City view of Hong Kong Photo: cnsphoto

As Hong Kong celebrates the 27th anniversary of its return to the motherland, experts and industry insiders said on Sunday the city's hub status will gain further influence with the backing of the Chinese mainland and the coming into effect of security safeguards such as the Safeguarding National Security Ordinance.

A launching ceremony marking the 27th anniversary was held in Hong Kong's Victoria Park on Saturday, kicking off a series of celebration activities.

Since Hong Kong's return to the motherland, with the firm support of the country, the efforts of the Hong Kong Special Administrative Region (HKSAR) government, the concerted efforts of all sectors of society and the hard work of residents, Hong Kong has been riding the waves and constantly breaking new ground, creating success for the practice of One Country, Two Systems, John Lee, chief executive of the HKSAR, said at the ceremony.

Despite economic headwinds, the meddling in its affairs by external forces, and challenges in a fast-developing world, experts said that with the central government's strong backing, Hong Kong can achieve better development by integrating into the overall national development.

In the first quarter of 2024, Hong Kong's GDP grew by 2.7 percent year-on-year, with exports of services continuing to grow notably by 8.4 percent year-on-year, including a jump in the exports of travel services thanks to the continued revival of visitor arrivals, a Hong Kong official said on May 17.

The Hong Kong economy should record further growth in the rest of the year and exports of services should be supported by further revival of inbound tourism alongside the continued recovery of handling capacity, the official said.

Over the past year, Hong Kong's connection with the mainland has increased.

Timothy Chui Ting-pong, director of the Travel Industry Council of Hong Kong, told the Global Times on Sunday that he is optimistic about Hong Kong's future. He said that an economic upswing is taking place in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) despite the global economic downturn, and the opening on Sunday of the Shenzhen-Zhongshan Link will help boost tourism.

According to Chui, Hong Kong's continued prosperity is based on the city's advantageous geographical location, robust legal system and efficient financial markets, which have drawn a multitude of international businesses and investors.

Hong Kong's commitment to integrating deeply into the GBA has brought it closer to the mainland's economic development, promising an even brighter future, Chui said, adding that the city's educational standards and capacity for technological innovation are recognized as key competitive advantages fostering greater economic momentum.

"The future of Hong Kong will only get better," Chui said.

In positive news for the city's retail sector, mainland tourists will be allowed more duty-free shopping in Hong Kong, with mainland raising the purchasing limit from 5,000 yuan ($688) to 12,000 yuan. 

With the steady economic growth in the mainland and the opportunities created by the ongoing development of the GBA, Hong Kong is well placed to play the role of a "super connector" and "super value-adder," proactively taking forward the development of the GBA, Ginger Cheng, CEO of DBS China, told the Global Times in a recent interview.

Despite the highly uncertain external environment, Hong Kong continues to be one of the leading international financial centers and a world-class wealth management hub, Cheng said.

The One Country, Two Systems principle allows Hong Kong to keep its favorable business environment and market efficiency, which are seen as practical foundations for the city's status as an international financial center, Yu Lingqu, director of Financial Development and SOE Research Department at the China Development Institute in Shenzhen, Guangdong Province, told the Global Times on Sunday.

In recent years, Hong Kong has continued to solidify its position as a leading international financial hub, as its deep pool of capital and talent, as well as its vibrant financial ecosystem, are on display, and its stock, bond, foreign exchange, and wealth management sectors have maintained leading positions in Asia and globally. It can be anticipated that the city's financial market will continue to be open and vibrant, offering a plethora of investment opportunities, Yu said.

Hong Kong's flourishing offshore renminbi market and its strong digital transformation and green economy have further enhanced its competitiveness as an international financial hub, said Yu.

Looking ahead, as the GBA continues to develop, Hong Kong is expected to continue playing a vital role in promoting high-quality development of the country's financial industry, Yu noted.