Fitch Ratings raised Hong Kong’s debt rating to its second-highest ranking, citing the city’s fiscal strength and ability to weather external shocks with reserves.
Hong Kong’s long-term international debt rating was lifted to AA+ from AA, with a stable outlook, Fitch said in a statement yesterday. The long-term local debt rating was kept at AA+ level.
Strong economic growth and the government’s “prudent fiscal management” in Hong Kong were the reasons for the upgrade, the ratings company said.
Moody’s Investors Service on Nov. 11 upgraded Hong Kong’s government bond ratings to its second-highest ranking, citing the city’s economic links to China, whose ratings were raised on the same day.
“Hong Kong has withstood the global financial crisis with its strong external financial position, solid public finances, well-regulated and capitalized banking system,” Vincent Ho (何永燊), a Hong Kong-based associate director at Fitch, said in an interview yesterday.
Hong Kong has fiscal reserves equivalent to 31 percent of its GDP and “virtually zero” public fiscal debt, Fitch said. The company estimated the city’s foreign exchange reserves will rise from US$267 billion at the end of last month to US$300 billion by the end of 2012, the release said.
The IMF said on Nov. 18 that Hong Kong runs the risk of an economic downturn due to rising asset prices and urged the city’s government to take more measures to curb the housing market.
One day later, Hong Kong announced additional taxes for homes resold within two years and increased down-payments for some mortgages.
State-run CPC Corp, Taiwan (CPC, 台灣中油) yesterday signed a letter of intent with Alaska Gasline Development Corp (AGDC), expressing an interest to buy liquefied natural gas (LNG) and invest in the latter’s Alaska LNG project, the Ministry of Economic Affairs said in a statement. Under the agreement, CPC is to participate in the project’s upstream gas investment to secure stable energy resources for Taiwan, the ministry said. The Alaska LNG project is jointly promoted by AGDC and major developer Glenfarne Group LLC, as Alaska plans to export up to 20 million tonnes of LNG annually from 2031. It involves constructing an 1,290km
NEXT GENERATION: The company also showcased automated machines, including a nursing robot called Nurabot, which is to enter service at a Taichung hospital this year Hon Hai Precision Industry Co (鴻海精密) expects server revenue to exceed its iPhone revenue within two years, with the possibility of achieving this goal as early as this year, chairman Young Liu (劉揚偉) said on Tuesday at Nvidia Corp’s annual technology conference in San Jose, California. AI would be the primary focus this year for the company, also known as Foxconn Technology Group (富士康科技集團), as rapidly advancing AI applications are driving up demand for AI servers, Liu said. The production and shipment of Nvidia’s GB200 chips and the anticipated launch of GB300 chips in the second half of the year would propel
‘MAKE OR BREAK’: Nvidia shares remain down more than 9 percent, but investors are hoping CEO Jensen Huang’s speech can stave off fears that the sales boom is peaking Shares in Nvidia Corp’s Taiwanese suppliers mostly closed higher yesterday on hopes that the US artificial intelligence (AI) chip designer would showcase next-generation technologies at its annual AI conference slated to open later in the day. The GPU Technology Conference (GTC) in California is to feature developers, engineers, researchers, inventors and information technology professionals, and would focus on AI, computer graphics, data science, machine learning and autonomous machines. The event comes at a make-or-break moment for the firm, as it heads into the next few quarters, with Nvidia CEO Jensen Huang’s (黃仁勳) keynote speech today seen as having the ability to
WAIT-AND-SEE: Last month’s consumer price index came in at 2.8%, which boosts expectations that the Fed would proceed cautiously to lower inflation sustainably The US Federal Reserve is widely expected to keep interest rates unchanged at its policy meeting this week, treading carefully amid uncertainty over US President Donald Trump’s economic policies, which include spending cuts and sweeping tariffs. Since January, Trump has imposed levies on major trading partners Canada, Mexico and China, and on steel and aluminum imports, roiling financial markets and fanning fears that his plans could tip the world’s biggest economy into a recession. The Trump administration has also embarked on unprecedented cost-cutting efforts that target staff and spending, while the US president has promised tax reductions and deregulation down the road. However,
RSS