Inching Closer to $5K Handout

Chan warns people to use the handout only for local spending

 

The countdown begins to register for the HK$5,000 handout on July 4, but Financial Secretary Paul Chan Mo-po warns people not to try to find ways to put that money into their bank accounts, that the money is specifically for local spending.

Permanent residents over 18 years of age can choose to have the money that is distributed in installments to be deposited into one of four payment platforms: Octopus, AliPay HK, WeChat Pay HK, and Tap & Go. 

Money will be deposited in 4 payment platforms

Those opting for Octopus will have their money given out in three payments of HK$2,000, HK$2,000 and HK$1,000, while the other three will have two installments of HK$2,000 and then HK$3,000.

Chan warned if merchants were found to conspire with consumers to cash in the vouchers would be blacklisted and dealt with by the relevant authorities.

"If a merchant that used to have small-sum transactions is found to have large-sum and unusual transactions, we may blacklist them if appropriate so they can no longer join this scheme," Chan said. "If there are elements of conspiracy and fraud, we won't rule out taking law enforcement action."

The HK$5,000 is meant to be used within a five-month period for shopping, dining and transport.

It won't be difficult for the average Hongkonger to use this money for everyday spending. This is HK$5,000 less they need to spend of their own savings for necessities. Instead it will be the credit cards and banks that will be hurting for a few months as people won't be using credit cards and cash as much. 

Registration begins on July 4 for Aug 1 payment

And HK$5,000 to be used within five months isn't a gob of money. For Chan to warn people to only use it for personal spending is ludicrous. What else are they going to use it for, since you must use up the money before getting the next installment.

Kiss those HK$5,000 Gucci sneakers goodbye.

It's not like Chan has given everyone HK$10,000 like last year. 

So while the intention is to encourage people to spend in local shops, it will only be those merchants who accept electronic payments that will win out. And for sure the supermarket chains will benefit the most. 

Can you imagine going to a fine dining restaurant to doot your bill?