Hong Kong's finance minister is expected to announce an issue of government bonds in his budget on March 10 to plug a mounting shortfall, a local newspaper said on Sunday.
It would be the first offering in more than 10 years by Hong Kong, which has been debt free and a net creditor in global capital markets.
But an economic downturn has punctured a hole in government finances, with deficit for the fiscal year ending in March set to top HK $60 billion (US $7.7 billion) or nearly five percent of gross domestic product.
Details of the plan, including size, maturity and coupon of the issue are yet to be determined, the Chinese-language Ming Pao Daily News said, citing sources.