Financial Secretary Paul Chan Mo-po said that the local economy is expected to maintain the momentum next year, while the government will continue to guard against “black swans” and “gray rhinos” amid uncertainties.
In his latest blog, he showcased an optimistic outlook for the city's economic expansion, supported by the growth of mainland China and Asia, as well as the anticipated interest rate cuts.
He expected the city's 2025 economic growth forecast to reach 3.2 percent, surpassing earlier estimates.
Resilient exports, brisk fixed-asset investment, and recovering consumption have helped Hong Kong’s growth beat forecast, Chan said.
He also pointed out that Hong Kong's stock and property markets both saw rises in prices and volumes, bolstering the positive market outlook.
Hong Kong has one of the world’s best-performing stock markets this year, with the Hang Seng Index rising nearly 29 percent, up for the second consecutive year, Chan said.
In the property market, the city saw nearly 57,000 deals in the first 11 months of the year, increasing 16 percent year-on-year and marking the second straight year of growth, he added.
Besides, the government will remain highly vigilant against 'black swan' and 'gray rhino' risks amidst the ever-changing external environment, he stated, adding that the city will balance the two main topics of 'security' and 'development' to ensure the society and economy continue to advance steadily in 2026.
Finance, tech innovation and trade will be Hong Kong's three key engines of growth, he said, as the city aligns closely with China's development strategy.
To bolster its status as a financial centre, Hong Kong, the world's biggest venue for initial public offerings this year, will lure more listings from companies in areas such as Southeast Asia and the Middle East and will actively promote internationalization of China’s yuan currency, Chan said.
In terms of innovation, Hong Kong will develop artificial intelligence into a “core industry”, as the technology will define economies’ competitiveness and reshape the global economic landscape, he said.
The city is also establishing a centre for cross-border supply chain management and trade finance, to better help Chinese companies expand offshore, he added.
Staff reporter and Reuters
