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Earlier this month, the Hong Kong dollar exchange rate remained persistently strong, trading close to 7.75 against the US dollar, and triggered the strong-side Convertibility Undertaking four times. In response, the Hong Kong Monetary Authority (HKMA) repeatedly bought US dollars, injecting a total of about HK$129 billion into the market. The inflow of funds into the Hong Kong dollar bolstered market liquidity, leading to a decline in local interbank interest rates. Notably, the one-month Hong Kong Interbank Offered Rate (HIBOR), which is closely related to mortgage rates, dropped from 4% to around 1.3% recently. However, capital flows and interest rate trends are influenced by multiple internal and external factors, and uncertainties remain. The Government and regulatory authorities will continue to closely monitor market developments to safeguard financial stability.

Last week, I attended the 58th Annual Meeting of the Board of Governors of the Asian Development Bank (ADB) in Milan, Italy. There, I exchanged views with fellow representatives from other economies on advancing the global governance system and creating a prosperous future together. I also shared Hong Kong's economic situation and future key development directions, while promoting Hong Kong's new opportunities to the international community.

During the Labour Day Golden Week, the number of visitor arrivals in Hong Kong has further increased. In the first two days of the Golden Week (1 and 2 May), a total of nearly 570 000 visitor arrivals entered Hong Kong, with almost 490 000 coming from the Mainland, marking a significant 31% increase compared to the same period last year. On 2 May alone, there were 267 000 Mainland visitor arrivals, setting a new record for daily arrivals since the pandemic.