Hong Kong's first-quarter economic performance showed resilience, with a strong initial public offering (IPO) market, steady real-economy growth, and rising local consumption, Financial Secretary Paul Chan Mo-po reported in a blog post today (April 5).
Although the HK stock market experienced a slight correction, trading remained highly active. The Hang Seng Index fell about 2% year-to-date, yet average daily turnover exceeded HK$260 billion in the first two months, up 17% year-on-year, and surpassed HK$300 billion in March, an increase of over 8% compared with the same period last year. This indicates that investors continue to view HK as a safe and reliable financial hub amid global uncertainties, supported by stable growth in the Chinese economy.
HK's IPO market maintained momentum from last year. As of March 27, total funds raised via IPOs exceeded HK$103 billion, ranking first globally. Including follow-on financing, the total capital raised reached approximately HK$237 billion. Notably, an increasing number of companies listing in HK are from emerging industries, including artificial intelligence, semiconductors, robotics, autonomous driving, and biotechnology. Over 500 applications are currently pending approval, highlighting HK's role as a key financing and "going global" platform for companies during uncertain times.
Chan noted that HK's financial markets have long supported the country's reform, opening-up, and economic development. The government is implementing a "Finance+" strategy to help the country develop new productivity sectors and modern industrial systems. He added that HK recently reaffirmed its position as one of the world's top three international financial centers, closely trailing New York and London, reflecting the country's strong economic support and continued domestic growth.
In the real economy, HK recorded strong performance in merchandise exports, with year-on-year growth approaching 30% in the first two months. Retail sales also showed robust recovery, rising 11.8% year-on-year in January–February, marking the tenth consecutive month of growth and an acceleration from Q4 2025. E-commerce sales continued to expand, injecting new vitality into the retail sector.
The labor market remained stable, with unemployment falling slightly to 3.8%. Employment improved in retail and catering sectors, overall household income continued to rise, and favorable trends in the stock and property markets further supported domestic consumption.
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