Hong Kong Economy: Resilience Amid Global Storms

Hong Kong's financial sector continues to be a crucial anchor for economic stability amidst global economic headwinds and trade disputes. A recent survey indicates that 63% of accounting and finance professionals expect modest economic growth for the city in the upcoming year. Participants identified the tax regime, capital markets, and economic activity in mainland China as primary supports for this anticipated expansion.

The city's international competitiveness is perceived as high, with its IPO market having regained its status as the world's leading fundraising hub by the third quarter. Looking ahead, a significant majority of respondents foresee a further increase in IPO activity by 2026. Government policies aimed at enhancing financial connectivity and supporting China's 'Going Out' strategy are viewed as particularly beneficial for organizations.

However, concerns persist regarding high living expenses, a global economic slowdown, and reduced growth rates in mainland China. Trade tensions continue to impact business confidence, with a notable increase in companies relocating or restructuring operations. Despite these challenges, Hong Kong is seen as a safe haven for international investors seeking to manage assets and diversify risks.