Budget reveal: government turns matchmaker with stronger hand in shaping economy

South China Morning PostEN 1 min read 100% complete by Olga WongFebruary 26, 2026 at 01:00 AM

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Hong Kong's Finance Chief Paul Chan Mo-po presented a robust budget that exceeded expectations with an early consolidated surplus of HK$2.9 billion (US$370.73 million). The budget marks a shift towards a more active role for the government in shaping the economy, aligning with China's national development plan. For the first time, the Exchange Fund will be used to finance infrastructure development, a move that may impact the currency peg to the US dollar. The government has also committed to playing a more decisive role in matching capital and land with suitable projects. Financial Secretary Chan forecast surpluses for the next five years, taking advantage of substantial means at his disposal. This marks a consolidation of the government's approach towards a more active economic management.

Key Entities & Roles

Key Player Opposition Context

United States dollar 40% China 50% Exchange Fund 60% Paul Chan Mo-po 70% Hong Kong ×390%

Keywords

national development plan 90% hong kong budget 90% sovereign wealth fund 80% exchange fund 80% government intervention 70% infrastructure development 70%