Inflation in Hong Kong to remain reined-in for some time: finance chief

Hong Kong's finance chief John Tsang said on Thursday that he expected inflation pressure in the city to remain reined in for some time to come.

Tsang, the Financial Secretary of the Hong Kong Special Administrative Region (HKSAR) government, said that chances of a drastic surge in the consumer prices were few in the near term, but, should liquidity remain excessive, inflation pressures could mount in the medium and long run.

"We shall keep monitoring (the local economy)," he told a meeting of the HKSAR Legislative Council.

Tsang said he was confident that the Hong Kong economy will return to growth next year.

The prices of some of the luxury flats were higher than the previous peak recorded in 1997 but the prices for small and medium- sized flats were still lower, he said.

The HKSAR government policy is for the local real estate market to remain healthy and stable, he said, adding that he understands that it is the dream of many citizens to be able to afford houses.

Now 860,000, or 70 percent, of the 1.23 million local households live in properties they own, compared with 64 percent 20 years ago, he said.

Source: Xinhua