HK government blasts critics of city's prospects

The Hong Kong Special Administrative Region government hit back on Wednesday at critics challenging the city's prospects, releasing a wealth of data and facts demonstrating its development and competitiveness.

Hong Kong's resilience, flexibility and long-standing strengths under the "one country, two systems" principle are ready to steer the city through an uncertain global landscape, the government said in a statement issued late on Wednesday.

US economist Stephen Roach, who worked in Hong Kong for decades, had earlier repeated his grim forecast for the development of Hong Kong and China during a trip to the city, following his sensational claim that "Hong Kong is over" in February.

The Hong Kong government said it values pragmatic and constructive views of the community. However, as deliberate rumors and distortion of Hong Kong's situation are raised from time to time by external forces, the government believes it should promptly clarify and refute any deliberate slander or unfounded criticism, it said.

"We are duty-bound to present Hong Kong's strengths, achievements and opportunities and tell the truth about Hong Kong," the statement said.

It first outlined the city's major economic indicators, including the 3.3 percent economic growth recorded last year — compared with the average of 1.5 percent in advanced economies according to the International Monetary Fund.

The city also logged 2.7 percent year-on-year growth in the first quarter of this year, and full-year growth is forecast at 2.5 to 3.5 percent, it said.

As for the financial market, Hong Kong stock's market capitalization has exceeded HK$33 trillion ($4.23 trillion), 10 times the amount in 1997 when the city returned to the motherland.

The Stock Connect — a mechanism that allows investors in Hong Kong and the mainland to access eligible shares in the other's stock markets — has recorded a cumulative northbound capital flow of more than 1.8 trillion yuan and a southbound capital flow of HK$3.1 trillion.

The city's status as a wealth management hub also continues to shine as the scale of asset management in the city exceeds HK$30.5 trillion.

The Hong Kong government has also been proactively attracting foreign investment, businesses and talent, with encouraging results.

By the end of last year, over 9,000 mainland and overseas companies had set up offices in Hong Kong, including some from Japan, the United States, the United Kingdom and Singapore.

As of April, the city had received around 290,000 applications under various talent admissions programs, and around 180,000 had been approved.

The statement also highlighted the huge potential of the Guangdong-Hong Kong-Macao Greater Bay Area, saying Hong Kong can create synergy with other Bay Area cities to guide and support the country's economic development.

"Various data and facts not only reflect the performance of Hong Kong's economic and financial development, but highlight Hong Kong's unique advantages and strategic position under the principle of 'one country, two systems', as well as its resilience and flexibility in the face of global instability," the statement said.

Investors have cast a vote of confidence in the steady development and bright prospects of Hong Kong's market, it added.

Hong Kong Financial Secretary Paul Chan Mo-po also expressed his confidence in Hong Kong's bright prospects.

In a social media post, Chan said that since the city's return to the motherland, some people have kept talking down Hong Kong, but none had deterred the city from getting better and better.

"Tomorrow's Hong Kong will certainly be different from today, because tomorrow will surely be better," Chan added.

On Wednesday, Mark Mobius, a veteran emerging markets fund manager and the founder of Mobius Capital Partners, said in his blog — titled Hong Kong: Far from over — that the fundamental spirit of Hong Kong's business environment is still "very much alive".

Citing a recent visit to Hong Kong, Mobius said he saw the city is experiencing a shift in its talent pool caused by changes on the political front and in population dynamics, but he said the shift could be an opportunity for Hong Kong to evolve and thrive in new ways.

"I believe Hong Kong would stand to benefit significantly by embracing technology and AI to align with China's ambitious plans and to solidify its role as China's bridge to the world," Mobius said.