Hong Kong will reap all the benefits that investing in the Northern Metropolis brings, Financial Secretary Paul Chan said, adding that Hong Kong must seize the rare opportunity the mega project offers to attract enterprises to set up in the city.

He was speaking during a phone-in programme on Thursday, a day after he revealed plans during his budget speech on Wednesday to transfer HK$150 billion from the Exchange Fund to support the project and other infrastructure.

The primary mission of the fund, Chan reiterated, is to safeguard Hong Kong’s financial stability and monetary system, but given last year’s record returns, the government decided to draw on part of those gains to accelerate Northern Metropolis development.

"We saw that last year’s investment returns of the Exchange Fund were very strong – a record high – over HK$300 billion in profit," he said.

"So instead of leaving it all in the Exchange Fund for investments, we can take about half of those gains back and allocate the money to the Northern Metropolis and related infrastructure. That’s also an investment – investing in our future."

Responding to a caller who said the project would only benefit Shenzhen, Chan said he disagreed.

"Investing in the Northern Metropolis is worth it. Saying it only benefits Shenzhen is wrong," he said.

"In the past, we put money into research and development and universities, but commercialisation and production moved to the mainland – so the gains went to Shenzhen and the Greater Bay Area.

"Now, by building the Northern Metropolis as our innovation and technology base, we’ll bring enterprises to set up in Hong Kong.

"The tax revenue, the jobs, the commercialisation – these will be ours, while Hong Kong serves as a platform to reach both mainland and global markets."

Chan also announced in his budget speech the government will be injecting HK$20 billion for the development of the Hong Kong park under the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone and the San Tin Technopole, both part of the Northern Metropolis project.


Edited by Edmond Fong