Financial Secretary Paul Chan on Sunday said things are looking up for Hong Kong's economy, with significant improvements in market sentiment.

In his weekly blog, the finance chief pointed to stimulus measures unveiled by the central government, as well as a recent cut in interest rates, for the upbeat mood.

“Hong Kong's economy is continuing to move forward steadily. The rate-cutting cycle has recently begun, and the sentiment in the financial market has also significantly improved," he said.

The Hang Seng Index crossed the 20,000 mark for the first time in more than a year on Friday, with stock market turnover exceeding HK$445 billion on a record-breaking day for the bourse.

The financial chief recently visited Madrid and London, where he introduced developments in Hong Kong and the Greater Bay Area to politicians, businesses, investors, and representatives of the innovation and technology sector.

"They agreed Hong Kong is a place that is connected to the mainland market, has a friendly business environment with market rules which are easy to understand. The active innovation and technology ecosystem, and the flourishing financial market have brought us lots of common topics and room for collaboration," Chan said.

"On topics such as green transition, culture, education, and even food, there were a number of areas for discussions and reference."