Impact of US trade policy shifts on Hong Kong ‘primarily psychological’: Paul Chan

Financial Secretary Paul Chan Mo-po stated that the impact of US trade policy and interest rate shifts on Hong Kong's economy will be primarily psychological, despite the country's significant role as a US export market. Chan expressed optimism for sustained growth momentum into the second half of the year, as official data revealed the economy expanded by 5.1 percent in the first half of 2022, its strongest performance in nearly five years.

He cited growth in retail, property, and stock markets, with the catering sector stabilizing in recent months. Chan noted that private investment experienced its third consecutive quarter of double-digit expansion, driven by artificial intelligence (AI) and innovation. He emphasized that companies attracted through investment promotion efforts and technology firms are increasing R&D investments.

Chan acknowledged that the catering industry faces challenges due to increased spending in mainland China and other economic shifts, encouraging businesses to upgrade or transform. The Northern Metropolis project in the New Territories, set to yield results by year-end, is expected to boost confidence in the megaproject in the coming year or two.