Financial Secretary Paul Chan expressed optimism that Hong Kong's economy will achieve its annual growth target of 2.5 to 3.5 percent, while predicting a surplus for the government's operating account this fiscal year.

He also confirmed the government would continue to issue bonds to fund critical infrastructure projects in the Northern Metropolis, a key growth driver for the city in the coming years.

In an interview marking the fourth anniversary of the administration led by Chief Executive John Lee, Chan was asked if the city's second-quarter growth would be comparable to the 5.9 percent recorded between January and March.

"Based on our preliminary figures, our exports still performed well in the second quarter. Retail and catering are both showing steady improvements, while the asset market is also stable," he said.

"So we believe the economic targets that were set in the beginning of the year can definitely be achieved... We'll closely monitor changes and take measures as necessary."

Chan had predicted in his Budget a surplus of HK$11.9 billion for the government's operating account for 2026/27.

But a deficit of HK$90.1 billion was forecast for the capital account during the same period, due to heavy investment in public works.

He stood by those estimates made in February, despite ongoing geopolitical uncertainties brought by the Middle East conflict.

"We're confident that the SAR government can record a surplus in its operating account in 2026/27 fiscal year," he said.

"As for the capital account, as we are investing over HK$120 billion into infrastructure projects, this cannot be offset by land sale revenue quickly. That's why we'll continue to issue bonds."

He said the city's debt-to-GDP ratio remained at around 14 percent, which he described as very low.

Separately, the finance minister pledged to step up efforts to expand trade with emerging markets, including Asean and the Middle East, while maintaining ties with traditional partners such as the United States and Europe.

Citing his visit to France, Belgium and Switzerland last month, Chan said that investors from Europe were still keen to invest in Asia.

"If we have good companies coming here for listing, then capital will follow. When we take a look at the few major initial public offerings last year in Hong Kong, many of the cornerstone investors are indeed US and European investors," he said.

"So the political dimension is one, business proposition is another. There are certain gaps between the political sector and the business and finance sectors."

He urged people to keep overseas stakeholders constantly up to date with the situation in Hong Kong.



Edited by Raymond Yeung