HONG KONG - Chinese President Hu Jintao said Saturday that facts have shown that Hong Kong compatriots are capable of managing, building and developing the city well.

Addressing the welcoming dinner hosted by the government of the Hong Kong Special Administrative Region (HKSAR), Hu said what has happened in the city over the past 15 years shows that "one country, two systems" is the right policy for Hong Kong and it is a policy full of vitality.

"It also shows that Hong Kong compatriots have the wisdom and capability to manage, build and develop Hong Kong well," the president said.

President Hu arrived here Friday to attend celebrations marking the 15th anniversary of Hong Kong's return to China and the swearing-in ceremony of the new HKSAR government. This is the third time he visits the HKSAR.

"Every time I come, I get a fresh impression of the city's strong dynamism and unique charm," he said.

He said, "Under the principle of 'one country, two systems', Hong Kong has enjoyed steady economic growth, rising living standards, orderly progress in democracy, and social harmony and stability."

While developing closer links with the mainland and broader contacts with the world, Hong Kong "has maintained its status as an international financial, trade and shipping center," he added.