Political development will not affect investor confidence, Financial Secretary Henry Tang says, adding that investors are more concerned about market returns.

This was Mr Tang's response today to Moody's annual report on Hong Kong, which said over the next several years political developments could potentially affect confidence.

Mr Tang said this is an annual report, not an updated report, and its viewpoints are no different from what has been said before.

He said if read carefully, the report is very positive about Hong Kong's economic recovery.