We are not merely the objects of history, but also its agents. The future of Hong Kong is partly determined by the macro policies formulated by the core leadership of the Communist Party of China (CPC) for the city and the performance of the Hong Kong Special Administrative Region government in executing those macro policies and delivering good governance in the city at the micro level. 

The future is also involuntarily shaped by external challenges unseen in a century. Local residents also play a role in shaping the future of Hong Kong. In the past eight months, strong signals have been given by the central authorities that Hong Kong will continue to get unswerving support from the central authorities and enjoy policy tailwinds.

The first positive signal was given when President Xi Jinping delivered an important speech in the city on July 1 last year. Expressing strong faith in the principle of “one country, two systems” (OCTS), President Xi stressed that there was no reason to change such a good policy, dispelling any doubt about its continuity in the long run.

Our optimism for Hong Kong’s future was further strengthened by another positive signal given at the 20th National Party Congress of the CPC in October when General Secretary Xi Jinping emphasized in his report to the Party Congress that the principle of OCTS would remain a long-term policy, reconfirming the central authorities’ support for Hong Kong in developing its economy, improving people’s livelihoods, and resolving the city’s deep-seated problems concerning socioeconomic development. It should also be noted, inter alia, that the Constitution of the CPC has been amended to reaffirm Beijing’s commitment to the OCTS principle.

The decision to establish the Hong Kong and Macao work office of the CPC Central Committee, together with the above-mentioned positive signals, supports the view that Hong Kong is to play a more important role in national development in the new era that features a paradigm shift in global governance and worsening geopolitics. We are confident that this institutional reform will help ensure smoother implementation of the OCTS policy and Hong Kong’s long-term stability and prosperity.

The creation of a top-level body in charge of Hong Kong and Macao affairs under the CPC Central Committee is a significant move to optimize the governance structure for Hong Kong and Macao affairs. The new body is responsible for the investigation, research, overall planning, coordination and supervision of the implementation of the OCTS policy, the exercise of the central authorities’ overall jurisdiction over Hong Kong and Macao, the safeguarding of national security, the protection of people’s livelihoods and well-being, and rendering support for the integration of Hong Kong and Macao into overall national development.

The reform has streamlined the chain of command within the governance structure for Hong Kong and Macao affairs. According to Lau Siu-kai, a professor emeritus of sociology at the Chinese University of Hong Kong, the reform could prevent the city from becoming a weak underbelly of national security. It will also be conducive to ensuring that the two SARs’ development strategies can be smoothly connected with national development (Creation of New Agency Ensures Success of SARs, China Daily, March 21, 2023).

To live up to the rising expectations of the central authorities, Hong Kong should spare no efforts in giving full play to its unique advantages under OCTS, one of which is its robust financial market. In its capacity as a major international financial center, Hong Kong serves as a versatile platform connecting the Chinese mainland market and international capital. Hong Kong’s common law system, easy access to the huge mainland market, free flow of capital, political stability, low tax rates and reliable regulatory systems together provide a solid foundation for the city’s status as an international financial center.

According to the latest Global Financial Centres Index, compiled by the China Development Institute in Shenzhen and the London think tank Z/Yen Partners, eight out of the top 10 global financial centers are cities run under a common law system, including New York, London, Singapore, Hong Kong and four other cities in the US. Some studies suggest that common law jurisdictions tend to be more responsive to investors’ interests, and that investors feel more comfortable with common law systems, thus are more willing to make use of the financial markets in common law jurisdictions, contributing to their growth (Horace Yeung and Flora Huang, Why HK Will Remain An International Financial Center, Despite New Security Law, The Conversation, July 6, 2020).

Horace Yeung and Flora Huang attribute Hong Kong’s post-1997 economic success to its common law system and its possession of a set of company and financial laws distinctive from those in the Chinese mainland. Meanwhile, political stability brought about by the National Security Law for Hong Kong will also help Hong Kong maintain its international financial-center status.

In the past few months, Hong Kong has made great efforts to sharpen the competitive edge of its financial sectors, including measures to attract foreign companies to operate and the super-rich to set up family offices in the city, Chief Executive John Lee Ka-chiu’s business-promotion trip to the Middle East, and measures to promote green finance and setting up of open-ended fund companies.

We earnestly hope Hong Kong will meet the central authorities’ rising expectations of it. In addition to serving as the country’s international financial center, Hong Kong should also speed up its integration into national development. Hong Kong’s continued success under OCTS and its successful integration into the Guangdong-Hong Kong-Macao Greater Bay Area can play an exemplary role in facilitating Taiwan’s peaceful reunification with the motherland.

Junius Ho is a Legislative Council member and a solicitor.

Kacee Ting Wong is a barrister, part-time researcher of the Shenzhen University Hong Kong and Macao Basic Law Research Center, and chairman of the Chinese Dream Think Tank.

The views do not necessarily reflect those of China Daily.