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Zhu Rongji urged Hong Kong to issue 50-year bonds amid 2002 slump
A longtime Hong Kong finance chief said Zhu Rongji’s pledge to buy mainland-issued 50-year Hong Kong bonds helped bolster confidence during deficits, high unemployment, and negative equity.
In late 2002, Chinese Premier Zhu Rongji visited Hong Kong, where he pushed for longer-dated borrowing as the city grappled with an economic slump and a ballooning deficit, according to SCMP Economy.
SCMP Economy reports that Zhu pointed to the availability of funding by telling dinner guests at Government House that even if fiscal reserves were spent within three years, there would be little to fear, and he offered a concrete show of support by saying he would be first in line to buy 50-year long-term Hong Kong bonds issued on the mainland, with the expectation that other investors would follow.
SCMP Economy also notes that Tsang, recalling the visit after Zhu died at age 97, said the trip helped galvanize confidence for efforts to combat fiscal deficits, high unemployment, and widespread negative equity that prevailed at the time.