China’s economy is expected to recover quickly after a pandemic-induced hit, said Hong Kong Financial Secretary Paul Chan.

“In a complex and cloudy global economic environment, the situation in the mainland is relatively good,” Chan said at the Caixin Summer Summit via video conference on Saturday. China’s economy can rebound and maintain stable growth for the rest of the year amid various economic measures, he said.

Chan’s comments come as signs mount that China’s economy shrank in the second quarter for the first time since 2020, following various virus-related lockdowns. A quarterly drop in gross domestic product, which has only happened once before, underlines China’s slower rebound from coronavirus curbs than in 2020, providing less of a boost to a struggling global economy.

China reports the latest GDP figures on July 15.

For Hong Kong, a more outward-facing financial hub, the impact of global economic woes are inevitable, but medium-term prospects remain bright, Chan said.

Chief Executive John Lee told the summit earlier Saturday that his new cabinet is committed to building Hong Kong into a more open and vibrant city. Lee was sworn in as the city’s leader last week.

Both Lee and Chan made references to Chinese President Xi Jinping’s speech during the handover anniversary on July 1. They reiterated Xi’s statement that the “One Country, Two Systems” governing principle is here to stay, and that Hong Kong’s economy can grow with the backing of the mainland.

Source:
courtesy of BLOOMBERG

by Krystal Chia

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