According to the latest survey results, about 70% of the interviewees indicated they were not convinced that the Government could solve the deficit problem, only 12% said they were while the rest of about 18% had no comment. Similar results were obtained across the board with consistent percentages applying to different sex, age and income groups, reflecting such level of lack of confidence is common and prevalent amongst the public.

Tommy Tam Hok Lam, Vice President of AIA, UK felt dismayed about the results of the survey. "Hong Kong people have been experiencing the economic downturn for some time now and have in fact given a vote of no confidence to the ability of the Hong Kong Government to solve the budget deficit problem even before the announcement of the budget for next fiscal year by the Financial Secretary. It is clear that different sectors of the society are holding very diverse opinion on many issues such as that on the civil servants wage reduction programme."

Mr Tam continues to comment that in the current weak economic times, the government should consider suspending the operation of MPF for a number of years to give some breathing space to both employers and employees and the same can be revived when the economy turns around. This action should give a slight push to ease the financial burden of the Hong Kong people.

The survey indicated that, if the government raised tax as a way to counteract the effect of budget deficit, respondents are inclined to have a further cut back on their non essential expenses in areas such as purchase of new clothes (about 39.9% of the interviewees) and travels (about 43.3% of the interviewees). People are generally less inclined to cut back on their transport expanses (about 22.8% of the interviewees) reflecting a general weaker bargaining position of the general public vis-ˆj-vis the big transport conglomerates (such as MTR, bus companies and KCR etc.). The survey results further showed that tax increase will only push the spending public to go north into China adding another blow to the already depressed retail market here. In general, the respondents' spending behaviour corresponded well with the income elasticity on demand of certain goods, for example, more female (43.9%) respondents would reduce spending on new clothes, a higher proportion than male (37.4%) respondents.

According to last December's survey by AIA and Hantec, investors' return on their investments has been disappointing and transaction volume at local equity market has been at a consistently low level in recent years. In light of this, the survey also explored if respondents would consider overseas investment options, such as bonds, securities, funds and real estates investments in oversea markets. Results showed that this indeed was not common, only 11% of the respondents had considered investing overseas with most of them from the high income group.

Andrew Tang, Vice Chairman and General Manager of Hantec International Holdings Limited, said: "The survey shows that overseas market investment products are not commonly known to and popular amongst the local investors. This may be due to the fact that most people are not familiar with these products and think that the entry costs for such investment is high. In fact, from the practical financial management needs perspective, with the increasing oneness of the global financial market, the difference in investment returns from different regional markets is drawing increasingly close. In the weak global economic climate, it is becoming not really effective to diversify geographically. As a group of companies offering clients integrated comprehensive financial and investment services, we have placed greater emphasis on asset classes such as bonds, forex, derivatives, arbitrage funds and other different types of financial products, all of which have been included in the product line we offer so as to use our professional knowledge to supply our clients with more effective asset allocation ideas and financial planning services to satisfy their needs in this adverse market."

Interviewees were also asked at the end of the survey to nominate the Financial Secretary they most admired. The results showed that the immediate past Financial Secretary, Donald Tsang Yam-kuen had the highest votes with 34% of respondents voting for him. However, for groups of interviewees aged over 50 or earning a monthly income of more than HK$50,000, it was Sir Charles Philip Haddon-Cave, best known for his "positive non-interventionism" in the 70's, who got the most votes. This reflects that the better off in the community may hold a different view on the government financial policy.

The above survey results have been audited by Patrick L T Wong & Co.

*** Link : Detailed survey results in PDF format

About The Association of International Accountants (AIA)
Based in the UK the AIA is an international accountancy body offering an accountancy qualification, recognised by the UK Government under the Companies Act 1989 as a professional qualification for company auditors.

The AIA syllabus has been designed to provide students with a practical course of study covering a broad base of accountancy subjects. Equipped with these accounting skills graduates can pursue a career within any business sector: commerce or industry, the public or private sector. The high standard of the AIA professional qualification is maintained by the independent and external moderation of the examinations.

The AIA was specifically founded to provide an international organisation for professional accountants and is fully committed to the ongoing achievement of this original aim. The AIA has a network of branches in many countries throughout the world including Cyprus, Europe, Malaysia, Hong Kong, Singapore, Canada, Africa and the Caribbean. The branches provide an active international framework for the Association offering support and guidance for students and members.

About Hantec International
Founded in 1990 by the Chairman, Mr Tang Yu Lap together with a number of financial experts and banking professionals, Hantec Group is a group of companies offering integrated comprehensive financial and investment services including leveraged forex trading, securities trading, financial advisory services, fund management, commodities and futures trading, asset management, corporate finance, personal financial services and affinity credit card. The Group is headed by its listed vehicle in Hong Kong, Hantec Investment Holdings Limited (HKSE: 111). The Group now operates 4 branches and 8 personal financial services centers locally as well as 5 representative offices in Beijing, Paris, Tokyo, Manila and Taipei.

Issued by :
Hantec Investment Holdings Limited
The Association of International Accountants (Hong Kong Branch)

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