Business Environment Report Published

(To watch the full media session with sign language interpretation, click here.)

The Government today released the Report on Hong Kong's Business Environment which states that the city is a place with unique advantages and unlimited opportunities.

The report has three chapters, first of which elaborates on how black-clad violence and US strategy of suppressing China brought enormous negative impact on Hong Kong's economy and business environment.

The second one outlines how the formulation and implementation of the National Security Law and the principle of "patriots administering Hong Kong" have effectively restored social stability and safeguarded the city's business environment.

The third reveals that new Hong Kong back on track has outstanding advantages in its business environment with unlimited room for future development.

The report noted that since the implementation of the National Security Law, Hong Kong's financial market has remained stable.

By the end of June this year, total deposits in the banking system amounted to over $15 trillion, up by almost 8% over last June. Hong Kong's foreign exchange reserves also increased by 10.5% to $3.8 trillion.

In the year following the enactment of the National Security Law, funds raised through initial public offerings in Hong Kong exceeded $500 billion, an increase of more than 50% compared to the 12 months before the enactment.

As at the end of 2020, the assets under management of the city's asset and wealth management business grew by 21% year-on-year to nearly $35 trillion, about one-third of which was contributed by net fund inflows.

The report also quoted the latest international rankings of Hong Kong concerning economic freedom and competitiveness which have all along been well recognised by international institutions.

Additionally, Hong Kong has been at the forefront of international rankings related to the rule of law and judicial independence since its return to the motherland.

Meeting the media this afternoon, Financial Secretary Paul Chan said Hong Kong has been subject to unfair criticisms over the past two years, including some misleading information, incorrect observations as well as deliberate malicious attacks from foreign countries and overseas media.

He noted that the report released today sets out the facts to enable the business sector and the international community to better understand Hong Kong's situation.

"The purpose of this report is to proactively promote Hong Kong, to tell the Hong Kong story, to clarify misunderstandings and to reinforce the confidence of the international community in us.

"Taking this opportunity, we want to set out the core competitive advantages of Hong Kong and the future prospect of Hong Kong. As you know, the success of Hong Kong is very much tied to the development on the Mainland.

"It had been so in the past. Currently, yes, our development also depends on the Mainland's economic development. And going into the future, that will lend us an additional economic engine to drive our economy forward."

He added that with the unique positioning provided by the National 14th Five-Year Plan and the unlimited opportunities brought about by the Guangdong-Hong Kong-Macao Greater Bay Area development, Hong Kong will be given new impetus for economic development.