
$10 toll for Central Kowloon Route 'the best option'
$10 toll for Central Kowloon Route 'the best option'
A number of lawmakers said they feel the proposed HK$10 fee for the Central Kowloon Route is too high. Photo courtesy of the Highways Department
The transport chief has defended a plan to charge motorists HK$10 for using a brand-new arterial road connecting East and West Kowloon, after several lawmakers called on the government to consider adjusting the across-the-board fee.
Secretary for Transport and Logistics Mable Chan on Friday said the authorities are trying to strike a balance between striving to recover costs and ensuring public usage in coming up with a suitable toll level.
The administration had considered various options for the Central Kowloon Route, including toll-free access as well as fees of HK$10 or HK$17.
A 4.7-kilometre-long stretch of the route, named the Yau Ma Tei section of the Central Kowloon Bypass, is expected to open this year.
A number of lawmakers complained that the proposed fee level was too high, with one of them, Chau Siu-chung, raising the possibility of halving the charge to HK$5.
Fellow legislator Bill Tang urged the government not to rush into charging motorists but to instead let them use the route for free initially.
"How about we wait until it has been opened at the end of this year and monitor actual traffic flows before deciding on the toll?" he said.
"And if the government is setting a fee level, depending on whether the community accepts it, how does HK$8 sound?"
Mable Chan, in reply, said a cheaper toll fee might not be the best option.
"We need to spare some capacity for when the traffic load increases," she said.
"We need to be prepared.
"In terms of diverting traffic and sparing capacity, charging HK$8 is definitely not as ideal as a HK$10 fee... But of course, it's most important that residents will use the route.
"Otherwise, it's not worth it to simply charge tolls to the point where residents will not use the route."
If lawmakers approve the proposal, the government plans to charge road users in the middle of next year, when the entire route is scheduled to be completed.
Officials also plan to raise tolls at Aberdeen and Shing Mun tunnels from HK$5 to HK$8, citing the fact that the fees have not been increased in 34 years.
The new charges for the two existing tunnels could take effect within a month upon approval by the legislature.
Separately, the government said time-varying tolls implemented in late 2023 at the city's three harbour crossings would remain unchanged for now amid further monitoring of the situation.
Since the tolls shake-up at the tunnels, traffic flows at Western Harbour Crossing have increased by 19 percent to around 104,000 vehicles per day, according to official figures.
To handle the increased traffic load, transport authorities plan to construct an additional lane at the tunnel's exit on the Hong Kong Island side. The work is to be completed by the first quarter of 2026.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


RTHK
6 hours ago
- RTHK
HKers can use FPS for payments up north from Sunday
HKers can use FPS for payments up north from Sunday HKMA chief executive Eddie Yue says Payment Connect will allow local residents to make transfers of small sums in a much simpler way. Photo: RTHK China's central bank governor Pan Gongsheng hails Payment Connect as a milestone in deepening financial connectivity between Hong Kong and the mainland. Photo: RTHK Residents from Hong Kong and the mainland will soon be able to use a new fast payment tool to conduct cross-border transactions involving small sums in real time from Sunday, with monetary authorities from both sides hailing the launch as a milestone in deepening connectivity. The announcement came after the Hong Kong Monetary Authority's launch on Friday of the cross-border payment method, Payment Connect, which links its electronic payment network – Faster Payment System (FPS) – with the mainland's Internet Banking Payment System. The linkage allows cross-bank transactions using simply the recipients' mobile numbers or account numbers, with small-value payments settled instantly at any time. "I'm very much looking forward to Sunday when we will further connect the fast payment systems between Hong Kong and the mainland using Payment Connect, as it breaks through the boundaries of time and place," HKMA chief executive Eddie Yue said at the launching ceremony in Beijing. "Residents from both places will only need to click on our phones, enter the recipient's mobile phone number, and they can easily make small personal remittances or pay for various living expenses [using it], achieving simple and immediate transfers," he said, adding that the FPS system has been very popular among Hong Kong residents since 2018. Under the new service, residents can use FPS to transfer small sums of up to HK$10,000 each day per account to the mainland, while the total annual remittance limit is set at HK$200,000. And such transfers will not affect another 80,000 yuan of northbound daily quota set for local residents. While there's no limit set for mainland residents using the tool for southbound transfers, they will still be subject to the current annual foreign exchange quota of US$50,000 per person. The launch of the tool also comes as the number of FPS users closes on 17 million, with one million new accounts being set up in the first five months of the year. The number of registered users is far more than the total population of Hong Kong as an individual can have more than one account. For his part, People's Bank of China governor Pan Gongsheng said the launch marks another milestone in the deepening of financial connectivity between Hong Kong and the mainland, as Beijing highly values the SAR as a global financial centre. "The cross-border Payment Connect, which is directly connected to the infrastructure of the monetary authorities of the two places, provides online fast bilateral local currency and bilateral renminbi remittance services for residents of the two places, which will further enhance the efficiency and experience of cross-border payments," he said. "It'll also provide conveniences for economic and trade cooperation as well as personnel exchanges between Hong Kong and the mainland, injecting new vitality into Hong Kong's development while further promoting the cross-border adoption of the renminbi," he added. The two sides have been working on the service since August. The new tool will see six SAR banks join the first batch of institutions to provide such services – Bank of China (Hong Kong), HSBC, Hang Seng Bank, Bank of East Asia, as well as two state-backed lenders. There'll also be six mainland banks supporting the tool.


Asia Times
8 hours ago
- Asia Times
Hong Kong's stablecoin moment eclipses dollar peg debate
As global markets obsess over Hong Kong's 42-year-old currency peg to the US dollar, Financial Secretary Paul Chan seems more intrigued by the next four decades for the city's economy. The currency speculators testing the Hong Kong monetary authority have a point, of course. The Hong Kong dollar is experiencing extreme volatility as the US exchange rate gyrates amid questions about Donald Trump's tariffs and the direction of US Federal Reserve policy. To be sure, there is no serious discussion about Hong Kong abandoning its current 7.75–7.85 fixed rate band to the US dollar anytime soon. But the Trump 2.0 era financial chaos is straining the peg as rarely before. That has Hong Kong policymakers and markets alike wondering if there is a better currency framework for the city. But the real intrigue in Chan's office lies in implementing Hong Kong's new stablecoin legislation. By expanding its cryptocurrency licensing regime and embracing an 'open model' system for digital assets, Chan's administration hopes to morph Hong Kong into a crypto hub. The plan is to encourage overseas institutions to issue such cryptocurrencies in Hong Kong. Not only might it boost competitiveness, but it also offers the city a first-mover advantage over the US and Singapore in global payments. Chan puts the global market value of stablecoins at about US$240 billion, with trading volume topping $20 trillion in 2024. As the Hong Kong Monetary Authority puts it, the bill will 'enhance Hong Kong's existing regulatory framework on virtual-asset activities, thereby fostering financial stability and encouraging financial innovation.' Hong Kong was early to the space. In 2023, regulators launched a virtual asset licensing regime. It requires crypto firms that officially operate in Hong Kong to obtain licenses and meet certain standards to ensure the protection of retail investors. 'Hong Kong's new stablecoin policy sets a global benchmark by mandating full reserve backing, strict redemption guarantees and HKMA oversight,' YeFeng Gong, risk and strategy director of HashKey OTC, tells CNBC. The idea is that once there are global payments systems on blockchain for companies and consumers, the impacts of sanctions, tariffs and other kinds of trade curbs will be mitigated. In theory, average citizens may be able to use HK dollar stablecoins to settle overseas purchases through apps like Alibaba Group's Alipay as early as next year, with the exchange rate difference dropping to zero. It's the nightmare moment many banks have been dreading. The US, too, presumably. In March, US Treasury Secretary Scott Bessent said the US would use stablecoins to ensure the US dollar hegemony in payments and protect its reserve-currency status. 'As President Trump has directed,' Bessent said, 'we are going to keep the US dollar the dominant reserve currency in the world, and we will use stablecoins to do that.' Of course, the US is having enough trouble with 'fiat' money. A 'lackluster' auction of US Treasury securities fueled worries about disappearing demand while the supply of new debt increases. This came amid Moody's Investors Service's downgrading of the US's AAA credit rating as national debt heads toward $37 trillion. Ray Dalio, founder of Bridgewater Associates, says Washington's fiscal trajectory is a bigger-than-acknowledged. Mark Haefele, chief investment officer at UBS Global Wealth Management, says that 'while the selling of US Treasuries in the immediate aftermath of the Moody's downgrade was relatively modest, Treasury yields have climbed steadily since the end of April as budget negotiations have come to the fore.' Could stablecoins help address the problem? In a May 2025 study, Sang Rae Kim, economist at Kyung Hee University, looked at how reserve-backed stablecoins affect the Treasury markets and credit intermediation. Kim found that large stablecoin 'issuance events induce statistically significant increases in Treasury prices.' Yet as Chan's team plans for the future, current economic dislocations are creating challenges. Not least of which is being caught between a brawling US and China. Even so, it's worth remembering that Hong Kong's currency peg is the ultimate 'widow maker' trade. For more than two decades, hedge fund managers, George Soros most famously, have tested the HKMA. The peg endured years later, even as speculative investors like Kyle Bass, founder of Hayman Capital Management, and Bill Ackman, chairman of hedge fund Pershing Square Capital Management, bet against it. Through assertive market intervention and fancy footwork, the HKMA has preserved the roughly 7.8 exchange rate established in 1983. For generations, Hong Kong's iron-clad link to the world's reserve currency served the economy well. Stability affords investment banks, exporters and entrepreneurs confidence to headquarter Asian operations in the city. It has long been touted as Hong Kong's secret weapon. The most famous such assault came in 1997 and 1998 from Soros, who 'broke' the British pound. After attacking the Malaysian ringgit and Thai baht, Soros targeted Hong Kong's peg and stocks. He lost. The HKMA overwhelmed Soros and his acolytes with a $15 billion show of force. In targeting Hong Kong in recent years, hedge fund players like Bass tested Chinese leader Xi Jinping's mettle. One big worry is control. Hence, economist Zhou Luohua of Renmin University of China calls the peg the economy's 'Achilles' heel.' 'If property and stock prices start to fall, the Hong Kong Monetary Authority can't provide sufficient liquidity like the Federal Reserve or other central banks as its money supply capacity is determined by the size of its US dollar reserves,' Zhou explains. 'If asset prices are plunging, it would trigger an exodus of funds at the same time, translating into a 'double hit' for the Hong Kong economy.' In April 2018, former HKMA head Joseph Yam argued it's time to scrap the peg so that Hong Kong can protect itself in times of turmoil. As China reduces capital controls, Yam worried 'small' Hong Kong risks getting swamped by 'huge' mainland money flows. There are some options, of course. The most obvious: soften the peg by establishing a Singapore-style basket of currencies. If the HKMA has greater flexibility, it could more easily vanquish the Soros's and Bass's of the world as well as property hoarders. Maintaining the status quo, Yam cautions, means even less affordable housing. It also makes Hong Kong more of an arbitrage vehicle between US and Chinese investors than a place that shares its fruits with middle-class households. Still, odds are that the peg is not going anywhere anytime soon. The protests in recent years challenging China's influence came as Trump's tariffs – both from 2017 to 2021 and now – throw Xi's economy off balance. China might decide that now isn't the time for experimentation with the dollar peg. Yet there is experimentation in the digital asset space that could render these 'old economy' concerns moot. And help Hong Kong get its financial groove back in short order. Follow William Pesek on X at @WilliamPesek


RTHK
8 hours ago
- RTHK
$10 toll for Central Kowloon Route 'the best option'
$10 toll for Central Kowloon Route 'the best option' A number of lawmakers said they feel the proposed HK$10 fee for the Central Kowloon Route is too high. Photo courtesy of the Highways Department The transport chief has defended a plan to charge motorists HK$10 for using a brand-new arterial road connecting East and West Kowloon, after several lawmakers called on the government to consider adjusting the across-the-board fee. Secretary for Transport and Logistics Mable Chan on Friday said the authorities are trying to strike a balance between striving to recover costs and ensuring public usage in coming up with a suitable toll level. The administration had considered various options for the Central Kowloon Route, including toll-free access as well as fees of HK$10 or HK$17. A 4.7-kilometre-long stretch of the route, named the Yau Ma Tei section of the Central Kowloon Bypass, is expected to open this year. A number of lawmakers complained that the proposed fee level was too high, with one of them, Chau Siu-chung, raising the possibility of halving the charge to HK$5. Fellow legislator Bill Tang urged the government not to rush into charging motorists but to instead let them use the route for free initially. "How about we wait until it has been opened at the end of this year and monitor actual traffic flows before deciding on the toll?" he said. "And if the government is setting a fee level, depending on whether the community accepts it, how does HK$8 sound?" Mable Chan, in reply, said a cheaper toll fee might not be the best option. "We need to spare some capacity for when the traffic load increases," she said. "We need to be prepared. "In terms of diverting traffic and sparing capacity, charging HK$8 is definitely not as ideal as a HK$10 fee... But of course, it's most important that residents will use the route. "Otherwise, it's not worth it to simply charge tolls to the point where residents will not use the route." If lawmakers approve the proposal, the government plans to charge road users in the middle of next year, when the entire route is scheduled to be completed. Officials also plan to raise tolls at Aberdeen and Shing Mun tunnels from HK$5 to HK$8, citing the fact that the fees have not been increased in 34 years. The new charges for the two existing tunnels could take effect within a month upon approval by the legislature. Separately, the government said time-varying tolls implemented in late 2023 at the city's three harbour crossings would remain unchanged for now amid further monitoring of the situation. Since the tolls shake-up at the tunnels, traffic flows at Western Harbour Crossing have increased by 19 percent to around 104,000 vehicles per day, according to official figures. To handle the increased traffic load, transport authorities plan to construct an additional lane at the tunnel's exit on the Hong Kong Island side. The work is to be completed by the first quarter of 2026.