John Tsang challenges Moody’s credit rating warning for Hong Kong

Financial Secretary says agency, which warned about effects of filibustering, should learn more about city, but CY Leung takes the opposite approach, cautioning new lawmakers against such delaying tactics

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Financial Secretary John Tsang attends CUHK Business School Conference on China Business in the Global Economy. 09SEP16 SCMP / suggested that Moody’s learn about Hong Kong “in depth” before jumping to conclusions. Photo: Dickson Lee

Published: 8:46pm, 13 Sep 2016Updated: 10:58pm, 13 Sep 2016

Hong Kong’s finance minister yesterday questioned a warning by Moody’s Investors Service that a new generation of recently elected lawmakers could hurt the city’s credit rating with their filibustering in the Legislative Council.

But while John Tsang Chun-wah challenged the ratings agency and asked if it was being “fair” to Hong Kong, Chief Executive Leung Chun-ying took a contrasting approach to warn that such delaying tactics in the legislature had harmed the city’s economic development.

Tsang suggested that the agency learn about Hong Kong “in depth” before jumping to conclusions.

“If they could understand the place more, they would be able to know whether the situation would really affect the entire economy or the whole government operation,” Tsang said. “A more in-depth understanding would come up with a better conclusion, and that would be fairer to the place.”

On Monday – about a week after the Legco elections – Moody’s warned investors that policymaking could get bogged down as new anti-establishment lawmakers take up the filibustering torch in the coming term. This could bring down the company’s current “Aa1” rating for Hong Kong in the months ahead, meaning the government would have to pay more when borrowing on international markets.

Tsang said he would meet newly elected lawmakers soon. “I believe firmly that stronger communication brings about understanding, which would be helpful in resolving issues,” he said.