Hong Kong’s finance chief warns of market volatility, pledges support for families
Amid market swings, Financial Secretary Paul Chan urges fiscal prudence and vows to review child tax breaks to tackle record-low birth rate
Hong Kong’s capital market is likely to experience significant fluctuations this year owing to intensifying geopolitical risks, the city’s finance chief has warned, stressing the need for caution in financial management.
During a briefing for lawmakers on Friday, Chan reported that the economic growth for last year was forecast at 3.2 per cent despite geopolitical pressures. While export performance remained strong, consumer spending had weakened, he said.
For the coming year, Chan expressed “cautious optimism” about the economic outlook, citing risks that could affect financial security but also highlighted the improving economy in mainland China.
“Caution is needed because we anticipate that geopolitical risks will only intensify. Under such circumstances, the capital market is inevitably subject to significant fluctuations,” he said at a special meeting of the Legislative Council’s Finance Committee.
“Geopolitical factors influence capital flows. We must exercise caution.