Financial stability a priority: FS

Financial Secretary Paul Chan said the Government places high priority on financial stability so that Hong Kong can stay strong amid external uncertainties.

At the Asian Financial Forum today, he told reporters that external demand is weak and the financial market is volatile due to factors such as interest rate hikes, tightening monetary conditions by central banks, and an unfavourable economic situation in developed economies like the EU.

On the other hand, he noted that the Mainland’s economic recovery is going to be stronger than expected.

“We expect the Mainland’s economic recovery will be pretty strong, particularly in the second half of the year, and this will provide strong support to Hong Kong and also cushion some of the external headwinds.”

Locally in Hong Kong, Mr Chan said there is a more optimistic business sentiment with the resumption of normal travel to and from the Mainland.

Private consumption or private sector capital investment will have stronger support than last year, he noted.

“Overall, we do think that we should be more optimistic in terms of the economic outlook for 2023,” the finance chief added.