Editor's Note: Tan Yueheng is the chairman of BOCOM International Holdings Company Limited. The article reflects the author's opinions and not necessarily the views of CGTN.

In the 26 years since its return to the motherland, and with the strong support of the central government, Hong Kong has successfully withstood various challenges such as the Asian financial crisis and the global financial crisis. Its overall economic strength has continued to rise steadily, and its status as an international financial center and trading center has been further consolidated and strengthened.

According to Hong Kong's Census and Statistics Department, since the return, the gross domestic product (GDP) of Hong Kong has more than doubled, from HK$1.37 trillion in 1997 to HK$2.87 trillion in 2022, with an average annual growth rate of about 2.8 percent, which is higher than the average level of other advanced economies during the same period. The GDP per capita increased from $27,300 in 1997 to $49,500 in 2022, with a growth of 70 percent. The proportion of Hong Kong's economic aggregate in the global economy has also shown a trend of increasing development.

In the process, Hong Kong's influence as an international financial center has skyrocketed. The annual growth rate of Hong Kong's financial sector has been about 6 percent, and its share of GDP has increased from 10.3 percent in 1997 to 23.3 percent in 2021. Hong Kong is the world's largest offshore renminbi business hub, the second largest foreign exchange market in Asia and fourth largest foreign exchange market in the world, the largest international asset management center in Asia and one of the most active derivatives markets. The Hong Kong stock exchange has become one of the world's largest exchange groups by market value and has had the largest initial public offering (IPO) scale in the world for many years. Benefiting from the interconnection mechanism with the Chinese mainland capital market and the sound renminbi financial infrastructure, Hong Kong has developed into the world's largest offshore renminbi capital pool, the world's largest offshore renminbi foreign exchange trading market, and the world's largest dim sum bond market. According to the Hong Kong Monetary Authority, by the end of 2022, Hong Kong had 170 recognized banking institutions with total assets of up to HK$27 trillion, and 30 global systemically important banks have set up operations in Hong Kong.

Hong Kong has also effectively played the role of "super contact" between the Chinese mainland and the international market. Currently, the Chinese mainland is Hong Kong's largest export market and source of imports, and it is also Hong Kong's largest trading partner, accounting for more than half of Hong Kong's merchandise trade imports and exports. Hong Kong has long been the Chinese mainland's largest source of foreign direct investment and overseas financing platform, as well as the Chinese mainland's largest overseas investment destination. At the same time, the Shanghai-Hong Kong Stock Connect, the Shenzhen-Hong Kong Stock Connect, Bond Connect and Wealth Link have been launched successively, and a unique path of gradual financial opening has been explored with the Chinese mainland.

In the new era, the country has kept pace with the times to build a new development pattern of "dual circulation," and the "One Country, Two System" principle has continued to be optimized and improved. In particular, the 14th Five-Year Plan and the 20th National Congress report have further clarified the positioning of Hong Kong, providing a broad hinterland and a unique historical opportunity for Hong Kong's diversified and multipolar economic transformation, consolidating, and improving the competitiveness of the international financial center. Hong Kong has actively integrated into the overall national development and has ushered in multiple development opportunities in consolidating its traditional financial competitive advantage and creating diverse emerging growth poles. It is recommended that Hong Kong make efforts in the following areas:

First, to continuously polish and consolidate traditional competitive advantages: Under the overall situation of the national "dual circulation" strategy, regional integration has been accelerated, and the mainland economy has continued to deepen its opening-up. Based on industrial chain cooperation, closer regional trade and investment exchanges have been fostered. The application scope of renminbi in cross-border economic exchanges has also gradually expanded. In the context of common prosperity, the scale of middle-income groups has continued to grow, which will continue to generate a large number of core financial needs such as financing, investment, insurance, asset management, and so on. Hong Kong should accelerate the development of the "Belt and Road" investment and financing market, the wealth management market in the Asia-Pacific region, and continue to expand the offshore renminbi market, to make full effort to build a world-class financial center. The key directions include further opening up the connection with the mainland capital market, tapping the listing resources of the mainland and China concept stocks, and vigorously developing the Asian bond market; further expand the asset management market in the mainland and the Asia-Pacific region; further promote Chinese financial institutions to develop an Asia-Pacific regional management center in Hong Kong, provide project loans, syndicated loans, venture capital funds and other services, and develop the " Belt and Road" investment and financing platform. Strategic considerations and deployments will be carried out to deepen the construction of offshore renminbi business hubs, focusing on the introduction of renminbi pricing mechanisms in the field of connectivity, innovative development of the offshore renminbi bond market, and the growth of demand and trading in derivative product markets.

Second, to continuously create diverse emerging growth poles: The vigorous development of the national and regional green economy and digital economy is an opportunity for Hong Kong to build an emerging competitive strength as a financial center. Hong Kong should vigorously develop green finance, science and technology innovation finance, financial technology, financial inclusion and other emerging financial services, and build a world-class green financial center and science and technology innovation financial center. The key directions include promoting the establishment and promotion of global green financial standards, green investment and financing, and exploring the development of pan-regional carbon emission trading markets. At the same time, under the integration framework of the Guangdong-Hong Kong-Macao Greater Bay Area, it is necessary to explore Hong Kong's development of the science and innovation industry, livable space and higher education platform, and provide continuous technical and talent support for the innovative development of Hong Kong and the Chinese mainland. In this process, improving and enhancing Hong Kong's economic structure, and strengthening the integration of Hong Kong society into national development.

At the same time, Hong Kong's long-term stability must adhere to the "One Country, Two System" principle, it should continuously improve the development space and capacity of its economy and society, enhance coordination, equality, and sustainability of development, and enhance the ability to integrate into the overall national situation and support national development. This requires the Hong Kong government to pay more attention to the well-being of people's livelihoods and introduce more measures to break through these difficulties and deep-seated contradictions in people's lives, so that all citizens, including young people representing social vitality and hope, can obtain a greater sense of happiness and gain.