Financial Secretary Paul Chan on Saturday said Hong Kong’s new homegrown national security legislation will make the city a better place to do business, and dismissed suggestions that foreign companies are worried about the new laws.

The Safeguarding National Security Ordinance formally took effect as it was gazetted on Saturday – four days after it was unanimously approved by the Legislative Council.

Speaking on a radio programme, Chan said he believes that the finance and business sectors are deeply aware of the need for a safe and stable environment to do business, following the social turmoil in 2019.

The finance chief said the new legislation would help ensure a stable environment here, which would make Hong Kong a more attractive city for foreign investment.

He also said it’s normal for overseas businesses to want to know more about the new legislation.

"I believe it would be inappropriate to say they are worried. It’s reasonable and normal for foreign businesses to care about such legislation. When you venture into a new location to establish operations and make investments, you'll assess the local business environment, hoping that it offers favourable business conditions and social stability, so that you can expand your business there," he explained.

Chan also played down a decision by the Australian government to update its travel advisory for citizens traveling to Hong Kong, telling them to exercise ‘a high degree of caution’ because of the new law.

He said Australian businesses aren’t aligned with the country’s political stance, saying many firms have expressed interest in investing in Hong Kong.

The finance minister also said local officials will continue to travel overseas to spread the good stories of Hong Kong and attract more companies to the SAR.