Contrary to the prediction made by the American financial magazine Fortune that Hong Kong would take a dive after its return to China four years ago, the economy of the Hong Kong Special Administrative Region has remained strong, withstanding the severe Asian financial crisis in 1998, to remain the most important financial and commercial center in Asia-Pacific region.
In fact, Fortune chose Hong Kong to host in May its three-day Fortune Global Forum where the heads of the world's leading multinationals gathered to discuss the “next generation” of Asian business opportunities.
More than 700 representatives, including chairmen, presidents and chief executive officers from over 200 multinationals and 150 Hong Kong companies, as well as heads of over 60 mainland enterprises and 20-odd Chinese ministers and provincial governors, attended the global forum sponsored by the Fortune in Hong Kong.
In the first quarter of this year, Hong Kong’s economy saw a 3.3 percent increase on the year.
It took support from the central government to see Hong Kong through the 1998 slowdown: The central government helped Hong Kong purchase some HK$110 billion in local stocks, a move that protected the Stock Exchange of Hong Kong from collapse when the Hang Seng Index, the principal share price index in Hong Kong, plunged. By 1999 Hong Kong again showed positive economic growth and -- with stock prices restored -- in April 2001 the Hong Kong government successfully withdrew its fund from the stock exchange.
The central government stable currency policy also played an essential role, as did its relaxing its control on the number of tourist allowed from the mainland into Hong Kong. In 2000, some 1,300 million mainland Chinese traveled in Hong Kong.
Hong Kong’s economy still has problems, dependent as it is on export trade and tourism. Its local retail trade and its catering industry are relatively sluggish. Unemployment is high, and Hong Kong is cooperating through the Pearl River Delta (Guangdong, Hong Kong, and Macau) to create more investment and job opportunities for local people.. While the hi-tech electronics industry is still in its infancy and can’t serve as a engine to its economy, Hong Kong hopes these enterprises will develop to further integrate the region into the world economy.
(CIIC 07/09/2001)
