On Wednesday, the Hong Kong Special Administrative Region celebrates its 29th anniversary. Twenty-nine years is long enough for industries to rise and decline, for skylines to change, and for entire generations to grow up knowing only one Hong Kong. There is a Chinese idiom, ri xin yue yi, which describes something that is constantly renewing itself. Few places embody that spirit better than Hong Kong.
Following the signing of the Sino-British Joint Declaration in 1984, China resumed the exercise of sovereignty over Hong Kong under the “one country, two systems” principle on July 1, 1997. Hong Kong continued to flourish and maintained its status as one of the world’s most important financial centers after the handover, and has the potential to enhance its roles in the years to come.
Hong Kong’s economy is transforming in many ways, adapting to the times and challenges. This is indeed what any financial center needs to do in order to remain competitive.
During the last 29 years, Hong Kong underwent the Asian financial crisis, the severe acute respiratory syndrome, the global financial tsunami, and the COVID-19 pandemic without any significant outflow of capital and without diminishing its role as a global financial center, despite some bumps in the road. This was so because of Hong Kong’s strength, because of its resilient nature.
Back in the 1990s, manufacturing had already begun to migrate across the border. Many observers questioned Hong Kong’s future. Yet the city adapted. Finance, logistics, and professional services became increasingly important. Later, fintech, wealth management, green finance, and digital assets entered the picture. Today, artificial intelligence and innovation are becoming part of the conversation. The city has never been static, and perhaps that explains why it remains relevant. Successful cities are not those that avoid change but those that embrace it.
Hong Kong is doing better in many ways than 29 years ago and even five years ago, thanks to Hong Kong’s constitutional framework and economic resilience. There is no doubt that the city is set to play a key role in China’s future economic development. If the last 29 years have taught us anything, it is that betting against Hong Kong’s ability to reinvent itself has rarely been a winning strategy
Having lived in Hong Kong for many years, one thing has always fascinated me about the city. It never seems to stand still. Every time I return to the city, something has changed. Sometimes it is obvious, a new building, a new railway line, an entirely new district taking shape. At other times, the changes are more subtle. New industries emerge, habits evolve, priorities shift. Yet beneath all those changes, one thing remains remarkably constant — and that is Hong Kong’s extraordinary capacity to adapt.
Despite geopolitical tensions, economic headwinds, and evolving regulatory landscapes, Hong Kong continues to stand tall among financial powerhouses, being one of the world’s important financial centers, which strengthens its position and importance year after year. Its strategic location, deep capital markets, and robust financial infrastructure make it a critical gateway between the Chinese mainland and the broader world.
This year, Hong Kong climbed to second place globally in the IMD World Competitiveness Ranking, its best performance in seven years. The city also retained third place in the Global Financial Centres Index and recently overtook Switzerland to become the world’s largest cross-border wealth management center. These achievements matter, but they are not simply trophies. They are reminders that Hong Kong continues to possess qualities that are difficult to replicate: deep capital markets, international connectivity, a highly educated workforce and a unique position between the mainland and the rest of the world.
Regarding education, the latest QS World University Rankings once again highlighted the quality of Hong Kong’s higher education system, with local institutions reaching some of their best performances ever. For a city of around 7.5 million people, this is no small achievement. Universities are increasingly becoming engines of research, innovation, and talent development. In the age of artificial intelligence, perhaps there is no greater investment than investing in people.
Sometimes people forget that innovation does not happen overnight. It requires patience. It requires talent. Most importantly, it requires vision. This is one reason why I find the Northern Metropolis project so interesting. Much has been written about housing and infrastructure, but I suspect its greatest significance lies elsewhere. It represents an attempt to create a new ecosystem where universities, businesses, laboratories, and startups can interact more closely. In many ways, the project reflects a broader understanding that competitiveness in the 21st century depends not only on physical infrastructure but also on ideas and collaboration.
The Guangdong-Hong Kong-Macao Greater Bay Area offers another source of opportunities. Individually, Hong Kong, Shenzhen, and Guangzhou each possess different strengths. Together, they form one of the world’s most dynamic regional ecosystems.
Hong Kong’s first five-year development blueprint, currently under public consultation and aligned with the national 15th Five-Year Plan (2026-30), reflects this longer-term mindset. Innovation, talent development, sustainability, and economic diversification are expected to occupy a central place within that road map. Long-term planning may not always generate headlines, but successful societies often think beyond next year. The same can be said of green finance, or wealth management, or digital assets, or mediation and dispute resolution. These may seem like unrelated sectors, but they all point in the same direction. They are part of a broader effort to ensure that Hong Kong continues to evolve rather than simply rely on what worked in the past. And perhaps that is one of the greatest strengths of the “one country, two systems” principle. It has allowed Hong Kong to preserve many of its distinctive characteristics while at the same time benefiting from deeper integration with national development strategies. Like the city itself, the framework has evolved with time.
To sum up, Hong Kong is doing better in many ways than 29 years ago and even five years ago, thanks to Hong Kong’s constitutional framework and economic resilience. There is no doubt that the city is set to play a key role in China’s future economic development. If the last 29 years have taught us anything, it is that betting against Hong Kong’s ability to reinvent itself has rarely been a winning strategy.
The author is a fintech adviser, a researcher and a former business analyst for a Hong Kong publicly listed company.
The views do not necessarily reflect those of China Daily.