Hong Kong to establish Future Fund

This year, Hong Kong will establish a Future Fund comprising a HK$220 billion ($28.34 billion) endowment from the city-state’s Land Fund, which represents part of Hong Kong’s fiscal reserves, as well as from a portion of future budget surpluses.

The plans were announced in the  2015–2016 budget speech delivered Feb. 25 by Hong Kong’s Financial Secretary John Tsang Chun-wah. The move is an effort to promote long-term savings and generate higher returns via long-term investments, Tsang noted.

The  Hong Kong Future Fund also would serve as a hedge against possible future budget deficits, given Hong Kong’s shrinking labor force and increased infrastructure expenditure.

Tsang said the Hong Kong government’s Financial Services and the Treasury Bureau will work with the Hong Kong Monetary Authority’s chief executive to “hamme