Hong Kong leader warns against 'anarchy'

Before Leung Chun-ying's speech began on Wednesday a number of opposition lawmakers called on him to step down while holding up banners demanding full democracy. Others walked out of the chamber shouting "Down with CY Leung! True universal suffrage!" whilst carrying yellow umbrellas in a nod to the so-called "umbrella protests" which took place across Hong Kong last autumn.

The British colony returned to China in 1997 under a "one country, two systems" plan, which gives it some autonomy from the mainland and a promise of eventual universal suffrage.

In August, however, Beijing announced that any candidates for Hong Kong's chief executive in the 2017 election must first be vetted by a loyalist committee. Pro-democracy campaigners denounced the policy as "fake democracy," with tens of thousands of protesters taking to the streets at the height of the demonstrations.

'Not absolute autonomy'

Leung, however, pushed forward with his annual policy speech on Wednesday, making no concessions to protesters and questioning their "understanding" of the intricacies of politics in the semi-autonomous Chinese city.

The Hong Kong leader warned that as the city pursues democracy, "we should act in accordance with the law, or Hong Kong will degenerate into anarchy."

"Hong Kong's power originates from the central authorities [in Beijing]," Leung said, adding that "Hong Kong's autonomy ... is a high degree of autonomy, not an absolute autonomy."

Balancing act

In the past, the annual policy blueprint has been a key platform for Hong Kong's leaders to hand out billions to the less-advantaged in the form of tax breaks, or to signal shifts in economic, property and political policies.

In Wednesday's speech, however, Leung focused on issues including housing and said he would seek to further boost the supply of land to improve affordability in one of the world's most expensive property markets.

"Increasing and expediting land supply is the fundamental solution to resolve the land and housing problems of Hong Kong," Leung said.

He shed no light, though, on speculation that the government may seek to open up parks to limited development, which would likely infuriate environmentalists.

Under Beijing's watchful gaze, Leung must now try to maintain strong ties with Communist Party rulers in China whilst also attempting to boost his ratings among a population which knows he is unable to offer anything significant in the way of democratic reform.

ksb/sb (Reuters, AFP)