XN000022-1997-02-27 — Page 19

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Transcript of remarks by Financial Secretary

Following is the remarks made by the Financial Secretary, Mr Donald Tsang, at a media session after attending the luncheon of the Hong Kong Investment Funds Association at the Ritz-Carlton Hotel this (Thursday) afternoon:

FS: Well since I'd made my speech in English, if you wouldn't mind I want to say a few words in Cantonese and I may be able to answer a few questions in either English or Cantonese.

Q: Mr Tsang, has the feel good factor returned?

FS: The feel good factor returned in 1996 and they are strong with us that is reflected in the level of investment in Hong Kong, particular in the private sector. You can see the numbers growing in the stock market and the property market. I think it is going to stay with us for a long while.

Q: How confident are you that inflation or the CPI(A) would be restrained in seven per cent or kept at seven per cent?

FS: Well, that is our forecast at this moment in time, and we're going to review it in the middle of the year. But I do see in terms of the level of investment and the general economic activities that we would not be able to hold inflation rate down to six per cent as in 1996 and it is likely to edge upward, and I think seven per cent is a reasonable estimate.

Q: Given the strong reserve and that is the last Budget before the handover, are you considering giving a gift to the Hong Kong public in your Budget announcement?

FS: You don't know the amount of the reserve, let me tell you on March 12. Thank you very much indeed.

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