HK 'could play role' as China seeks capital for stimulus

(Xinhua)
Updated: 2008-11-27 14:53

China might raise capital in its Hong Kong Special Administrative Region as a way to involve the southern international financial hub in efforts to stimulate the domestic economy, an official of the National Development and Reform Commission (NDRC), the top economic planner, said on Thursday.

NDRC head Zhang Ping said the agency would encourage well-established Chinese companies to go public in Hong Kong as well as issue bonds there to raise capital for economic development.

"Hong Kong is a good platform to raise funds," said Zhang, without elaborating.

Of the 4 trillion yuan ($586 billion ) stimulus plan announced by the State Council (cabinet) earlier this month to tackle an economic slowdown amid the global financial crisis, 1.18 trillion yuan will come from the central government, according to the NDRC.

The remainder largely depends on social investment.