<div id="readability-page-1">Hong Kong’s economy showed resilience in the first quarter of 2026 amid a more volatile stock market, even though the conflict in the Middle East continued to fuel market jitters, the city’s finance chief has said. In a review of the city’s economic health in the first three months of this year, Financial Secretary Paul Chan Mo-po on Sunday attributed Hong Kong’s performance to the steady growth of mainland China’s economy, with the city leveraging the situation to establish itself as a global hi-tech financing hub. The minister said the geopolitical landscape had proved to be complex and fast-changing during the first quarter, as uncertainty related to the United States-Israel attack on Iran continued to cloud the stock market. Hong Kong and other global cities reliant on oil imports are contending with the war’s impact on fuel prices, with airlines already passing extra costs onto travellers through fuel surcharges. Meanwhile, Chan’s review did not address whether Hong Kong would be able to meet its full-year growth forecast of between 2.5 and 3.5 per cent. The minister shared the prediction in his budget speech in late February, just before the conflict began. The minister said on Sunday that trading remained active despite the Hang Seng benchmark index falling by about 2 per cent so far this year, with the average daily turnover for the first two months exceeding HK$260 billion, a 17 per cent increase year on year. In March, the average daily turnover exceeded HK$300 billion, an 8 per cent increase year on year. “Amid the uncertainty, investors are increasing their asset allocation here,” he said. “They not only treat Hong Kong as a reliable haven for funds, but also see the ample investment opportunities offered by Hong Kong because of the steady economic growth on the mainland and the listing of a large number of high-quality enterprises here.”  The initial public offering (IPO) market continued the strong momentum of 2025, raising more than HK$103 billion as of March 27 this year and ranking first in the world. Together with follow-up financing and other channels, the total fundraising scale reached HK$237 billion. Chan also said there had been an increase in listing companies related to emerging industries, such as artificial intelligence, semiconductors, robotics, autonomous driving and biotechnology. There are currently more than 500 pending listing applications in the pipeline. “As the external environment becomes increasingly uncertain, more enterprises now view Hong Kong as a vital window for both financing and going global,” he said. “The listing platform of Hong Kong is playing a key role in providing smooth, reliable, continuous, and efficient financing to those enterprises, contributing to the country’s technological development and the construction of a modern industrial system, while attracting global capital to these industries of the future.” He added that Hong Kong was recently reaffirmed as one of the world’s three global financial centres, after London and New York. Chan said the city’s merchandise exports also grew by nearly 30 per cent year on year in the first two months, driven by a rebound in global electronics demand and supply chain restructuring. He added that overall labour earnings had continued to rise as retail and catering sector employment levels improved. “Coupled with the improving sentiment in the stock and residential property markets, these factors have provided solid support for local consumption,” he said. The total value of retail sales rose by almost 12 per cent year on year for January and February, with such growth extending beyond luxury goods to household essentials such as furniture and apparel. Online retail sales also grew by nearly 30 per cent, benefiting peripheral sectors such as e-payment services, logistics, and data analytics. Chan also noted that the labour market had remained stable, with the jobless rate for December to February declining slightly to 3.8 per cent.</div>

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<p>Hong Kong's economy demonstrated resilience in Q1 2026, despite a volatile stock market and geopolitical tensions. Financial Secretary Paul Chan attributed this to mainland China's steady growth, positioning Hong Kong as a global hi-tech financing hub. The IPO market thrived, raising over HK$103 billion, with more than 500 pending applications. Merchandise exports surged nearly 30%, and retail sales rose by almost 12%. The jobless rate slightly declined to 3.8%, indicating a stable labor market. Chan emphasized Hong Kong's role as a reliable investment haven amid global uncertainties.</p>

- Hong Kong's economy showed resilience in the first quarter of 2026, despite ongoing geopolitical tensions and stock market volatility.  
- Financial Secretary Paul Chan attributed this performance to the stable growth of mainland China's economy, which helps solidify Hong Kong's role as a global high-tech financing hub.  
- While the uncertainty surrounding Middle Eastern conflicts continues to impact the market, Hong Kong's IPO sector remains robust, attracting significant investments and enhancing local consumption through rising employment and retail sales.

Hong Kong economy showed resilience in first quarter of 2026, Paul Chan says