"To practice the capitalist system in Hong Kong with a high degree of autonomy is necessary for the maintenance of the long-term prosperity and stability of Hong Kong," said Wu Bangguo, chairman of the national congress and one of China’s most powerful politicians, according to the state-run Xinhua news agency.

Wu spoke at a seminar in Beijing to celebrate the 10th anniversary of the implementation of Hong Kong’s Basic Law, which guarantees a high level of autonomy from China’s central government.

The law was introduced as part of Hong Kong’s return to Chinese control in 1997, partly to ensure the free-wheeling territory retained its competitive edge as one of the world’s leading financial centers.

"What I wish to stress here is that to maintain the long-term prosperity and stability of Hong Kong has always been the fundamental objective of the central government when addressing issues concerning Hong Kong," Wu said.

The seminar was attended by Hong Kong Chief Executive Donald Tsang.

Despite its economic autonomy, Hong Kong’s leadership is chosen by a committee backed by Beijing, which is suspicious of allowing full democracy.

The Basic Law guarantees a transition to universal suffrage and Tsang has promised to produce a roadmap to democracy, but the timeframe remains unclear.

Hong Kong returned to Chinese control in 1997 after 155 years as a British colony.

Meanwhile, on another occasion, Deputy Central Bank governor Wu Xiaoling said Beijing should encourage overseas private equity firms to raise money in China to reduce foreign currency inflows while still attracting needed management expertise.