Watch watching: Financial Secretary John Tsang browses timepieces at the Watch & Clock Fair.

Hong Kong's watch and clock firms should differentiate their products from competitors in terms of quality and design to compete with the global market, Financial Secretary John Tsang says.

Opening the Watch & Clock Fair today Mr Tsang said Hong Kong companies should boost their competitiveness by embracing original design and brand manufacturing in developing high-value and fashionable timepieces.

In this year's first seven months Hong Kong watch and clock exports rose 4.5% from a year earlier to $26.4 billion.

The five-day fair, the largest of its kind in the world, opened at the Convention & Exhibition Centre today, showcasing timepieces from 800 exhibitors from 18 countries and regions.

The Brand Name Gallery features 113 brands by 87 companies from 15 countries and regions, nearly 18% more than last year and the highest brand total since the gallery was established in 2000.

Meanwhile, on the exhibition industry, Mr Tsang said through the concerted efforts of many sectors, Hong Kong has made its way into the world market and established itself as the region's premier exhibition centre.

"But while we should remain confident and upbeat about what we are capable of doing, we cannot afford to be complacent. We should critically examine our strengths and weaknesses and take swift action. I expect more competition to come. The Government will work closely with the trade and associated sectors to ensure that we will continue to maintain our advantage," he said.