The Hang Seng Index, a reliable economic indicator for Hong Kong, hit a historic high of 22,085 points on the morning of June 25 following five record-setting days in the previous week. With the scope of the qualified domestic institutional investors scheme recently widened, it appears that the bull will be here to stay for some time.

Meanwhile the Hong Kong Special Administrative Region (HKSAR) is celebrating its 10th anniversary. The entire city is immersed in a joyous atmosphere. State leaders are arriving today, bringing with them the central government's love and care for Hong Kong people and sharing their joy in these historic moments.

While the city is busily making money and preparing for its birthday party, few people here would have remembered an article published 12 years ago by Fortune magazine on Hong Kong's future had its sister publication Time magazine not brought the topic up again recently.

In its June 26, 1995 issue, Fortune published a cover story entitled "The Death of Hong Kong", claiming ominously that "the naked truth about Hong Kong's future can be summed up in two words: It's over."

Fortune's pessimistic prediction, though arbitrary, did create some concerns in the community here as "one country, two systems" was an unprecedented undertaking and nobody at that time knew how well it would work. This sinister prophesy had cast a dark shadow over the territory.

When Hongkongers woke up on the morning of July 1, 1997, they found nothing changed except the flags, just as Deng Xiaoping had promised. No People's Liberation Army soldiers who had links with the triads went prowling in the street, as the Fortune article had ridiculously suggested. Newspapers were not gagged. Life went on as before, much to the doomsayers' disappointment.

What has happened after 1997 has proven that everything good about Hong Kong has remained unchanged, such as the rule of law, a clean and efficient civil service, and an intelligent and enterprising population, not to mention the territory's wide network of international connection.

Changes did occur, but to the SAR's advantage. The first and foremost change was that the territory had been taken away from its colonial masters and returned to a caring motherland with a burgeoning economy. It has transformed from an exploited colony into a vibrant Chinese city with a promising future. It now benefits from the backing of a strong sovereign state and the vast potential of a mammoth hinterland.

Yes, the new SAR was faced with grave challenges right from the beginning - Asian financial crisis, avian flu and SARS attacks and economic slowdown, to name a few.

Under the leadership of the first chief executive Tung Chee-hwa, Hong Kong was able to sail through these violent storms one by one. Leveraging on the solid backing of the central government, which launched the Closer Economic Partnership Arrangement, Individual Travel Scheme and other supportive measures, the local economy gradually emerged from the shadow of SARS and embarked upon the path of recovery.

For many years after 1997, the Hong Kong economy has remained the freest and one of the most competitive in the world. People's livelihoods have improved.

The rule of law is still intact and the local populace is enjoying an even higher degree of human rights and freedom than in pre-handover years. The government now led by Donald Tsang is committed to creating a harmonious society and developing the city into a world financial hub.

On the eve of the SAR's 10th anniversary, Hongkongers are full of confidence and are setting their eyes on the future.

E-mail: zouhr@chinadaily.com.hk

(China Daily 06/29/2007 page10)