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Celine Sun

Losses on stock market investments have helped push the Housing Authority into the red, with a first-time deficit of HK$3.65 billion in its investment account.
The authority's financial committee yesterday revealed an overall consolidated deficit of HK$216 million for 2008-09.
It is the authority's second deficit on record,  following one in 2003-04 when the  outbreak of severe acute respiratory syndrome dealt a  major blow to the property market.
But the committee said it remained optimistic,  expecting a 6 per cent return rate, or a gain of HK$3.19 billion, in its investment account for 2009-10. It says in its budget forecast that this should boost the authority's overall performance back to a surplus of HK$3.76 billion in the coming fiscal year.
Committee chairman Stanley Wong Yuen-fai  said the target for next year was realistic based on investment consultants' analysis of current market conditions and the authority's asset allocation.
'Nobody has a crystal ball to foresee the future,' Mr Wong said.
'Yet personally, I believe the worst has passed.
'Although many places have gone into recession, governments have taken a lot of measures and [spent] a huge amount of funds to stimulate people's spending and investing ... I am confident that the coming year will outperform the current one.'
Usually the authority's investment portfolio comprises 45 per cent bonds, 25 per cent stocks and 30 per cent  cash.
But Mr Wong said  it had reduced its stocks portfolio to less than 20 per cent of the total since the global financial crisis began last year.
'Last year, global stock markets plunged 40 per cent on average,' he said. 'A loss is almost unavoidable.
'Looking at the coming year, we will take a prudent approach, watch the market closely and review our investment strategies at proper times.'
The total amount invested would be no less than before, he said.
The authority's main sources of revenue are its public rental housing estates, commercial buildings, the Home Ownership Scheme and its investments.
For the current financial year,  the authority reported a deficit of HK$1.78 billion in the rental housing account, which it said was expected to grow to HK$2.33 billion next year  because of surging maintenance costs.
The committee's budget is expected to be approved at a Housing Authority meeting  this month.



Housing Authority in the red after racking up losses in the stock market