By CGTN’s Wang Duan

The Gini Coefficient is a measure of income inequality, a scale ranging from 0 to 1. 

Zero indicates perfect equality while one means an extreme disparity. 

According to a report released by Hong Kong’s Census and Statistics Department last week, Hong Kong’s Gini Coefficient hit a 46-year record high of 0.539, far above the internationally recognized warning line of 0.4. 

However, the report also claims that if the index post-tax and post-social security benefits are also calculate, the figure stands at 0.473, lower than that in 2011. 

So which figure shows the real income gap in Hong Kong?

Tai Leung Chong, Associate professor, Department of Economics, the Chinese University of Hong Kong/ CGTN Photo

Tai Leung Chong, an Associate Professor in the Department of Economics of the Chinese University of Hong Kong told 'The Point with LIU Xin' (@thepointwithlx) that Hong Kong’s Gini Coefficient had stabilized over the past 15 years. 

He emphasized that “if you look at the number – post tax and post social transfer – it actually reduced to 0.473, compared to five years ago. The government has done a good job in reducing the gap between wealthy people and poor people.”

Siu Wai Cheung, a Senior Lecturer at Hong Kong Baptist University, pointed out that the wealth gap in Hong Kong is still a severe problem. 

He said that the households which have the highest incomes have probably earned in one month as much as four years of income combined by the poorest groups. 

He thinks the upcoming government should broaden the tax base to provide more revenue to support poor families and provide more help to support children’s education. 

Liu Xin closed the discussion by saying “there is a much quoted expression – "lies, damned lies and statistics" – attributed to both Mark Twain and Benjamin Disraeli. 

The saying means you can use statistics to prove virtually anything by the actual figures you choose to use. "I think it also applies here," she said, "If you just hear the headline figure, you would think that the income gap in HK is widening. But in essence, it is the opposite story. Once again, the devil lies in the detail. And let's give credit where credit is due. The SAR government has managed to narrow the gap by taking care of the less fortunate. It's hoped such an effort can keep its momentum in the future.”