ONG KONG - China's Hong Kong Special Administrative Region (HKSAR) ranked third in the world in terms of foreign direct investment inflows last year, after the United States and the Chinese mainland, HKSAR Chief Executive Carrie Lam said Wednesday.

"Hong Kong is a free, open and diversified economy and a metropolis that attracts talents, organizations and enterprises of different scales from all over the world," Lam said when delivering the annual policy address at a Legislative Council meeting.

Lam stressed that Hong Kong's business environment has not been undermined by the impact of the pandemic and biased reports by certain Western media.

A survey has shown the numbers of business operations in Hong Kong with parent companies overseas or in the mainland and of startups here reach all-time highs of 9,049 and 3,755 respectively this year, she said.

Attaching great importance to the business environment, the HKSAR government has been maintaining communication with local and foreign chambers of commerce and addressing their concerns, Lam added.

The 2021 policy address, the fifth of its kind since Lam took office in 2017, focuses on bolstering Hong Kong's economy, tackling an entrenched housing shortage and prompting Hong Kong to better integrate into the national development.