As the 20th Central Committee of the Communist Party of China successfully concluded its third plenary session, Xia Baolong, the head of the State Council’s Hong Kong and Macao Affairs Office, emphasized the crucial role of reform and opening-up in propelling contemporary China to stride ahead with the times. 

Meeting with Hong Kong Special Administrative Region government officials, including Financial Secretary Paul Chan Mo-po, Xia highlighted that Hong Kong, amidst profound internal and external environmental changes, must also embrace and drive change through reform to achieve better development.

The central theme of the third plenum was to deepen reform. The message to the HKSAR government and all societal sectors was clear: gain a deeper understanding and grasp of the plenum spirit, seize opportunities, engage in determined reform, contribute to the nation, and enhance Hong Kong’s development prospects.

During the plenum, the Resolution of the Central Committee of the CPC on Further Deepening Reform Comprehensively to Advance Chinese Modernization outlined three focal points for Hong Kong: consolidating its status as an international financial, shipping, and trade hub; becoming a gathering place for high-caliber international talent; and deepening cooperation within the Guangdong-Hong Kong-Macao Greater Bay Area.

Notably, the emphasis on transforming Hong Kong into a prime location for top-tier talent is a fresh positioning by the central authorities, highlighting its importance and emphasizing the need to continuously deepen these efforts, which can allow Hong Kong to play a unique role in the national context.

Hong Kong has long been lauded as an international financial center. Yet, facing geopolitical challenges and fierce competition from locales like Singapore, it is imperative for the financial sector to seek transformative reforms to maintain its global status. This involves actively developing sectors like fintech, green finance, inclusive finance, pensions finance, and digital finance. Additionally, in developing the offshore renminbi market, Hong Kong’s financial sector must play its part and align closely with national strategies.

However, Hong Kong’s position as an international shipping hub has visibly waned. According to Alphaliner, the 2023 global port throughput saw Hong Kong’s figures drop by 14.1 percent year-on-year, marking a seventh consecutive year of decline and a 21.6 percent reduction compared to 2019. The HKSAR government should examine the underlying issues and innovate from a comprehensive reform perspective to rejuvenate this sector.

In terms of attracting businesses and pooling talent, the HKSAR government has indeed made significant strides, drawing approximately 60 major companies to establish their headquarters and nearly 200,000 professionals by means of various talent importation programs. While continuing to attract overseas talent and enterprises, there must be stronger support for local talent and small and medium-sized businesses, along with more concrete measures to boost the local capital market. Being the most international city in China and home to five of the world’s top 100 universities with strong research capabilities, Hong Kong has the potential to become a nexus for high-caliber international talent.

Regarding cooperation in the GBA, the distinct institutional frameworks among these regions have led to less fluid movement of people, goods, capital, and information. There is a need to gradually break down these barriers and promote integration and connectivity of rules, institutions, and mechanisms among these areas, elevating Guangdong-Hong Kong cooperation to new heights.

As Hong Kong navigates through these recommended reforms, the path forward is framed by both opportunities and challenges. The emphasis on deepening reforms and modernizing in a Chinese context provides a road map for the city’s future development, aiming to leverage its unique strengths and integrate more closely with the Chinese mainland’s economic and social fabric. The success of these initiatives will depend on a nuanced understanding of both the local dynamics and the broader national strategy, driving Hong Kong toward a more prosperous and integrated future.

The author is a convener at China Retold, and a member of the Legislative Council as well as the Central Committee of the New People’s Party.

The views do not necessarily reflect those of China Daily.