Hong Kong's economy grows for 10th straight quarter as consumer, investor sentiment perks up

Hong Kong's economy continued expansion in the second quarter of 2025, the 10th consecutive quarter of growth, as consumer and investor sentiment warmed, local data showed on Thursday.

Advance estimates from the Census and Statistics Department of the Hong Kong Special Administrative Region (HKSAR) government showed that Hong Kong's real gross domestic product (GDP) rose by 3.1 percent year on year in Q2, picking up from the 3-percent rate registered in the first quarter.

Analysts and industry insiders said that the solid Q2 growth was boosted by strong export performance and improved domestic demand, pointing to notable economic resilience.

Total exports of goods measured in national accounts terms recorded an increase of 11.5 percent over a year earlier as external demand retained steam, while bullish local stock market buoyed export of financial and business services, said a spokesperson for the HKSAR government.

"The strong goods export figure is a result of Hong Kong forging closer ties with the Chinese mainland market as well as other markets around the world. Its role as a global trade hub remains unchanged," said Liang Haiming, chairman and chief economist of the China Silk Road iValley Research Institute.

Hong Kong boasts the world's biggest initial public offering (IPO) market and one of the best-performing stock markets by mid-July. The 52 IPOs raised 124 billion Hong Kong dollars (15.8 billion U.S. dollars) in total.

Total market capitalization of the Hong Kong bourse came in at 42.7 trillion Hong Kong dollars in the first half of this year, up 33 percent year on year.

"The rising valuation of Chinese assets showed that global investors appreciate Chinese companies' ability to innovate," said Zhao Yang, managing director of CICC Global Institute.

Another token of renewed investor confidence is capital inflow into the city. The number of registered funds reached 976 as of March 2025, with overall net inflows exceeding 44 billion U.S. dollars, a year-on-year increase of 285 percent.

"Continued capital inflow, stock market upticks, as well as the HKSAR government's efforts to land mega events and high value-added tourism, have bolstered consumer sentiment," said Financial Secretary of the HKSAR government Paul Chan.

Private consumption expenditure in Q2 increased by 1.9 percent after four consecutive quarters of decline, Thursday's data showed.

The long streak of steady GDP growth affirms global confidence toward Hong Kong's economy and creates a nurturing environment for its economic upgrade, especially in exploring new drivers like green finance, sci-tech innovation and high-end services, said Liang.

A report released by the HKSAR government on Wednesday showed that Hong Kong's core competitiveness is solid and new strengths are emerging. ■