Singers perform at the grand variety show at the Hong Kong Convention and Exhibition Centre on Friday during the celebration of the 20th anniversary of Hong Kong's return to China. [Photo/Xinhua]

The implementation of "one country, two systems" proved to be a great success in Hong Kong in the past two decades, Xi said. He reaffirmed that the principle will not be changed.

It's a historic move that China created "one country, two systems", to implement socialism in the main part of the country while practicing capitalism in some special regions, Xi said, adding that such an innovative path had never before been created in any other country.

Hong Kong SAR Chief Executive Leung Chun-ying expressed gratitude for the central government's support for him and the Hong Kong SAR government. The country has attached great importance to Hong Kong's function and needs and has spared no efforts to support Hong Kong, he said.

Saying he was confident about the future of Hong Kong, Leung also extended best wishes for the next term of the Hong Kong SAR government, which will be led by Chief Executive-elect Carrie Lam Cheng Yuet-ngor starting from Saturday.

David Wong Yau-kar, a Hong Kong deputy to the National People's Congress and chairman of the Mandatory Provident Fund Schemes Authority in Hong Kong, said Xi's speech gives Hong Kong confidence to pursue a brighter future by actively joining the nation's development, such as through the Belt and Road Initiative and the Guangdong-Hong Kong-Macao Greater Bay Area.

Hong Kong's successful transformation from a small fishing village to a metropolis is built on abundant opportunities brought by the nation's development, a well-established system under the "one country, two systems" principle and its own efforts, he said.

Irons Sze Wing-wai, a member of the Chinese People's Political Consultative Conference, said Xi's speech has pointed a clear direction for the city's commercial and industrial sectors in exploring its future.

Eddy Li Sau-hung, president of the Chinese Manufacturers' Association of Hong Kong, said Xi's remarks have reminded Hong Kong that "one country, two systems" is the best arrangement for Hong Kong, with the city taking the lead in various competitiveness indexes and rankings worldwide.

Shadow Li in Hong Kong contributed to this story.