Financial Secretary Paul Chan said on Sunday that issuing government bonds to fund the mega Northern Metropolis project is one way to ensure its development won’t be affected by Hong Kong’s economic situation.

Writing on his weekly blog, Chan said bonds are commonly used around the world to finance infrastructure projects, adding that international investors have traditionally been very receptive to the SAR’s debt securities.

These investors, the minister said, include central banks, sovereignty funds, global organisations and banks.

"Hong Kong has the conditions and ability to issue more bonds, and use market forces flexibly for implementing strategic infrastructure [projects]," Chan wrote.

The finance chief cited research from international groups and local universities as saying that the SAR's debt level remains comparatively low, and bond issuance would be a smart solution.

Chan went on to say that in some developed economies, government debt is actually higher than its total GDP.

He also said as Hong Kong's debt is just over nine percent of its total GDP, there is room to lift this percentage.