Highlights from an SCMP interview with....>

HONG KONG: Highlights from an SCMP interview with HK Financial Secretary Paul

Chan Mo-po.

- Hong Kong is capable of withstanding any currency attack, even as it digs

deeper than ever before into its fiscal reserves to survive the coronavirus

crisis, and the budget deficit may hit HK$300 billion (US$38.7 billion),

according to Financial Secretary Paul Chan Mo-po.

- He revealed that the GDP forecast for this year - a contraction of 1.5 per

cent - was likely to be adjusted further downwards, while the unemployment rate

would continue to rise despite relief measures to retain employment.

- But Chan was against the idea of raising more funds by issuing bonds,

cautioning that it might be misinterpreted as a sign the city was loosening its

financial discipline - which would go against a Basic Law provision that Hong

Kong should strive to achieve a fiscal balance.

- Chan said the government was well prepared to increase US dollar liquidity,

especially at a time when American stock markets were being ravaged by the

pandemic.