In a recent discussion, Paul Chan underlined Hong Kong's distinct advantage in confronting complex geopolitical circumstances.
Hong Kong Business Report Highlights Opportunities and Challenges for Economic Growth
Financial Secretary Paul Chan Mo-po announced the unveiling of a 102-page business report on Wednesday, aiming to attract investors and dispel overseas misperceptions about Hong Kong's economy. The report positions the one country, two systems governing principle as a pillar supporting further development in Hong Kong, citing Chinese President Xi Jinping's backing of this principle as a cornerstone of the city's long-term prosperity and stability.
According to the report, Hong Kong is undergoing transformation and upgrading. The city achieved a strong 3.1% real GDP growth in the first half of 2025, reflecting a solid rebound from prior disruptions. The implementation of the Hong Kong National Security Law and the Safeguarding National Security Ordinance has enhanced stability and attracted international capital, creating a secure and predictable business environment.
The report details increased foreign and Mainland investments, with over 1,300 companies from overseas and Mainland China establishing or expanding operations in Hong Kong since 2023, bringing in over $160 billion in direct investment. Solid export performance, including significant growth in goods and financial services exports, driven by close ties with Mainland China and global markets, continues to support economic expansion.
Various government initiatives are in place to stimulate domestic demand, diversify trade partners, and foster economic growth across sectors. However, the report also identifies challenges and risks. Renewed tariff hikes by the US could constrain global trade flows and impact economic activity and inflation, affecting Hong Kong’s externally oriented economy. The pace of US interest rate cuts remains uncertain, which may influence investment sentiment and capital flows into Hong Kong.
The report emphasizes the need for Hong Kong to seek and embrace changes proactively in order to achieve new breakthroughs, develop new growth points, and create a new chapter for the city. Despite a complicated and volatile external environment, Financial Secretary Paul Chan Mo-po sees more opportunities than challenges for Hong Kong in its current state of economic upgrading and transformation.
The business report is accessible online for investors abroad, and Hong Kong’s future performance depends on evolving global conditions, requiring continued adaptability in its economic strategies. The report is the first in four years and can be found online for those interested in learning more about Hong Kong's economic prospects.
- The business report, revealing opportunities and challenges for economic growth, includes a focus on the financial sector, highlighting increased foreign and Mainland investments in Hong Kong.
- The report emphasizes the positive impact of the Hong Kong National Security Law and the Safeguarding National Security Ordinance on the city's business environment, attracting international capital.
- политика и экономическая стабильность в городе, связанная с принципом "одна страна, две системы," подкрепляют дальнейший развитие в городе, согласно докладу.
- Despite the complexity and volatility of the global environment, the financial secretary believes that there are more opportunities than challenges for Hong Kong's economy in its current state of transformation and upgrading, as detailed in the report.
