Hong Kong’s finance chief Paul Chan has called for public spending growth not to exceed revenue increases ahead of the February 25 budget speech, while stating the local economy is off to a good start in 2026. He also painted a rosy picture for the retail sector, revealing that December sales figures, due Tuesday, will show continued growth.
Hong Kong’s finance chief Paul Chan made the remarks on Sunday, stressing that public expenditure growth must not outpace revenue growth to maintain fiscal prudence. The statement comes ahead of the expected budget speech on February 25. Chan noted that the local economy is off to a good start in 2026.
He highlighted a positive outlook for the retail sector, with provisional November 2025 retail sales estimated at HK$33.7 billion (US$4.3 billion), up 6.5 per cent year on year. December sales figures, set for release on Tuesday, are expected to show continued growth.
Chan also pointed to strong stock market performance. The benchmark Hang Seng Index closed at 27,387 last Friday, up nearly 7 per cent for the month. January’s average daily turnover exceeded HK$272 billion, a 90 per cent increase from the same period last year. These indicators reflect enhanced vitality in financial markets.
Chan’s comments aim to set the tone for the upcoming budget, emphasizing sustainable fiscal policies while remaining optimistic about the economic outlook.