Hong Kong can achieve “high-quality development” by leveraging its unique advantages and remaining open, the city’s finance chief has said, as he revealed that the local stock market has outperformed other major indexes so far this year.
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Writing on his weekly blog, Financial Secretary Paul Chan Mo-po also said that despite worries about the impact of the United States’ tariffs on the global economy, Hong Kong’s initial public offering (IPO) market remained “brisk” and bank deposits were rising.
“At a time when the global economic outlook faces multiple uncertainties, under the strong leadership of the central government, our country’s measures to stabilise the economy and expectations are gradually showing results,” Chan said.
“In a complex and ever-changing external environment, as long as we remain firm in our goals, remain open and inclusive, continue to leverage our unique advantages, and continue to do our own thing with all our strength, we will surely be able to achieve high-quality development in the changing situation.”
Hong Kong’s stock market and wider economy had come under enormous pressure last month after Beijing and Washington became embroiled in an escalating tit-for-tat trade war, before both sides reached an agreement last week to pause most tariffs for 90 days.
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On the first day of trading following US President Donald Trump’s initial so-called “Liberation Day” tariff announcement in April, Hong Kong’s Hang Seng Index had slumped 13.2 per cent to 19,828.30, losing HK$194 billion (US$25 billion) in value, its biggest decline since October 1997.
Chan said that although Hong Kong’s stock market was “under pressure” in April owing to the US-China trade war, it had since rebounded, closing at 23,345 on Friday, which he said was up around 16 per cent and outperforming other major markets.