead of making comments on the Budget from a micro perspective today, I would rather focus on issues at four strategic levels.Firstly, formulating a ten-year plan for the financial sector, which will shift from “catching up with Singapore and Japan” to “surpassing the United Kingdom and catching up with the United States”. At present, the spectrum of Hong Kong’s financial sector has concentrated too much on initial public offerings (“IPOs”) in the stock market. According to the Research Brief prepared by the Legislative Council Secretariat, Hong Kong’s average daily stock market turnover surged by 90% to HK$250 billion in 2025, while capital raised through IPO more than tripled to over HK$280 billion, the highest globally. At the same time, revenue from stamp duties surged by 55.8% and overtook salaries tax as the second-largest revenue contributor. While such performance is certainly encouraging, it also exposes our structural weaknesses, reflecting the Treasury’s increasing reliance on cyclical and highly volatile revenue from the stock market. On the other hand, not only are we lagging behind Singapore in terms of commodities, energy derivatives and foreign exchange trading, we are also lagging behind Japan’s Tokyo in terms of the value of the stock and bond markets.I therefore propose that the Budget should set out a more comprehensive long-term plan for “catching up with Singapore and Japan” in the first five years, with an aim to overtake Singapore to become Asia’s largest foreign exchange and commodity trading centre, as well as to overtake Japan’s Tokyo to claim second place in terms of market capitalization in Asia’s equity and bond markets, second only to our country. In the second five years, the objective will be “overtaking the United Kingdom and catching up with the United States”, benchmarking against Lloyd’s of London, foreign exchange market and Euro-dollar market. The existing offshore Renminbi (“RMB”) deposits of more than $1,000 billion will be turned into a driving force for RMB credit, with a view to gradually closing the gap with New York. I am glad that the Budget has devoted some length to, among others, connectivity with the Mainland and commodities, including exploring with the Mainland the expeditious introduction of treasury bond futures, the inclusion of real estate investment trusts under mutual access, the inclusion of a RMB trading counter under the Stock Connect, and the establishment of gold storage facilities and a clearing system.Secondly, making good use of the room for bond issuance to further develop the bond market. The Budget has proposed to raise the bond issuance ceiling from HK$700 billion to HK$900 billion. Notwithstanding that, by 2030, the gross government debt-to-gross domestic product (“GDP”) ratio will stand at only 19.9%, which is far lower than Singapore’s 175.6% (8.8 times higher than Hong Kong), Japan’s 229.6% (11.5 times higher than Hong Kong), and the average of 110.2% for the 37 advanced economies tracked by the International Monetary Fund (“IMF”) (5.5 times higher than Hong Kong). The above-mentioned Research Brief also pointed out that Hong Kong’s interest expenses in 2024 accounted for only 1.2% of government revenue, which is among the lowest across major advanced economies, demonstrating the financial resilience of Hong Kong.In this connection, I would like to put forward a specific proposal, that is, the Government may consider issuing inflation-linked retail bond (“iBonds”) of no more than HK$700 billion as a one-off buyout of pension liabilities for retired civil servants reaching the age of 70. This policy aims to “kill three birds with one stone”. Firstly, providing impetus to the market by instantly injecting significant depth, breadth and liquidity into the Hong Kong Dollar debt market. Secondly, seeking to “defuse the bombs” hidden in pension expenditure that might spiral out of control due to breakthroughs in medical technology and population ageing at an early stage. IMF estimated that by 2040, ageing-related health and social welfare costs would account for 55% of the Government’s operating expenditure, which is equivalent to 9% of GDP. Thirdly, revitalizing the economy. Retired civil servants may choose to cash in their entitlements, thereby channelling substantial funds into local consumption market and boosting the silver economy.Furthermore, I suggest the SAR Government actively pursue the establishment of operating headquarters of the Asian Infrastructure Investment Bank and the New Development Bank of BRICS countries in Hong Kong, while strengthening the issuance of RMB bonds. Last year, these two banks issued RMB11.25 billion equivalent of bonds. Also, the Government should utilize the Bond Connect to tap into the vast Mainland market, with a view to becoming Asia’s leading bond market.Meanwhile, we must remain vigilant as redemptions will rise sharply over the next few years, whereas net proceeds from bond issuance between 2026 and 2030 will be compressed by 43.3% to HK$56.9 billion. Therefore, a deeper and more diversified bond market is not only a strategic choice, but also a necessary arrangement to offset the shrinking room for future bond issuance. Hong Kong is well-equipped to become the world’s largest cross-boundary wealth management centre, but over-reliance of financial products on equity will increase the systemic risks accordingly. Hong Kong should offer a wider range of bond products to minimize systemic risks in Hong Kong’s investment portfolios.Thirdly, the Kau Yi Chau Artificial Islands (“KYCAI”) project should be put back on the agenda. The industry pattern of Hong Kong is “South-North dual engine (finance-I&T)”. As the hinterland for I&T, the development of the Northern Metropolis has been accelerated, with infrastructure expenditure expected to increase by 9.1% to HK$125.3 billion in 2026. I express my full support. However, Central as the core of the “South engine (finance)”, available land has been fully utilized. Judging from the geographical and functional perspectives, KYCAI should actually be the “western extension of Central’s core business district (‘CBD’)” and should not be referred to as “East Lantau” to avoid underestimating the significance of KYCAI. This CBD should be called the “western extension of Central’s CBD”. KYCAI will be able to provide sufficient land for broadening Hong Kong’s financial spectrum, and allow sustainable development of various industries.KYCAI has presented two opportunities that have been seriously underestimated. First, KYCAI should be developed into an Islamic offshore financial centre. Behind the competition for artificial intelligence (“AI”) computing power lies the “lifeblood” of AI, that is electricity and minerals. KYCAI is not merely a piece of land, but a “financial treasure trove” tasked to serve the national strategies. In the midst of global conflicts, China is the world’s largest buyer of energy commodities, whereas the 57 member states of the Organisation of Islamic Cooperation are the world’s largest sellers. The significance of market lies in its ability to bring together sellers and buyers, so for the financial market. Therefore, we should develop this entirely new hinterland of KYCAI into an “Islamic offshore financial centre”, and cement the Islamic capital currently flowing into Hong Kong, which is valued at approximately $3.5 trillion. Hong Kong should assist the country in securing the global pricing power of energy commodities. This is genuinely a priority for our country, and a high-level manifestation of Hong Kong serving the needs of the country.Second, it is the strategic transport value of KYCAI, which can serve as the third exit of our airport. The first exit of our airport is Tuen Mun and the second is Kowloon, but there is currently no direct exit to Hong Kong Island. Upon completion of KYCAI, there will be a 20-minute transport link connecting the Central’s CBD and the airport. The journey from Central to the airport via KYCAI will only take 20 minutes.Fourthly, stabilizing the traditional pillar industries and the tourism industry by removing barriers and easing restrictions. In the pursuit of emerging industries, we should ensure that no industry is left behind in the course of transformation. International trade, aviation hub and shipping centre together support a workforce of about 720 000 people, mostly unskilled labour. According to the estimation of IMF, AI will be impacting approximately 60% of employment in advanced economies, with distinct impact on high-skilled, cognitive roles. I support the Budget’s proposal to upgrade the Employees Retraining Board as Upskill Hong Kong, and hope that the Government will redouble its efforts to empower the workforce through AI as this has a direct impact on the sustainability of the tax base. It would be better to teach someone to fish than to give him a fish. Reinforcing the position of these hubs is tantamount to protecting the “rice bowls” of grass-roots workers.As for the tourism sector, Hong Kong’s tourism capacity has improved compared to the past. I urge the SAR Government to lobby the Central Authorities to fully extend the Individual Visit Scheme (“IVS”) to all 38 cities across the Mainland with access by high-speed rail and with flights to Hong Kong International Airport. There was no aviation capacity in the past, but there are now flights to Hong Kong every day. Why not extend IVS? Furthermore, the multiple-entry IVS may be extended to the country’s direct-administered municipalities and five major regions such as Beijing, Shanghai, Tianjin, Chongqing and Wuhan. What is more, hopping tours among Hong Kong, Shenzhen, Macao and Zhuhai can be further developed to attract long-haul visitors from Europe and the United States (The buzzer sounded) ", "SeqNum": 85, "HansardFileURL": "https://www.legco.gov.hk/yr2026/english/counmtg/hansard/cm20260422-translate-e.pdf#nameddest=SP_MB_CCYA_00085" }