HONG KONG: The US subprime housing mortgage crisis that has triggered a global financial market panic will not heavily impact the Hong Kong economy, despite sharp stock drops in the last two weeks, say experts and government officials.

The crisis began when subprime mortgage defaults began to spiral, leading investors worldwide to shed their holdings. Global market sentiments have reached a record low, but market watchers and government officials in Hong Kong do not believe the crisis is a financial crunch.

The special administrative region's economic growth rose nearly 7 percent in the second quarter of 2007 as the city's economy continued to show "broad-based and above trend" expansion, according to the Census and Statistics Department, which indicated Hong Kong's GDP had accelerated to 6.9 percent over a year earlier, from a 5.7 percent increase in the first quarter.