Hong Kong’s Financial Secretary Paul Chan Mo-po said he is cautiously optimistic about the city’s economic outlook this year, while warning that authorities remain highly alert to potential “black swan” risks amid growing global uncertainty.
Speaking at a forum on Thursday, Chan said Hong Kong’s economy has maintained solid momentum, supported by steady growth in mainland China, whose strong fundamentals, large market size and policy flexibility continue to provide a key anchor for the city.
Chan said expectations of further US interest rate cuts, though likely limited in scale, would be a positive factor for markets, helping to improve consumption and investment sentiment.
Hong Kong’s economy is estimated to have grown about 3.2 percent in 2025, faster than in 2024 and above earlier forecasts, with both the stock and property markets recording gains in prices and trading volumes, he said.
Looking ahead to 2026, Chan warned that external risks are likely to increase, citing heightened geopolitical tensions and unpredictable policies in major economies that could trigger sharp shifts in capital flows, roil financial markets and spill over into the real economy.
He said the government would closely monitor market risks and prepare early responses to potential shocks, while balancing development and security considerations.
As China enters its 15th Five-Year Plan, Chan said Hong Kong should leverage its role as a bridge between the mainland and international markets, expanding its functions as a “super connector” and “super value-adder”.
