The Hong Kong Special Administrative Region government will discover new areas for growth as it is key for Hong Kong's economic recovery, Financial Secretary Paul Chan Mo-po vowed in his official blog on Sunday.

Chan made his appeal as he revealed that the government sees a fiscal deficit of more than HK$300 billion ($38.7 billion) this year－its steepest yet. Fiscal reserves fell from the equivalent of 23 months of government expenditure at the beginning of this year to that of only about 14 months at the year end.

Considering the city's small yet open economy, the financial chief said that Hong Kong's economic recovery and development will still be under the influence of different external factors, including China-US relations, geopolitical changes, and the speed of economic recovery in different regions.

Therefore, he said the HKSAR government will be devoted to looking for new growth under the ever-changing circumstances.

On the same day, Hong Kong Chief Executive Carrie Lam Cheng Yuet-ngor said Hong Kong will intensify cooperation with the Qianhai special zone in neighboring Shenzhen, Guangdong province, in fields of innovation and technology.

Making the remarks to the advisory committee of the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone, Lam said she believes Qianhai will become a highlight of Hong Kong-Shenzhen cooperation, which will eventually contribute to the development of a high-quality Guangdong-Hong Kong-Macao Greater Bay Area.

As of October this year, official data showed that more than 11,000 Hong Kong-funded enterprises were registered in Qianhai, and over 200 Hong Kong startup teams have been incubated at the Qianhai Shenzhen-Hong Kong Innovation and Entrepreneur Hub.

Witman Hung Wai-man, principal liaison officer for Hong Kong at the Shenzhen Qianhai Authority, told China Daily that Hong Kong's new areas for growth could be found in closer cooperation with the Chinese mainland cities of the Bay Area, and more active participation in the Belt and Road Initiative.

He cited science and technology as an example. Hong Kong's cutting-edge basic research developments could help transition the mainland's manufacturing sector toward a high-end one with quality growth. Hong Kong's traditional advantages in culture and creative industries will also help mainland brands upgrade in international arenas.

Hung noted that these new areas of economic growth would not only generate revenue, but also lead to more diverse economic structures and strengthen the resilience of the local economy.