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HK may boost handouts, land supply in budget

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Hong Kong may expand handouts and increase land supply in its next budget. Ernest and Young says Hong Kong Financial Secretary John Tsang may announce 25-billion Hong Kong dollars of giveaways, including electricity subsidies, for the year starting April. That's compared with around 20 billion in the previous 12 months.

Another Big Four global auditor KPMG also says the SAR government may raise the cap on a salary-tax rebate and give one-off allowances for the elderly and the poor. It's also reportedly about to increase land supply, by auctioning at least 10 sites and will hold land auctions around once a month.

Consumer prices in Hong Kong climbed at a 3.1 percent annual pace in December, the fastest in 23 months. While home prices there gained 2.1 percent in the week ended February 13th from the previous seven days.

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