The principles of "One Country, Two Systems", "Hong Kong people administering Hong Kong" and a high degree of autonomy is a unique and unprecedented system, Leung said, adding that there is neither overseas precedent nor "international standard" of the kind. For Hong Kong to select its chief executive by universal suffrage, the Basic Law and the relevant Interpretation and Decisions of the NPCSC must be complied with.

"We fully recognize the aspirations of our young students for democracy and their concerns about constitutional development. They should be guided towards a full understanding of the constitutional relationship between our country and Hong Kong so that the discussion on constitutional development would not be fruitless."

"The rule of law is the foundation of Hong Kong. The democratic development of Hong Kong must therefore be underpinned by the same. As we pursue democracy, we should act in accordance with the law, or Hong Kong will degenerate into anarchy," Leung said.

As for economy, Leung said, as part of China, Hong Kong benefits from the rapid development of and enjoy preferential treatments from the motherland, and from having a system that is different from other mainland cities.

He pointed out that taking the continuous economic development and full employment in recent years for granted, some people, however, have underestimated the importance of economic growth. This calls for vigilance as people's livelihood depends on the economy, and fostering economic development is vital to improving people's livelihood.