Financial Secretary Paul Chan on Sunday said public finances have improved after government revenue saw a surplus of HK43.9 billion in the first nine months of the fiscal year.

In his weekly blog, Chan said revenue to be generated in the January-to-March period is expected to decline, similar to previous years, and stressed that spending must be carefully managed.

"Despite the improving public finances, we must carefully control the public expenditure to keep public spending below revenue growth," the finance chief wrote.

He noted that Hong Kong's economy grew 3.5 percent in the past year, better than expectations.

Overall investment saw a rise of 4.5 percent for the year, during which the fourth quarter saw a rise of 10.9 percent, the fourth straight quarter of growth.

The FS also said that, with mega events being held in Hong Kong along with a recovery in the asset market, private consumption also rebounded 1.6 percent last year, reversing the preceding year's decline.

December's retail figures – to be announced this week – will also continue to go up, he said, adding the rate of growth will be slightly higher compared to the preceding month.

Turning to the stock market, Chan noted that stocks in the SAR rose nearly seven percent in January despite a volatile global market, with the daily turnover up 90 percent year-on-year to over HK$272 billion.

He also wrote that he met leaders from Europe, the United States and the Middle East at the Asian Financial Forum last week, with many expressing confidence in Hong Kong.