Xinhua Commentary: Hong Kong's new vitality a rebuttal to naysayers

HONG KONG, June 7 (Xinhua) -- Hong Kong's benchmark Hang Seng Index closed at 23,792.54 points on Friday. The index has risen 18.6 percent from the end of last year.

The Hong Kong stock market -- one of the best-performing markets this year -- could offer an insight into the economic vitality of Hong Kong. The city's initial public offering market had raised more than 76 billion HK dollars (about 9.7 billion U.S. dollars) by late May, a more than sevenfold increase over the same period in 2024.

Hong Kong's economy is gaining steam. In the first quarter of this year, its real GDP grew 3.1 percent year on year. Recent data indicates its economic momentum has continued into the second quarter.

Hong Kong's robust performance has even prompted Stephen Roach, a senior fellow at Yale University, to revise his declaration of the city's demise in an article last year. In a recent Bloomberg report, the economist said that if he were writing a story again, it would be that Hong Kong is experiencing a revival because of its Chinese characteristics, not in spite of them.

Recent credit ratings have demonstrated Hong Kong's resilience in maintaining stability amid increasing global economic and financial uncertainties. S&P has maintained Hong Kong's "AA+" credit rating with a "stable" outlook. Moody's has affirmed the city's "Aa3" credit rating and upgraded the outlook from "negative" to "stable."

The optimism of businesses is evident. The results of a survey conducted by the American Chamber of Commerce in Hong Kong earlier this year revealed that 79 percent of respondents had no plans to move their headquarters away from Hong Kong in the next three years. The Fraser Institute's Economic Freedom of the World 2024 Annual Report ranked Hong Kong as the world's freest economy among 165 economies.

The region's vitality can also be seen in its thriving tourism sector and other fields. In the first quarter, Hong Kong received 12.2 million visitor arrivals, up 9 percent year on year. The establishment of the International Organization for Mediation in Hong Kong will also bring new opportunities to the region.

Amid ongoing fluctuations in the global economic landscape, Hong Kong -- firmly backed by its motherland -- has once again demonstrated its exceptional dynamism and appeal.

This exemplifies the unique advantages of the "one country, two systems" policy. Hong Kong enjoys boundless opportunities by integrating actively into national development strategies, and by deepening international exchange and cooperation. Engaging in Guangdong-Hong Kong-Macao Greater Bay Area development and the Belt and Road Initiative provides Hong Kong with crucial space for its growth.

As an international financial, shipping, and trade hub, Hong Kong has full confidence in sustaining its development and will embrace brighter prospects. Naysayers will be proved wrong again, as they have in the past. ■