China News Service, Hong Kong, December 26, Wire Title: 2020, Hong Kong's economic "despair" and hope

  China News Agency reporter Liu Chenyao

  The economy contracted 6.1% throughout the year.

The forecast data written in the "Chief Executive's 2020 Policy Address" seems to be the conclusion of Hong Kong's economic trend this year.

Indeed, the decline was greater than the year-end response during the Asian financial turmoil in 1998, and Hong Kong suffered its worst performance since records began in the 1960s.

But looking at the whole year of 2020, Hong Kong's road to recovery is not full of "despair".

The picture shows citizens traveling in Tsim Sha Tsui, Hong Kong.

Photo by China News Agency reporter Li Zhihua

"Troika" needs additional power

  The new crown pneumonia epidemic, the game between China and the United States, and social incidents are the main causes of Hong Kong's economic recession in 2020 in the view of the Hong Kong financial industry.

  In an interview with a reporter from China News Agency, Bank of China Hong Kong chief economist E Zhihuan said that Hong Kong’s economy has fallen into recession since the second half of 2019. As a point of struggle between China and the United States, it has affected the confidence of international investors in Hong Kong's international financial center to a certain extent.

  The new crown pneumonia epidemic that broke out in early 2020 has made Hong Kong’s economy "exacerbated". Not only has it been difficult to recover trade with some parts of the world, the inbound tourism industry, which accounts for 3.6% of Hong Kong’s GDP, has also stagnated, and the unemployment rate has even soared to 16 years. High position.

  Analyzing the "troika" that drives GDP, Cheng Shi, chief economist of ICBC International, said that under the influence of restrictive measures to prevent and control the epidemic and the sharp drop in visitors to Hong Kong, Hong Kong's consumption data has dropped significantly; amid increasing uncertainty , Investment activity is also relatively weak.

According to data, the value of Hong Kong's overall merchandise exports in the first half of 2020 fell by 6.9% year-on-year, and the value of merchandise imports fell by 9.4%.

  At the same time, the mainland backed by Hong Kong is using the concept of "new infrastructure" to advance the development of the technology industry through infrastructure, realizing the conversion of new and old kinetic energy, leading global technological innovation, and the mainland economy has rapidly achieved a V-shaped rebound since the second quarter.

  Hong Wen, a member of the Hong Kong Institute of International Finance, believes that with reference to the actions of the Mainland, Hong Kong must think about how to gain a foothold in the new wave of digital economy and how to enable the new economic enterprises that have sprouted or grown during the epidemic to continue to grow.

The picture shows the Golden Bauhinia Square in Hong Kong.

(Data map) Photographed by China News Agency reporter Zhang Wei

The capital market still has strength

  "Even so, Hong Kong's status as an international financial center will not be affected, and its status will get better and better." The confidence of Rong Yongqi, deputy director of the Economic Committee of the National Committee of the Chinese People's Political Consultative Conference, mainly comes from the strong Hong Kong capital market in 2020.

  According to the Hong Kong Stock Exchange, as of December 10, 2020, the total amount of funds raised by the Hong Kong Stock Exchange IPO (initial public offering) is about 47 billion US dollars, which is expected to hit a 10-year high.

Hong Kong will continue to rank among the top three global IPOs this year and become the world's second largest biotechnology financing center.

  Rong Yongqi said that under the guarantee of "one country, two systems", Hong Kong has a stable financial foundation. On the one hand, it has sufficient funds, on the other hand, it gathers global financial service talents, and it is internationally compatible and has a sound rule of law.

  Hong Wen is also positive about this: The interconnection mechanism between Hong Kong and the mainland financial markets, including Shenzhen-Hong Kong Stock Connect, Shanghai-Hong Kong Stock Connect, and Bond Connect, is an important channel for foreign investors to participate in the mainland financial market.

She believes that with the increasing interest of international funds in the mainland financial market, Hong Kong's role as a bridge can still have much room for development.

Bright lights on both sides of the Victoria Harbour.

(Data map) Photo by China News Agency reporter Xie Guanglei

The Pearl of the Orient shines with new vitality

  As the pace of 2021 approaches, the Pearl of the Orient, which has been dimmed by the black storm and the epidemic for more than a year, is composing New Year's wishes.

  In terms of controlling the epidemic, the Chief Executive of the Hong Kong Special Administrative Region Carrie Lam said on December 23 that the government has procured 22.5 million doses of the new crown pneumonia vaccine and will be vaccinated for all people free of charge in phases.

  Cheng Shi believes that the impact of the epidemic is expected to gradually diminish after the introduction of the vaccine. After the introduction of the Hong Kong National Security Law, the social atmosphere has also become calm, providing a good foundation for Hong Kong's economic recovery. It is expected that local consumption will rebound significantly in the second half of 2021. .

In addition, the rapid development of online consumption models under the epidemic is expected to lead the accelerated development of technological innovation in the post-epidemic era and help Hong Kong's economic transformation.

  In terms of foreign trade, E Zhihuan said that the decline in Hong Kong's exports of goods has significantly narrowed since the second half of 2020, and it is expected to be largely due to the rapid recovery of exports from the Mainland.

She remains optimistic that the U.S. president will change its trade policy with China in 2021.

  Rong Yongqi told reporters that in 2020 the world will recover the fastest and the only economy with positive GDP growth is China.

He expects that the GDP of Mainland China will continue to grow in 2021, coupled with the "30 Financial Measures" ("Opinions on Financial Support for the Construction of the Guangdong-Hong Kong-Macao Greater Bay Area") announced this year in the Greater Bay Area, and Hong Kong Motors' northbound and cross-border financial management Through the central government's policy of favoring Hong Kong, "The Pearl of the Orient is still bright in the new year."

Looking at the night view of Victoria Harbour at the beginning of Hua Deng, Rong Yongqi's eyes are full of hope.

(Finish)