The Hong Kong Special Administrative Region Government today said that both S&P and Moody’s gave positive evaluations of Hong Kong’s credit profile, including substantial fiscal buffers and foreign exchange reserves, a strong external balance sheet, and high per-capita income levels.
The statement was made in response to the S&P and Moody’s reports today on maintaining Hong Kong’s AA+ and Aa3 credit rating respectively.
S&P also affirmed Hong Kong’s stable outlook, while Moody’s upgraded the outlook from negative to stable.
The Hong Kong SAR Government pointed out that the recent affirmations of Hong Kong’s credit ratings by Fitch, S&P and Moody’s, all with stable outlooks, demonstrate the city’s resilience in maintaining stability amid increasing global economic and financial uncertainties.
Recent data has further underscored the robustness of Hong Kong’s financial system. Bank deposits have continued to grow, capital markets remain active, and the initial public offering (IPO) market is thriving.
For example, IPO fundraising in Hong Kong has exceeded $76 billion so far this year, more than seven times the amount raised during the same period last year, and nearly 90% of the total raised in all of last year.
The Hong Kong SAR Government noted that both S&P and Moody’s have highlighted its substantial fiscal reserves. It has implemented a series of measures to maintain a robust fiscal situation despite pressures on public finances following the pandemic.
Furthermore, the 2025-26 Budget outlined a reinforced fiscal consolidation programme, focusing primarily on expenditure control, supplemented by revenue generation, to gradually restore balance to government accounts.
The Operating Account is expected to be largely balanced in this financial year, and will return to a surplus in the next financial year of 2026-27.
The Capital Account primarily involves capital works expenditure, which represents investments for the future, such as the Northern Metropolis development. Therefore, the Hong Kong SAR Government will make flexible use of market resources, such as public-private partnerships and increasing the scale of bond issuances, to fast-track the related projects.
Even if so, the level of deficit in the Capital Account will gradually decrease starting from the 2026-27 financial year.
Overall, after counting the proceeds from bond issuances, the Consolidated Accounts will return to a surplus in the 2028-29 financial year. Over the next five years, fiscal reserves are projected to remain at a level well above $500 billion.
Hong Kong’s economy saw robust growth in the first quarter of this year. While the tariff war continues to affect the global economy, the recent easing in international trade tensions has slightly alleviated external unfavourable factors and uncertainties.
Meanwhile, the Mainland continues to advance high-level opening up, with steady economic growth supported by ample policy room and tools to address and resolve various risks and challenges.
With breakthroughs and expedited developments in technology innovation, green transformation and the digital economy, the Mainland offers the greatest backing for Hong Kong’s economic development.
Looking ahead, the Hong Kong SAR Government is confident in addressing external challenges while seizing new opportunities in this evolving landscape.
It remains committed to leveraging Hong Kong’s institutional advantages under the “one country, two systems” framework, reinforcing and enhancing its status as an international financial, shipping and trade centre.
At the same time, it will make great strides to promote Hong Kong’s development as an international innovation and technology centre. These factors will drive high-quality, sustainable economic and social development.
