Financial Secretary Paul Chan said he was confident that the SAR economy will recover in the coming year, as Hong Kong stocks opened sharply higher on the first trading day of the year of the rabbit.

Speaking at a ceremony on Thursday marking the first trading day of the lunar new year, Chan acknowledged that Hong Kong had a tough economic year last year. He attributed this turmoil to geopolitical factors, rising energy and food prices, high inflation, and some of the world’s major central banks raising interest rates and tightening monetary policy, causing large fluctuations in the markets.

But Chan said Hong Kong stocks maintained steady throughout, and that conditions have improved since the end of last year, adding that he would work hard to promote the advantages of listing on the Hong Kong stock exchange.

Also at the event was the chief executive officer of Hong Kong Exchanges & Clearing (HKEX), Nicholas Aguzin, who said the first half of last year was difficult, but that there was some recovery in the second half of the year. He added that there were 10 initial public offerings (IPOs) and about 100 more that are still waiting to be issued.

Aguzin said: "What we’re hoping is that with the new global environment with a much more healthy and optimistic view around the reopening after Covid, this should generate quite a bit of enthusiasm, so we’re excited about what the future brings."

Hong Kong stocks opened sharply higher on Thursday morning as traders returned from an extended Lunar New Year break to play catch up with gains in the rest of Asia this week.

The Hang Seng Index rose 1.55 percent, to 22,386.

Mainland Chinese markets remained closed. (Additional reporting by AFP)