ARTFEED — Contemporary Art Intelligence

Hong Kong Financial Secretary Paul Chan Criticized for Dismissing Lawmakers' Budget Concerns

economy-finance · 2026-05-04

Hong Kong Financial Secretary Paul Chan has been criticized for dismissing lawmakers' concerns about the government's fiscal plans as 'alarmist'. Legislators are raising legitimate questions about the administration's use of HK$150 billion from the Exchange Fund to finance the Northern Metropolis megaproject through increased bond issuance. This move taps into a reserve previously used to address financial crises, representing a significant bet on the future of the Northern Metropolis. Critics argue that Chan should welcome scrutiny rather than dismiss it, given the potential risks to Hong Kong's financial stability and the Linked Exchange Rate System.

Key facts

  • Paul Chan is Hong Kong's Financial Secretary.
  • Lawmakers raised concerns about the administration's fiscal plans.
  • Chan dismissed the concerns as 'alarmist'.
  • The scheme involves using HK$150 billion from the Exchange Fund.
  • The Exchange Fund is a cornerstone of the Linked Exchange Rate System.
  • The funds will increase bond issuance for the Northern Metropolis megaproject.
  • The Exchange Fund has been used previously to address financial crises.
  • The move is described as a bet on the future of the Northern Metropolis.

Entities

Institutions

  • Hong Kong Government
  • Exchange Fund

Locations

  • Hong Kong
  • Northern Metropolis

Sources