Those betting on Hong Kong’s bright future have backed a winner

Former governor Chris Patten once said nobody ever profited from betting against Hong Kong. Anybody wagering against its “one country, two systems” policy will undoubtedly be out of pocket. Since 1997, the policy has been the city’s lodestar. While the post-reunification settlement was repeatedly challenged, most notably during the 2019 social unrest, Hong Kong has emerged stronger. The Basic Law sustained it throughout and Beijing’s support was unwavering. With national security legislation, Hong Kong’s capitalist system and way of life are secure. Last year, its economy grew by 3.5 per cent while the number of foreign and mainland Chinese companies rose by 11 per cent to 11,070. Hong Kong is taking full advantage of the “high degree of autonomy” promised under the Basic Law. It is nothing if not an international city and attempts to paint it as “just another Chinese city” are delusional. The Basic Law guarantees its right to “maintain and develop relations and conclude and implement agreements with foreign states and regions and relevant international organisations” including in finance, trade, shipping, communications, culture and tourism. Its architects envisioned a global city, and so it has proved. At the recent 19th Asian Financial Forum, Chief Executive John Lee Ka-chiu’s message was that Hong Kong is thinking big, seizing opportunities and reaching out to Asia. He wants to “boost our status as an international financial centre”, including by deepening the equity market, expanding the bond market and advancing the asset and wealth management sector. With more than 400 companies in the initial public offering pipeline, the city is collaborating with the Shanghai Gold Exchange on a gold trading ecosystem. Whenever the limits of the city’s autonomy were tested, the central authorities kept the train on the tracks. The Basic Law stipulates that Hong Kong comes “directly under the central people’s government”, and no country could tolerate regional legislators seeking to undermine national objectives, subvert the government’s work and collaborate with foreign powers to endanger national security. The late Deng Xiaoping envisaged “patriots ruling Hong Kong”; problems arose when this was disregarded. The State Council’s 2014 white paper emphasised the central government’s “comprehensive jurisdiction” and stressed that those who governed Hong Kong “should above all be patriotic”, a principle entrenched in the 2021 electoral reforms. Although the idea that officials, including judges, should love the country alarmed some, it was central to the success of one country, two systems. As Lord Neuberger, a non-permanent overseas judge on the Court of Final Appeal who took an oath of allegiance to Hong Kong, explained: “The way in which judges demonstrate their patriotism is by an irrevocable and undiluted commitment to the rule of law”. Comprehensive jurisdiction notwithstanding, Beijing has adopted a hands-off approach. Although the Basic Law confers the power of interpreting its provisions upon the National People’s Congress Standing Committee, this has been exercised with great restraint. In almost 29 years there have only been five interpretations, three at Hong Kong’s behest. The Basic Law enshrines Hong Kong’s common-law-based legal system, the living embodiment of which is the judiciary. It dispenses justice without fear or favour, and ensures a fair hearing. Despite attempts at intimidation, including through the threat of sanctions, judges have refused to buckle. As Chief Justice Andrew Cheung Kui-nung explained, the judiciary enjoys a distinct constitutional role under one country, two systems, with the rule of law as “robust” as ever. The Hong Kong Court of Final Appeal delivers judgments of impeccable quality, with its six overseas non-permanent judges from Australia, New Zealand and Britain making important contributions to the deliberations of a truly international body. When the World Justice Project issued its Rule of Law Index last October, Hong Kong, unsurprisingly, ranked highly, at 24th out of 143 jurisdictions worldwide – and sixth out of 15 in East Asia and the Pacific. Within the categories, Hong Kong rated as 21st globally for criminal justice and 20th for civil justice. It was also ranked ninth for absence of corruption and 15th for regulatory enforcement. The assessments were testament to a legal system that is just, professional and attuned to the values of the common law world, including regard for human rights. The International Covenant on Civil and Political Rights is applicable under the Basic Law and specifically protected in the national security legislation. Within this enlightened legal environment, Hong Kong has flourished. The Fraser Institute ranks it the world’s freest economy and the Global Financial Services Index adjudges it Asia’s leading financial centre. The 2025 International Arbitration Survey ranked Hong Kong joint first with Singapore as the most preferred arbitration centre in the Asia-Pacific, and joint second after London worldwide. The national 14th five-year plan supported Hong Kong’s role in international legal and dispute resolution services. The establishment of the headquarters of the International Organisation for Mediation in Hong Kong, the first global body to do so, reflected the city’s international standing. The holding of the 15th China-Asean Prosecutors-General Conference in Hong Kong for the first time underscored its regional credentials. In 2022, when President Xi Jinping visited Hong Kong, he praised one country, two systems. He said: “There is no reason to change such a good system. And it must be adhered to in the long run!” There is every reason to suppose the policy will go from strength to strength. Anybody betting on a bright future for Hong Kong will have backed a winner.

Those betting on Hong Kong’s bright future have backed a winner

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}The ‘one country, two systems’ framework, enshrined in the Basic Law and staunchly supported by the central government, has allowed the city to flourish

The ‘one country, two systems’ framework, enshrined in the Basic Law and staunchly supported by the central government, has allowed the city to flourish