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Sale of Government Assets and Securitisation

92.      The Government announced in last year's Budget that it would sell or securitise $112 billion in assets over the next five years. Initially, we planned to realise $21 billion in 2003-04 from the sale of assets or through securitisation of revenues. So far, we have sold a total of $15.5 billion worth of housing loans to the Hong Kong Mortgage Corporation. This Council has recently approved the securitisation of revenues from the government toll tunnels and bridges. We expect to realise up to $6 billion from this transaction in the next few months.

93.      The Government is now consulting concerned parties on the overall arrangements for the privatisation of the Airport Authority. We hope that an initial consensus will be reached as soon as possible so that the legislative process can commence. We will shortly introduce into this Council an amendment bill to effect capital restructuring of the Airport Authority in the meantime. We have also set a tentative timetable for the rail merger. We plan to conclude discussions with the two railway corporations within six months. If the required legislative processes can be completed next year, we hope to implement the airport privatisation and the rail merger in 2005-06.

94.      In accordance with the principle of "big market, small government", we will continue to study the feasibility of other corporatisation and privatisation proposals.

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2003 | Important notices
Last revision date : 10 March, 2004