Better Times Are Here; An architect of Hong Kong's recovery--and soon-to-be No. 2 in the government--talks about the city's aspirations.(Henry Tang)(Interview)

Byline: George Wehrfritz

Hong Kong's economy is on a roll--and so, it seems, is one architect of the city's recovery, Financial Secretary Henry Tang. On July 1, local media reports say, Tang, 54, will be named chief cabinet secretary, making him number two in government and an early favorite to succeed Chief Executive Donald Tsang when his second term expires in 2012. Tang won't comment on the reports, but he has a lot to say about Hong Kong's role as banker to the China boom and its aspiration to become a financial center in the mold of New York or London. He spoke with NEWSWEEK's George Wehrfritz. Excerpts:

WEHRFRITZ: How has Hong Kong's economy changed since 1997?

TANG: Dramatically. Ten years ago, service was already over 80 percent of our GDP; today it's over 90 percent. That 10 percent means very much. In the past 10 years we have demonstrated that we [can provide] China world-class financial services. Our capital markets have displayed a degree of depth and liquidity that an international market should have. We have seen some mega-IPOs. In the past, companies would never have thought about doing an IPO just in Hong Kong.

Is it accurate at this point to think of Hong Kong as China's New York City?

It's fair to say that we are China's international financial center, whether you compare us to New York or London because each is quite unique. Though it will be a long time before we catch up with the amount of capital raised in New York.

How will Hong Kong's growth change over the next 10 years?