Hong Kong's recent holiday period, combining the Ching Ming Festival and Easter, resulted in strong tourism figures. During the break, Financial Secretary Paul Chan summarized Hong Kong's economic performance for the first quarter of the year. Chan stated that while external factors have led to a market correction—with the Hang Seng Index declining approximately 2% year-to-date—trading activity has remained robust. Daily average turnover exceeded HK$260 billion in the first two months, up 17% year-on-year. In March, average daily turnover surpassed HK$300 billion, an increase of over 8% compared to the same period last year.
This trend reflects investors increasing their asset allocation in Hong Kong amid global uncertainties, viewing the city not only as a safe financial harbor but also as a source of substantial investment opportunities due to mainland China’s stable economic growth and the influx of high-quality companies listing locally. Chan emphasized that global competition in cutting-edge technologies such as artificial intelligence has intensified, and Hong Kong’s listing platform is playing a critical role in this arena.
He highlighted that IPO fundraising in Hong Kong during the first quarter exceeded HK$103 billion, ranking first globally. A growing number of listing applicants are from emerging sectors, including AI, semiconductors, and robotics, with over 500 companies currently in the queue to go public. This indicates that in times of international uncertainty, more enterprises see Hong Kong as a vital gateway for fundraising and global expansion.
On the export front, benefiting from a rebound in global electronics demand and restructuring of regional supply chains, the value of Hong Kong’s merchandise exports rose nearly 30% year-on-year in the first two months of the year, signaling a solid performance. Despite an unpredictable trade environment, Hong Kong’s role as a trade hub remains strong.
The extended holiday period around Easter and Ching Ming Festival saw significant cross-border travel. Immigration Department data showed 706,000 outbound trips and 529,000 inbound trips on April 4. By 10 a.m. on April 5, approximately 225,000 passenger trips had been recorded. The tourism sector reported stable business during the holiday, with high-speed rail tour registrations rising about 30% year-on-year.
Chan noted that Hong Kong’s retail sector shows clear signs of recovery. Total retail sales value increased 11.8% year-on-year in the first two months, marking the tenth consecutive month of growth. The pace of growth accelerated compared to the fourth quarter of last year, with improvements not only in high-end consumption but also in everyday categories such as furniture and apparel, indicating broadening consumer confidence.
Online sales surged 27.5% year-on-year during the same period, driving development in supporting industries such as electronic payments, logistics, and data analytics. These changes are injecting new vitality into the retail ecosystem. The labor market remained stable, with the unemployment rate falling to 3.8%. Employment in retail and catering improved, overall incomes continued to rise, and positive sentiment in the stock and property markets further supported local consumption.