Chief Executive John Lee has underscored the importance of carrying out reforms instead of being complacent, while urging Hong Kong to grasp opportunities to shine on the international stage.

In an address marking the 28th anniversary of the SAR's establishment on Tuesday, he said opportunities for the city outweighed challenges.

"We would rather be reformers who rise to challenges than become complacent idlers. Amid an ever-changing geopolitical landscape and constantly increasing uncertainties, Hong Kong is able to showcase exactly to the world the certainties of safety, stability and development opportunities. These are precisely what the world needs and seeks," he said.

"Hong Kong is a place where national and global opportunities converge. As long as we are determined to fully seize the opportunities, keep enhancing our value and competitiveness, undertake reforms for progress and foster innovation, I am confident the wisdom and experience of the people of Hong Kong will help our Pearl of the Orient shine brighter than ever on the world stage."

Outlining his vision for Hong Kong's future, Lee pledged to balance high-quality development and security, fast-track the Northern Metropolis project and address livelihood issues.

He also detailed achievements made by his administration in the past three years, such as enacting the homegrown national security legislation which he described as "a historic task long envisioned by previous administrations that could not be realised until now".

Ahead of the reception celebrating the anniversary, a flag-raising ceremony was held at Golden Bauhinia Square in Wan Chai.

Lee and three former CEs – CY Leung, Donald Tsang and Carrie Lam – were among those in attendance.

The national and Hong Kong flags were raised at 8am by officers from the police flag party.

A firefighting vessel performed a water salute in Victoria Harbour while helicopters took part in a fly-past.