Govt to stay prudent amid China-US tariff talks: FS
The government has released a new report on the city's business environment. Photo: RTHK
Financial Secretary Paul Chan on Wednesday said the government will remain prudent before making any policy changes amid ongoing trade tensions between China and the United States.
His comment came as officials from the two major economies reached an agreement in talks in Sweden to seek an extension of their 90-day tariff truce.
Speaking to reporters at a press conference, Chan said that while the discussions were a positive sign, Hong Kong officials are conscious of the 'tremendous uncertainty' that could lead to sudden changes.
'So in our work, number one, ensure financial stability, financial security, but on the other hand, stay on course, concentrate on what we have set out to be done, and be persistent in our effort, which is reinforcing our relationship with traditional markets – Europe, the US,' he said.
'But at the same time, open up new markets, new capital sources, such as the Middle East and Southeast Asia.'
The finance chief also said the government does not have plans to change its economic growth target of 2 to 3 percent this year, despite seeing positive signs in the market in the first half.
The GDP figure for the second quarter is due to be released on Thursday.
'The first half was pretty positive, first quarter 3.1 [percent], the second quarter maintaining the momentum. But given the geopolitics, there is tremendous uncertainty and volatility. At this stage, we think it would be more prudent to keep the current GDP estimate,' Chan said.
He also said some sectors such as retail and catering are undergoing significant structural changes and said officials will 'keep an open mind' and monitor if there is a need to roll out further support measures.
The government has also released a new report on the city's business environment, the first since 2021.
'Over the past few years, because of Covid, a lot of overseas travellers haven't come to Hong Kong. And also given the geopolitics, the perception about Hong Kong in the Western world is not entirely factually correct. There are some misperceptions,' Chan said.
He added that the report illustrates the current situation in Hong Kong with factual data to provide investors with a better understanding of what is really happening on the ground.
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