Hong Kong is not over and has many “new irons in the fire” including the potential to develop a larger maritime finance sub-sector, according to former chief executive CY Leung.

Leung, who’s also a vice-chairman of the nation’s top political advisory body, was responding to remarks by former Morgan Stanley Asia head Stephen Roach that the city is in demise and the Hang Seng Index is lagging behind its peers.

“I think it's out of date and also out of touch. I'd very much like to sit down with him and have a conversation with him as to the new irons in the fire that Hong Kong has,” Leung told RTHK in an exclusive interview in Beijing.

“There are many new economic sectors and sub-sectors that I personally have identified running around in the mainland of China in the past six years,” he said. “What about maritime insurance? China is a major shipbuilding and maritime nation in the world nowadays. And Hong Kong is the most competitive international financial centre of China.”

Leung said the SAR can use its English language, fully convertible Hong Kong dollar, capable legal profession and independent judicial system to build a robust maritime insurance sector.

On the city’s fiscal deficit, Leung said there is a need to identify ways to broaden the revenue base without introducing new taxes.

“In the high quality development of the country, many manufacturers and exporters need third party, independent, standard, and testing and certification services. And Hong Kong is very good at this. Hong Kong has the goodwill, has the credibility, and that's the reason why we have such a thriving audit business,” he said.