On Sunday, Financial Secretary Paul Chan bumped up Hong Kong’s economic forecast for 2025 to 3.2 percent, a jump from what officials predicted earlier this year.
Chan plans to maintain this upward trend by strengthening the city’s role across three main areas: finance, technology, and trade. Earlier in February, he had estimated growth would land between 2 and 3 percent.
Record year for stock listings
Hong Kong led the world in new stock listings this year. Authorities want more companies from Southeast Asia and the Middle East to list on the exchange, Chan noted in a recent blog post. Additionally, the city will encourage broader worldwide acceptance of China’s currency.
The plan places a significant priority on technological advancement. To remain competitive globally, Hong Kong plans to grow its biotech and artificial intelligence sectors. Authorities are equally committed to helping Chinese businesses expand into foreign markets by utilizing Hong Kong’s position as a center for regional trade.
“Looking into next year, Hong Kong’s economy is expected to keep the good trend of growth,” Chan said. “Finance, tech innovation and trade will be Hong Kong’s key engines of growth as the city actively embraces China’s development strategy.”
Market performance exceeds expectations
The Hang Seng Index climbed 30 percent this year, making it one of the top-performing stock markets worldwide.
Chan pointed to strong exports, active spending on buildings and equipment, and improving consumer spending as reasons the city did better than expected. To improve its financial center status, Hong Kong will make its stock market more competitive and grow trading in bonds, money markets, fintech, commodities, and gold.
Chan called AI a “core industry” for the future, saying the technology will determine how competitive economies are and change the global economy. The city is building a new center for managing cross-border supply chains and trade financing to help Chinese companies grow their international business.
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Source: https://www.cryptopolitan.com/hong-kong-3-2-percent-growth-coming-year/
