Hong Kong will increase the pace of attracting foreign investment, talent and initial public offerings (IPOs) and step up scrutiny of financial markets amid sweeping external changes including the US’ so-called reciprocal tariffs, the finance chief has said.

Financial Secretary Paul Chan Mo-po highlighted measures the city would take in his weekly blog on Sunday after US President Donald Trump imposed a tariff of up to 145 per cent on goods from mainland China and Hong Kong and raised charges for US-bound small parcels as a trade war between Washington and Beijing escalated.

Other steps include support for small and medium-sized enterprises through the provision of liquidity by local banks and greater risk protection via the Hong Kong Export Credit Insurance Corporation.

“Even if Washington slightly adjusts its measures, it has not made any fundamental changes and investors’ pessimism remains,” Chan said.

On the back of a sudden surge in American bond yields, which cast a shadow on US Treasuries as safe-haven assets, Trump abruptly announced on Thursday that tariffs on all of the United States’ trade partners but China would be put on hold for 90 days.

Chan pointed to Chinese President Xi Jinping’s recent comments that there were no winners in a tariff war and that the country would press ahead with its objectives to advocate for fairer, more inclusive economic globalisation and free trade.