Hong Kong’s Financial Secretary, Paul Chan Mo-po, has expressed strong confidence in the resilience and upward momentum of the city’s stock market, projecting that this strength will persist throughout 2025 and provide a significant boost to local consumption. Speaking at a recent forum, Chan cited the latest economic data and a rebound in exports as key factors underpinning his optimistic outlook.
The Hang Seng Index, Hong Kong’s benchmark, recently climbed to its highest level in over two months, reflecting renewed investor confidence amid easing US-China trade tensions and supportive measures from the central government.
Chan anticipates that this positive market sentiment will attract more international companies to list in Hong Kong, further cementing the city’s reputation as a premier global financial hub.
Chan highlighted the advantages of the current low interest rate environment, noting that reduced borrowing costs are beneficial for both homeowners and businesses. The one-month Hong Kong Interbank Offered Rate (HIBOR) has dropped to a three-year low, which has substantially lowered mortgage rates and stimulated economic activity.
He reiterated the government’s commitment to a non-interventionist market policy, emphasizing that authorities will not interfere with market dynamics, allowing natural forces to drive growth and innovation.
A cornerstone of Hong Kong’s financial stability, according to Chan, remains the city’s linked exchange rate system, which has pegged the Hong Kong dollar to the US dollar since 1983. Despite recent fluctuations in the US dollar, Chan reaffirmed the government’s unwavering commitment to maintaining this peg and ruled out any possibility of imposing foreign exchange controls.
He described Hong Kong as a “safe harbour” for global capital inflows, with international funds able to move freely in and out of the city.
Economic indicators reinforce Chan’s positive outlook. In the first quarter of 2025, Hong Kong’s real GDP grew by 3.1% year-on-year, with exports of goods rising by 8.4% and service exports expanding by 6.6%.
Visitor arrivals have also surged, particularly during key holiday periods, and investment expenditure continues to climb. While private consumption has faced some headwinds due to changing spending patterns, the overall economic momentum remains strong.
Looking ahead, Chan predicts that financial services, trading, technology, and innovation will be the primary engines driving Hong Kong’s economic growth. The government is also focusing on developing new markets, accelerating the Northern Metropolis project, and supporting local businesses through targeted funding and policy initiatives.
In summary, Chan’s remarks reflect a cautiously optimistic stance: Hong Kong’s stock market is set to remain robust, supporting domestic consumption and reinforcing the city’s status as a leading international financial centre. The government’s steadfast commitment to financial security, market openness, and innovation is expected to underpin sustained economic growth in the months ahead.
