China’s top official overseeing Hong Kong promised new policies to help the city’s economy - without giving details - a month after the passage of a new Beijing-backed security law that’s raised concern about its future as a financial hub.

Xia Baolong - the head of Beijing’s Hong Kong and Macau affairs office - dismissed concerns that the measure known as Article 23 will have a chilling effect on business. “In my eyes, Hong Kong is still a place to make money,” he said on Monday in a video address to the city’s second annual conference on national security. “There will be more policies supporting and favouring Hong Kong to come,” he said. “Hong Kong will be brilliant tomorrow.” 

Xia visited Hong Kong for the inaugural security event last year, and called on Hong Kong to be vigilant against anti-government movements, even though a Beijing-imposed national security law in 2020 had already effectively halted more than a decade of protests against China’s growing influence.

His remarks were later included in the city’s policy address, an annual preview of the government’s programme. In March, Hong Kong authorities fast-tracked Article 23, which introduced crimes such as treason - and boosted the powers of the city’s top executive and the police - amid pressure from Chinese leaders. 

Among the Chinese officials attending Monday’s event was Zheng Yanxiong, a director of the government’s Hong Kong Liaison Office, who said the city can now prioritise economic development after settling its national security laws. Gross domestic product in the financial hub is forecast to expand 2.7% this year, according to a Bloomberg survey, with major risks including geopolitical tensions and a possible slowdown in China.

In recent years, Hong Kong has seen an exodus of expatriates and younger locals, as finance industry jobs dry up and concern mounts over Beijing’s greater oversight.

Zheng said the city will retain the characteristics that distinguish it from the mainland, and gave an example. In Hong Kong, “horse racing and stock trading are still vibrant”, he said. Gambling is largely banned in China. 

  - Bloomberg