Will Hong Kong's deficit hurt property prices

Hong Kong's Special Administrative Region (SAR) government is under renewed pressure to cut its budget deficit. In the first four months of this financial year, from April to July, it racked up a shortfall of HK$40.1 bn ($5.15 billion). This amount is equivalent to 89% of its projected total deficit for the full year. Given the soft economy, this full-year budget deficit will certainly overshoot the official target of HK$45.2 bn ($5.8 billion) the Financial Secretary announced in his Budget in March.