Hong Kong growth expected to gather speed next year
Hong Kong's economic growth is set to speed up next year as advanced economies begin to recover. But the city's property market still looks shaky. An expected tapering of the US Federal Reserve's stimulus could spark a capital outflow from Hong Kong, which together with market-cooling measures could slash property prices by 10 per cent, analysts said.
Hong Kong's economic growth is set to speed up next year as advanced economies begin to recover. But the city's property market still looks shaky.
An expected tapering of the US Federal Reserve's stimulus could spark a capital outflow from Hong Kong, which together with market-cooling measures could slash property prices by 10 per cent, analysts said.
Citi Research and Standard Chartered Bank respectively forecast Hong Kong's gross domestic product will jump by 3.4 per cent and 4 per cent next year, compared to 3 per cent this year.
Strong infrastructure investments and better exports following continuous recovery in the US and the euro-zone economies will help jump-start growth.
But both expected the year to have a bumpy start as a reduction in the Fed's bond buying - which could start as early as March - may draw capital out of the city's equity market. They believe the magnitude would be moderate given Hong Kong's connection to mainland China and its leverage as an offshore yuan market.
Senior rates strategist at Standard Chartered Becky Liu said the issuance of dim sum bonds in Hong Kong may jump to HK$500 billion next year from HK$360 billion this year in light of redemption of maturing bonds.
