People's Republic of China : Hong Kong Special Administrative Region : 2009 article IV consultation : staff report, staff statement, and public information notice on the Executive Board discussion
Cover; Contents; I. Economic Outturns and Outlook; II. Managing the Recovery; A. The Credit-Asset Price Cycle; B. Exit from Extraordinary Measures; C. Fiscal Policy; III. The Implications of Mainland Rebalancing; IV. Staff Appraisal; Boxes; 1. Exchange Rate Assessment; 2. Minimum Wage Legislation; 3. Macroeconomic Implications for Hong Kong SAR of U.S. Credit Easing; 4. Proposed Changes to the Deposit Protection Scheme; 5. Recent Steps Toward Greater Financial Integration with the Mainland; Figures; 1. Financial Market Developments; 2. Growth Prospects; 3. Spillovers from U.S. Credit Easing
Tables1. Selected Economic and Financial Indicators; 2. Consolidated Government Accounts; 3. Medium-Term Balance of Payments; 4. Medium-Term Macroeconomic Framework; 5. Vulnerability Indicators
Summary
1. Asset markets. The pressures experienced by Hong Kong SAR following the failure of Lehman Brothers abated in the latter part of 2008, a result of the concerted policy efforts of the authorities and improving conditions in global capital markets. Following a decline in the fourth quarter, property markets have experienced a turnaround, which has been particularly marked in the luxury residential market. Equity prices have risen by 70 percent since mid-March (Figure 1). In September, the Hong Kong government sold sovereign bonds in the local market aiming to promote development of local currency bond markets. The issue was very positively received by investors
