Hong Kong is set to grapple with a turbulent market in 2025 amid uncertainties stemming from geopolitical tensions and high interest rates, the city’s finance chief has said, vowing to expand ties with other economies and promote the innovation and technology (I&T) sector.
Financial Secretary Paul Chan Mo-po also said on Sunday that the city had made “steady progress” over the past year despite such uncertainties, pointing to an improving capital market sentiment and signs of growth in the stock and property markets.
Over the past year, the Hang Seng Index has returned to the 20,000 level with the stock market going up by 18 per cent. The average daily transaction volume surpassed HK$132 billion (US$17 billion), a 25 per cent uptick from last year.
The city also remained in 4th position globally this year in terms of IPO fundraising.
Chan also noted that the city’s economic growth forecast stood at 2.5 per cent and the unemployment rate was at a lower level of 3.1 per cent, while inflation remained mild and residents’ incomes had “recorded a real increase”.
But the minister said the retail and catering sectors still faced significant hurdles, even with more than 44 million visitor arrivals being recorded so far this year, a 30 per cent year-on-year increase, and the recent resumption of a visa scheme for Shenzhen residents.
“Looking ahead to 2025, uncertainties arising from geopolitics and a prolonged period of high interest rates will contribute to a more turbulent market,” Chan wrote in his official blog.
