The tenacious performance of Hong Kong's gold-medal winning soccer team in the East Asian Games showed the essence of the Hong Kong spirit, which will continue to inspire and guide the city as it embraces the new year's changes and challenges, Chief Executive Donald Tsang says.

In his year-end article published today, Mr Tsang said despite 2009's difficulties and challenges, the year ended on a positive note with Hong Kong athletes winning 110 medals at the games, marking its best performance in the event.

Noting the soccer final between Hong Kong and Japan was a particularly thrilling event, he applauded the local heroes' performance.

"This is a good example of how we can approach the various changes and challenges that come our way - do our best, do not lose heart, look for opportunities, and grasp those opportunities when the time is right."

Year of change

Recounting the year's ups and downs, Mr Tsang said 2009 has been a year of great change and challenge.

"At this time last year we were still in the thick of the financial tsunami. We did not know how severe it would be, or how long it would last. Our economic performance in the first quarter seemed to prove our fear � GDP declined sharply by 7.8% year-on-year, the biggest drop in a decade. But, to the surprise of many, we began to see signs of a recovery not long after."

Mr Tsang said Hong Kong's rebound has much to do with a more stable external environment, coupled with a rapid resumption of fast growth on the Mainland.

"Domestically, our strategy to stabilise the financial markets, support enterprises and preserve employment went a long way to holding up business and consumer confidence when the financial tsunami was hitting Hong Kong hardest."

New opportunities

Despite the financial crisis threat, there was always a silver lining, he said.

"The crisis has radically changed the landscape of the global economy. The Mainland has emerged as a prominent economic powerhouse. This, in turn, will present new opportunities for Hong Kong."

The expansion of the renminbi business in Hong Kong has strengthened the city's position as a global financial centre, as well as its unique role in the internationalisation of the renminbi.

Noting Hong Kong is making full use of opportunities generated by increasing integration between the city and the Pearl River Delta, the Chief Executive said it will also develop deeper economic and cultural co-operation with Taiwan.

On economic diversification, he said six promising industries where Hong Kong enjoys competitive advantages have been identified.

"It will take time for these industries to mature and flourish, but an initial push by the government is often all it takes for an economic sector to get off the ground and gather momentum."