A snapshot of Hong Kong Photo: VCG

The Hong Kong economy has seen five consecutive quarters of growth, primarily driven by a revival of inbound tourism alongside the continued recovery of the stock market, Financial Secretary Paul Chan Mo-po said on Sunday, stressing that the good performance demonstrates the sustained growth momentum of Hong Kong.

The surge in Hong Kong's inbound tourism was a key factor driving the city's first-quarter economic growth. With an increasing number of visitors to the city, services output is steadily rising, as highlighted by the financial chief in his weekly blog.

Around 670,000 visitors from the Chinese mainland had visited the city between Wednesday and Saturday, the first four days of the May Day holidays, which ran from May 1 to 5, Secretary for Culture, Sports and Tourism Kevin Yeung Yun-hung told a radio show on Sunday.

The tourism chief noted that spending by Chinese mainland visitors in Hong Kong is estimated to have exceeded HK$2 billion ($256 million) during the holidays, as arrival numbers aligned with original estimates despite the recent stormy weather.

Hong Kong's economy has maintained a favorable growth trajectory this year, with an accelerating trend overall. This can be attributed to a substantial adjustment of the economic structure following the COVID-19 pandemic, Cong Yi, a professor at the Tianjin University of Finance and Economics, told the Global Times on Sunday.

More notably, the sustained recovery of the mainland's economy has bolstered Hong Kong's growth and reinstated market confidence in its economic performance, Cong said.

As a front-runner in China's opening-up, Hong Kong is actively driving economic integration with the Greater Bay Area, which offers significant momentum and opportunities for its economic development.

Hong Kong's real GDP grew 2.7 percent year-on-year in the first quarter of 2024, the fifth consecutive quarter of growth. After seasonal adjustment, the quarterly growth rate stood at 2.3 percent, according to data from the Census and Statistics Department.

As another indication of the stable recovery of the city's economy, Hong Kong stocks have climbed for nine straight trading sessions, with the Hang Seng Index surging by nearly 14 percent overall. The average daily trading volume exceeds HK$128 billion, signaling improved sentiment in the financial markets, Chan pointed out.

The recent rebound in the Hong Kong stock market is expected to have a positive impact on the economy in the second quarter. The central government's support for Hong Kong's economic development and financial market liquidity reflects its commitment to maintaining the city's status as an international financial center, Liang Haiming, chairman of the China Silk Road iValley Research Institute, a Hong Kong-based research institute, told the Global Times on Sunday.

This support has led to a steady rise in financial markets, creating a positive "wealth effect" on the economy and consumption in Hong Kong, sparking optimism in its growth for the following quarters, Liang said.

Hong Kong is stepping up efforts to accelerate economic development by "continuing to build on its traditional strengths while exploring new sources of growth," as the financial chief put it on April 28. 

The Financial Secretary announced at the end of February the withdrawal of all property cooling measures in Hong Kong's 2024-25 budget, eliminating the requirement for additional stamp duties in residential property transactions. With the easing of property market restrictions, related transactions have picked up momentum, and prices show signs of stabilization, according to Chan.

In line with global digitalization and green economic transformation, the budget also proposes various measures to assist small and medium-sized enterprises, including those in the catering and retail sectors, in their digital transformation to adapt to evolving tourist spending patterns, Chan added.