'HK economy growth momentum expects to continue,' says Paul Chan

Hong Kong's economy has seen a 3.1% growth in the first quarter of the year, and the growth momentum is expected to continue for the second half of the year, according to the government's latest "Hong Kong Business Environment Report". 

Consisting of 94 pages and two chapters, the latest report elaborates on Hong Kong's institutional advantages under the "one country, two systems" arrangement and explains the government's policy priorities and achievements in promoting high-quality economic development, including continuously strengthening competitiveness, as well as its achievements in attracting capital inflows, pooling together enterprises and attracting talent.

It also showcases Hong Kong's latest developments and potential in finance, trade, aviation, maritime, innovation and technology, intellectual property trade, and legal services, as well as culture, sports and tourism.

In terms of attracting talent, as of June 2025, a total of nearly 500,000 applications under various talent admission schemes were received, nearly 330,000 of which were approved, and nearly 220,000 talents have arrived in Hong Kong. As for investment, in 2024, the number of companies in Hong Kong with parent companies located outside the territory significantly increased by about 10%, reaching nearly 10,000, while the number of start-ups reached nearly 4,700, both reaching record highs.

The Office for Attracting Strategic Enterprises, established over two years ago, has attracted 84 strategic enterprises to set up or expand their business in Hong Kong, including enterprises with a market capitalisation or valuation exceeding HK$10 billion and engaged in cutting-edge technologies.

This year, the performance of Hong Kong's financial markets has steadily improved. The Hang Seng Index recorded an increase of 18% last year and an increase of more than 25% this year so far. The average daily turnover in the stock market for the first half of the year was around HK$240 billion, with an increase of around 120%.

Echoing the report findings, the city's finance chief Paul Chan said at a press briefing on Wednesday, that Hong Kong's gross domestic product (GDP) grew by 3.1% in Q1 2025, and the growth is expected to stay for the second half of the year. He also added that the consumer market is showing signs of stabilisation, and he believes that "opportunities outweigh challenges" in Hong Kong.

Despite the pressures retail and catering sectors have been facing, Chan said many businesses have successfully transformed, adding that the government will provide comprehensive support to SMEs.

He believed that a thriving economy requires a "high population and a good atmosphere," and that Kai Tak Sports Park will be utilised to host more events in the future. He also described some industries facing challenges as having the momentum to stabilise.

A government spokesman said, "In a complex and volatile external environment, Hong Kong is experiencing economic upgrading and transformation, but there are more opportunities than challenges[...]By developing innovation and technology and new quality productive forces, and deepening international and regional exchanges and co-operation, Hong Kong will pave the way for new growth prospects."

Peter Lam, chairman of the Hong Kong Tourism Board (HKTB), said “The report on Hong Kong’s business environment clearly outlines Hong Kong’s unique advantages of being backed by the Mainland while connected to the world. These strengths are pivotal for Hong Kong in attracting large-scale meetings, incentives, conventions and exhibitions (MICE) events to the city, drawing high-value visitors; tapping into emerging markets such as the Middle East and ASEAN to foster cultural exchange; promoting world-class events to enrich visitor experiences; and advancing multi-destination travel in collaboration with other cities in the Greater Bay Area to leverage complementary strengths."

He added Hong Kong recorded 24 million visitor arrivals in the first half of 2025, representing a 12% increase compared to the same period last year. "Among them, non-Mainland visitors grew by 17% to reach 5.84 million. The HKTB will continue to build on this positive momentum and fully leverage and promote Hong Kong’s unique strengths by launching various promotional campaigns to attract visitors, drive tourism development, and reinforce Hong Kong’s important role in deepening international exchange."

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