On July 1, the bustling Victoria Harbor will be illuminated with glittering lights, decorating every corner of the metropolis. Across the port stands Hong Kong's iconic modern skyscraper international financial center, where market trading operates 24/7. Looking down from the Lion Rock Hill, the Sham Chun River, which borders Shenzhen on the mainland, is flowing, and Hongkongers are in a joyful mood to mark a special day with eager anticipation for a brighter future.
July 1 is a special date for Hong Kong. The special administrative region (SAR) has been on an extraordinary journey in the past quarter-century, after it returned to the motherland in 1997. The journey has been unprecedented, during which the vibrant cosmopolitan city has surmounted waves of headwinds, and thrived as a major international financial, trade and shipping hub.
The special day is not only a reflection of the past journey, which proves the "one country, two systems" principle is a success as Hong Kong fortified its role as a "super connector" between Chinese mainland and the world. It more importantly marks a new start: After facing a series of internal social and economic challenges as well as a volatile global environment, how should the SAR rekindle its new roles under the national development blueprint and better integrate with the mainland to ensure long-term prosperity?
While some traditional functions will continue to stand out, entrepreneurs and observers have high expectations on the future role of the SAR, which is positioned at the center of the Greater Bay Area (GBA) with a GDP of 12.6 trillion yuan ($1.99 trillion) that equates to that of South Korea. The city is set to leverage its inherent innovation and tech prowess in the Greater Bay Area and provide a bulwark against rising geopolitical tensions, so that it could maintain its prosperity and vigor while further channeling impulses into the growth of the world's second-largest economy.
'Super connector'
"If we traced back, many Hong Kong businessmen have 'earned the first barrel of gold' thanks to the city's role as 'super connector and an intermediate.' The SAR won't be able to earn such reputation as the global trade center without strong backing from the Chinese mainland, otherwise it could be marginalized in the global trade landscape," Michael Li Chi-fung, vice honorary secretary of the Hong Kong Chinese Importers' & Exporters' Association, told the Global Times.
The mainland has been the largest export market of Hong Kong for years. And many Hong Kong companies set up factories in the Chinese mainland taking advantage of latter's lower labor costs, and then exported the finished products back to Hong Kong which were then re-shipped to foreign destinations, Li explained.
Hong Kong's unique position also pans out in the financial front, as it has rule of law legal framework, a fully convertible currency, fully open capital markets and allows free movement of capital and other elements. The city has held its third position slot among the world's financial center, trailing only after New York and London, according to the Global Financial Centres Index published by London think tank Z/Yen and the China Development Institute.
"Taking advantage of the system, Hong Kong has prospered as a gateway of the Chinese mainland to the world, a pilot area that carried out reforms and a firewall against external financial uncertainties," Qi Mingyang, chairman of Shenzhen-based asset management firm Fortune Valley Capital Investment Group, told the Global Times.
Qi stressed that Hong Kong's financial role, looking ahead, is set to further consolidate, taking into account political factors, including the US' relentless crackdown on the Chinese tech industry and push for a financial decoupling with China, which has prompted the homecoming of notable US-listed Chinese firms.
"Hong Kong will in the next decade amplify its role as a buffer zone that reconciles interests of different parties," he said. Industry insiders also expected that the megacity could function as a "diving board" in the next decade, based upon its internationally recognized practices, not only trial more opening-up practices that are applicable to Chinese mainland but also aid Chinese capital and companies' global outreach.
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