Hong Kong's 2026-27 Budget Reveals Robust Market Performance

Deep News
Feb 25

Presenting the 2026-27 Budget, Hong Kong's Financial Secretary, Paul Chan, highlighted an outstanding performance in the stock market. The Hang Seng Index recorded a 28% increase for the full year. The average daily turnover surged by 90% to nearly HKD 250 billion, setting a new historical record. Funds raised through initial public offerings (IPOs) more than tripled compared to 2024, exceeding HKD 280 billion and ranking first globally.

The residential property market experienced growth in both price and volume. Transaction activity remained consistently robust starting from March of the previous year, with the annual transaction count rising to nearly 63,000, a four-year high. Property prices increased by 3.3% over the year, halting a three-year declining trend, while rents also rose by 4.3%. The non-residential property sector saw a rebound in transactions, with the rate of decline in rents and prices narrowing.

The labor market stabilized gradually in the second half of the year. The seasonally adjusted unemployment rate stood at 3.8% in the fourth quarter. Employment income continued to grow, with the median monthly income for full-time employees increasing by 4.2% year-on-year in the fourth quarter.

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