Land Fund

After the establishment of the Land Fund in 1985, premium income
obtained from land transactions concluded before July 1, 1997, was, after
deduction of the cost of land production, shared equally between the
then-Hong Kong Government and the HKSAR Government. The Hong
Kong Government's share was credited to the Capital Works Reserve
Fund to finance public works and land development.

The share allocated to the HKSAR Government was placed in a trust fund
called the Hong Kong Special Administrative Region Government Land
Fund, which was managed by an investment committee. Up to June 30,
1997, $150 billion had been transferred to the fund since its inception on
May 27, 1985. On July 1, 1997, all the assets of the fund were handed
over by its Trustees to the Financial Secretary and became part of the
fiscal reserves of the HKSAR Government. Since then, the investment of
the assets has been managed by the Hong Kong Monetary Authority under
the Financial Secretary's direction with the assistance of an advisory
committee.

[Back] [Forward]