Everything seems to be going Hong Kong’s way these days. The country’s growth spurt seems to have convinced the government to begin a stimulus pullback and cut certain measures. Will the exchange traded fund (ETF) be far behind in reflecting the improvement?

Exports and retail spending have rebounded, sparking a wave of optimism about the economy. As a result, the government limited stimulus in its most recent budget and is turning an eye toward cooling potential asset bubbles. The BBC reports that Hong Kong’s economy will grow between 4% and 5% this year. Financial Secretary John Tsang said that in order to tamp down a potential property bubble, taxes on the most expensive homes would be raised. Home prices have soared 29%, so it’s no wonder they’re a little nervous. [Hong Kong Looking to the Future.]

It’s not all sunshine and roses; like many nations, Hong Kong is hyper-alert to inflation risks and the recovery is far from a firm one. Consumer prices rose 1% in January from a year earlier, but it represents a pullback from December’s 1.3% spike, reports Bloomberg. [Hong Kong At Risk of an Asset Bubble?]

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