Hong Kong is well positioned to navigate external shocks and keep growth on course, buoyed by the mega-event economic boom and underpinned by the Chinese mainland serving as a stabilizing anchor, Financial Secretary Paul Chan Mo-po said in his Sunday blog.

He said the special administrative region government is keeping a close watch on developments in the Middle East and the potential fallout from rising oil prices.

“For now, the direct impact appears limited, given the city’s service-driven economy and its relatively small exposure to trade with the region. Even as global investor sentiment comes under pressure, Hong Kong’s financial markets have remained orderly, with liquidity conditions holding steady.”

Looking ahead, Chan warned that a prolonged conflict could ripple through the global economy, affecting growth, interest rates and the direction of capital flows. The city’s energy supply is expected to remain stable, backed by the mainland.

ALSO READ: Super rich regain zest for Hong Kong as war stokes Gulf unease

Still, higher fuel and energy costs could weigh on shipping, logistics and other parts of the economy, adding to operating pressures. 

“Ultimately, the mainland’s steady development remains Hong Kong’s strongest pillar of support. In an increasingly complex external environment, the country has demonstrated strategic resolve by maintaining stable, predictable and open economic policies, serving as a critical anchor of certainty for the global economy,” the finance chief said.

Breakthroughs in artificial intelligence, robotics and new energy are accelerating the development of emerging industries, creating fresh opportunities for global investors and reinforcing incentives for deeper collaboration. “Against this backdrop, Hong Kong’s unique role as both a ‘super connector’ and ‘super value-adder’ will only become more pronounced,” he added.

ALSO READ: Boao conference: Investors laud Hong Kong’s gateway role

Amid global headwinds, the SAR’s mega-event economy push is bearing fruit. The city has welcomed more than 13.7 million visitor arrivals so far this year through March 27 — up about 17 percent from a year earlier. February’s retail sales figures are expected to show a solid gain and could mark a 10th straight month of year-over-year growth, highlighting improving consumer momentum, Chan said.

A busy calendar of major events and sporting competitions is helping reinvigorate Hong Kong’s tourism and retail sectors. Chan said several family office representatives at the fourth edition of Wealth for Good in Hong Kong Summit on Thursday told him they planned to extend their stay in the city to attend Art Basel — Asia’s largest contemporary art fair.

Hong Kong stands as one of the world’s three leading art trading centers. Chan said the SAR government has inked a five-year partnership with Art Basel, cementing the city’s role as the fair’s sole host in the region.

READ MORE: Hong Kong’s advantages as a capital ‘safe haven’ are becoming clearer

Following this month’s LIV Golf tournament, rugby icons will take center stage at the Hong Kong Sevens, and cycling fans can witness world-class competition at the UCI Track World Cup next month.

“With the local economy on a steady upward path, and backed by the mainland’s enduring support, Hong Kong is well positioned to weather storms and maintain forward momentum,” he said.

sophialuo@chinadailyhk.com