He said officials were discussing whether measures were needed to stimulate the property market.

'Over the last few weeks ... [the property market] has shown some movement. We still believe in the market, and if there is any way not to intervene, then we would prefer not to intervene,' he said.

Mr Tang said he was cautiously optimistic that the economy had turned the corner. He was speaking a day after developers urged the government to abandon efforts to stabilise the residential property market as it starts to pick up.

On the general state of the economy, Mr Tang said: 'The government will maintain policies, such as Cepa [Closer Economic Partnership Arrangement], that create a positive environment for economic recovery.'

Regarding rumours that credit ratings agencies would review Hong Kong in light of its increasingly close economic ties to the mainland, Mr Tang said he welcomed a review and hoped to discuss it with the agencies. He said that while the mainland's economy was growing at a rapid pace, policies that had placed Hong Kong in a central position in the country's development were positive.

While the government is widely expected to raise money through debt issuance in the near future, Mr Tang reiterated at the forum that money raised would be for infrastructure projects, new and old, rather than to plug the deficit.

He said that the government's economic solutions would create jobs and the ensuing growth would take care of the deficit.

While a sales tax was still under consideration, he said the government would look at ways to ensure a steady flow of tax revenue, including widening the tax base.