The Practice of the "One Country, Two Systems" Policy in the Hong Kong Special Administrative Region

V. Fully and Accurately Understanding and Implementing the Policy of "One Country, Two Systems"

As a groundbreaking initiative, "one country, two systems" is a major issue of governance to the central leadership, and marks a major historical turning point for Hong Kong and Hong Kong people as well. While comprehensive progress has been made on all fronts in the HKSAR, the practice of "one country, two systems" has come to face new circumstances and new problems. Some people in Hong Kong have yet felt comfortable with the changes. Still some are even confused or lopsided in their understanding of "one country, two systems" and the Basic Law. Many wrong views that are currently rife in Hong Kong concerning its economy, society and development of its political structure are attributable to this. The continued practice of "one country, two systems" in Hong Kong requires that we proceed from the fundamental objectives of maintaining China's sovereignty, security and development interests and maintaining the long-term stability and prosperity of Hong Kong to fully and accurately understand and implement the policy of "one country, two systems," and holistically combine upholding the principle of "one country" with respecting the difference of "two systems," maintaining the power of the central government with ensuring the high degree of autonomy of the HKSAR, and letting the mainland play its role as a strong supporter of the HKSAR with improving the competitive edge of Hong Kong. In no circumstance should we do one thing and neglect the other.

1. Fully and Accurately Understanding the Meaning of "One Country, Two Systems"

"One country, two systems" is a holistic concept. The "one country" means that within the PRC, HKSAR is an inseparable part and a local administrative region directly under China's Central People's Government. As a unitary state, China's central government has comprehensive jurisdiction over all local administrative regions, including the HKSAR. The high degree of autonomy of HKSAR is not an inherent power, but one that comes solely from the authorization by the central leadership. The high degree of autonomy of the HKSAR is not full autonomy, nor a decentralized power. It is the power to run local affairs as authorized by the central leadership. The high degree of autonomy of HKSAR is subject to the level of the central leadership's authorization. There is no such thing called "residual power." With China's Constitution stipulating in clear-cut terms that the country follows a fundamental system of socialism, the basic system, core leadership and guiding thought of the "one country" have been explicitly provided for. The most important thing to do in upholding the "one country" principle is to maintain China's sovereignty, security and development interests, and respect the country's fundamental system and other systems and principles.

The "two systems" means that, within the "one country" the main body of the country practices socialism, while Hong Kong and some other regions practice capitalism. The "one country" is the premise and basis of the "two systems," and the "two systems" is subordinate to and derived from "one country." But the "two systems" under the "one country" are not on a par with each other. The fact that the mainland, the main body of the country, embraces socialism will not change. With that as the premise, and taking into account the history of Hong Kong and some other regions, capitalism is allowed to stay on a long-term basis. Therefore, a socialist system by the mainland is the prerequisite and guarantee for Hong Kong's practicing capitalism and maintaining its stability and prosperity. For Hong Kong to retain its capitalist system and enjoy a high degree of autonomy with "Hong Kong people governing Hong Kong" according to the Basic Law, it must fully respect the socialist system practiced on the mainland in keeping with the "one country" principle and, in particular, the political system and other systems and principles in practice. The mainland should respect and tolerate the capitalism embraced by Hong Kong while upholding its socialist system, and draw on the successful experience of Hong Kong in economic development and social management. Only by respecting and learning from each other can the "two systems" in the "one country" coexist harmoniously and achieve common development.

2. Resolutely Safeguarding the Authority of the Constitution of the PRC and the Basic Law of Hong Kong

The Constitution of the PRC and the Basic Law together constitute the constitutional basis of the HKSAR. As the fundamental law of the country, the Constitution, with supreme legal status and the highest legal authority, is applicable throughout the territory of the People's Republic of China, including the HKSAR. The Basic Law, which was formulated in accordance with the Constitution, provides for the system of the HKSAR and enjoys the legal status as its constitutional law. The systems and policies of the HKSAR are all based on the provisions of the Basic Law; no law enacted by the legislature of the HKSAR shall contravene the Basic Law. All the executive, legislative and judicial practices in the HKSAR must conform to the Basic Law. And all individuals, groups and organizations of the HKSAR shall obey the Basic Law. As a national law, the Basic Law is applicable throughout the country.

We should have a full understanding of the provisions of the Basic Law. All the provisions of the Basic Law underlie the HKSAR system. They are not isolated from but interrelated with each other. Each of these provisions must be understood in the context of the Basic Law and the HKSAR system as a whole. The implementation of the Basic Law shows that if we comprehend individual provisions of the Basic Law in an isolated way without taking into account the Basic Law as a whole, stressing one aspect while ignoring others, ambiguity or even contentious interpretation will occur, which will severely hamper the implementation of the Basic Law. Only by comprehensively understanding all the provisions of the Basic Law can we find that the HKSAR system, along with all its components, is an integrated whole complementary to each other and that this system plays the role of protecting the fundamental rights and freedoms of Hong Kong residents, and ensures the prosperity and stability of Hong Kong.

We should respect and uphold the power of interpretation and amendment of the Basic Law vested in the NPC and its Standing Committee. The Basic Law provides that the power of interpretation of the Basic Law shall be vested in the NPC Standing Committee, and the power of amendment shall be vested in the NPC. The Basic Law also provides that the courts of the HKSAR, in the process of adjudication, may give their own interpretation of the provisions in the Basic Law that are within the limits of the autonomy of the HKSAR and other provisions. This power of interpretation comes from the authorization of the NPC Standing Committee. However, if the courts of the HKSAR, in the process of adjudicating cases, need to interpret the provisions of the Basic Law concerning affairs which are the responsibility of the central government, or concerning the relationship between the central authorities and the HKSAR, and if such interpretation will affect the judgments on the cases, the courts of the HKSAR shall, before making their final judgments which are not appealable, seek an interpretation of the relevant provisions from the NPC Standing Committee through the Court of Final Appeal of the HKSAR. When the NPC Standing Committee makes an interpretation of the provisions concerned, the courts of the HKSAR, in applying those provisions, shall follow the interpretation of the NPC Standing Committee, which enjoys the same status with HKSAR laws. The fact that the Standing Committee of the NPC exercises the power of interpretation of the Basic Law in accordance with the law is aimed at maintaining the rule of law in Hong Kong, as it oversees HKSAR's implementation of the Basic Law and protects the high degree of autonomy of the region.

We should improve the systems and mechanisms related to implementing the Basic Law, which will help enhance its authority. Since the Basic Law came into force, a series of systems and mechanisms related to its implementation have been put in place. For example, in amending the method for selection of the chief executive of the HKSAR and method for the formation of the Legislative Council of the HKSAR, a "five-step" legal procedure has been established and the five steps are: the chief executive makes a report to the NPC Standing Committee; the NPC Standing Committee makes a corresponding decision; the Legislative Council endorses the decision; and the chief executive gives his consent; and the NPC Standing Committee approves or puts it on the record. Regarding the interpretation of the Basic Law, the relevant procedures and working mechanisms that have been established include: the NPC Standing Committee interprets the Law on its own initiative; the chief executive makes a report to the State Council, which then submits it to the NPC Standing Committee and asks it to give an interpretation; or the Court of Final Appeal of the HKSAR seeks an interpretation of the relevant provisions from the NPC Standing Committee. Regarding legislation in the HKSAR, the working procedure for the NPC Standing Committee to put on the record of laws enacted by the HKSAR has been established; in terms of judicial aid between the mainland and HKSAR, arrangements have been made in mutual service of judicial documents, reciprocal recognition and enforcement of arbitration awards of civil and commercial cases as well as judgments of certain civil and commercial cases. Regarding accountability the chief executive holds to the central government, a system is in place for the chief executive to make reports to the central government on his/her own work. As the practice of "one country, two systems" continues and the Basic Law is further implemented, it is imperative to further improve the systems and mechanisms in relation to the implementation of the Basic Law. In particular, it is necessary to, with an eye to the lasting peace and order in Hong Kong, exercise well the power invested in the central government as prescribed in the Basic Law and see to it that the relationship between the central government and HKSAR is indeed brought onto a legal and institutionalized orbit.

3. The Hong Kong People Who Govern Hong Kong Should Above All Be Patriotic

There are lines and criteria to be observed in implementing "Hong Kong people governing Hong Kong," that is what Deng Xiaoping stressed, Hong Kong must be governed by the Hong Kong people with patriots as the mainstay, as loyalty to one's country is the minimum political ethic for political figures. Under the policy of "one country, two systems," all those who administrate Hong Kong, including the chief executive, principal officials, members of the Executive Council and Legislative Council, judges of the courts at different levels and other judicial personnel, have on their shoulders the responsibility of correctly understanding and implementing the Basic Law, of safeguarding the country's sovereignty, security and development interests, and of ensuring the long-term prosperity and stability of Hong Kong. In a word, loving the country is the basic political requirement for Hong Kong's administrators. If they are not consisted of by patriots as the mainstay or they cannot be loyal to the country and the HKSAR, the practice of "one country, two systems" in the HKSAR will deviate from its right direction, making it difficult to uphold the country's sovereignty, security and development interests, and putting Hong Kong's stability and prosperity and the wellbeing of its people in serious jeopardy.

The fact that Hong Kong must be governed by patriots is well grounded in laws. Both the Constitution and the Basic Law provide for the establishment of the HKSAR, which works for China's national unification, territorial integrity and maintaining Hong Kong's long-term stability and prosperity. In that context, the Basic Law requires that the chief executive, principal officials, members of the Executive Council, president and over 80 percent of the members of the Legislative Council, chief justice of the Court of Final Appeal and chief judge of the High Court shall be Chinese citizens who are permanent residents of Hong Kong with no right of abode in any foreign country; that, when assuming office, the chief executive, principal officials, members of the Executive Council and Legislative Council, judges of the courts at all levels and other members of the judiciary in the HKSAR must, in accordance with the law, swear to uphold the Basic Law and swear allegiance to the HKSAR of the PRC; and that the chief executive be accountable to the central government and the HKSAR with respect to implementing the Basic Law. All this is necessary for displaying sovereignty, ensuring loyalty to the country by the mainstay of Hong Kong administrators and helping them to subject to oversight by the central government and Hong Kong society, while taking their responsibility for the country, the HKSAR and Hong Kong's residents.

4. Firmly Supporting Chief Executive and the HKSAR Government in Governing Hong Kong in Accordance with the Law

The chief executive, as head of both the HKSAR and its government, is the prime responsible person for implementing the policy of "one country, two systems" and the Basic Law in Hong Kong. The central government has always firmly supported the chief executive and the HKSAR government in governing Hong Kong in accordance with the law, in rallying the broad sections of the Hong Kong society for economic development, in taking effective steps to improve people's livelihood, and in advancing democracy in a gradual and orderly way to promote inclusiveness, mutual support and harmony.

Developing the economy and improving the people's livelihood are common aspirations of the Hong Kong people. They serve as an important basis for solving social problems and ensuring overall stability in the HKSAR, and also the main task before the chief executive and the HKSAR government in governing Hong Kong in accordance with the law. At present, Hong Kong is at a critical juncture of development, with both opportunities and challenges. It should seize the opportunities and vigorously address the salient problems in its economic and social development, so as to bolster and enhance its own competitive edge, maintain a steady economic and social development, and upgrade the texture of people's life. The mainland has always been a powerful backing for Hong Kong.

The central government continues its support for the HKSAR in developing a system of democratic governance that suits the actual conditions in Hong Kong in a gradual and orderly manner as provided for in the provisions of the Basic Law. The ultimate aim of selection of the chief executive will be one by universal suffrage upon nomination by a broadly representative nominating committee in accordance with democratic procedures and the election of all the members of the Legislative Council by universal suffrage. This solemn commitment of the central government has been incorporated in the Basic Law and the relevant resolutions by the NPC Standing Committee. The central government is sincerely in favor of moving Hong Kong's democratic governance forward. The system of universal suffrage for selecting the chief executive and forming the Legislative Council must serve the country's sovereignty, security and development interests, tally with Hong Kong's actual conditions, take into consideration the interests of all social strata, give expression to the principle of equal participation, and be conducive to the development of capitalism in Hong Kong. In particular, the systems must conform to HKSAR's legal status as a local administrative region directly under the central government and accord with the Basic Law and relevant resolutions adopted by the NPC Standing Committee. Furthermore, the chief executive to be elected by universal suffrage must be a person who loves the country and Hong Kong. As long as all sectors of the Hong Kong society hold pragmatic discussions and build a consensus based on the above principles, these two ultimate goals are sure to be reached.

Hong Kong is a free, open and pluralistic society. It is also an international commercial metropolis where Chinese and non-Chinese cultures converge and mingle. Maintaining social harmony and stability serves the interests of all strata and all sectors of the Hong Kong society as well as those of outside investors. It is a prerequisite for retaining Hong Kong's status as an international financial, trade and shipping center. The central government will continue to encourage the people of Hong Kong to carry forward their fine traditions of inclusiveness, mutual support and respect for the rule of law and order. It calls on the Hong Kong people to seek common ground while reserving differences, be tolerant and help each other in the fundamental interests of the nation and the general and long-term interests of Hong Kong, achieve the broadest unity under the banner of loving the country and Hong Kong with strengthened social harmony and stability through compromise and mutual assistance.

5. Continuously Promoting Exchanges and Cooperation Between the Mainland and Hong Kong

Increasingly frequent exchanges and closer cooperation between Hong Kong and the mainland have expanded channels for common development by leveraging complementary advantages. Hong Kong has gained access to enormous space and momentum for development by taking advantage of the broad market and abundant factor resources of the mainland and opportunities of China's rapid development. By consolidating and enhancing its existing advantages, Hong Kong can better play its role in introducing external investment and talents, in absorbing internationally advanced technologies and managerial expertise, in serving as a bridge for implementing China's "go global" strategy, and in helping quicken the shift of the growth mode on the mainland. In addition, Hong Kong's experience can be of reference for the mainland to pursue innovative ways in social and economic management.

As contacts between the mainland and the HKSAR become closer and mutual understanding between the people deepens, the Hong Kong compatriots are getting a stronger sense of national identity and commitment. They pay closer attention to the development of the country and take an active part in the country's modernization drive as well as public welfare activities, such as poverty alleviation, education and protection of the rights of women and children. When the mainland suffered major natural disasters, the Hong Kong compatriots extended generous and active support for the rescue and relief work and post-disaster reconstruction. These fully demonstrate the strong ties of blood and affection between the people on the mainland and the Hong Kong compatriots.

The central government will continue to support the HKSAR government in forming a closer working relationship with relevant government departments at both the central and local levels, support the Hong Kong compatriots in having more exchanges with people on the mainland, and support Hong Kong in playing its unique role in the country's endeavor of comprehensive reform and opening up. The central government encourages Hong Kong to carry out broader and deeper exchanges and cooperation with the mainland, and make concerted efforts with the mainland to build the common home of the Chinese nation.

Conclusion

The implementation of the principle of "one country, two systems" in the HKSAR has achieved widely recognized success. This fully proves that "one country, two systems" is not only the best solution to the Hong Kong question left over from history but also the best institutional arrangement for the long-term prosperity and stability of Hong Kong after its return to the motherland. Firmly advancing the cause of "one country, two systems" is the common wish of all the Chinese people, the Hong Kong compatriots included, and is in the fundamental interests of the country and people, the general and long-term interests of Hong Kong and the interests of foreign investors.

The endeavor to further the practice of "one country, two systems" requires both a comprehensive and accurate understanding and implementation of the policy to ensure that the practice moves forward on the right track and proactive and effective response to the difficulties and challenges confronting Hong Kong in its development. In the face of profound adjustments and changes in the economic environment both within and outside the region, Hong Kong needs to continuously enhance its competitiveness. Some deep-seated problems that have built up over a long period of time are becoming more conspicuous and need to be solved by pooling the efforts of all sectors. The deepening exchanges and cooperation between the HKSAR and the mainland call for better communication and coordination, and the concerns of the people should be properly addressed. Meanwhile, it is necessary to stay alert to the attempt of outside forces to use Hong Kong to interfere in China's domestic affairs, and prevent and repel the attempt made by a very small number of people who act in collusion with outside forces to interfere with the implementation of "one country, two systems" in Hong Kong. A proper handling of these issues and further implementation of "one country, two systems" in Hong Kong will further demonstrate the strong vitality of the policy of "one country, two systems."

Now, people all over the country are working hard with full confidence towards the "two centenary goals" - to complete the building of a moderately prosperous society in all respects when the Communist Party of China celebrates its centenary in 2021, and to turn China into a modern socialist country that is prosperous, strong, democratic, culturally advanced and harmonious when the PRC marks its centenary in 2049 - as well as the Chinese dream of the great rejuvenation of the Chinese nation. Continuously enriching and developing the practice of "one country, two systems" in the HKSAR and maintaining long-term prosperity and stability in the region are integral part of the Chinese dream. It is also a necessary requirement for improving and developing socialism with Chinese characteristics and promoting the modernization of the national governance system and governing capability. The central government will continue to work with the HKSAR government and the Hong Kong compatriots to fully and faithfully implement the principle of "one country, two systems" and the Basic Law, so as to further the development of all undertakings in Hong Kong. We are convinced that the HKSAR will advance steadily forward under the principle of "one country, two systems" and the Basic Law, and work hand in hand with the mainland toward a better future for the Chinese nation.

Appendix

I. Statistics of Hong Kong's Economic and Social Development

1. The Gross Regional Product (GRP) of Hong Kong rose from HK$1.37 trillion in 1997 to HK$2.12 trillion in 2013, an average annual growth rate of 3.4 percent.

2. The fiscal reserves of the HKSAR government had increased by 65.2 percent from HK$457.5 billion at the end of 1997 to HK$755.7 billion at the end of March 2014.

3. Hong Kong's foreign exchange reserves had grown by 3.35 times from US$92.8 billion at the end of 1997 to US$311.2 billion by the end of 2013.

4. According to the 2013 statistics released by the International Monetary Fund (IMF), Hong Kong's GRP and per-capita GRP respectively ranked 35th and 7th in the world, as calculated by purchasing power parity (PPP).

5. As Hong Kong is a leading international banking center, 73 of the world's top 100 banks operate in Hong Kong.

6. As Asia's second-largest and the world's sixth-largest securities market, Hong Kong recorded a market capitalization of HK$24.04 trillion by the end of 2013. IPO funds raised by the Hong Kong Stock Exchange in 2013 totaled HK$166.5 billion, making Hong Kong the second-largest IPO market in the world.

7. Hong Kong's foreign exchange market scored an average daily turnover of US$274.6 billion in 2013, making it the fifth-largest foreign exchange market in the world.

8. According to the 2012 Financial Development Report released by the World Economic Forum in October 2012, Hong Kong's financial development index ranked top worldwide. Hong Kong ranked third in the Global Financial Centres Index published by the City of London Corporation in September 2013.

9. As the world's ninth-largest trading economy, Hong Kong is home to approximately 100,000 import and export companies, which trade with almost every country and region in the world.

10. Hong Kong's external merchandise trade grew by a factor of 2.48 from HK$3.07 trillion in 1997 to HK$7.62 trillion in 2013.

11. Hong Kong is one of the largest recipients of foreign direct investment (FDI). The World Investment Report 2013 released by the United Nations Conference on Trade and Development (UNCTAD) shows that Hong Kong is the world's third-largest recipient of FDI. By the end of 2013, the total number of overseas companies registered in Hong Kong reached 9,258, an 83 percent increase over 1997. By June 2013, 1,379 foreign-funded companies in Hong Kong served as regional headquarters and 2,456 foreign representative offices served as regional offices, recording 52.7 percent and 52.5 percent increase respectively over that at the end of 1997.

12. As one of the largest container ports in the world, Hong Kong handled 22,288,000 ISO containers in 2013, 52.9 percent higher than in 1997.

13. Hong Kong is the world's fourth-largest ship registry. By the end of 2013, Hong Kong-registered ships numbered 2,327, totaling 86.43 million dwt.

14. The Hong Kong International Airport, from which more than 100 airlines operate flights, is the world's fifth-busiest passenger airport and has the world's most active air cargo operation. Its passenger traffic and cargo throughput in 2013 were 2.18 times and 2.53 times the 1998 figures, respectively.

15. Hong Kong ranked third among over 660 international port cities or regions in the 2013 Global International Shipping Center Index.

16. The HKSAR government's 2014-2015 budget recurrent expenditure on education is HK$67.13 billion, 21.8 percent of the government's total recurrent expenditure. The budget for expenditure on education is HK$75.37 billion, accounting for as high as 18.3 percent of the government's total expenditure budget and ranking first in all budget expenditure items. Hong Kong has been providing 12-year free education through public schools starting from the 2008/09 school year.

17. Since Hong Kong returned to China in 1997, institutions of higher learning that award local degrees have increased from 12 to 17, of which eight are funded by the government. The University of Hong Kong and the Hong Kong University of Science and Technology were among the top 10 in the Asia University Rankings released by Times Higher Education in 2013. The University of Hong Kong was ranked 43rd in the Times Higher Education World University Rankings 2013/14.

18. From the second quarter of 2000 to the third quarter of 2013, the percentage of people with post-secondary education in the entire employed population rose from 23.7 percent to 35.1 percent, and the percentage of those with higher education in the employed population increased from 14.5 percent to 26 percent. Hong Kong students remained high in the 2012 rankings of the Programme for International Student Assessment (PISA). Hong Kong ranked third in the Global Index of Cognitive Skills and Educational Attainment published by education company Pearson in 2012.

19. In the 2014/15 fiscal year, the HKSAR government's budget expenditure on medical and health care reaches HK$52.4 billion, accounting for 17 percent of the government's recurrent expenditure.

20. By the end of 2012, all types of health facilities in Hong Kong had a total of 35,500 beds. Public medical facilities with 90 percent of their funding coming from the government comprise 38 public hospitals, 48 specialist clinics and 73 general out-patient clinics, with 64,000 employees and 27,000 beds. They provide 90 percent of the in-patient services and 30 percent of the out-patient services of Hong Kong.

21. Hong Kong's infant mortality rate, dropping to 1.6 per thousand in 2013 from 4 per thousand in 1997, is one of the lowest in the world. Hong Kong also enjoys one of the highest life expectancies in the world - 80.9 for men and 86.6 for women.

22. By June 2013, Hong Kong had, as a member of a Chinese government delegation or in other appropriate capacities, participated in activities of 41 international inter-governmental organizations limited to states. Among these organizations were the International Monetary Fund, World Bank, International Civil Aviation Organization, Food and Agriculture Organization of the United Nations, and International Criminal Police Organization. Hong Kong joined 37 international inter-governmental organizations not limited to states, including the World Trade Organization, Asia-Pacific Economic Cooperation and World Meteorological Organization. Hong Kong had attended over 1,400 international conferences as a member of Chinese government delegations or in other appropriate capacities and over 20,000 international conferences not limited to states under the name of Hong Kong, China.

23. Each year, the HKSAR hosts an average of over 100 visits by foreign senior government officials and influential personages of academic circles and think tanks from all over the world. Many heads of state and heads of government have paid visits to or attended international conferences in Hong Kong. Hong Kong has hosted or co-hosted over 1,000 international conferences, such as the annual meetings of the World Bank Group and IMF, the Sixth WTO Ministerial Meeting, Telecom World of the International Telecommunication Union, Diplomatic Conference of the International Maritime Organization, Asian Regional Workshop of the World Intellectual Property Organization, and Asian-Pacific Postal Union Executive Council Meeting.

24. The HKSAR has signed visa waiver agreements with 42 countries, and 150 countries and regions have provided visa-free entry or visa upon arrival for HKSAR passport holders.

25. The HKSAR has signed civil air services agreements and civil air services transit agreements with 67 countries, double taxation avoidance agreements with 35 countries and regions, investment promotion and protection agreements with 17 countries, legal assistance in criminal matters agreements with 30 countries, transfer of fugitives agreements with 19 countries, and transfer of sentenced persons agreements with 13 countries.

26. The HKSAR government has established 11 economic and trade offices in Geneva, Brussels, London, Toronto, Tokyo, Singapore, Sydney, Washington D.C., New York, San Francisco and Berlin to promote Hong Kong's economic, trade, investment and public relations with relevant countries and regions.

27. There are 66 foreign consulates-general and 73 honorary consuls in Hong Kong. The European Commission, Bank for International Settlements, IMF, UN High Commissioner for Refugees, International Finance Corporation, and Hague Conference on Private International Law have offices in Hong Kong.

II. Statistics of Exchanges and Cooperation Between the Mainland and Hong Kong

1. The mainland is the largest trading partner of Hong Kong. According to Hong Kong statistics, in 2013 the trade volume between Hong Kong and the mainland reached HK$3.8913 trillion, 3.49 times over 1997 and accounting for 51.1 percent of Hong Kong's external trade.

2. Hong Kong is the most important trading partner of the mainland and one of the mainland's major export markets. According to the data from the General Administration of Customs, the mainland's exports to Hong Kong in 2013 totaled US$384.79 billion, constituting 17.4 percent of the mainland's total exports.

3. The mainland is the largest source of overseas direct investment for Hong Kong. By the end of 2013, direct investment from the mainland to Hong Kong had exceeded US$358.8 billion, accounting for nearly 60 percent of the mainland's total outbound direct investment.

4. Hong Kong is also the mainland's largest source of overseas direct investment. According to the data from the Ministry of Commerce, the mainland had approved nearly 360,000 projects with Hong Kong investment by the end of 2013, with US$665.67 billion paid-in investment, accounting for 47.7 percent of the total overseas investment in the mainland. Hong Kong is the largest recipient of the mainland's overseas investment as well as the mainland's largest financing center. By the end of 2013, the mainland's non-financial direct investment in Hong Kong had reached US$338.669 billion, taking up 59 percent of the mainland's total outbound non-financial direct investment.

5. By the end of 2013, the number of mainland enterprises listed in Hong Kong had reached 797, accounting for 48.5 percent of the total number of companies listed in Hong Kong. Their total market value had reached HK$13.7 trillion, accounting for 56.9 percent of the total value of the Hong Kong stock market.

6. By the end of 2013, RMB deposits and depository receipts in Hong Kong amounted to RMB1.05 trillion, an increase of 46 percent over 2012. RMB loans totaled RMB115.6 billion, and outstanding RMB bonds totaled RMB310 billion.

7. The Mainland/Hong Kong Science and Technology Co-operation Committee has, with the support of institutions of higher learning, research institutes and Hong Kong Science and Technology Parks, established 16 Partner State Key Laboratories, one Hong Kong branch of the Chinese National Engineering Research Center, and two National High-tech Industrialization Bases in Hong Kong. The Committee supports Hong Kong's institutions of higher learning in setting up research institutes in Shenzhen, Hong Kong's neighboring city on the mainland, and encourages Hong Kong's participation in key national science and technology programs.

8. Since 2010, four projects under the national 973 Program have been undertaken by Hong Kong's science and technology professionals and institutes, and have received total research and development funding of RMB160 million.

9. China's Chang'e-3 lunar lander and its Yutu rover landed on the moon in December 2013. The camera pointing system on Yutu was developed by experts from the Hong Kong Polytechnic University.

10. By the end of 2013, the number of academicians of the Chinese Academy of Sciences and the Chinese Academy of Engineering from Hong Kong had reached 39, including foreign nationals. In addition, 88 Hong Kong scientists had won 44 state science and technology awards, including the State Natural Science Award, State Scientific and Technological Progress Award and State Technological Invention Award.

11. Mainland students studying at institutions of higher learning in Hong Kong numbered 22,000 in the 2012/13 academic year. By October 2013, the number of Hong Kong students studying at institutions of higher learning in the mainland topped 14,000.

12. The University of Hong Kong, the Chinese University of Hong Kong, Hong Kong Polytechnic University, Hong Kong Baptist University and City University of Hong Kong have worked with mainland universities in jointly holding academic programs and running institutions of higher learning. Universities in cities and provinces of Guangdong, Beijing, Shanghai, Zhejiang, and Fujian on the mainland have established over 400 pairs of sister-school partnerships with Hong Kong universities.

13. In 2009, Yueju opera, jointly nominated by Hong Kong, Macau and Guangdong Province, was officially inscribed on UNESCO's Representative List of the Intangible Cultural Heritage of Humanity.

14. In September 2011, with the support of the central government, Hong Kong Global Geopark was listed by UNESCO as part of its Global Geoparks Network.

15. Since the mainland and Hong Kong signed the Closer Economic Partnership Arrangement (CEPA) in 2003, Hong Kong and the mainland have worked together in producing 322 films, accounting for 70 percent of mainland's total in such area. Moreover, 61 of the 322 co-productions topped RMB100 million each in box office receipts.