Chief Executive Carrie Lam met Australian Deputy Prime Minister and Minister for Infrastructure & Transport Michael McCormack at the Chief Executive's Office today.

She welcomed Mr McCormack to Hong Kong to take part in the launch ceremony of a direct flight between Hong Kong and Sydney operated by an Australian airline, signifying the growing relationship between the city and Australia.

The two places have close economic and trade ties, she said, adding Hong Kong is Australia's fifth largest export market for goods, seventh largest trading partner in services and fifth largest source of investment.

More than 600 Australian companies operate in Hong Kong.

Noting she was delighted to learn the negotiations for a free trade agreement between Hong Kong and Australia have been making good progress, Mrs Lam said she looks forward to the start of discussion on a comprehensive avoidance of double taxation agreement to bring about more business opportunities for enterprises in both places.

Mrs Lam said the Hong Kong Special Administrative Region, which has just celebrated the 21st anniversary of its establishment, has successfully implemented "one country, two systems".

The rule of law and judicial independence are upheld and various rights of the people are fully protected.

Noting four of the overseas non-permanent judges of the Court of Final Appeal are Australian, she said they have made significant contributions to Hong Kong's rule of law and show its judicial independence.

As Hong Kong and Australia have established sound foundations for co-operation in various aspects, Mrs Lam expressed the hope the two places continue to expand co-operation and exchanges in areas including cultural and creative industries as well as innovation and technology.