Hong Kong’s economy is growing, but why are some sectors still hurting?

With Hong Kong leader John Lee set to deliver his annual policy address on September 17, the Post examines key topics the chief executive is expected to focus on, including a mega infrastructure project near the border, new economic drivers and livelihood issues.

In the third of a seven-part series, Lam Ka-sing looks at how the wider business community outside the financial sector can be supported amid economic transition.

Jacky Ko Chung-kit, who owns two media companies in Hong Kong, has not seen his business thrive even though the economy has been expanding in the past few quarters.

According to the 46-year-old entrepreneur, advertising is seen as an economic bellwether, and companies have asked for fewer quotations for advertisements and events this year than in previous years.

“So we do not have much business and we dare not hire people, to control costs,” he said.

The slump in Ko’s business does not match official data that Hong Kong’s gross domestic product (GDP) grew year on year over 10 quarters in a row, while the city’s stock exchange has also returned to the world’s top since 2019 in terms of IPO fundraising in the first half of 2025.

The strong performance in the financial sector stands in contrast to the rising jobless rate and the slow recovery of retail sales amid the seemingly unstoppable trend of spending on the mainland. Observers also said the city’s IT industry would need time to take off given the uncertainties posed by geopolitics.