HONG KONG, May 22 (Xinhua) -- The International Monetary Fund (IMF) is set to release its official staff report shortly following board deliberations on the 2026 Article IV Consultation with the Hong Kong Special Administrative Region (HKSAR), commending Hong Kong's resilient economic growth and financial system.

This photo taken on Feb. 1, 2025 shows a city view of Hong Kong, south China. (File photo: Xinhua)

Hong Kong's economy has continued to recover, with growth in 2025 stronger than expected, the IMF noted.

Reaffirming Hong Kong's position as an international financial center, the IMF underscored its "super connector" role as a key advantage, while recognizing that Hong Kong has advanced digital finance initiatives to position its financial sector at the forefront of regulated innovation in Asia, and has strengthened its role as a regional sustainable finance hub.

The IMF acknowledged that policy initiatives, including the development of the Northern Metropolis, can further strengthen cross-boundary integration, support innovation and promote high value-added services.

Hong Kong's financial system, supported by strong buffers and robust regulatory oversight, remains resilient, and the risks are manageable, the IMF said, adding that the Linked Exchange Rate System (LERS) remains appropriate and continues to serve as a credible anchor for economic and financial stability.

The IMF also commended the efforts in strengthening the monitoring framework for the non-bank financial institution sector, as well as enhancing systemic risk assessments and market-wide monitoring of higher-risk activities.

The IMF considered the fiscal stance in 2026 as appropriate, and highlighted that Hong Kong's strong macroeconomic policy framework, anchored by the credibility of the LERS, a record of prudent fiscal management, robust financial regulation and flexible markets, provides a solid foundation for rebuilding fiscal buffers in the medium term.

The IMF Staff Mission visited Hong Kong from March 16 to 27. Discussions were held with HKSAR government officials, financial regulators and private sector representatives. The Concluding Statement of the Mission's assessment was published on May 15. The Staff Report was endorsed by the IMF Executive Board on May 18.