Xia trip shows ‘Beijing concerned over Hong Kong’s power to finance projects’
Beijing’s point man on Hong Kong affairs met local officials just two weeks before finance chief Paul Chan unveils his annual budget
Beijing is concerned that Hong Kong may need help from mainland Chinese companies in developing large cross-border projects amid a public deficit, analysts have said, after its point man on city affairs met local officials ahead of the annual budget address.
Xia Baolong, director of the Hong Kong and Macau Affairs Office (HKMAO), on Sunday heard plans on the economy and financial services from finance chief Paul Chan Mo-po and seven other senior officials while inspecting two special cooperation zones operated by the city and neighbouring Shenzhen.
His visit came two weeks ahead of Chan unveiling his annual budget blueprint on February 26, with a deficit of nearly HK$100 billion (US$12.8 billion) for the current financial year forecast.
Lau Siu-kai, a consultant at the semi-official Chinese Association of Hong Kong and Macau Studies think tank, said on Tuesday that cross-border projects were key to the city’s economic development and industrial diversification, and also helped mainland companies expand internationally.
“The government is facing a financial deficit while having to step up efforts to promote major development projects. Especially with the business sector showing a lukewarm response, there will be a greater reliance on government participation,” he said.
“If the government does not have sufficient financial power, the question arises whether it requires help from the central government, such as pressing mainland companies to take part.”