Citibank: Hong Kong's GDP is expected to grow by 2.5% next year, housing prices will increase by 3%, and the Hang Seng Index target is 28,800 points.

Ray Choy, chief economist for Citigroup in Greater China, expects that the Hong Kong economy will recover faster next year, but the growth rate will slow slightly. Due to the high base, GDP growth is forecasted to be 2.2% in the first half of next year, accelerating to 2.9% in the second half, with an overall annual growth of 2.5%. Citigroup expects the Federal Reserve to further cut interest rates next year, which will help keep HIBOR at a low level, supporting a 3% increase in residential prices in Hong Kong next year, while commercial buildings will continue to be under pressure. Citigroup predicts that the Hang Seng Index will rise to 27,500 points by mid-next year and is likely to climb to 28,800 points by the end of the year. The two major risk factors in the future are the ongoing geopolitical uncertainties and the accelerated integration of Hong Kong and the mainland, which means greater industry competition and more noticeable operational and profit pressures for small and medium enterprises and the catering industry.