Hong Kong recorded a 17 per cent growth in investment in the first quarter of the year driven mainly by machinery purchases and construction-related activities, according to the city’s finance chief, reflecting a steadily improving property market.

Financial Secretary Paul Chan Mo-po on Sunday acknowledged a gap in perceived economic growth among residents working in different sectors as the city recorded its fastest quarterly GDP rise in nearly five years of 5.9 per cent. But he remained positive about the investment environment and prospects for the year.

Chan told a radio show that robust exports and a 17 per cent increase in investment were the main drivers of the economy.

“The 17 per cent investment growth in the first quarter reversed the single digits growth in the past few years,” he said.

“This reflects a positive market attitude, with funds mainly used to purchase machinery and construction-related projects. The stabilisation and improvement of the property market has also increased the recovery momentum of the construction industry.”

Despite the ongoing trade war, Chan said both mainland China and Hong Kong businesses had shown “remarkable agility and flexibility”, resulting in strong exports.