Financial Results for the Nine Months Ended December 31, 2009

For more information, please contact:
Melissa Ng / David Hsieh at 212-752-3320
Daniel McAtee at 202-238-6360
Wing Yan Tong at 415-835-9315

January 29, 2010 - The Hong Kong Special Administrative Region Government announced today its financial results for the nine months ended December 31, 2009.

There was a surplus of HK$37.7 billion (US$4.83 billion) in December, thereby reducing the deficit for the nine months ended December 31, 2009 to HK$1.2 billion (US$153.84 million). Expenditure for the period amounted to HK$204.9 billion (US$26.26 billion) and revenue HK$203.7 billion (US$26.11 billion).

A government spokesman said the improved financial results in December were mainly due to the receipt of HK$33.5 billion (US$4.29 billion) investment income on fiscal reserves. He said that having regard to the current financial position and that the outturn for some major revenue sources including land premium and stamp duties was likely to exceed the estimate, it was expected that the financial results for 2009-10 would be better than the original estimate. The revised estimate for the current financial year will be published along with the 2010-11 Budget on February 24.

The fiscal reserves stood at HK$493.1 billion (US$63.21 billion) as at December 31, 2009.