On the 26th, the Financial Secretary of the Hong Kong Special Administrative Region Government, Paul Chan, announced the budget for the 2025/26 fiscal year. Hong Kong will strengthen fiscal integration, seize opportunities, and seize the key window of accelerated development. We will establish first and then break through, lead the future with reform and innovation, and accelerate the high-quality development of the Hong Kong economy. Chen Maobo stated that the Hong Kong economy steadily developed in a complex and ever-changing external environment last year. Geopolitical instability, intensified trade frictions, and high global interest rates have all had a negative impact on local economic activity and confidence. But the national economy is making steady progress, and policies supporting and benefiting Hong Kong have been introduced one after another. Combined with the government's measures to boost the economy and the US interest rate cuts starting in mid September, it has provided support for different economic sectors in Hong Kong Chen Maobo said. Last year, the Hong Kong economy recorded a moderate growth of 2.5%, with overall inflation being mild. Excluding the impact of the government's one-time measures, the basic consumer price inflation rate was 1.1% last year. In the medium term, the normalization of monetary policy will help maintain steady growth in the global economy. Chen Maobo expects that geopolitics will still pose challenges to the Hong Kong economy. However, the mainland is promoting high-quality development through technological innovation, comprehensive deepening of reforms, and expanding high-level opening-up to the outside world. Hong Kong is also striving to promote market diversification and explore new growth points, and it is expected that the economy will continue to develop steadily. Chen Maobo predicts that the Hong Kong economy will experience an average annual real growth rate of 2.9% between 2026 and 2029. The basic inflation rate is expected to be an average of 2.5% per year. He said that the current SAR government has been vigorously expanding economic capacity and strengthening competitiveness, and has achieved certain results. By actively integrating into the overall development of the country and proactively aligning with the national development strategy, we will be able to continue to seize the new opportunities brought by the national and global economic development, and create a bright future. The budget includes targeted measures to consolidate the foundation and accelerate development, as well as specific measures to uphold integrity, innovate, and cultivate new quality productive forces. The focus includes technological innovation, construction of the northern metropolitan area, consolidation and enhancement of advantageous industries, talent aggregation, strengthening linkage with cities in the Guangdong Hong Kong Macao Greater Bay Area, and accelerating green development. Against the backdrop of global changes and technological transformations, Hong Kong is at a critical juncture of development Chen Maobo stated that Hong Kong must have the courage to reform, break through barriers, and constantly innovate, unleashing innovation and economic potential through institutional reform. Chen Maobo believes that Hong Kong should stimulate new models and new driving forces through technological innovation, accelerate the cultivation of new industries and the transformation and upgrading of traditional industries; At the same time, we will improve talent cultivation and introduction, promote the integrated development of education, technology, and talent, and provide solid support for reform and innovation. Adhering to the principle of prudent financial management, this budget strengthens fiscal integration. Chen Maobo stated that strict control of government spending will be the main focus, supplemented by increasing revenue, in order to minimize the impact on the general public. Chen Maobo predicts that after taking into account the issuance of approximately HKD 150 billion in SAR government bonds and the repayment of approximately HKD 54.1 billion in 2025/2026, the annual deficit is expected to be HKD 67 billion, and fiscal reserves will decrease to HKD 580.3 billion. I have full confidence and hope for the future of Hong Kong Chen Maobo said that the cover color of this year's budget is lake blue, symbolizing the infinite potential in the blue ocean of future development, as well as the profound foundation and broad prospects of high-quality economic development. The Chief Executive of the Hong Kong Special Administrative Region, Carrie Lam, issued a statement on the budget, stating that the budget proposes multiple measures that are consistent with the direction of the policy address, including cultivating new quality productivity, strengthening the development of innovative technology and artificial intelligence, accelerating the development of the northern metropolitan area and the Hong Kong Park of the Hetao Shenzhen Hong Kong Science and Technology Innovation Cooperation Zone, grasping the strategic positioning of "three centers and one highland", further cultivating and introducing talents, enhancing advantageous industries, and promoting the accelerated development of the Hong Kong economy. He is full of confidence in the development and prospects of Hong Kong. (New Society)