Urban Renewal Authority (URA) chief Donald Choi assured the public on Saturday that statutory body remains financially sound despite its cash flow pressures.

As of the end of March, the value of the URA's net assets had dropped to HK$43.6 billion from HK$53.8 billion three years ago.

Speaking on RTHK, Choi, who took up the position of managing director in June, said the URA is working to tackle the issue.

"There is pressure on our cash flow but overall the Urban Renewal Authority is still financially sound," he said.

"We still have the ability to take forward projects we have started.

"Therefore, we hope that by working hard, we can speed up and become more efficient – and also make better use of our resources."

He said URA has put some of its properties up for sale in an attempt to optimise its assets and enhance capital flows.

Choi also revealed that while the government had increased the URA's borrowing limit to HK$25 billion two years ago, the agency will reach its ceiling soon.

But he emphasised that his office is not a "big spender".

As the market is expected to see rate cuts, Choi said raising funds through financing is appropriate.

He added that the URA can issue bonds this year, given that there is adequate capital, falling interest rates and relatively low borrowing costs.