Hong Kong's Financial Secretary Chan Mo-po stated that the city's economy is built on solid fundamentals and has a positive outlook, which aids in attracting more international long-term capital.
According to a blog post by Financial Secretary Chan Mo-po on May 17, recent objective recognitions from various international institutions reflect a better global understanding of Hong Kong's latest developments and future potential. These recognitions not only indicate that Hong Kong's economy has strong fundamentals and a positive outlook but also help attract increased international long-term investment into the city.
Chan noted that the International Monetary Fund recently issued a report affirming Hong Kong's role as an international financial center and a "super-connector." The report also endorsed various policy measures, including the development of the Northern Metropolis, which are conducive to fostering innovation, technology, and high-value-added services in Hong Kong, thereby supporting economic growth and structural transformation. International rating agencies Moody's and Fitch have also confirmed Hong Kong's credit ratings with a "stable" outlook.
He emphasized that these recognitions not only reflect Hong Kong's robust economic fundamentals, positive prospects, and sound public finances but also demonstrate that sustained communication and explanation enable international institutions to better understand the city's current status, development direction, and opportunities. The assessments and information from these institutions provide valuable references for global investors and the business and financial sectors, facilitating the attraction of more international long-term capital to Hong Kong. Recent market trends also validate the appeal of Hong Kong's business environment and economic prospects, with numerous institutions establishing or expanding their presence in the city, increasing hiring, expanding office space, and launching more innovative services and products.
Chan pointed out that the nation is actively developing new quality productive forces, accelerating the growth of strategic emerging industries such as artificial intelligence and biomedicine, and making forward-looking arrangements for future industries. Hong Kong possesses the quadruple advantages of "finance + trade + research + artificial intelligence+." In the process of proactively aligning with the national "15th Five-Year Plan" and better integrating into the overall national development, Hong Kong is leveraging its role as an "international interface" and an efficient exchange platform for innovation and technology development in the Guangdong-Hong Kong-Macao Greater Bay Area, unleashing greater development potential.
Consumption, investment, and foreign trade contributed significantly to the strong expansion of Hong Kong's economy in the first quarter. According to data from the Hong Kong Special Administrative Region Government, the preliminary estimate for Hong Kong's Gross Domestic Product (GDP) in the first quarter of 2026 showed a year-on-year real increase of 5.9%, significantly exceeding market expectations and accelerating from the 4% growth in the fourth quarter of 2025. This represents the strongest quarterly growth in nearly five years.
On a seasonally adjusted quarter-to-quarter comparison basis, GDP in the first quarter of this year recorded a real increase of 2.9%. The "three engines" of consumption, investment, and foreign trade jointly drove the robust expansion of Hong Kong's economy in the first quarter.
Private consumption expenditure in the first quarter grew by 5.0% in real terms year-on-year, reflecting a recovery in domestic demand. Government data shows that retail and dining-related consumption in Hong Kong increased by 5.2% year-on-year in the first quarter of this year, with daily consumer spending by residents growing year-on-year for six consecutive quarters.
In terms of foreign trade, the total value of goods exports in the first quarter increased by 23.8% in real terms year-on-year, while goods imports rose by 29.9% in real terms, with trade performance far exceeding expectations. Data indicates that the total export value of goods in Hong Kong for the first quarter of this year reached HKD 1,546.2 billion, a year-on-year increase of 32%, marking 25 consecutive months of positive growth. Exports of AI-related electronic products, such as electrical machinery and communication equipment, performed particularly well, becoming the core driver of export growth.
Gross Domestic Fixed Capital Formation in the first quarter surged by 17.7% year-on-year. The recovery in the property market served as a significant pivot for investment growth.
In the first quarter of 2026, Hong Kong's property market experienced a comprehensive recovery, providing crucial support for the substantial growth in Gross Domestic Fixed Capital Formation. Data from Centaline Property shows that the first quarter recorded 5,373 sale and purchase agreements for first-hand private residential units, involving a total amount of HKD 62.8 billion. This represents increases of 38% and 94%, respectively, compared to the same period last year, reaching a record high for the corresponding period. The secondary residential market also saw increased activity, with nearly 20,000 total registrations for both first-hand and secondary residential properties in the first quarter, a year-on-year increase of over 50%.
Financial Secretary Chan Mo-po is set to visit three European locations to promote Hong Kong. According to the Hong Kong Special Administrative Region Government News, on May 17, Financial Secretary Chan Mo-po will depart for Paris, France; Brussels, Belgium; and Zurich, Switzerland to promote Hong Kong's new developments and opportunities as an international financial center, aiming to attract investment and foster exchanges.
During his visit to Paris from May 18 to 19, Chan will attend the "No Money for Terror" Ministerial Conference. Hosted by France, the conference brings together delegations from over 80 countries and regions to strengthen global cooperation in combating terrorist financing. He will also meet with leaders from the local political, business, financial sectors, and think tanks.
On May 20, Chan will visit European Union-related institutions in Brussels and meet with political and business representatives.
Subsequently, from May 21 to 22 in Zurich, he will participate in several roundtable meetings and engage with representatives from major financial institutions, family offices, venture capital, and private equity funds.
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