Each year, the head of the influential rural body draws a fortune stick during the traditional fortune-telling ceremony which predicts the fate of Hong Kong for the coming year.

For the Year of the Rabbit, Lau picked stick number 11, which contains a Chinese phrase referencing matters of prestige, money, luck and marriage.

While many of the 96 sticks available have a clear negative or positive connotation, stick 11 is considered neutral, though Lau said it had a clear underlying message for the administration.

"The situation has improved, but the government should work cautiously so that everything can go well," Lau said.

He noted that the same number 11 stick was drawn at the ceremony by his father - then-Heung Yee Kuk head Lau Wong-fat twelve years ago, which is a reminder for the government to do more consultations and listen to more opinions, in order to make its projects more workable.

Lau also expected the Budget to be announced by finance chief Paul Chan Mo-po next month could facilitate a full recovery for Hong Kong.