There are signs that Hong Kong's economy is picking up, sentiment is improving and GDP is on the rebound, Hong Kong chief executive Tung Chee Hwa said Thursday.

Speaking in a question-and-answer session in the Legislative Council (LegCo), Tung said the Closer Economic Partnership Arrangement (CEPA) between Hong Kong and the Mainland has ushered in unprecedented opportunities.

It is important that the property market grows steadily, said Tung, adding that nothing is more important than economic growth and solving the negative-equity problem.

The Hong Kong government learned a good lesson after the July 1 rally, Tung said, acknowledging that many factors had led to the public's dissatisfaction, including inadequate communication with the community.

He reminded LegCo members that the government must serve with the community in mind. He said he will do his best to improve his governance and he has every confidence that he will do better in the future.

In response to some legislators' requests to speed up the constitutional reform process, Tung said the Constitutional Affairs Bureau is now making preparations to start a consultation next year, and a timetable will be ready by the year's end.
"The democratic process must follow provisions in the Basic Law," he added.

(Xinhua News Agency October 16, 2003)