Hong Kong's fiscal reserves rise by HK$27.1 billion to $8.31 billion

Photo taken on June 22, 2022 shows the view from Victoria Harbour in Hong Kong, South China. The Hong Kong Special Administrative Region government said on Thursday that it had a deficit of $65.2 billion and $8.31 billion at the end of May 31, 2022, a result of LI GANG XINHUA HONG KONG.

The government of HKSAR said the expenditure for the period from April to May 2022 was HK $134.7 billion and revenue HK $49.5 billion, which has a deficit of HK $65.2 billion after issuance of green bonds under the Government Green Bond Programme.

A government spokeswoman said the cumulative year-to-date deficit for the period was mainly due to the fact that some major revenue, including salaries and profits taxes, are mostly received towards the end of a financial year. The fiscal reserves were at HK $892 billion as of May 31, 2022.

The total assets of the Exchange Fund amounted to HK $4,437, according to the Hong Kong Monetary Authority. As of May 31, or HK $27.1 billion, was higher than that at the end of the previous month.

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The rise in Hong Kong dollar assets was due to the month-end balance of Exchange Fund Bills and notes issued but not yet settled and the increase in placements with banks, the HKMA said in a statement.

Hong Kong dollar assets increased by HK $101.0 billion, while foreign currency assets decreased by HK $73.9 billion, it added.

The HKMA said that renminbi deposits in Hong Kong increased by 1.0 percent to 850.4 billion yuan at the end of May.

The total remittance of Renminbi for cross-border trade settlement was 777.3 billion yuan in May, compared to 742.5 billion yuan in April.