The Hong Kong Special Administrative Region (HKSAR) government intended to issue government bonds to promote the development of local bond market, Hong Kong's financial chief said Wednesday.

The development of the local bond market helped reinforce Hong Kong's position as an international financial center by offering more diversified investment products and avenues for financing, Financial Secretary John Tsang said in a budget speech.

"In view of the current investment market conditions and low interest rates, we believe that there is demand for quality bonds," he said.

The sums raised will be credited to a specially established fund, which will not be treated as part of the fiscal reserves and will be managed separately.

The HKSAR government will seek public views on the details of the program later, which will be subject to necessary adjustments at implementation. The resolutions would be submitted to the Legislative Council as soon as possible, Tsang said.

Tsang also outlined a series of measures aimed at boosting Hong Kong's strength as a financial hub, such as optimizing the supervisory framework, participating in the work of international institutions and increasing cooperation with emerging markets.

Increasing the financial cooperation with the Chinese mainland was, as usual, one of the important directions that may add to Hong Kong's strength.

Tsang also pledged to extend the network agreements with trade partners for the avoidance of double taxation, among others.

Source: Xinhua