Chen Maobo: Overseas companies and investors are becoming increasingly confident in investing in Hong Kong.

On February 1st, Hong Kong Financial Secretary Paul Chan Mo-po stated in a blog post that overseas companies and investors are increasing their confidence in investing in Hong Kong. The number of overseas and local startup companies in Hong Kong increased by more than 10% last year, with over 11,000 and 5,200 companies respectively. According to recent surveys conducted by some foreign chambers of commerce, a majority of their member companies are optimistic about the business prospects in Hong Kong, with positive expectations reaching a new high in recent years. Paul Chan Mo-po stated that in summary of January, the performance of Hong Kong stock market continued to improve, with the Hang Seng Index closing at 27,387 points last Friday, a nearly 7% increase for the month. The average daily trading volume exceeded HK$272 billion, a 90% increase compared to the same period last year. Despite increased external volatility, Hong Kong's financial system remains stable and operating smoothly, with total bank deposits exceeding HK$19 trillion. Paul Chan Mo-po mentioned that the government recently announced a surplus of HK$43.9 billion for the first nine months of the current fiscal year (April to December 2025), which includes high tax revenue due to peaks in salaries tax and profits tax payment, as well as income from bond issuance. As usual, government revenue is expected to decline in the period from January to March 2026, while regular public spending will continue. He pointed out that Hong Kong's public financial situation is indeed improving. Benefiting from a strong performance in financial markets last year, daily trading volume in the Hong Kong stock market increased nearly twofold to approximately HK$250 billion, resulting in higher revenue from stock stamp duty than originally budgeted. By controlling expenditure growth through ongoing financial consolidation efforts, the government's operating accounts are expected to return to surplus in the current fiscal year (2025-26), a year earlier than previously estimated. As for non-operating accounts, continued investment in infrastructure and the Northern Metropolis area will require borrowing support. With solid support from the country and concerted efforts from the government and various sectors of society, Hong Kong's economy recorded a 3.5% growth for the past year, better than initially expected. Overall investment also accelerated significantly, with a notable 10.9% year-on-year increase in the fourth quarter last year, marking four consecutive quarters of positive growth and a cumulative annual increase of 4.5%. As major events continue to take place and asset markets rebound, private consumption in Hong Kong also increased by 1.6% last year, reversing the decline from the previous year. Retail sales turnover for December, to be released this week, is expected to continue growing, with a slightly faster growth rate than the previous month. With rapid changes in global political and economic situations, risks and fluctuations in the coming year will not be few. Paul Chan Mo-po emphasized that efforts will continue to align with the country's 15th Five-Year Plan, accelerate integration and service to the national development, empower technology innovation and the development of traditional industries through finance, promote deep integration of technology innovation and industrial development, and strengthen workforce training, especially in skills and technology application, to enhance the quality and quantity of economic development.