Hong Kong is enjoying a strong momentum of economic recovery, with tourism as a key driver, and innovation is vital for businesses to make breakthroughs amid the complex global economic landscape, Financial Secretary Paul Chan Mo-po said.
Writing in his Sunday blog, he noted that Hong Kong’s economic performance in the first quarter had seen a year-on-year growth of 2.7 percent -- the fifth consecutive month of expansion. There has been an uptick in investor sentiment, with the local stock market having risen for nine consecutive trading days. The transaction volume in the property sector, following the scrapping of purchasing curbs, has also seen a revival, he added.
During the first four days of the Labor Day holiday that started on Wednesday, the city welcomed about 788,000 visitors -- up 23 percent from the same period last year
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During the first four days of the Labor Day holiday that started on Wednesday, the city welcomed about 788,000 visitors -- up 23 percent from the same period last year.
However, market expectations for interest-rate cuts have cooled down, Chan said, with the US Federal Reserve, following its sixth consecutive meeting since September last year, saying on Wednesday it will maintain the target range for the federal funds rate at between 5.25 percent and 5.5 percent, and the inflation rate showing no signs of abating.
“The prolonged high interest rates will have ramifications for the global economic recovery, Hong Kong’s exports, investment sentiment, and the asset market,” he said.
Against this backdrop, the special administrative region government is actively attracting high-value tourists by hosting large-scale financial and art events. The central government also supports Hong Kong’s efforts to develop tourism by adding Xi’an and Qingdao in February this year to the list of Chinese mainland cities whose residents can travel to Hong Kong by themselves instead of as part of a tour group.
Nonetheless, industries such as retail and dining in Hong Kong still face challenges from shifts in tourist spending patterns. Thus, “it’s crucial for businesses to seize the opportunities presented by developing new products and adopting new operation models”, Chan said.
This transformation is a shared concern among different economies, and it’s also a significant topic at the ongoing 57th annual meeting of the board of governors of the Asian Development Bank in Tbilisi, capital of the Republic of Georgia.
Chan left Hong Kong on Thursday to attend the conference, during which he met with ADB President Masatsugu Asakawa and other notable participants.
Referring to the delegates’ interest in Hong Kong’s promotion of innovation and technology, as well as the digital economy, Chan said that as an international financial center and a hub for green financial technology, Hong Kong is well-positioned to share its experiences with member countries and regions in areas like green financing, and leveraging private market to address climate change.
