That has imposed greater downside risks for Hong Kong's economy, and the government should devote its energy to taking precautionary measures as well as making appropriate responses, Lam said.

Looking back at the past 22 years, Hong Kong has experienced some changes, ups and downs in the political, economic and social areas. Yet, Hong Kong has, generally speaking, remained stable and prosperous, she said.

Backed by the motherland and open to the world, Hong Kong has continued to leverage its unique advantages under the "one country, two systems" principle, said the chief executive.

She elaborated that under "one country", Hong Kong has benefited from the country's reform and opening-up and has enjoyed greater room for growth and development in the areas of society, economy and livelihoods.

On "two systems", after its return to the motherland, Hong Kong is still internationally recognized as one of the freest economies in the world, with the basic rights and freedoms of Hong Kong people fully protected by the Basic Law, Lam said.

"Every one of us in Hong Kong, though holding different views and assuming different roles, loves this place and treasures our long-cherished values. I and the SAR government will double our efforts to restore people's confidence and get Hong Kong off to a new start," Lam said.