Financial Secretary Paul Chan said Hong Kong's retail sector was showing strong signs of stabilisation and growth, with a stabilising property market, a booming stock market and a steady influx of tourists as key drivers behind the improving operating environment.

Writing in his weekly blog on Sunday, Chan said the provisional total retail sales value for August reached HK$30.3 billion, marking a 3.8 percent year-on-year increase that surpassed market expectations.

He added this represents the fourth consecutive month of positive growth and the largest single increase in 20 months.

The finance chief noted that 80 percent of surveyed retail professionals anticipated a boost to business during the National Day Golden Week, with some projecting double-digit growth.

He said this confidence was fuelled by a significant surge in tourism, in which during the first four days of the eight-day mainland holiday period, the SAR welcomed 877,000 mainland visitors, a rise of over seven percent compared with the previous year.

The city also saw a notable 30 percent year-on-year increase in overseas tourists, with approximately 126,000 arrivals.

"Both residents and visitors planning their holiday itineraries are interested in exploring unique and storied attractions to gain a deeper understanding of the city, its historical development, and its cultural heritage. Often, this exploration leads to new insights and even surprising discoveries about the city," he said.

Looking ahead, Chan said the government plans to maintain this momentum with a packed calendar of events.

Cultural celebrations like the Tai Hang Fire Dragon Dance, the Wine and Dine Festival and the National Games are expected to draw large crowds.

Furthermore, he said high-profile business events such as the Global Financial Leaders' Investment Summit and Hong Kong FinTech Week will attract high-spending business travellers, providing a direct boost to the retail, dining and hotel sectors.

"The government will continue to collaborate with the industry to enhance synergy between different events, maximising their economic benefits for Hong Kong," he said.