Financial Secretary Paul Chan on Sunday said Hong Kong still needs to explore new markets despite posting strong first-quarter economic figures.

In the first three months of the year, GDP rose by a better-than-expected 3.1 percent and exports climbed 8.7 percent year on year.

Speaking on a Commercial Radio programme, Chan said the surge in exports might have been due to traders trying to beat US tariffs.

He believes the increase would slow and Hong Kong needs to explore new markets amid the trade war.

“We have been responding to the tariff war in several ways. Of course, we have to maintain our position in the European and US markets as they are still important, but we also have to develop new markets, especially in places like Southeast Asia and the Middle East,” Chan said.

“However, this will take time as the US still accounts for a larger share in terms of export volume.”

The government has projected full-year GDP growth of 2 percent to 3 percent, and Chan said he doesn't expect major changes to the forecast as the economic outlook remains uncertain.

The finance chief said at the annual meeting of Asian Development Bank’s board of governors in Milan last week, many developing countries expressed concerns that US tariffs and unilateralism would hinder global economic development.

He also said he expects the Hong Kong financial market to boom this year as a lot of mainland enterprises are planning to list here.