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Hong Kong’s public expenditure growth cannot exceed revenue rise: Paul Chan

Hong Kong's Financial Secretary Paul Chan stated that public expenditure growth should not surpass revenue growth, despite improving finances. He highlighted a positive outlook for the retail sector, with November sales estimated at HK$33.7 billion, a 6.5% year-on-year increase. Chan noted a surplus in the operating account due to a stock market boom, while emphasizing the need for prudent management of public resources. He expressed cautious optimism for 2026, citing stable national development and a 3.5% economic growth last year, alongside a significant increase in overall investment.

Soaring Hong Kong rents: tenants pay more – and fight for shrinking space

Hong Kong's rental market is facing intense competition and soaring prices, with rents reaching record highs. Business owner Tracy Sung had to offer above the asking price for a new flat, now paying HK$35,000 monthly, while newlyweds Eunice Fermin-Trin opted for a larger but less central flat at HK$25,000. Analysts predict continued rent increases, with a potential 5% rise this year. The government’s initiatives to attract talent and expand education roles are contributing to the pressure on rents, forcing some tenants to downgrade their living spaces.

Hong Kong Financial Secretary Highlights Global Market Volatility

Hong Kong Financial Secretary Paul Chan Mo-po has addressed global market volatility in his essay 'Maintaining a Positive and Prudent Approach.' He highlighted that international capital movements are significantly impacted by current turbulent conditions, with even safe-haven assets like gold experiencing corrections. Gold surged nearly 30% in January but has since dropped over 12% from its peak. Despite these fluctuations, Hong Kong's financial system remains stable, with bank deposits exceeding HKD 19 trillion. Chan warns that risks and volatility are likely to continue in the coming year.

The Hang Seng Index main futures closed down 0.62% in the overnight session, at 27,330 points. The Hang Seng Tech Index main futures closed down 0.94% in the overnight session, at 5,685 points

Hong Kong regulator ramps up warnings over poor IPO filings

Hong Kong's Securities and Futures Commission (SFC) has intensified warnings to investment banks regarding poor IPO filings amid a surge in listings. The SFC expressed concerns over the lack of regulatory knowledge and experience among active sponsors, leading to inadequate supervision. New requirements mandate banks to report principal bankers and their active listings. The SFC emphasized the importance of maintaining quality in the capital market, warning that sponsors pursuing volume may compromise standards. Inspections of sponsors' resources are expected, and disciplinary actions may follow for non-compliance.