Hong Kong's business environment has not changed much in spite of the political and economic turmoil, says the Hong Kong General Chamber of Commerce.
The business community is most satisfied by Hong Kong's ability to maintain a free market in the 25 years since its handover to China, the chamber's chief executive George Leung Siu-kay said.
The Basic Law protects the economic system from any deterioration, maintains capitalism and a market economy and gives full play to the one country, two systems feature after 25 years, he added,
It is essential to maintain and stabilize Hong Kong's financial system - otherwise the economy would collapse, he added.
In the past 25 years, the financial system has been stable despite a number of shocks - including the Asian economic turmoil, the world financial tsunami and the pandemic, said Leung.
The performance of financial officials should also be recognized and the relevant regulatory system has been perfected, surpassing the world level, Leung added.
The business environment in Hong Kong has remained well, he said. For example, the market remains open and there is no obvious slide in Chinese investment.
The past political and economic turmoils had significantly impacted Hong Kong's image and reputation, but the business environment has not changed much, and there has been no apparent withdrawal of capital or other actions by companies to quit Hong Kong.
However, the ongoing political dispute between the mainland and the United States has led to some economic sanctions that could not have occurred in Hong Kong in the past, making it necessary for companies to diversify their operations and investments.
Hong Kong can still function, Leung noted, and the overall economy of the city will not be damaged even if there are disputes between China and the United States and containment by Europe and the United States.
However, Leung said Hong Kong has no apparent industrial policy compared with other cities of the same level. As an international city, it is customary to develop the financial industry, but it could not dominate the entire economy.
As a result, the economic strength of Hong Kong is not as good as that of other cities, such as Singapore, in this area, Leung said.
serena.kong@singtaonewscorp.com
