(Feb 27): Beijing’s point person to Hong Kong said the city’s special governing formula will remain a “permanent structure,” South China Morning Post reported, as the Chinese official sought to boost confidence in the Asian finance hub.

Xia Baolong, who leads the Hong Kong and Macau Affairs Office, on Monday said the “one country, two systems” principle helps set Hong Kong apart from mainland Chinese cities, the Post said. The newspaper cited an unidentified attendee of a meeting between the Chinese official and about 40 local and foreign business chambers.

Hong Kong is guaranteed a high degree of autonomy until at least 2047 under a political arrangement enshrined in the city’s constitution, but Beijing’s political crackdown has eroded rights once seen as fundamental to its success. Prominent observers including former Morgan Stanley Asia Ltd chair Stephen Roach have called on Beijing to commit to the model to revive growth in the city.

Xia has embarked on a weeklong inspection trip in Hong Kong as the city is pushing to enact a domestic security law. The proposal has raised concern among the finance community about potential chilling effect on open discussion of economic and policy issues.

In his meeting with business representatives, Xia highlighted the city’s judicial system, stock market, large presence of international banks and proficiency in English among its distinct advantages, the official was reported as saying, citing an attendee.

His reported remarks add to Chinese top leaders’ previous vow to maintain Hong Kong’s semi-autonomous status. President Xi Jinping said in July 2022 of the “one country, two systems” policy: “There is no reason for us to change such a good policy, and we must adhere to it in the long run.”

Chamber representatives discussed topics including Hong Kong’s integration with mainland China and the proposed security bill known as Article 23 during their 90-minute meeting with Xia, the city’s Chief Executive John Lee told reporters Monday.

Xia’s trip comes at a crucial time for Hong Kong’s political and economic future. The city briefly lost its place to India as the world’s fourth-largest stock market earlier this year as global capital poured out of China.

In 2020, Beijing tightened its grip over Hong Kong by imposing a broad national security law, a move that followed historic and sometimes violent protests in the former British colony. The crackdown on civil liberties, coupled with strict Covid curbs, has prompted thousands of residents to leave Hong Kong in recent years, leading to a talent drain on the financial sector that’s a linchpin of the city.

Lee last month unveiled a broad plan to pass the city’s own security legislation, which offers vague definitions of issues like state secrets and espionage. The one-month consultation period on the Article 23 bill ends Wednesday, when the city is also set to unveil its annual budget.

“They basically said that they understood the reason for it, and they supported it, because in their country, they have similar laws, and they don’t have any effect on their consideration and confidence in Hong Kong,” Lee said of foreign chambers’ comments on Article 23 during the media session. “In fact, a few even said that, with the stability ensured, then there is a good foundation for development.”