In this undated file photo, Hong Kong Financial Secretary Paul Chan Mo-po gives an interview. (ZOU HONG / CHINA DAILY)

Hong Kong is forging ahead with the clear and precise integration of a “proactive government” and an “efficient market” to propel economic development, Financial Secretary Paul Chan Mo-po said.

Writing in his blog on Sunday, the finance chief said corporations tend to slash investments when faced with uncertainty and increasing global risks and so government needs to step in to “inject momentum”.

Writing in his blog on Sunday, the finance chief said corporations tend to slash investments when faced with uncertainty and increasing global risks and so government needs to step in to “inject momentum”

“Amid the current situation, our industries may fall into the trap of insufficient investment if we solely depend on market forces. Therefore, the government needs to supplement and intervene in strengthening directives, building consensus, and injecting momentum to accelerate development,” Chan said.

However, this does not mean the government can tackle all the issues related to economic and societal development, he said.

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“For the segments requiring government’s direction, we dare to lead and are committed to pushing ahead. For the segments demanding market competitiveness, we create a favorable environment and conditions so that the market can exert potential,” the finance chief said.

“Only when the government leverages its proactive and active strengths and the market contributes its efficient resource allocation function can Hong Kong can enjoy rapid development in the future,” Chan added.

In order for Hong Kong to catch up with other economies in the region, the city needs to further sharpen its strengths in the financial services industry, strive to develop technology and innovation as an industry, and apply technology and innovation broadly in traditional industries, all in a bid to foster a comprehensive upgrade and transformation of the city’s economy, Chan said.

In Chief Executive John Lee Ka-chiu’s Policy Address on Wednesday, the government unveiled many new policies and measures, including the establishment of the Office for Attracting Strategic Enterprises and the Talents Service Unit to woo strategic enterprises and talents as well as developing the technology and innovation industry.

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Chan said that many companies in business and the technology and innovation sector are interested in government’s new policies and measures, and many overseas business chambers also have made inquiries.