Standard and Poor's Ratings Services has upgraded Hong Kong's local currency rating outlook. Hong Kong's Financial Secretary Henry Tang said in Hong Kong Tuesday that the decision reflects its recognition of Hong Kong's economic fundamentals, financial strength and recent economic recovery.

Speaking after the Federation of HK Industries Annual General Meeting, Tang said the positive rating will benefit the price level of the future government bond issue.

Welcoming the decision, he said the budget-balance target of 2008-09 remains unchanged.

Responding to its comments on Hong Kong's tax base, Tang said the government is actively studying ways to broaden the tax base. The working group on goods and services tax will submit a report at the end of the year to decide the way forward.

Source: Xinhua