Hong Kong to continue to benefit from mainland's development: HKSAR finance chief

Photo shows a view by the Victoria Harbour in Hong Kong, south China, June 11, 2020. (Xinhua/Li Gang)

HONG KONG, Feb. 24 (Xinhua) -- Hong Kong will continue to benefit from the ongoing development of the mainland and the shift in global economic gravity from West to East, Financial Secretary of China's Hong Kong Special Administrative Region (HKSAR) government Paul Chan said on Wednesday.

"Hong Kong can open up greater room for development by leveraging the advantages under 'one country, two systems,' playing its unique role as a gateway and an intermediary, and integrating into the new overall development of our country," Chan said when delivering the annual budget at the HKSAR's Legislative Council.

Hong Kong can also further develop by actively participating in the national dual circulation development strategy and seizing the opportunities brought by the development of Guangdong-Hong Kong-Macao Greater Bay Area (GBA) and the Belt and Road Initiative, the finance chief said.

Although hard hit by the epidemic in early 2020, with the epidemic swiftly put under control and vigorous macro policies implemented in a timely manner, the mainland economy experienced a strong rebound since the second quarter, making China the only major economy in the world that achieved a positive growth in 2020, Chan said.

Hong Kong has been leveraging the support from the mainland while engaging the world. Only by making good use of the advantages of "one country, two systems" with the precondition of strengthening national security can Hong Kong continue to play and even enhance its role on this front, he said.

"We have experienced many changes at different points in our history, but the support of our country has remained unchanged. With the advantages under 'one country, two systems,' Hong Kong has a unique and irreplaceable role in the national development," Chan said.

With its deep and extensive connections with the world, Hong Kong will continue to be an important platform for economic exchanges and trade between the mainland and the international community, he added.

The GBA is the best entry point for Hong Kong to participate in the domestic circulation of the country's economy, Chan said, adding that the GBA Development Office has been set up to strengthen the planning, coordination and promotion of the various policies and measures relating to GBA development.

Furthermore, the HKSAR government will continue to provide financing services to Belt and Road infrastructure projects through leveraging Hong Kong's function as an international financial center and establish connections with mainland enterprises and industry associations for jointly exploring new markets, thereby consolidating Hong Kong's role as a prime functional platform and key node for the Belt and Road Initiative, Chan said.

Chan also noted that last year's total transaction value of the Southbound and Northbound Trading of Stock Connect programs more than doubled that of the year before. He said that the mutual market access programs have been operating smoothly and Hong Kong can contribute more proactively to the country's "dual circulation" strategy.

The HKSAR government and local regulatory authorities have set up a joint working group to explore how Hong Kong can complement the economic and financial development of the country and meet the needs of international investors, Chan said, adding that the office will set out the development blueprint and put forward concrete proposals and measures for engagement with the central authorities to secure their support.

Taking into account the catch-up growth that would follow the initial economic recovery this year, Chan forecast that Hong Kong's economy will grow by an average of 3.3 percent per annum in real terms from 2022 to 2025, while the underlying inflation rate will average 2 percent.