On Friday's Backchat, adoption and foster care for kids in Hong Kong and secondary school suspensions. 

Foster care is leading the headlines as a foster family was forced to give up a baby after they sought to adopt the child. 

The request was first rejected by the Social Welfare Department, which said it would terminate the foster care if the couple filed for adoption. But the Welfare Department later told the father that they can continue caring for the baby - for now.

Due to the pandemic and other procedures, the baby has been staying with the family for 17 months, much longer than the usual foster-care duration of about four to six months.

Earlier, the dad criticised officials for “not placing (the baby’s) best interests first” as he feared a change in families would hinder his development. 

Under the current system foster parents cannot adopt the child in their care which raises the question …. Why not? How does the foster care system work and how does the pandemic change things around?

After 9.15am, we’ll talk about the government's decision to suspend face-to-face classes for secondary schools by Monday after a number of students were recently infected with Covid-19. 

Let us know what you think. You can leave a message on our Facebook page, Backchat on RTHK Radio 3, email us at backchat@rthk.hk or give us a call on 23388266.

The People’s Bank of China has cut the one-year loan prime rate by 10bps from 3.8% to 3.7%. It’s the second reduction in a month. In December, the PBOC cut the one-year loan prime rate for the first time since April 2020. The five-year loan prime rate was reduced by 5 basis points from 4.65% to 4.6%, in its first cut since April 2020.

Inflation in Hong Kong hit a five-month high in December, driven up by rising costs of meals out, takeaway food and electricity charges. Consumer prices rose 2.4% year-on-year in December, up from the 1.8% increase recorded the previous month. Netting out the effects of one-off government relief measures, the underlying inflation rate was 1.4% in December, 0.2 percentage points higher than that in November and at a 19-month high.

The International Monetary Fund has warned that the balance of risks facing Hong Kong’s economy are tilted to the downside. The IMF forecast that economic growth in the SAR will decline from 6.4% in 2021 to 3% in 2022. In its annual report it said risks to the economy include ongoing uncertainty linked to the pandemic, which could impact the flow of people and further weigh on consumption, along with a slower than expected global recovery, and continued disruption of global supply chains. The report said a quicker reopening of borders could drive a stronger recovery in private consumption.

On today’s Money Talk, we’re joined by Kenny Wen of Everbright Securities International and Andrew Freris from UCAP HK Asset Management. With a view from India is Toby Lawson, CEO of Societe Generale India.

You can read Peter’s detailed, daily 7am and midday financial news briefings on our Facebook page, where you can also comment, contribute, and ask him questions.
(Every weekday 8:00am-8:30am, except PHs. You can also email us at moneytalk@rthk.hk , or find us on twitter @MoneytalkRadio3) .