Global Financial Market Review

Financial Secretary Paul Chan on Sunday said he's confident that the new round of consumption vouchers will stimulate the local economy in the short term, but warned that the retail market still faces external headwinds such as global inflation.

Writing on his blog, Chan said the fresh round of vouchers disbursed since Saturday has boosted consumer sentiment, injecting about HK$15 billion of consumption power into the local market.

He added that the voucher scheme has facilitated electronic payment, with around 8 million consumer accounts and more than 150,000 merchants newly registered on six online platforms.

But Chan expressed concern about the challenges facing the economy, such as the local epidemic and geopolitical tensions, noting the decline in the city's retail sales in August.

The finance chief also stressed the need to provide more support for enterprises when it comes to technological innovation, to boost Hong Kong's economic momentum and catch up with neighbouring markets.

In a video post on Saturday, Chan celebrated the National Day by joining a number of local families for a city tour. He also used the newly distributed spending vouchers to buy some longevity peach buns to share with the public.