PROSPECTS AND FUTURE PLANS
The growth momentum of Hong Kong economy has slowed since the beginning of 2018. The Hong Kong economy contracted by 1.2% for 2019 as a whole, the first annual decline since 2009. In the first half of 2019, the economy growth of Hong Kong was only by 0.6% year-on-year amid softening global economic growth and the trade war between United States of America (the “US”) and China. The economy then worsened and recorded sharp shrink of 2.8% and 2.9% respectively in the third and fourth quarters.
China posted GDP growth 6.1 percent, the slowest pace in 29 years but still within the government’s target of 6 to 6.5 percent, this was the weakest growth rate since the first quarter of 1992.
During the financial year, elevated US-China trade tensions and the outbreak of coronavirus, the poor market sentiment immersed throughout the global.
In 2020, the economy of Hong Kong and China are expected to remain under pressure. Although the phase one trade deal between China and the US eased trade tensions, existing tariffs will remain in place.
The external environment is of high relevance to the economy and financial market in Hong Kong. In term of the negative growth projections of Hong Kong and slow growth projections of China, the Group expects it is full of challenges in 2020. Because of the outbreak of coronavirus in Hong Kong, the management of the Company expects there will be an adverse impact to the Group in coming months. However, our management will actively keep monitoring the performance of the Group and assessing how the impact to the Group, and will implement fitting strategy in a timely manner. Looking ahead to 2020, the Company will stay in focus to invest in trading securities, private equity funds and private enterprises with potential prospect. Our approach will keep timely and appropriate investment strategies in response to the volatile market, in order to enhance our investment portfolio and achieve net asset appreciation. The Board will pay close attention to the macro trends and keep seeking opportunities to invest in China, Hong Kong and overseas. The Company will continue to implement its risk management policy with an aim to achieve stable returns on investments for our shareholders.