The internal and external economic environment has undergone tremendous changes in the eight years since Hong Kong's return to the motherland

The internal and external economic environment has undergone tremendous changes in the ten years since Hong Kong's return to the motherland, especially after the Asian financial crisis and the slowdown in global economic growth. However, Hong Kong has been able to deal with the impact of various risks such as SARS, political disputes, etc. calmly, successfully turning risks into safety time and time again, and continuously strengthening the ability of the financial system to resist risks, which has further consolidated Hong Kong's status as an international financial center.

The 1998 Asian financial crisis was the biggest test that the Hong Kong Special Administrative Region encountered after its establishment. Faced with the repeated attacks on the financial market by international speculators, the SAR government used decisiveness and wisdom to mobilize huge foreign exchange reserves, act simultaneously in the foreign exchange market, stock market and futures market, directly fight against the international speculators, and finally repelled the ferocious attacks of the international financial predators. , successfully defended the Hong Kong dollar linked exchange rate system.

Although Hong Kong's economy is facing structural adjustment after its return to the motherland, the close economic exchanges between the mainland and Hong Kong have brought new vitality to the financial market. Li Yipguang, chairman of the Hong Kong Stock Exchange, pointed out in his speech at the "Hong Kong Economic Summit 2005" earlier that since 1993, mainland companies have raised more than 8,880 by listing in Hong Kong and raising funds after listing. HK$19 billion (nearly US$114 billion). These figures fully demonstrate Hong Kong's role as a transit market for Chinese companies. As long as Hong Kong maintains the rule of law and strict control by the exchanges and the Securities Regulatory Commission, Hong Kong will remain China's only world-class financial center.

At present, Hong Kong has surpassed Tokyo and London to become the third largest financing center in the world, having raised US$111 billion in financing for mainland enterprises in the past ten years. Financial Secretary Tang Ying-nin said that five years ago, he could not have imagined that Hong Kong could surpass Tokyo and London and become the world's third largest financing and financial center. The Hong Kong government will continue to work hard to enhance Hong Kong's status as an international financial center and hopes to further enhance its status as an asset management center to attract more funds to Hong Kong.

Facts have proven that the implementation of "one country, two systems" has ensured Hong Kong's economic prosperity and social development. The number of multinational companies setting up regional headquarters and offices in Hong Kong exceeds that in any other city in the Pacific region. Three-quarters of the world's 100 largest banks operate in Hong Kong; Hong Kong's stock market ranks second in Asia in terms of capitalization, after Japan. Moreover, Hong Kong has always had the reputation of having the freest economic system in the world and is a successful example of the completely free operation of capitalism.

After Hong Kong returned to the motherland, the Basic Law guaranteed the continuity and standardization of Hong Kong’s economic system in the form of legislation. Drawing on the lessons learned from the Asian financial crisis, Hong Kong has taken measures to strengthen internal financial management and risk control of banks in recent years; the electronic and paperless construction of Hong Kong's securities industry and bond market has also made breakthrough progress. In order to improve the quality of the stock market, the new Securities and Futures Ordinance was introduced. On February 15 last year, Hong Kong banks officially launched personal RMB business services.

Although Hong Kong’s status as an international financial center faces challenges from other cities and countries in the region (such as Shanghai and Singapore), Hong Kong still has certain advantages, including: a sound legal and regulatory system that is increasingly improving Corporate governance and market transparency are higher than those in the region.

In the eight years since its return to the motherland, Hong Kong has withstood severe tests from various risks and remains an international financial center. Hong Kong's financial community generally believes that Hong Kong's status as the region's international financial center will not be shaken in the next ten years. They believe that Hong Kong's resilience in overcoming difficulties in the past decade makes people believe that Hong Kong has the conditions to develop into a global financial center and "China's international city" in the next decade.