According to the Hong Kong Special Administrative Region Government News Release on the 10th, the International Monetary Fund expressed its recognition of Hong Kong's status and functions as an international financial center. It is reported that the International Monetary Fund delegation completed the consultation and discussion on Article 4 of the Hong Kong Special Administrative Region in 2024, and issued a preliminary summary of its assessment on January 10, making the above statement. The delegation visited Hong Kong from November 11 to 22, 2024, during which they held discussions with officials of the Hong Kong Special Administrative Region government, financial regulatory agencies, and representatives of private institutions on the 2024 Article 4 negotiations. The delegation believes that despite facing multiple challenges, the Hong Kong economy is gradually recovering. Hong Kong's financial system remains resilient despite a robust institutional framework, ample policy buffer space, and smooth operation of the linked exchange rate system. The current direction and path for the Hong Kong SAR government to gradually integrate its finances is appropriate. Taking into account new revenue measures, the effectiveness of expenditure control, and the gradual reduction of expenses related to the epidemic, Hong Kong's fiscal space remains ample, and the fiscal deficit will further narrow. It is expected that Hong Kong's real gross domestic product will grow by an average of 2.7% in 2024 and 2025. The Financial Secretary of the Special Administrative Region, Paul Chan, said that the delegation welcomes the recognition that the Hong Kong economy is steadily recovering. The delegation once again affirmed the resilience of Hong Kong's financial system. We will continue to consolidate and enhance Hong Kong's position as an international financial center, and give full play to its unique function of "internal connectivity and external communication" under the "One Country, Two Systems" policy. Chen Maobo said that in the face of the complex and ever-changing external political and economic environment, as well as the adjustment process of Hong Kong's economic structure, the SAR government will adopt a cost saving strategy as the leading strategy to restore fiscal balance within a few years. In terms of cost cutting, we will control the growth of regular expenses to gradually narrow the income and expenditure gap; In terms of open source, we will maintain Hong Kong's competitive advantage of a simple and low tax system, while taking into account the actual social situation, avoiding weakening the driving force of economic recovery, and adhering to the principle of "those who can pay more" to minimize the impact on the public. The Chief Executive of the Hong Kong Monetary Authority, Yu Weiwen, stated that as the delegation pointed out, Hong Kong's economy is highly open, the financial services industry is large in scale, and it is in line with global standards. Therefore, the linked exchange rate system is still the most suitable arrangement for Hong Kong. The Hong Kong Monetary Authority will continue to remain vigilant, maintain financial stability, and enhance Hong Kong's position as an international financial center. (New Society)