Budget reveal: government turns matchmaker with stronger hand in shaping economy
South China Morning Post
by Olga WongFebruary 26, 2026
AI-Generated Deep Dive Summary
Hong Kong’s finance chief unveiled a robust budget this year, marked by significant surpluses and initiatives aimed at strengthening the government's role in shaping the economy. A notable move was the decision to use funds from the Exchange Fund, traditionally reserved for defending the currency peg against the US dollar, to finance infrastructure development. This shift signals a departure from Hong Kong’s long-standing approach of allowing the free market to dominate, as the government now takes a more active stance in aligning with national development goals.
The budget reflects a clear alignment with China’s broader economic strategy, with Hong Kong positioning itself to seize opportunities arising from the national development plan. This includes playing a decisive role in matching capital and land use for strategic investments. The finance chief also announced an unexpected consolidated surplus of HK$2.9 billion, along with projected surpluses for the next five years, underscoring the government’s financial strength and ability to fund ambitious initiatives.
This shift matters because it signifies a fundamental change in Hong Kong’s economic management. While the territory has seen gradual evolution away from laissez-faire policies in recent years, this budget marks a consolidation of that trend. The government is now taking a more proactive role in shaping the economy, which could have significant implications
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Originally published on South China Morning Post on 2/26/2026