Prospering hand in hand

With close links to the mainland, Hong Kong has consolidated its status and increased its international competitiveness

The successful Shenzhou IX space mission and the safe return of its crew, which marked a milestone in the development of China's aerospace technologies, added a festive atmosphere to Hong Kong's celebrations to mark the 15th anniversary of its return to China.

On Sunday, local people from various social circles staged hundreds of activities throughout the Hong Kong Special Administrative Region to celebrate the occasion. President Hu Jintao's visit to Hong Kong on Friday and his attendance at the inauguration of Leung Chun-ying as the new chief executive of the special administrative region on Sunday, demonstrated the importance the central government attaches to Hong Kong.

Since the end of Britain's colonial rule on July 1, 1997, Hong Kong has enjoyed a high degree of autonomy over the past 15 years. In the process of implementing the concept of "One Country, Two Systems", Hong Kong has maintained its social stability and further promoted its position in the global economy.

Free from the monopoly of British capital, Hong Kong enjoys the free flow of funds in and out. Its status as an international financial center has been further consolidated and a series of economic indices indicate that Hong Kong has increased its global competitiveness.

All these hard-won achievements have been closely related to the vigorous support of the central government, as well as the hard work of local people and their courage to pioneer innovation and pursue new progress. These have also enabled Hong Kong to overcome a series of difficulties over the past 15 years, including the outbreak of SARS, severe acute respiratory syndrome, and the Asian financial crisis.

A review of the last 15 years shows that Hong Kong has overcome numerous difficulties and challenges and also passed a severe confidence test. Concerned about an "uncertain future" after its return to China, some people in Hong Kong chose to emigrate. However, under the guarantee of the Basic Law and the principles of "One Country, Two Systems" and "Hong Kong people administering Hong Kong", Hong Kong realized a peaceful and stable transition around July 1, 1997. It enjoys a sound legal system and a free commercial environment.

Shortly after its return to China, Hong Kong was pushed to the forefront of the 1997-98 Asian financial crisis; unbridled speculation on the Hong Kong dollar by international hot money during the crisis, together with its exchange rate system, put the special administrative region under severe pressure. But with the staunch support of the central government, Hong Kong successfully survived the raid by some international tycoons on its capital market and successfully safeguarded its financial system.

The mobilization of region-wide resources to counter the negative impacts of the outbreak of SARS in Hong Kong as well as in some mainland regions in 2003 also won approval from the international community. When Hong Kong, having licked its wounds, was pushing for further development, the eruption of the 2008 global financial crisis once again plunged the region into a worldwide economic recession.

Fortunately, every time the special administrative region encounters a setback, the central government has extended a helping hand in a timely manner. Since July 1997, the central government has implemented a range of policies and measures, including the Closer Economic Partnership Arrangement with Hong Kong, which covers trade, finance and services. Among other areas, it has promoted the development of Hong Kong as an offshore center for the yuan and relaxed restrictions on the travel of mainland residents to Hong Kong.

This and other pro-Hong Kong measures have helped strengthen trade and investment cooperation between the mainland and the special administrative region and promoted their joint economic development. The increased two-way personnel flows between Hong Kong and the mainland and the growing number of mainland enterprises listing on the Hong Kong Stock Exchange have also been beneficial to both Hong Kong and the mainland. Vice-Premier Li Keqiang's visit to Hong Kong last August and the 36 central government policies and measures he promised Hong Kong have injected new vitality for the region's economic and social development.

A worsening debt crisis in Europe and the gloomy global economic prospects will bring some uncertainties and challenges in the future. And the housing problem and widening wealth gap between the rich and poor are problems the new chief executive and Hong Kong people will have to address in the years ahead.

However, with continued support from the mainland, Hong Kong will tap its potential and fulfill new chapters of success in the future.

The author is chairman of the Fong Shu Fook Tong Foundation and the Hip Shing Hong Group of Companies.

(China Daily 07/03/2012 page8)