Blog

The ever changing market

A gist of the blog:

The worldwide stock market was volatile last week. Hong Kong stocks dropped around a thousand points in a single day. Although it rebounded afterward, the accumulative drop on Hang Seng index had exceeded 7%. There were also substantial fluctuations in the U.S. and Mainland stocks. Market sentiment quickly became fragile and pessimistic.

The stock and exchange markets are ever changing, so as the situation of the global economy. Following the intensification of the international trade conflict, gradual increase of US interest rate, the strengthening of US dollar and flowing out of international capital, the exchange rate and economy of the emerging markets have been under stress. The International Monetary Fund has indeed adjusted downward the estimation of global economy growth for this year and the next.

Hong Kong is a small and open economy. Facing the looming national conformation, it is difficult for Hong Kong to intervene or stay away from the impact brought about. It is of utmost importance for us to manage the risks, provide support to enterprises, preserve employment and explore new business opportunities, so as to mitigate the negative impacts led by external changes and uncertainties, facilitating continuous stable development of our economy.

I shall kick start the consultation for next year’s Budget soon. We look forward to the active participation of different sectors and valuable views on how we should equip ourselves for combating external changes and meeting future development needs.

October 14, 2018