Dagong maintains Hong Kong's AAA credit rating (2)

The SAR's banking system will remain stable due to the government's new round of property market regulation that cracks down on speculation, the agency said.

Dagong sees Hong Kong as likely to maintain a balanced budget and stable debt-paying ability, backed by its sufficient fiscal and foreign exchange reserves.

The increase in future land revenue will make up for the local government's rising expenditure in infrastructure construction and social welfare, and a strict fiscal discipline will offset Hong Kong's fiscal frailty, said Dagong.

Meanwhile, the government's debt-paying ability with both local and foreign currency is very strong with a extremely small debt burden, Dagong added.

According to the agency, Hong Kong's fiscal and foreign exchange reserve accounted for 30.6 percent and 117.6 percent of local GDP by the end of September this year.

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