--- title: "Edward Yau: Hong Kong economy maintains growth momentum, capital market sentiment improves" description: "Hong Kong's economy maintains growth momentum, with an improved capital market atmosphere. In the first quarter of this year, Hong Kong's GDP grew by 2.7%, marking five consecutive quarters of growth." type: "news" locale: "en" url: "https://longbridge.com/en/news/203434785.md" published_at: "2024-05-05T07:30:04.000Z" --- # Edward Yau: Hong Kong economy maintains growth momentum, capital market sentiment improves > Hong Kong's economy maintains growth momentum, with an improved capital market atmosphere. In the first quarter of this year, Hong Kong's GDP grew by 2.7%, marking five consecutive quarters of growth. The Hang Seng Index rose for nine consecutive trading days, with a cumulative increase of nearly 14%. The Hong Kong property market saw active transactions and stabilized prices. Visitor arrivals to Hong Kong increased, leading to a significant growth in service exports. The external environment is complex and volatile, with uncertainties present. The strong Hong Kong dollar has impacted mainland visitors' spending in Hong Kong, leading to changes in consumption patterns for Hong Kong residents and visitors, posing challenges to the retail and catering industries. The central government has actively responded to the Hong Kong government's proposal to optimize the individual travel scheme. Companies should focus on creating consumption opportunities and scenarios, driving event-based economy, and seizing opportunities in new product development and new operational models According to the Wise Finance APP, Hong Kong Financial Secretary Paul Chan published a blog today (May 5th) stating that in the first quarter of this year, Hong Kong's GDP grew by 2.7% year-on-year, marking five consecutive quarters of growth. After seasonal adjustment, the quarterly growth rate accelerated to 2.3%, maintaining the growth momentum of the Hong Kong economy. The Hang Seng Index has risen for nine consecutive trading days, with a cumulative increase of nearly 14%, and an average daily trading volume exceeding HKD 128 billion, indicating an improved capital market sentiment. Following the withdrawal of the "harsh measures," the Hong Kong property market has become more active, with transaction volumes increasing and property prices stabilizing. Paul Chan pointed out that one of the main drivers of Hong Kong's economic growth in the first quarter of this year came from inbound tourism. With the increasing number of visitors to Hong Kong, the service sector has continued to show significant growth. During this year's May Day Golden Week holiday, the first three days saw nearly 650,000 inbound tourists, a 25% increase from the same period last year. Better-than-expected external demand has also supported the improvement in overall goods exports in the first few months of this year. However, the external environment remains complex and uncertain. The recent announcement by the Federal Reserve to maintain interest rates, coupled with the stagnation of the slowdown in U.S. inflation in recent months, has significantly dampened market expectations for interest rate cuts in the U.S. this year compared to the beginning of the year. The prolonged high level of interest rates will have an impact on global economic recovery, Hong Kong exports, investment intentions in Hong Kong, and asset market performance. Paul Chan also mentioned that the sustained strength of the Hong Kong dollar has affected the willingness of foreign tourists to spend in Hong Kong. Coupled with changes in the consumption patterns of Hong Kong residents and inbound tourists, challenges have arisen for the retail and catering industries in Hong Kong. In order to support Hong Kong's economic and tourism development, the central government has actively responded to the Hong Kong government's proposal to gradually optimize the individual visit scheme. In February, the scheme was expanded to include Xi'an and Qingdao. In the face of major changes, in addition to focusing on creating consumption opportunities and scenarios, including vigorously promoting event-based economy, it is equally important for enterprises to grasp the key aspects of "new product development" and "new operational models" during the transition of consumption market models. New products not only meet the evolving needs of consumers but also help create new demands and increase sales. As for new operational models, they enable enterprises to utilize more data-based management solutions, helping to reduce costs and improve efficiency. This year's Budget proposed various measures to assist small and medium enterprises in the catering and retail sectors in their digital transformation ### Related Stocks - [00HSI.HK - Hang Seng Index](https://longbridge.com/en/quote/00HSI.HK.md) - [07500.HK - FI2 CSOP HSI](https://longbridge.com/en/quote/07500.HK.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | Hong Kong Securities Clearing Company Limited Ends CCASS Eligibility for Select Stocks | Hong Kong Securities Clearing Company Limited has announced the discontinuation of eligibility for certain stocks in the | [Link](https://longbridge.com/en/news/275696598.md) | | Hongkongers make 1.4 million outbound trips ahead of Lunar New Year | Hongkongers made nearly 1.4 million outbound trips in the three days before Lunar New Year’s Eve, a 21.6% increase from | [Link](https://longbridge.com/en/news/276040235.md) | | Hong Kong Exports, Imports Grow in December | Hong Kong Exports, Imports Grow in December | [Link](https://longbridge.com/en/news/275729996.md) | | China January M2 money supply +9.0% vs +8.4% y/y expected | China's M2 money supply rose by 9.0% in January, exceeding the expected 8.4%. 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