Paul Chan: Hong Kong's economy posts strongest first-half performance in nearly five years, confident of 3.5%-4.5% full-year growth.

Hong Kong's Legislative Council continued the joint debate on Hong Kong's first five-year plan and the new Policy Address. Hong Kong Financial Secretary Paul Chan Mo-po said that although the international political and economic landscape has been complex and volatile since the start of the year, Hong Kong's economy grew by 5.1% year on year in the first half of this year, its strongest half-year performance in nearly five years. He said the current momentum of Hong Kong's economy has not come easily and that it is necessary to set a direction for sustained high-quality development in the next stage, adding that he is confident Hong Kong will achieve the revised full-year forecast of 3.5% to 4.5% real economic growth this year. Paul Chan Mo-po pointed out that recent data show Hong Kong's economy continued to expand in the third quarter. Merchandise exports performed strongly, with the total value of exports surging 52% year on year in July and August combined, recording double-digit growth for 19 consecutive months. Visitor arrivals continued to rise, with preliminary figures showing a 9% year-on-year increase in the third quarter and nearly 41 million visitor arrivals in the first nine months. The total value of retail sales rose for 16 consecutive months, growing steadily by 5.1% in July and August combined. As for the labour market, it remained broadly stable overall, with the latest seasonally adjusted unemployment rate for June to August at 3.8%, while employment income continued to grow. On the asset market, Paul Chan Mo-po said Hong Kong's property market has been recovering since mid-last year, with home prices rising 7% overall so far this year and rents continuing to rise, up 5% cumulatively this year. Stock market trading was brisk, with average daily turnover reaching HK$272.9 billion in the first nine months, nearly 10% higher than the full-year average last year. The IPO market was also very active, with 118 initial public offerings in the first nine months raising HK$388 billion, surpassing the full-year scale of last year. Paul Chan Mo-po continued that external adverse factors still exist, and the Hong Kong government will closely monitor inflation trends in major economies, the policy direction of major central banks, and the risks brought by trade protectionism and the global artificial intelligence boom.