China News Service, Hong Kong, February 18th: Three factors are good for Hong Kong’s economy in the Year of the Dragon

　　China News Service reporter Xiang Luping

　　When the U.S. stock market plummeted on the fourth day of the first lunar month of the Chinese Year of the Dragon (13th), and Morgan Stanley's former Asia Chairman Roach made "badmouthing" remarks about Hong Kong, people were worried about the Hong Kong stock market at the beginning of the year. The first trading day on the fifth day of the first lunar month showed a "dragon raising its head" trend. The three major Hong Kong stock indexes rose strongly, and rose for three consecutive trading days along the way, truly winning a "good start" in the Year of the Dragon.

　　The current performance of Hong Kong stocks reflects not only a technical rebound from last year's weak market, but also the collective judgment of capital on Hong Kong's economic recovery in the Year of the Dragon. Facing this situation, I wonder if Mr. Roach will reflect on the fact that his "Hong Kong is over" theory is too hasty?

　　Hong Kong achieved economic growth of 3.2% last year, which was achieved despite the global economic downturn. This growth rate exceeded the estimated average growth rate of the global economy in 2023 of 2.9%. It can be said that it is hard-won and a remarkable achievement. From the series of socio-economic pictures presented in the Hong Kong Special Administrative Region at the end of last year and the beginning of this year, we can even look forward to the economic boost of Hong Kong in the Year of the Dragon. From the author's point of view, there are three obvious benefits.

　　First, Hong Kong's economy is highly related to the economic development of the mainland. In particular, the performance of import and export trade, one of the pillar industries of Hong Kong's economy, is largely affected by the mainland's foreign trade situation. Last year, external demand was sluggish, China's foreign trade came under considerable pressure, and Hong Kong's import and export also struggled. But in the second half of the year, especially the end of the year, China's foreign trade began to rebound, and the report card turned from negative to positive. Hong Kong's import and export related data have also improved. The latest data from the Census and Statistics Department of the Hong Kong SAR Government shows that in December 2023, Hong Kong's overall export volume and import volume of goods increased by 7.4% and 6.7% respectively, of which the volume from the mainland Growth accounts for a considerable proportion.

　　"Backing the motherland, connecting the world" is not a slogan for Hong Kong, but a reality. China's economic macro level will continue to stabilize and improve in the Year of the Dragon, and the gradual recovery of the global economy will provide basic support for the continued recovery of China's foreign trade import and export. Wei Jianguo, former Vice Minister of the Ministry of Commerce, recently stated that China’s foreign trade import and export in 2024 will exceed that in 2023 in terms of market size and potential. This will undoubtedly provide the most reliable guarantee for Hong Kong’s import and export trade to continue to pick up in the Year of the Dragon.

　　Secondly, grand events and activities boost popularity. During the Spring Festival of the Year of the Dragon, Hong Kong held events such as the New Year float parade, the New Year fireworks display, the New Year Cup horse racing and the New Year football match. According to statistics from the SAR government, about 750,000 tourists visited Hong Kong during the four-day Spring Festival holiday, of which about 650,000 were mainland tourists, exceeding the approximately 640,000 in the same period in 2018. The number of inbound tour groups from the Mainland and the total number of people participating in tour groups have exceeded the levels of the same period before the epidemic.

　　The SAR government announced earlier that it will hold more than 150 major events in 2024 to attract tourists and drive consumption growth. Judging from the above data, the SAR government’s strategy of building an “event city” has achieved initial results. Next, Hong Kong’s major events will unfold “wave after wave”. I believe that Hong Kong will use its rich and unique cultural and tourism resources to activate more cultural and tourism creativity and turn Hong Kong’s “City of Events” into a business card. It will shine brighter, attract more domestic and foreign tourists, further reduce the deficit in people traveling from north to south for consumption, and form a "two-way rush" between Hong Kong and the mainland.

　　Third, talent dividends will gradually emerge. Last year, the SAR government launched a "grabbing enterprises" and "grabbing talents" policy, which has so far attracted more than 30 key companies to settle in Hong Kong. In terms of talent, it has received 220,000 talent applications, 130,000 of which have been approved, and about 90,000 people have arrived in Hong Kong. , far exceeding the SAR government’s original target of introducing 35,000 talents this year. This shows that Hong Kong’s talent attraction is still huge.

　　Talent mobility is a reallocation of social resources and has a profound impact on economic development. For a city, talent is an important foundation for urban development and an important driving force for enterprises. It will have a positive impact on multiple levels, including economic benefits, social progress, technological innovation, and improvement of the quality of human resources.

　　The large number of enterprises and talents that have and will continue to pour into Hong Kong will bring new capital injections and more jobs to Hong Kong, and increase consumer demand for real estate, including housing. The dividends from the introduction of these talents will be gradually released in the Year of the Dragon and in the next few years, creating more new momentum for Hong Kong's economic development. (over)