Pedestrians bustle around the Causeway Bay retail hub in Hong Kong on Friday. Photo: Li Qiaoyi/GT

Hong Kong's top finance official urged concerted efforts to deal with the recession in the city and said improvement will depend on its social situation.

Analysts said they are optimistic about Hong Kong's economy, since its position as the financial center of Asia remains solid.

"Hong Kong's continued negative economic growth in the fourth quarter is inevitable, but the core competitiveness of its financial market remains a driving force for future economic development," said Financial Secretary for the Hong Kong Special Administrative Region Paul Chan Mo-po on Sunday.

The Hang Seng Index closed at 28,225.42 points on Friday, up about 3,000 points from the start of the year. Hong Kong's equity market had more than HK$280 billion ($35.9 billion) in IPOs this year, the highest in the world for the seventh time in the past 11 years.

Chen Bo, a professor of the Central University of Finance and Economics, said that Hong Kong's financial sector remains robust.

"The central government is looking for ways to maintain Hong Kong's financial position. Whether Hong Kong's economy will suffer a long-term recession or a short-term setback will depend on the stability of society," Chen told the Global Times on Sunday.

Social violence in Hong Kong hurts not only the local people but also the stability of economic development, Sun Wenhua, president of Shanghai Gaocheng Investment and Management Co, told the Global Times on Sunday.

Retail sales in Hong Kong fell 26 percent year-on-year in October, the biggest monthly drop on record. Violent scenes have also spooked foreign businesses and visitor arrivals, which fell nearly 50 percent in the traditional peak season of Christmas, Chan said.

"Hong Kong cannot afford more violence and hatred, which will destroy Hong Kong. An early improvement in consumption and tourism will depend on the social situation in Hong Kong," Chan noted.

The Hong Kong government will implement a new round of support measures for small and medium-sized enterprises (SMEs) in January 2020, including funding for marketing to support the major pillar of the economy.

There are more than 300,000 SMEs in Hong Kong, employing around 1.3 million people.

"Hong Kong has experienced ups and downs, but it faces difficulties and obstacles with full confidence. I believe that Hong Kong will bounce back," said Sun.