Financial Secretary Paul Chan on Sunday said Hong Kong is poised to end the year on a high note, with economic growth accelerating beyond expectations and positive momentum set to extend into 2026. Writing in his weekly blog, Chan said the city’s economy is now estimated to grow by 3.2 percent in 2025, outperforming earlier forecasts. He attributed this strong performance to robust exports, resilient investment and a vibrant asset market — key drivers that are expected to sustain growth into the coming year. The finance chief said Hong Kong’s stock market has shown remarkable strength, rising for the second consecutive year. As of last week, the Hang Seng Index closed at 25,818 points, up approximately 29 percent from the end of last year, marking its best performance since 2017 among major global markets. "This upward trend is supported by active trading volumes, with new listings raising more than doubling year-on-year," he said. The residential property market has also remained active, he noted, with nearly 57,000 transactions in the first 11 months of the year — a year-on-year increase of about 16 percent and the second straight year of growth. Despite global uncertainties, Chan said exports and investment have stayed robust. He said overall exports performed impressively in the first three quarters, continuing to be the main contributor to economic growth. "Fixed capital investment rose by 2.5 percent in the first three quarters of this year, with the growth rate expanding to 4.3 percent in the third quarter alone, the best performance in four quarters," he said. Chan linked this surge to increased investment in machinery, equipment, software, and intellectual property, driven by widespread adoption of automation and digitalisation by businesses. Private consumption, buoyed by the asset market recovery and improved sentiment, also grew by 0.9 percent in the first three quarters, reversing last year’s decline. Looking ahead, Chan struck an optimistic tone for 2026, forecasting moderate economic expansion supported by regional growth drivers and anticipated interest rate cuts. The coming year also marks the start of the country’s 15th Five-Year Plan, providing Hong Kong a strategic opportunity to align closely with national development goals. Key initiatives will focus on strengthening Hong Kong’s financial sector to attract global companies, positioning the city as an innovation and technology hub and reinforcing its role in international trade. While new challenges may emerge, Chan expressed confidence that the foundation laid in 2025 positions Hong Kong to seize greater opportunities and achieve sustained growth in the year ahead.