Strong trading and economic growth in Q1: FS

Financial Secretary Paul Chan on Sunday said Hong Kong’s financial market performed well in the first quarter of this year and the city’s real economy also showed improvements. Writing in his weekly blog, Chan said the stock market saw active trading in the first quarter of this year, with the average daily turnover in the first two months exceeding HK$260 billion – a 17 percent rise year-on-year. He said the market became even more active in March, as daily turnover reached over HK$300 billion – an increase of more than eight percent compared with the same period last year. “This reflects that amid uncertainties, investors are increasing their asset allocation in Hong Kong, not only because they see the city as a reliable safe haven for their funds, but also because of the stable economic growth on the mainland and the large number of companies listing in Hong Kong, which provides them with numerous investment opportunities,” he said. The finance chief also said Hong Kong’s IPO market continued its strong performance, raising over HK$103 billion as of late March, ranking first globally. The SAR has seen more than 500 listing applications, he added. Meanwhile, Chan said Hong Kong also recorded improvements in exports and local consumption. He said total retail sales in the first two months of this year rose by 11.8 percent year-on-year, marking the 10th consecutive month of growth, adding that the rate of increase was accelerating compared with the fourth quarter of last year. Chan said the SAR also saw booming online sales, with year-on-year growth of 27.5 percent in the first two months. Edited by Tony Sabine