The improvement in Hong Kong's economy and people's living standards is conducive to promoting the democratic and political system according to the Basic Law of the special administrative region, Chinese Premier Wen Jiabao said Tuesday.

Nearly nine years after Hong Kong returned to the motherland, the capitalist system and legal system have remained unchanged in Hong Kong, and Hong Kong compatriots enjoy due guarantee of their freedom and rights, Wen said at a press conference held shortly after the end of the annual session of China's top legislature.

Wen called Hong Kong one of the freest and most open economies in the world with a "fully-fledged" legal system, "very favorable" business environment, and extensive connections with the world market, and a large number of professionals who are very familiar with the international economy.

He stressed these assets of Hong Kong are not only favorable factors contributing to Hong Kong's development, they also have played an "important and irreplaceable" role in boosting the development of the mainland.

"I believe that with the implementation of the mainland's next five-year economic and social development plan for 2006-2010, the role of these favorable factors will be brought into full play," the premier said.