Hong Kong's economy and business environment that were largely impacted by violence in 2019 and 2020 have been effectively back on track since the adoption of the national security law, according to a report issued by the Hong Hong Special Administrative Region (HKSAR) government on Monday.

Paul Chan, financial secretary of the HKSAR government, said violence and unreasonable U.S. economic suppression of Hong Kong had a serious impact on its economy and business environment, but with the implementation of the national security law for Hong Kong, the SAR has relied on the advantages of "One Country, Two Systems" to recover its social stability and the business environment, creating better conditions for Hong Kong's economic recovery.

The improvements to Hong Kong's electoral system have laid a foundation for the long-term stability and stable development of Hong Kong, enabling it to maintain a safe and vibrant business environment for a long time, the report said.

Economic performance

Hong Kong's economy has shown a "U-shaped" trend. It expanded 7.9 percent year on year in the first three months of 2021, of which the growth brought by trade was the highest in the past 10 years.

In the first half of this year, the economy rebounded by 7.8 percent, and the unemployment rate fell from 7.2 percent to 4.7 percent, according to the report.

The financial market situation is also improving. In the 12 months ending in June this year, the amount of IPO funds increased by more than 50 percent, and the turnover of Hong Kong stocks increased by nearly 70 percent, the report said.

In addition, overall crime in the first half of 2021 fell by nearly 10 percent compared with the peak of the violence in the second half of 2019.

Biggest advantage

"One Country, Two Systems" is the biggest advantage for Hong Kong's business environment, said a spokesperson from the Liaison Office of the Central People's Government in the HKSAR on Monday.

A survey conducted by the Hong Kong General Chamber of Commerce showed that over 60 percent of the interviewed companies believe that the national security law will have a positive or neutral impact on their business. The latest Global Financial Center Index report released by research institutes showed that Hong Kong's overall ranking has returned to the top three in the world, the spokesperson said.

The report demonstrates Hong Kong's good business environment and its status as a powerful international financial center. It is a powerful counterattack of the U.S. maliciously slandering Hong Kong's business environment, said a spokesperson from the Office of the Commissioner of the Ministry of Foreign Affairs of China in the HKSAR.

The recently implemented wealth management connect in the Guangdong-Hong Kong-Macao Greater Bay Area and two new cooperation zones of Hengqin and Hetao will bring more opportunities to Hong Kong, said the spokesperson.

U.S. anti-China forces are the biggest destroyer of Hong Kong's business environment. But, at the same time, the central government has always been a staunch defender of Hong Kong's business environment, said a spokesperson from Hong Kong and Macao Affairs Office of China's State Council.

Under U.S. support and other external forces, anti-China disruptors in Hong Kong instigated the regulation amendment disturbance in 2019 and turned it into a riot, which severely trampled on the rule of law in Hong Kong, and harmed the business environment, said the spokesperson.

The implementation of the national security law for Hong Kong and the improvement of the region's election system are all aimed at restoring good order and returning to the right track of development in Hong Kong so that the "One Country, Two Systems" policy can be fully and accurately implemented, the spokesperson said.