In the Media

In the late 19th century, Italian economist Vilfredo Pareto observed that 80% of the nation's wealth was controlled by just 20% of its population. This striking disparity later inspired American management theorist Joseph Juran to develop the renowned "80/20 Rule," which posits that 80% of outcomes typically stem from 20% of contributing factors.

According to Prof. Heiwai Tang, Associate Dean of HKU Business School and Director of the Asia Global Institute, there is no consensus from an economic perspective that a government debt-to-GDP ratio exceeding a certain level poses a danger to the economy. Currently, the proportion of the government's outstanding debt has not reached a level that requires attention, and Hong Kong has the capacity to issue over HK$100 billion in bonds. It is estimated that the issuance amount for the new fiscal year may be similar to last year. If the financing is matched with long-term infrastructure spending, longer issuance terms are preferable. Even if the relevant ratio gradually increases to 20% in the future, there will still be room for issuing debt. The key considerations are the market's absorption capacity and interest costs.