IMF Staff Country Reports

People’s Republic of China—Hong Kong Special Administrative Region: Selected Issues

Publication Date:

January 8, 2007

Electronic Access:

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Summary:

This Selected Issues paper reviews medium-term fiscal challenges for Hong Kong Special Administrative Region (Hong Kong SAR). It focuses on key considerations that need to be evaluated when formulating a medium-term reserves policy in the face of fiscal challenges, such as accommodating future spending pressures and revenue fluctuations. The broad conclusion of the paper is that fiscal reserves will likely remain an important feature of future fiscal policy. The paper also discusses more general aspects of Hong Kong SAR’s economy’s competitiveness, and the outlook for Hong Kong SAR’s financial center.

Series:

Country Report No. 2007/004

Subject:

Competition Financial institutions Financial integration Financial markets Fiscal policy Fiscal risks Insurance Public financial management (PFM) Revenue administration