Chief Executive John Lee said on Sunday the city's economy is expected to improve next year.

During a two-hour public forum in Tai Po to solicit views for the upcoming Policy Address, the SAR leader heard numerous appeals from the audience to prop up certain industries.

A securities worker said he had never seen so many brokerage firms shut down. While acknowledging efforts by the SAR administration to lure investment from abroad, he felt the sector has yet seen any material impact.

In response, Lee admitted "difficulties" and "challenges" in the current environment. He believed investors are taking a cautious approach, citing factors such as the upcoming US presidential election, the interest rate development, as well as geopolitical uncertainties.

That said, "those bet against Hong Kong in the long run will be the first to lose", Lee added.

"I believe that the global economic axis is shifting to the East. We should focus on Asean countries and the Middle East, which are the new engines for global development."

The leader was also urged to provide more support to the cultural, sports, and tourism sectors, fresh off stellar performances by Hong Kong's Olympians at the Paris Games.

"Indeed, culture, sports and tourism have been emphasised as a whole. We have had great news recently with the birth of the twin panda cubs, while two more giant pandas are on their way as a gift from the central authorities," he said.

More consultation forums will be held in the coming weeks, before Lee delivers his third annual policy blueprint in October.