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A senior Chinese official from the central government on Hong Kong affairs said on Friday that the status of Hong Kong's financial center will be further consolidated after the implementation of the Hong Kong National Security Law and the improvement of the electoral system.

Zhang Xiaoming, deputy director of the Hong Kong and Macao Office of the State Council, China's cabinet, responded to questions at a press conference on Friday morning about some people's concerns that due to the electoral system reform, Hong Kong will lose its status as an international financial center, and foreign-funded enterprises will flee from Hong Kong to overseas.

Zhang did not go straight for the answer, but first recalled something that happened many years ago.

In September 1983, when the Sino-British negotiations on the future of Hong Kong were at a stalemate, the British side, in order to achieve their goal of "replacement of sovereignty for governance," did not hesitate to play the "economic card" to put pressure on the Chinese side, and suddenly spread information to the outside world that "the negotiations broke down." "The future of Hong Kong is unknown."

Such news made the Hong Kong dollar plummet on September 24, and citizens rushed to buy daily necessities. The date became known as "Black Saturday." 

Prior to Hong Kong's return to the motherland, Fortune magazine's cover story in 1995 had the headline "The Death of Hong Kong," predicting that Hong Kong would not be able to maintain its status as an international trade center and an international financial center after its return. 

Last year, after the release of the Hong Kong National Security Law, the Atlantic published an article entitled "The End of Hong Kong." 

This seems to have become a rule. Whenever there are some important sensitive time points or major events, certain people in Western countries will downplay Hong Kong more vigorously, spreading all kinds of alarmist "predictions" but the facts always surprise them, Zhang said. 

However, Zhang said that after the launch of the Hong Kong National Security Law, investors, both local and foreign, have not weakened their confidence in Hong Kong. On the contrary, it has strengthened. 

Data showed that last year, the amount of funds flowing into Hong Kong reached $50 billion, and the balance of the Hong Kong banking system has repeatedly hit record highs. The amount of funds raised by Hong Kong stock IPOs ranked second in the world and in January this year, the value of the Hong Kong stock market exceeded the historical high of HK$50 trillion ($6.44 trillion).

The American Chamber of Commerce in Hong Kong stated that, compared with the situation in August last year, the proportion of companies optimistic about Hong Kong's business environment rose sharply in January.

Hong Kong has many reasons for its status as an international financial center, but a very important one is the driving force brought by the sustained and rapid development of the Chinese mainland, and "this kind of advantage is not available in other places, and it is also difficult to replicate," Zhang added.

The political, economic, social and business environment of Hong Kong will be further improved, and the status of Hong Kong's financial center will be further consolidated, he added.

Global Times