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The Treasury Secretary said that despite pressures on capital markets, Hong Kong remains one of the “most ideal options” for international investment, noting that net inflows of capital into Hong Kong continue. .
Finance Secretary Paul Chan Mopo made the upbeat comments on his weekly blog on Sunday, hours before leaving for Davos, Switzerland, to attend the World Economic Forum’s annual meeting.
“It is true that Hong Kong’s asset market has been under pressure over the past year in the face of the global high interest rate environment and multiple adverse external factors,” Chan said.
“But it is also true that investment opportunities are becoming more attractive, and many funds are looking for opportunities and waiting for them.”
In the first 11 months of 2023, total deposits reached HK$16 trillion, an increase of 4.1% year-on-year, of which deposits denominated in Hong Kong dollars amounted to HK$7.6 trillion, an increase of 1.7% year-on-year, Mr Chan said. Added.
The minister said that combined with preliminary figures for December, the total growth rate of deposits last year is expected to reach 5%.
“This figure reflects that funds are still in a ‘net inflow’ state between entry and exit,” he said.
It could take another “one to two years” for Hong Kong to reach a budget surplus, says Paul Chan.
It could take another “one to two years” for Hong Kong to reach a budget surplus, says Paul Chan.
Mr Chan’s positive assessment comes amid a four-year slump in the city’s stock market and a broader economic downturn, despite hopes for a post-pandemic recovery.
According to the year-end report, the Hang Seng Index fell by about 13.8% in 2023, marking the fourth consecutive year of decline. In addition, slowing growth in China and stronger-than-expected tightening in the United States continued to undermine sentiment, resulting in the worst start to the year since 2016.
Housing prices have fallen by about 20.6% from the market peak in September 2021, to the lowest level in seven years, as the city’s economic slowdown and high interest rates put pressure on demand.
Buyers opt for cheaper homes in first Hong Kong weekend sale of 2024
Buyers opt for cheaper homes in first Hong Kong weekend sale of 2024
However, Mr Chan said overseas investors are looking for the most “cost-effective income opportunities” and are therefore focusing on “future growth potential” rather than “historical numbers”. .
“Many international investors familiar with the Hong Kong market agree that Hong Kong is one of the most ideal options,” he said.
The Treasury Secretary added that Hong Kong’s wealth management sector has “significant advantages” and pointed to a 2023 report by the US-based Boston Consulting Group, which said the city would The company said it estimated the industry’s growth rate to be 7.6%. .
He also highlighted efforts to diversify the city’s economy, including a “strong promotion” of innovation and technology industries such as artificial intelligence, data science and biomedicine.
900 technology companies gather in Hong Kong as innovation drives Hong Kong
900 technology companies gather in Hong Kong as innovation drives Hong Kong
Mr Chan said he would showcase and promote the city’s development when he attends a summit in Davos this week.
The Summit is an annual event that brings together public servants, business leaders, and civil society organizations from around the world. This year’s meeting will be held from January 15th to 19th with the theme “Rebuilding Trust.”
“I hope everyone will strengthen cooperation and achieve better economic growth together,” Zhang said.
In addition to Secretary of Commerce and Economic Development Algernon Yau Ying-wah, Airport Authority Chairman Jack Soh Chak-wong, Hong Kong Exchange and Clearing Board Chairman Laura Cha See Mei-lung, MTR Corporation CEO Jacob Kam Chak-Pui and others. and participate in some of the summits. .
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