Hong Kong's fixed investment growth jumped to 7% in 2Q

What is in store for 3Q?

According to UBS, the CAPEX weakness in 1Q proved temporary, as fixed investment bounced to grow 7%y/y in 2Q. 

Investment is a key driver of employment and growth.

Here's more from UBS:

While it is smaller than consumption it often has a larger impact because of greater volatility. Investment peaked at 34% of GDP in 1997 and fell to 17% as of 2008.

We are positive on the medium-term investment outlook for Hong Kong.

We expect the driver of investment to transit from the cyclical forces to structural forces. Specifically, the strong pipeline of infrastructure investment, plus the government’s commitment to increase housing supply, should boost construction investment going forward.