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The Golden Snake Brings Auspicious Blessings

Today marks the fifth day of the Chinese New Year. May the New Year bring you good health, boundless success, endless joy, and a steady stream of good fortune! This year’s celebrations in Hong Kong have been particularly spirited, with dazzling Chinese New Year decorations illuminating different corners of the city, from bustling streets and shopping malls to both sides of Victoria Harbour. These vibrant displays served as a stunning backdrop to the spectacular Chinese New Year Parade on the first day of the New Year, and the mesmerising fireworks show on the second night. Both locals and visitors alike excitedly shared their experiences and photos, creating an atmosphere brimming with warmth and energy.

Over the past few days, my family members and friends remarked on the city’s positive market sentiment, with crowds surging in traditional tourist attractions, shopping districts and major malls. From the Chinese New Year’s Eve to the third day of the New Year (i.e. 28 to 31 January 2025), Hong Kong welcomed nearly 680,000 visitors, registering a 6% year-on-year increase. Mainland visitor arrivals rose by 4%, while overseas travellers saw a 16% jump. Hotels across the city nearly reached full occupancy, and retailers rolled out promotions and discounts to delight shoppers and capitalise on the festive momentum.

On the Chinese New Year’s Eve, I visited the Chinese New Year Market at Victoria Park to explore the festive stalls, show support for local vendors and exchange warm holiday wishes with fellow residents.

New Year’s Eve reunion dinners saw packed restaurants across the city. Some friends in the catering industry reported business growth of more than 10%. Some said in popular tourist districts, spending by families soared by 20% compared to regular days. The Chinese New Year Raceday on the third day of the New Year drew roaring crowds to the Sha Tin Racecourse, with betting turnover exceeding HK$1.9 billion, representing a 10% jump from last year. Theme parks were also bustling during the festive period.

The bustling crowds and upbeat market sentiment signal steady recovery in consumer confidence. Hong Kong’s diverse Chinese New Year offerings—from iconic Chinese New Year flower markets and fireworks over Victoria Harbour, to temple visits at Che Kung Temple, the Raceday and the star-studded Chinese New Year Cup football tournament—have captivated both local and international visitors. These festivities have highlighted Hong Kong’s vibrancy with the unique fusion of tradition and modernity as well as East-meets-West energy.

On the third day of the Chinese New Year, I officiated at the opening ceremony of the Chinese New Year Raceday at the Sha Tin Racecourse.

For retailers and the catering sector, success hinges on drawing crowds and driving spending. Observations from industry contacts have revealed strong sales for high-end products as well as those targeting the budget market. Locals and tourists are increasingly drawn to unique products and novel experiences, which they can share with friends and family on social media platforms. Curating joyful memories and unforgettable moments for customers is the key to turning flows of people into revenues.

Hong Kong is doubling down on signature events to attract crowds and visitors. Among them, the Standard Chartered Hong Kong Marathon, popular among locals and international runners, will take place next Sunday (9 February). Over 70,000 participants have registered. Many shops and restaurants are offering special sports gear and themed menus to leverage the buzz. Next month, the Kai Tak Sports Park, boasting a 50,000-seat main stadium, will be officially opened. It will significantly enhance Hong Kong’s ability to host major events. Together with marquee events such as the Hong Kong Sevens, Art Basel, and financial conferences and events such as the Wealth for Good in Hong Kong Summit, we will create the opportunities to draw in more visitors and drive economic returns.

On the fourth day of the Chinese New Year, I joined around 20 000 fans at the Hong Kong Stadium for the Chinese New Year Cup football match and presented prizes to the teams.

We all hope to accelerate economic growth for Hong Kong. However, repeating existing models will not be sufficient to keep pace with emerging trends and the dynamic business environment. The key to achieving growth lies in experimentation and innovation—venturing into new markets and fostering new growth areas by developing novel products and experiences. These efforts are crucial for driving more robust and rapid economic growth in Hong Kong.

Over the past few years, the rapid advancement of frontier technologies, particularly artificial intelligence (AI), has captured global attention and significantly impacted the global political and economic landscape. Technological innovation is essential for enhancing competitiveness, and fostering product and service development. The Hong Kong SAR Government’s ongoing and substantial investments in innovation and technology are gradually bearing fruits. Going forward, we will continue to promote AI development in Hong Kong by focusing on talent, data, computing power, algorithms, application scenarios, and more. We will also further promote transformation and application of AI-driven research outcomes to create tangible social and economic benefits.

The advance estimates of GDP for the fourth quarter and full year of 2024 will be released tomorrow. The data will show the steady progress of Hong Kong’s economy. The quarterly figures, reflecting more recent trends, continue to show improvement. Visitor arrivals notably increased, and private consumption also stabilised during the quarter. In the stock market, trading has remained active since the end of September last year, with the average daily turnover in January reaching HK$147.6 billion, about 12% higher than last year’s full-year average and up approximately 4% from last December. Trading activities in the property market were also generally stable. Moreover, the labour market has remained positive, and inflation stayed moderate. These indicators suggest that the Hong Kong economy is on a stable footing. However, in light of the external political and economic situation, as well as a persistent high-interest-rate environment, we must remain cautious and vigilant.

February 2, 2025