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A City Alive with Mega Events

A series of mega events held in Hong Kong over the past few weeks has drawn visitors from around the world, creating a lively atmosphere across the city. One of the highlights over the past two days has undoubtedly been Art Basel Hong Kong, which is being held at the Hong Kong Convention and Exhibition Centre in Wan Chai.

This flagship arts event has been staged in Hong Kong for 14 consecutive years. It continued even during the pandemic by switching to an online format. Many art lovers, collectors and visitors have long set aside this time of the year to visit Hong Kong and attend this renowned art fair, while exploring the city and enjoying its culinary delights. A number of major conferences and investment forums targeting family offices and high-net-worth individuals have also been scheduled to take place in Hong Kong at this time, allowing financial conferences and cultural and arts events to reinforce each other and create synergy.

Yesterday, I paid a visit to Art Basel, where participating artists and gallery directors told me that this year had seen an increase in attendance, with better art sales. They value Hong Kong’s openness and inclusiveness, its distinctive culture that bridges the East and the West. They regard Hong Kong as an ideal platform for expanding into the regional and even global market.

Engaging with gallery directors, as well as members of the public and visitors at Art Basel yesterday.

At the Wealth for Good in Hong Kong Summit hosted by the HKSAR Government early last week, representatives from a number of family offices told me that their stay in Hong Kong would be longer this time as they would like to attend the art fairs to be held immediately afterwards. They were keen to gain a deeper understanding of the rich cultural heritage underpinning Hong Kong’s status as an international financial centre.

Art is an expression of human thought and emotion, fostering connections across geographies, cultures and eras. Works of art also carry transaction value and can generate high value-added services and industries. Hong Kong is among the world’s top three art trading centres. To solidify Hong Kong’s brand as a premier events destination in this area, we have entered into a five-year collaboration arrangement with the organiser of Art Basel, thereby reinforcing Hong Kong’s position as the exclusive host city in the region.

We will continue to promote a wide range of major events covering finance, arts and culture as well as sports to attract more high value-added visitors and to offer members of the public a wider range of cultural, leisure and entertainment programmes. Following this month’s LIV Golf, major tournaments such as the Hong Kong Sevens and the UCI Track World Cup will be held in Hong Kong next month.

Speaking at the Wealth for Good in Hong Kong Summit Gala Dinner.

Attending a fireside chat session at the Bloomberg Family Office Summit.

Major events and sporting competitions are injecting greater momentum into the tourism sector. As of 27 March, visitor arrivals have exceeded 13.7 million so far this year, representing an increase of around 17% year-on-year. The recovery of the tourism sector is gaining traction, lifting sentiment in the domestic market. Together with the continued improvement in the stock market and the residential property market, this has supported continued growth in sectors such as catering and retail, further strengthening market confidence. Against this favourable backdrop, the total retail sales value for February—scheduled for release this week—is expected to record a solid increase and achieve year-on-year growth for the tenth consecutive month, reflecting the strengthening local consumption momentum.

Hong Kong’s overall economy continues to improve. On the export front, Hong Kong’s merchandise exports surged by nearly 30% year-on-year in value terms in the first two months of the year, extending growth for 24 consecutive months and exceeding market expectations. This was mainly driven by increased exports of electronic products to the Mainland and ASEAN. It reflects that external demand is steadily recovering, and Hong Kong is playing a pivotal role as a “super connector” amid the reconfiguration of regional production and supply chains. Investment also maintained growth: the Purchasing Managers’ Index (PMI) in February rose to its highest level in nearly three years and stayed in the expansionary zone for the seventh consecutive month, indicating increasing confidence among businesses on the operating environment and future prospects.

In the residential property market, both prices and transaction volumes rising have continued their uptrends so far this year. Over the first two months, the flat price index recorded a cumulative rise of about 2.6% , marking nine consecutive months of increases. Average monthly transaction volume was 18% higher than the monthly average last year, at more than 6,100 transactions per month—a favourable performance, alongside positive and vibrant market sentiment.

Hong Kong’s economy is demonstrating solid resilience and momentum; public finances are also continuing to improve. The Government will pursue a dual-track approach of “AI+” and “Finance+” to drive upgrading and transformation across industries and to cultivate new growth engines. These efforts will help reinforce the market’s positive expectations on Hong Kong’s economy, though the external environment remains challenging. In my recent engagements with domestic and international political and business leaders, representatives of international organisations, and rating agencies, many have noted the improving economic and fiscal circumstances in Hong Kong, while also paying close attention to the potential impact of rapidly shifting global landscape.

Indeed, the ongoing conflict in the Middle East, heightened geopolitical uncertainty, and sharp rises in fuel prices are weighing on the global economic outlook. How to diversify investment allocations and strengthen the security of energy, trade and production and supply chains have become a core concern for businesses, investors and governments worldwide.

Meeting with the Group Chief Executive of Barclays, C.S. Venkatakrishnan, during his visit to Hong Kong.

Meeting with Angola’s Minister of Finance, Vera Daves de Sousa, during her visit to Hong Kong.

We are closely monitoring the situation in the Middle East and the potential impact of rising oil prices. In the short term, because Hong Kong’s economy is services-oriented and the share of merchandise exports to the Middle East is relatively small, the direct impact is limited for now. While global investment sentiment may be affected, Hong Kong’s financial markets have continued to operate smoothly and orderly, with stable and ample liquidity.

In the medium term, if the conflict persists, it will inevitably affect the global macroeconomic environment, interest rate trends and capital flows. Hong Kong’s energy supply remains relatively stable, supported by the strong backing of the country.

However, any rise in fuel and energy costs could impose additional burdens on the shipping, logistics and other related sectors in the economy. The HKSAR Government is closely monitoring and assessing market conditions.

The country’s steady development remains Hong Kong’s strongest support. Amid a complex external environment, our country has maintained strong strategic resolve and pursued stable, predictable and open economic and trade policies, serving as a “cornerstone of certainty” for the global economy. In recent years, rapid progress in areas such as artificial intelligence, robotics and new energy—and sustained efforts to advance emerging and future industries—has created opportunities and optimism for investors around the world and further enhanced the willingness of all parties to deepen cooperation. Hong Kong’s distinctive role as a “super connector” and “super value-adder” will become increasingly prominent.

With local economic conditions improving steadily, the country’s steadfast support is the “ballast stone” of Hong Kong’s economic development—helping us better withstand external headwinds and stay on a steady course.

March 29, 2026