US trade policy impact on Hong Kong 'primarily psychological': Finance Chief Paul Chan
SCMP · 1 SOURCESabout 2 hours ago2 MIN
Summary
Hong Kong Financial Secretary Paul Chan Mo-po has stated that the impact of US trade policy shifts on the city would be "primarily psychological" rather than substantive, despite acknowledging that external factors carry significant weight . Two days after the government raised its full-year economic growth forecast to 3.5-4.5 percent, Chan addressed risks facing the city on a radio programme on Sunday . The economy expanded 5.1 percent in the first half of the year, its strongest half-yearly performance in nearly five years .
Key Points
- Hong Kong's economy grew 5.1 percent in the first half of 2026, the strongest half-yearly performance in nearly five years
- Full-year growth forecast raised to 3.5-4.5 percent range, up from previous projections
- Paul Chan described US trade policy impact as "primarily psychological" affecting financial market volatility
- US is Hong Kong's fourth largest export market, smaller than Southeast Asia and other regions
- One additional 0.25 percent interest rate increase already priced in by markets for remainder of 2026
- Retail, property, and stock markets showed growth; catering sector stabilized in recent months
- Chinese and Hong Kong businesses responded quickly to US trade policy shifts over the past years
- Finance chief expects second half of year to remain "cautiously optimistic"
Why It Matters
Despite Hong Kong's strong economic performance in the first half, external uncertainties from US trade policy and interest rate changes could increase financial market volatility in the coming months, requiring proactive risk management from authorities and businesses alike .
Despite Hong Kong's strong economic performance in the first half, external uncertainties from US trade policy and interest rate changes could increase financial market volatility in the coming months, requiring proactive risk management from authorities and businesses alike .