Hong Kong maintains strong credit ratings with stable outlooks

Fiscal reserves are also projected to stay above $500b.

The government has confirmed that S&P and Moody’s have maintained Hong Kong’s credit ratings at AA+ and Aa3, respectively, with stable outlooks. Moody’s also upgraded its outlook from negative to stable.

Both agencies highlighted the city’s substantial fiscal buffers, robust foreign exchange reserves, strong external balance sheet, and high per-capita income levels.

The government pointed to the recent affirmations of Hong Kong’s credit ratings by Fitch, S&P, and Moody’s—all with stable outlooks—as evidence of the city’s resilience amidst rising global economic and financial uncertainties.

Recent data also showed continued growth in bank deposits, active capital markets, and a thriving initial public offering (IPO) market.

IPO fundraising in Hong Kong has surpassed $76b so far this year, more than seven times the amount raised during the same period last year and nearly 90% of the total raised in all of 2024.

Additionally, the government highlighted its 2025-26 Budget plan to control spending and increase revenue, aiming to balance the Operating Account this year and return it to surplus by 2026-27.

Capital spending on projects like the Northern Metropolis will continue, funded by bonds and public-private partnerships. Deficits on the Capital Account are expected to shrink from 2026-27.

After accounting for bond proceeds, the consolidated accounts are expected to return to surplus by the 2028-29 financial year, with fiscal reserves projected to remain well above $500b over the next five years.

The region's economy grew strongly in Q1 2025. Although global trade tensions persist, easing international frictions and China’s steady growth support Hong Kong’s outlook.

The government remains confident in tackling challenges and leveraging the “one country, two systems” framework to strengthen Hong Kong’s role as an international financial, shipping, and trade hub.