London Daily

Focus on the big picture.
Sunday, Aug 02, 2026

Hong Kong is open to more economic support after launching its fourth stimulus package in four months, says official

The Hong Kong government on Wednesday evening announced an additional 4 billion Hong Kong dollars ($511 million) in economic stimulus, bringing the total boost to 25 billion Hong Kong dollars (about $3.2 billion).
It was the city’s fourth economic support package in last four months, much of which goes to help tourism, retail and transport.

Hong Kong, a former British colony that returned to Chinese rule in 1997, has seen widespread demonstrations since June, some of which have led to violent clashes between protesters and the police.

The Hong Kong government is keeping an open mind to additional measures that will help support the city’s economy, Edward Yau, the city’s secretary for commerce and economic development, said on Thursday.

“Hong Kong is of course hit doubly by a sort of twin cycle — U.S.-China trade war and also the local unrest; I think the enterprises are hard hit,” Yau told CNBC’s “Street Signs.”

Yau added that the Hong Kong government has been rolling out support measures for businesses even before the social unrest started this year to help enterprises cope with the fallout of the U.S.-China trade war.

“In addition to these, I think we are having an open mind and we will constantly talk to various trades and see how best we can soldier on and ride our storm,” Yau added.

The Hong Kong government on Wednesday announced an additional 4 billion Hong Kong dollars ($511 million) in economic stimulus, bringing the total relief offered to 25 billion Hong Kong dollars (about $3.2 billion).

It was the city’s fourth economic support package, much of which goes to help the tourism, retail and transport industries.

Hong Kong, a former British colony that returned to Chinese rule in 1997, has seen widespread demonstrations since June, some of which have led to violent clashes between protesters and the police. The protests were initially sparked by a proposed law that would have allowed extradition to mainland China, but the unrest later morphed into broader anti-government demonstrations that include demands such as greater democracy and universal suffrage.

In October, retail sales fell 24.3% from a year ago, according to preliminary Hong Kong government data. The city’s government said that slump is the worst on record.

Tourist arrivals slumped 43.7% in October from a year ago to 3.31 million, according to the Hong Kong Tourism Board. Mainland Chinese visitors fell 45.9% in October from a year ago.

The Asian financial hub slid into a recession for the first time in a decade in the third quarter, with the GDP contracting 2.9% in the July to September period from a year ago.

In response to questions about the Hong Kong Human Rights and Democracy Act that was signed into law by U.S. President Donald Trump last week, Yau said the city’s government doesn’t want trade and economic policies to be swayed by politics.

As a special administrative region of China, Hong Kong is governed under the “one country, two systems” principle. Under that structure, Hong Kong is given self-governing power, a largely separate legal and economic framework from China, and various freedoms including limited election rights.

Such a system underpins Hong Kong’s status as a global financial and business center, especially as a middleman between China and the world. The city’s autonomy from China is also a reason why the U.S. treats it differently from other Chinese cities. For example, elevated U.S. tariffs imposed on China in the trade war don’t apply to Hong Kong.

Losing that special treatment would damage the city’s economy, and its repercussions could potentially feed through the global financial system.

“We respect different countries may have their own policies toward others, but ... any trading relationship must be built on mutual interest,” Yau said, citing U.S. trade surplus with Hong Kong that is gained from the city’s open and free economy.

“There is every interest for Hong Kong to maintain our autonomy under the ‘one country, two systems,’ that is given in our constitution by the central government,” he added. “There is no reason why we should depart from that.”
Newsletter

Related Articles

0:00
0:00
Close
Finland Deploys Commercial-Scale Thermal Batteries Using Crushed Rock to Store Renewable Grid Energy
Valued at $109 Million: F-35B Fighter Jet Crashes in Southern California
Sainsbury Agrees to Sell Argos in £120 Million Deal to Private Consortium
High Court Clears Way for Construction of Chinese Embassy at Royal Mint Court
UK Fuel Prices Climb to Multi-Month Highs as Strait of Hormuz Tensions Disrupt Oil Supplies
Severe Summer Drought and Record Heat Put UK Harvests at Risk
Prime Minister Andy Burnham Faces Labour Backbench Opposition Over Potential Support for New North Sea Oil and Gas Drilling
Bank of England Warns Inflation Will Stay Above 3% as Middle East Energy Shock Prolongs Cost-of-Living Pressures
Andy Burnham has Announces Plans to Redistribute Income Tax Revenue to English Mayors
Early-Release Scheme Faces Fresh Scrutiny as Reoffending and Prison Recalls Rise
Police Phone Checks Followed Report on Murder of MI5 Agent Inside Sinn Féin
Archbishop of Canterbury Reaffirms £100 Million Reparative Justice Fund During Ghana Visit
Charities Allege French Police Used Tear Gas Against Channel Migrants
Norwegian Teenager Convicted Over Iran-Linked Murder Plot in Britain
Christian Organisations File Charity Complaints Against Amnesty International UK
Ofgem Tightens Grid Connection Rules for New Data Centres
FTSE 100 Reaches Record High Despite Global Technology Sell-Off
Millions of UK Households Urged to Check Eligibility for Winter Energy Discount
Labour Restores Parliamentary Whips to Diane Abbott and Joani Reid
UK Supreme Court to Hear Challenge Over Palestine Action Ban
UK Commits More Than £8.4 Billion to Dreadnought Nuclear Submarine Programme
England Declares Severe Drought as Wildfire Burns Near Sizewell Nuclear Site
Bank of England Holds Interest Rates at 3.75% as Middle East Tensions Fuel Inflation Risks
Drought Status Extended Across All of Wales as Heat and Dry Weather Deepen Environmental Strain
Record-Low Danube Exposes Probable Mammoth Remains in Bulgaria
UK Business Confidence Climbs to Four-Month High
Greater Manchester Gains Expanded Powers Under Regional Funding Reforms
UK Supreme Court to Hear Appeal Over Palestine Action Terror Ban
Shell's Quarterly Profit Doubles to Nearly $10 Billion on Higher Energy Prices
UK Government Removes VAT From Household Electricity Bills
Exceptional Drought Grips Half of England as Wildfire Threatens Sizewell
Bank of England Holds Interest Rates at 3.75% as Inflation Risks Persist
US Says It Has Carried Out Heavy Strikes on Iran After Attempted Attacks on Its Forces
The chief executive of the popular gaming company laid off many employees and his pay rose to 38 million dollars
UK Employment Holds Steady as Wage Growth Remains Moderate
England to Introduce Artificial Intelligence into Secondary School Curriculum
Wales Launches £1.2 Billion Industrial Regeneration Programme
High Court Upholds UK Digital Surveillance Framework
Northern Ireland Reaches Budget Agreement on Infrastructure and Public Sector Pay
Home Office Expands Digital Border Checks Nationwide
UK Approves Major North Sea Wind and Carbon Capture Project
The World's Most Terrifying Smartphone: Recording, Documenting, and Reporting to the Regime
Scotland Approves Major Renewable Energy Expansion
UK and United States Sign AI and Semiconductor Cooperation Pact
UK Treasury Tightens Fiscal Controls After Gilt Market Volatility
Bank of England Holds Interest Rates at 4.5%
UK Unveils £10 Billion NHS Funding Overhaul and Workforce Reform
The AI User Nightmare: Private Claude Conversations Leaked to the Internet
UK: Former Football Association Leaders Call for World Cup Boycott Over FIFA Privatization Plan
Forbidden Love: China severs millions from their virtual partners
×