Hong Kong may record an operating account surplus this fiscal year amid steady economic growth and tighter spending, The Standard reported Sunday, citing Financial Secretary Paul Chan.

Speaking on a radio program, Chan said that while the consolidated account is still expected to post a deficit due to accelerated Northern Metropolis development, rising revenue and cost discipline could flip the operating account into surplus.

He said the city's economy grew about 3% in the first quarter and extended gains in the second quarter, supported by strong exports, according to the report.

Though the third quarter growth may moderate, Chan expects tourism recovery, major events, and a possible US rate cut in September to support asset markets and sentiment, it added.

Chan also highlighted recent active stock trading as a sign of investor focus on returns, but warned that fast capital flows could threaten financial stability, the report said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)