SCIO briefing on NPC's decision on improving HKSAR's electoral system
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E-mail China.org.cn, March 18, 2021
Kyodo News:
My question is about economy. Some people from the economic community are concerned that the reform of the electoral system will cause Hong Kong to lose its status as an international financial center, and that foreign companies in Hong Kong will flee overseas. What is China's take on this? Thank you.
Zhang Xiaoming:
I'll take your question. But before I answer, I'd like to just remind you and other friends from the press of events from the past. In September 1983 when the Sino-British talks over the future of Hong Kong reached a deadlock, the British side, in order to achieve the goal of "trading sovereignty for administration," played the "economy card" to impose pressure on China, and started spreading messages such as "talks collapsing with the future of Hong Kong unclear" to the outside. As a result, on September 24, Hong Kong witnessed sharp devaluation of its currency and runs on banks, its residents started panic buying daily necessities, and it seemed like that was the end of Hong Kong, in an event which became known as "Black Saturday." In 1995, before Hong Kong's return to the motherland, the American Fortune magazine ran a cover story called "The Death of Hong Kong," predicting that it would be impossible for Hong Kong to remain an international trade and financial center after it returned to the motherland. After the enactment of the Law on Safeguarding National Security in the HKSAR last year, another American magazine, The Atlantic, published an article titled "The End of Hong Kong." There seems to be a rule that whenever the occasions are important and sensitive or whenever there are major events, some Westerners will be more enthusiastic in expressing pessimistic views about Hong Kong and spreading all kinds of alarmist "predictions." However, the facts always astound them.
You mentioned the confidence of foreign investors in Hong Kong. Since the enactment of the Law on Safeguarding National Security in the HKSAR, I've observed that both foreign and local Hong Kong investors have more, instead of less, confidence in Hong Kong. Let me provide you with some figures as an example. The capital flowing into Hong Kong last year reached US$50 billion, the balance of Hong Kong's banking system repeatedly set new all-time highs, and the funds raised through initial public offerings (IPOs) in its stock exchange ranked second in the world last year. The stock market is a barometer of Hong Kong's economy and an important indicator in assessing the confidence of investors. The market capitalization of Hong Kong's stock market hit a record of HK$50 trillion this January. Even a survey published by the American Chamber of Commerce in Hong Kong showed the percentage of enterprises optimistic about the business environment in Hong Kong increased sharply in January compared with August last year.
I also want to point out that the reason Hong Kong obtained its special economic status, including as an international financial center, international trade center and international shipping center — especially the international financial center — is attributed to many reasons, including a complete legal system, an abundance of professionals, a highly free and open market, and linguistic advantages. Another important factor is the driving force brought by the Chinese mainland's sustained and rapid development to Hong Kong. Such advantages are not available elsewhere and are difficult to replicate. Therefore, we have every reason to believe that following the implementation of the Law on Safeguarding National Security in the HKSAR and the improvement of the electoral system, Hong Kong's political, economic, social and business environments will be further improved, and Hong Kong's status as an international financial center will be further consolidated. That's all for my answer. Thank you.
Chen Wenjun:
Today's press conference is hereby concluded. Thank you all.
Translated and edited by Zhang Liying, Chen Xia, Wang Yiming, Zhou Jing, Zhu Bochen, Duan Yaying, Huang Shan, Gong Yingchun, Zhang Rui, Liu Qiang, Wang Qian, Zhang Jiaqi, Yang Xi, Fan Junmei, Li Huiru, He Shan, Guo Yiming, Xu Xiaoxuan, and David Ball. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.
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