Report says Hong Kong retains sound business environment under 'one country, two systems'

HONG KONG - A report released by the Hong Kong Special Administrative Region (HKSAR) government on Monday pointed out that Hong Kong has retained its sound business environment and unique advantages under "one country, two systems," and the financial hub is still attractive to businesses and investors around the world.

The "Report on Hong Kong's Business Environment: A Place with Unique Advantages and Unlimited Opportunities" was released at a press conference by Paul Chan, financial secretary of the HKSAR government.

Stability restored

The report, the first of its kind released by the HKSAR government, comes as the global financial hub has returned to stability from chaos over the past year and is gathering momentum for a more prosperous future.

While the social unrest in 2019 dealt a severe blow to the society and economy of Hong Kong and upset Hong Kong's business environment, peace and stability were restored after the implementation of the national security law in Hong Kong and the improvements to Hong Kong's electoral system, the report said.

Thanks to these measures, Hong Kong's institutional strengths under "one country, two systems" and other inherent strengths remain intact, and the implementation of the national security law in Hong Kong has reinforced the sound and robust rule of law and judicial independence, it said.

The "one country, two systems" principle has been the cornerstone of Hong Kong's economic development since Hong Kong returned to the motherland in 1997, the report noted.

According to the report, the Hong Kong economy has always been positioning itself to leverage the support from the motherland while engaging with the world. In supporting the mainland's reform, opening-up and continued development by providing high value-added services, Hong Kong has gradually developed into an international financial, trade and transportation center.

The report listed a series of indicators highlighting Hong Kong's financial strengths and resilience.

In the 12-month period following the implementation of the national security law in Hong Kong, funds raised through initial public offerings increased by more than 50 percent year-on-year, and the average daily turnover of the Hong Kong stock market was up by nearly 70 percent from the level before the implementation of the law. The assets under management of the asset and wealth management business in Hong Kong grew by 21 percent, and the amount of bond issuance arranged by Hong Kong ranked first in Asia.