Hong Kong Chief Executive Donald Tsang said Wednesday that Hong Kong has full confidence to regain economy and combat the flu pandemic amid challenges.

A flag-raising ceremony is held at the Golden Bauhinia Square outside the Hong Kong Convention and Exhibition Center (HKCEC) to celebrate the 12th anniversary of the establishment of the Hong Kong Special Administrative Region (HKSAR) on Wednesday, July 1, 2009. [Photo: Xinhuanet]

Speaking at the reception in celebration of the 12th anniversary of the establishment of Hong Kong Special Administrative Region Wednesday morning, Tsang said this has been a challenging year for the city.

Tsang said, whilst the financial tsunami has impacted heavily on economies around the world, the threat of a new strain of influenza has also kept every government on high alert.

"Hong Kong has had to deal with many different challenges since its return to the motherland. During this current set of challenges, we are confident we will be able to revitalize our economy, take good care of our people, and fight against the flu pandemic," the chief executive said.

"With perseverance and determination, and most importantly with the all-out support of our country, I am sure we will again prove our resilience and mettle," he said.