Dragon claws leave mark

As we bid adieu to the Year of the Dragon 2012, a quick review of big economic events in HK over the challenges-filled year might be helpful for us to cope with the unpredictable 2013. China Daily has picked the city's top 10 economic events for our readers to read and digest.

1. Govt unveils toughest ever property curbs

The Hong Kong government on Oct 26, 2012 unveiled a new round of curbs on the property market, the toughest ever government measures which included the imposition of a 5-percent rise in punitive Special Stamp Duty (SSD) from the previous one initiated two years ago - ranging from 10 to 20 percent on short term home resales within a three-year period.

It also slapped an unprecedented 15 percent Buyer's Stamp Duty (BSD) on home buyers who were not permanent Hong Kong residents, to rein in investment activities in the city's property sector by investors from the mainland and foreign countries.

The favorable interest rate environment and narrow supply situation has shored up the mass market's overall residential prices by 20.3 percent year-on-year in the first 11 months of the year, according to data by the international property advisor Jones Lang LaSalle.

Hong Kong government warned repeatedly that the market had shown increasing signs of exuberance and the build-up of a bubble risk.

2. Economic growth slows down

The Hong Kong government trimmed the 2012 full year economic growth forecast further to 1.2 percent due to the slowdown in the export and retail sales sectors.

The local economy in the third quarter this year posted a moderate growth of 1.3 percent compared to the same period a year ago, representing a fourth consecutive quarterly low growth.

External demand remained subdued in the face of the recession-ridden European economies, the slow-growing US economy as well as the setback in Asian production and trade flows. Retail sales also slowed down due to the weakening of the tourist spending in the city. Private consumption was generally supported by the favorable employment and income conditions.

The government also lifted the inflation forecast to 3.9 percent for the whole year in 2012 due to the global food price hike, hot money inflows and the renewed pick-up in local residential rentals.