Paul Chan, Hong Kong's financial secretary, posing for a photograph following a Bloomberg Television interview in Hong Kong, China, on Monday . Hong Kong will avoid the kind of property market crash that followed previous economic slumps in the finance hub, according to Chan.- Bloomberg
Unlike after SARS, this time Hong Kong has a shortage of supply, flush liquidity and historically low interest rates, Chan said. The centrepiece of Chan’s budget is a HK$10,000 cash handout to permanent residents age 18 and older. Other measures include tax breaks for individuals and businesses, as well as funding for various industries.
"Giving a cash handout and appealing to people to come out to spend, encouraging the business sector to come up with incentive programs to complement this initiative from the government, I think people will of course depending on their own personal circumstances, support us and support Hong Kong.”