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Issuing bonds to tackle Hong Kong deficit not ‘monstrous’: ex-minister Henry Tang

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Issuing bonds to tackle Hong Kong deficit not ‘monstrous’: ex-minister Henry Tang

Hong Kong’s plan to issue bonds to tackle a dire deficit is not “monstrous” but rather a legitimate short- to medium-term solution to improve capital flow, former finance minister Henry Tang Ying-yen has said.

Tang on Tuesday defended the government’s plan, which Financial Secretary Paul Chan Mo-po announced in his budget blueprint, after his successor, John Tsang Chun-wah, warned the measure could affect the city’s credit ratings.

According to Chan’s budget speech last week, Hong Kong planned to issue HK$120 billion (US$15.3 billion) in silver, green and infrastructure bonds to cover the government’s recurring expenses. He remained confident that the city would balance the books within three years.

Financial Secretary Paul Chan announced in his budget blueprint a plan to issue HK$120 billion in bonds. Photo: Elson Li

Tsang, the longest-serving financial secretary from 2007 to 2017, earlier said in a social media post that the city needed to look beyond bond issuances to cover government spending. He also argued the government had “undeniably fallen into an era of structural deficit”.

Speaking in Beijing as a member of the Standing Committee of the Chinese People’s Political Consultative Conference (CPPCC), Tang, who was the financial secretary before Tsang, called the plan “completely legitimate” as long as there was market demand.

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“Bond issuance for the purpose of maintaining government operations is not monstrous,” Tang said.

“It is acceptable if it is used to strengthen capital flow, and raise funds in the short and medium term when the capital chain is broken.”

Hong Kong’s West Kowloon arts hub funding crisis ‘threatens to halt event deals’

Hong Kong’s budget deficit is expected to balloon to HK$101.6 billion for the current financial year ending in March, almost double last year’s forecast given by the government. Chan said more borrowing would enable the government to maintain cash flow to finance major projects, such as the Northern Metropolis.

Tang, who served as finance chief from 2003 to 2007, ducked a question on whether Hong Kong had already plunged into a structural deficit as Tsang argued.

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But he stressed that Chan had a duty to follow the principle stipulated in the Basic Law, the city’s mini-constitution, that the government needed to avoid deficits and keep expenditure within the limits of revenues.

“If you can be candid to citizens [about the dire financial situation], they can feel your respect and understand the rationale of the measures amid the challenges,” he said, referring to the city’s property downturn and soaring recurring expenditure.

Former finance minister Henry Tang has also expressed support for the city’s coming national security legislation. Photo: Natalie Wong

Tang said that back in 2004 when he proposed issuing HK$20 billion in bonds, bankers described it as “a museum piece” as it was a rarely used tool then to solve the deficit problem.

Following measures to lure mainland Chinese tourists and launch renminbi business that year, he posted the city’s first budget surplus in five years in 2005.

Tang argued that Hong Kong was on the right track to revive its economy by finding new engines in technology and deepening cross-border integration.

Tsang’s remarks on the budget measures triggered heated debate on social media. He said that amid the high-interest rate environment, government bonds might not be as attractive to buyers as depositing their money in banks to secure higher rates of return.

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30,000 yuan in duty-free? Hong Kong CPPCC members want new cap for mainland visitors

He also worried that the city would eventually need to pay the debt’s interest expenses, which could affect its credit ratings, as well as saddle future generations with higher taxes and fewer public services.

On Monday, Tang also expressed support for the city’s coming national security legislation, a requirement under Article 23 of the city’s mini-constitution.

“Without stability, it’s hard to talk about economic development and livelihood improvements,” he said.

He added that countries, including Singapore, had been strengthening their own security legislation, urging the proposed law should be utilised effectively to gain investors’ confidence.

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Finance

A new blueprint for financing community development – Part III

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A new blueprint for financing community development – Part III

Hegseth, a Fox News host who served in the Army National Guard, was named by President-elect Donald Trump on November 12 as his pick for defense secretary. Since then, Hegseth has been the subject of a number of allegations of sexual misconduct, alcohol abuse and financial mismanagement. The most recent spate of news stories have detailed allegations, which Hegseth has denied, related to excessive alcohol consumption and appear to be the main topic of concern on Capitol Hill.

“It’s just been very troubling to see how unconcerned many members of Congress are with men who are accused of sexual assault,” said Rep. Veronica Escobar of Texas, a member of the House Armed Services Committee. While the House does not vote to confirm Cabinet nominees, Hegseth met with Republican House members on Wednesday to shore up support.

“The issue that apparently, I heard, came up in his meetings was his alleged alcohol abuse,” she said. “But I guess his abuse of women doesn’t seem to bother as many folks.”

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Credible allegations of impropriety have often been cause for withdrawal or disqualification. Hegseth is one of a number of Trump’s Cabinet-level nominees who face accusations of sexual misconduct.

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In 2020, Hegseth paid a confidential settlement to a woman who filed a police report accusing him of raping her in 2017 at a Republican women’s conference in Monterey, California. No charges were filed against Hegseth in connection with the encounter, which he and his lawyer maintain was consensual. The New Yorker and other outlets have reported on additional allegations that Hegseth mismanaged funds and abused alcohol while leading two veteran-focused nonprofits, and that his colleagues at Fox News witnessed him drinking to excess while he was a weekend co-host at “Fox and Friends.” Hegseth has strenuously denied those claims, including in an op-ed published in the Wall Street Journal, and told Megyn Kelly in an interview on her SiriusXM show that he wouldn’t drink alcohol as defense secretary.

Representatives for Fox News and the Trump transition did not immediately return requests for comment. Several of Hegseth’s current and former Fox News colleagues, including current “Fox & Friends Weekends” co-host Will Cain, have spoken up in his defense.

“The press is peddling anonymous story after anonymous story, all meant to smear me and tear me down. It’s a textbook manufactured media takedown,” Hegseth wrote in the Journal. “They provide no evidence, no names, and they ignore the legions of people who speak on my behalf. They need to create a bogeyman, because they believe I threaten their institutional insanity. That is the only thing they are right about.”

Democratic women serving on the House and Senate Armed Services Committees argued that Hegseth getting confirmed would not only undercut years-long bipartisan efforts in Congress to address sexual assault and abuse in the military but also the armed services’ efforts to recruit more women.

“This is very concerning,” said Escobar, a Democrat. “We have been trying to address recruitment for a long time, and women are a key component of that. This is the last thing we needed, and it is my hope that those members of the Senate who are committed to these reforms and who know how important women are in the military will have very candid conversations with him, and he will drop out.”

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Nearly 1 in 4 women in the military report having experienced sexual assault and more than half report harassment, according to a 2016 analysis of articles published in the peer-reviewed journal Trauma, Violence and Abuse. The vast majority of incidents go unreported, according to the RAND Corporation, which provides research to the U.S. Armed Forces. In 2018 alone, about 6,000 sexual assaults were reported to the Department of Defense, but surveys suggested more than 20,000 service members were sexually assaulted. And amid a broader military recruitment crisis, a 2020 government study found that women were leaving the military at higher rates than men and citing sexual assault as a major factor.

Michelle Simpson Tuegel, a Texas-based lawyer who does not practice in the military justice system but has represented survivors in several high-profile sex abuse cases, said Hegseth’s nomination marks “a scary moment” for women service members.

“I get calls every year from women who have faced sexual assault and sexual harassment in the military, I’ve represented people on the bases when I used to do criminal defense,” Tuegel said. “There’s a lot of violence on our military bases.”

Reports of sexual assault in the military have risen by an estimated 25 percent since 2018, according to the military’s own data, which include both anonymous surveys and formal reports.

Military justice reform advocates have gained ground in recent years, particularly in regards to how military sexual assault and harassment investigations are handled. After the end of World War II, one Supreme Court ruling — known as the Feres doctrine — barred service members from suing the government over any injuries incurred while on active duty. Though typically applied to cases of medical malpractice, this ruling had expanded to include sexual assault allegations. However, the high-profile murder in 2020 of Vanessa Guillén, a soldier who was sexually harassed by a supervisor and violently murdered while stationed at Fort Hood, Texas, acted as a catalyst for reform. Guillén’s death led to major changes in the National Defense Authorization Act, guaranteeing that certain crimes like sexual assault and domestic violence would be prosecuted outside the chain of command.

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Democratic Sen. Tammy Duckworth of Illinois, a veteran, called it “insane” that Trump would nominate someone like Hegseth after the “decades” of efforts within the Armed Services.

“There are simply too many reasons proving that Pete Hegseth is not the right person to lead our military men and women, and he will not have my vote,” she said in a statement to The 19th. “Republicans confirming him to this position wouldn’t just be an insult to our men and women in uniform—it would be dangerous for our national security and military readiness.”

Rep. Mikie Sherrill of New Jersey was a student at the Naval Academy 30 years ago as part of the first class of women eligible for combat ships. She served for nearly a decade, including a stint in London when she worked for a Navy fleet commander overseeing the deployment of troops to Iraq, at a time when she said the culture was not great for women.

When young women interested in the service academies come to her office, Sherrill said, “they’re not interested in going into a force as second-class citizens, and they’re not interested in being given special treatment.”

“What they want is the challenge that all people that go into our military service want. What they want to do is to serve the public, to protect and defend the Constitution of the United States and to make sure that people here can sleep at night,” said Sherrill, who is also running for governor of New Jersey. “And so, why you would ever put someone in charge that didn’t respect that, that didn’t respect the service of about 20 percent of our armed forces, is shocking to me.”

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The implications stretch beyond the ranks of the Armed Forces, said Democratic Rep. Chrissy Houlahan of Pennsylvania, who served in the Air Force and Air Force Reserve. Changes that enabled women like her, Sherrill and others to serve in the military put them on the path to public service in Congress, she said.

“They served because we made some real reforms that mattered in how women are able to serve and what kind of roles they’re able to serve in,” Houlahan said. “And I think it’s not a coincidence that you then see those people, decades later, showing up in places like Congress, because they’ve had equal opportunity.”

The U.S. Senate vets and confirms the president’s nominees to Cabinet posts and other high-level positions. In some ways, Hegseth’s nomination and the scandal surrounding it are not new. The first time a new president’s initial Cabinet nominee was rejected was in 1989 when the Senate failed to confirm John Tower, former President George H.W. Bush’s pick for defense secretary, after he was accused of being an alcoholic womanizer.

Then Sen. Sam Nunn, a Democrat and Senate Armed Services Committee Chairman at the time, led the charge against Tower’s nomination on the grounds that his character was unfit for the position.

“The committee is also concerned about the personal example the secretary of defense must set for efforts of the Department of Defense to end discrimination toward, and any sexual harassment of, women. … Mr. President, leadership must be established from the top down,” Nunn said during the 1989 Senate debate.

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Secretary of Defense Lloyd J. Austin III, who was appointed by President Joe Biden, has made it a priority of his tenure to combat sexual assault in the military, establishing a commission early on to make recommendations to the military. Meanwhile, Hegseth has signaled a different set of values and priorities when it comes to women and people of color. He wrote a book arguing that military standards have been lowered for women, that “America’s white sons and daughters” are walking away from the military because of ideology that is too “effeminate” and that diversity, inclusion and equity efforts are bad for national security.

“I’m straight up just saying we shouldn’t have women in combat roles,” Hegseth said in November during a podcast interview. “It hasn’t made us more effective. It hasn’t made us more lethal. It has made fighting more complicated.”

On Wednesday, Hegseth mounted another lobbying blitz on Capitol Hill, meeting with several key Republican senators. GOP Sen. Joni Ernst of Iowa, an Army veteran and a sexual assault survivor herself who has been outspoken against sexual assault in the military, posted on X that she had a “frank and thorough” conversation with Hegseth.

His mother, Penelope Hegseth, is also doing a media tour on behalf of her son after The New York Times reported on an email she sent him in 2018, in the midst of his contentious divorce from his second wife, excoriating Hegseth as an “abuser of women.” It is against military law to commit adultery, which could result in dishonorable discharge. Penelope Hegseth, who said she since apologized for and disavowed the contents of the email, took to Fox News with her hopes that lawmakers, “especially our female senators,” to “not listen to the media and that you will listen to Pete.”

Houlahan said she’s using the influence she has as a woman veteran in Congress to register her concerns with her colleagues in the Senate about Hegseth’s nomination.

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“To the degree I can, I’m trying to have conversations, and directly have conversations with my Senate companions, to do my best to explain that I am really worried about this,” she said. “And I’m hoping that me being really worried is an indicator, a canary in the coal mine, of other people who are worried about it, who don’t have the voice that I have.”

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Accelerating AI for financial services: Innovation at scale with NVIDIA and Microsoft

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Accelerating AI for financial services: Innovation at scale with NVIDIA and Microsoft

Always on the cusp of technology innovation, the financial services industry (FSI) is once again poised for wholesale transformation, this time with Generative AI. Yet the complexity of what’s required highlights the need for partnerships and platforms calibrated to fast-track solutions at scale to capitalize on AI-era change.

Financial institutions have an unprecedented opportunity to leverage AI/GenAI to expand services, drive massive productivity gains, mitigate risks, and reduce costs. Across financial services markets, GenAI can play a role in several areas, including:

  • Optimizing product and service innovation
  • Enhancing contact center interactions
  • Delivering personalized banking experiences
  • Modernizing code
  • Detecting fraud
  • Creating predictive analytics and forecasting for investment insights
  • Empowering agent and advisors

According to NVIDIA’s State of AI in Financial Services 2024 Trends report, 43% of respondents are already using GenAI in their organization. What’s more, three quarters consider their AI capabilities to be ahead of or right in line with their peers. More than half (51%) say they are confident that AI will be critical to their companies’ future success.

GenAI-powered financial services use cases

Across the sector, GenAI is empowering innovation and enabling new work patterns. Among them:

  • Banking: Organizations are delivering personalized solutions with recommendations and enhancing customer service operations with avatar-assisted services and Natural Language Processing (NPL) chatbots that fulfill service requests promptly. GenAI is also helping to improve risk assessment via predictive analytics. In one example, BNY is deploying NVIDIA’s DGX SuperPOD AI supercomputer to enable AI-enabled applications, including deposit forecasting, payment automation, predictive trade analytics, and end-of-day cash balances.
  • Trading: GenAI optimizes quant finance, helps refine trading strategies, executes trades more effectively, and revolutionizes capital markets forecasting. Using deep neural networks and Azure GPUs built with NVIDIA technology, startup Riskfuel is developing accelerated models based on AI to determine derivative valuation and risk sensitivity. GenAI can also play a role in report summarization as well as generate new trading opportunities to increase market returns.
  • Payments: GenAI enables synthetic data generation and real-time fraud alerts for more proactive, accurate, and timely fraud monitoring. As new fraud patterns are identified, GenAI is used to create synthetic data and examples used to train enhanced fraud detection models. GenAI also helps identify patterns that assist in Suspicious Activity Report generation for anti-money laundering, greatly reducing investigation time.

NVIDIA + Microsoft: Partnering for AI transformation at scale

Given the pace of change, FSI companies need to lean into the right partnerships and resources to enable innovation. NVIDIA and Microsoft have a longstanding relationship centered on AI, and over the last two years, the pair have aligned GenAI offerings built from the ground up on Azure and the NVIDIA AI-enabled GPU stack.

Microsoft’s Azure infrastructure and ecosystem of software tooling, including NVIDIA AI Enterprise, is tightly coupled with NVIDIA GPUs and networking to establish an AI-ready platform unmatched in performance, security, and resiliency. The NVIDIA DGX SuperPod is the fastest path to AI innovation at scale, delivering a full-stack, turnkey solution that eliminates design complexity and facilitates time to deployment.  

The partners have a shared commitment to secure and responsible AI development, and experts and services are available to streamline capacity planning, provisioning, application performance testing, and user/DevOps training at each phase of the GenAI deployment cycle.

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The bottom line

Microsoft and NVIDIA’s decades-long collaboration is unleashing a full spectrum of AI foundations and services that together will quick-start the AI revolution for financial services solutions.

Read more from NVIDIA and Microsoft
https://blueprintforai.cio.com/

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Concurrent Partners with TIFIN @Work to Elevate Workplace Financial Solutions

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Concurrent Partners with TIFIN @Work to Elevate Workplace Financial Solutions

Combining Advisory Expertise and AI-Driven Insights to Deliver Real Financial Impact

BOULDER, Colo. and TAMPA, Fla., Dec. 18, 2024 /PRNewswire/ — Concurrent, one of the fastest-growing RIA aggregators in the United States, has partnered with TIFIN @Work, an AI-powered workplace growth platform, to deliver a more focused and personalized approach to workplace financial solutions.  The partnership combines TIFIN @Work’s AI-driven tools with Concurrent’s advisory expertise to deliver clear, actionable outcomes for employees, employers, and advisors.

TIFIN @Work partners with Concurrent to deliver personalized workplace financial solutions through AI-driven technology and expert advisory services, enhancing financial outcomes for employees, employers, and advisors. #WorkplaceSolutions #AI #FinancialInnovation #TIFINAtWork #Concurrent #EmployeeWellness #FinancialAdvisory

“Concurrent’s rapid growth has been built on our ability to deliver personalized, scalable solutions that meet the unique needs of clients,” said Casey Bates, Managing Director of Strategy and Growth at Concurrent. “Our partnership with TIFIN @Work strengthens our offering, combining cutting-edge AI technology with our proven advisory strategies to create financial solutions with real impact.”

TIFIN @Work’s AI technology delivers tailored actions to employees, helping them optimize their financial strategies—whether it’s optimizing paycheck contributions or planning for long-term goals. Concurrent ensures these insights are put to work, providing the expertise needed to make decisions that benefit both employees and their employers.

“This partnership is about creating better wealth outcomes with tailored solutions that truly make a difference,” said Marc McDonough, CEO of TIFIN @Work. “By combining our technology with Concurrent’s advisory experience, we’re offering a solution that directly addresses the financial needs of the workplace, creating practical value for all involved.”

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The integration of TIFIN @Work’s platform with Concurrent’s advisory services provides employers with a streamlined approach to supporting employees. The result is improved engagement, stronger financial confidence, and greater opportunities for advisors.

About Concurrent
Concurrent is a multi-custodial, hybrid registered investment adviser (RIA) created to give independent advisors all the resources they need to grow their businesses and adapt to the evolving financial needs of their clients. Headquartered in Tampa, Florida, Concurrent was established in 2017 by former advisors, business owners and industry leaders to cultivate a national network of independent providers of unbiased, fiduciary advice.

Investment advisory services through Concurrent Investment Advisors, LLC (“Concurrent”), an SEC Registered Investment Advisor. To learn more about Concurrent, visit www.poweredbyconcurrent.com.

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