HONG KONG - Some businesses operating in Hong Kong are optimistic about the city's impending change in leadership, welcoming the stability that chief executive hopeful John Lee is expected to bring after the recent years of turmoil.

The sense of hope expressed by some business leaders stands in contrast with the local public and international media sentiment over the May 8 election, for which Mr Lee will be the sole candidate in the running.

"It will be a fresh start," said entertainment tycoon Allan Zeman, chairman of Lan Kwai Fong Group. "I believe the next five years will be very good for Hong Kong."

Businesses have been badly battered over the past three years by the massive, often violent, pro-democracy protests of 2019 and the stringent Covid-19 restrictions imposed on the borders and within the city since early 2020.

Private-sector economic activity slid further into contraction last month, and the overall economic output is expected to contract in the first quarter.

Economists have steadily cut growth forecasts for Hong Kong as the year progresses, and the worsening outlook has affected its reputation as an international hub, with several big businesses shifting staff and headquarters to other Asian cities.

Mr Zeman credited Mr Lee for "doing a good job at stemming the 2019 protests" and reintroducing a sense of security to the city.

Mr Lee was security chief at the time of the social unrest, which often brought businesses to a standstill. He was seen as instrumental in helping Beijing implement a wide-ranging national security law in Hong Kong from mid-2020 that restored order.

Critics said the law, which punishes subversion, terrorism and collusion with foreign forces, puts Hong Kong's freedoms at risk. But many businesses appreciate the stability it brought back to the city.

"With this new era of political stability, the next chief executive is certainly empowered to do a lot of what needs to be done in Hong Kong that previous leaders could not," said Mr Basil Hwang, vice-chairman of the Singapore Chamber of Commerce in Hong Kong and managing partner at law firm Hauzen.

"Businesses like certainty and stability… so if we can have both, it will be good for businesses."

Mr Erik Yim, managing director of Hong Kong-based China Merchants Port Holdings and an elected lawmaker, said that "without a stable social environment, all business and development plans are ultimately castles in the air".

He expects Mr Lee to improve governance and economic development in the city.

However, some in the foreign business community had lost confidence in Hong Kong's outlook prior to news of the impending leadership change.

A survey released last month by the European Chamber of Commerce in Hong Kong (EuroCham) found that half of its member firms planned to at least partially relocate out of the city within the next 12 months.

Another survey, released by the American Chamber of Commerce in Hong Kong (AmCham) in January, found that half of its members were considering leaving the city on personal grounds and one-third had delayed new investments due to the Covid-19 restrictions.

AmCham declined to comment for this report. EuroCham did not respond to queries.

"Anecdotally, many people have left Hong Kong - not so much for political reasons, but because, due to the Covid-19 policies, there has been a significant deterioration in their quality of life and in the things they value in Hong Kong, such as convenient travel," said Mr Hwang.

Hong Kong saw a net outflow of about 70,000 people in February and March, up from fewer than 17,000 in December.

Mr Hwang added: "Hong Kong's value to China is as an international financial centre - a 'superconnector' linking mainland China with the rest of the world. Hong Kong's closure to the world has hurt its value to mainland China… So one hopes that the new administration will review these policies and allow Hong Kong to regain its value to the region and China."

Dr Simon Lee, chief strategy officer for the Greater Bay Area at state-owned conglomerate China Resources Group, said: "I am very confident about Hong Kong's future, especially its business future."

"It is very common for talents to come in and out... especially if you are an open economy and an important financial centre," he said.

"The key challenge for Hong Kong is how it can keep and develop its advantages and openness to the world and deepen its integration with the region."

Under Mr Lee as Hong Kong's prospective next leader, Dr Lee said that if the city "can protect and develop its own independent judiciary and common law system, keeping them operating smoothly and openly… the financial sector can be guaranteed and our investments and business activities can all be protected".

Mr Lee announced his decision to run for the top job early this month.

He revealed last week that nearly 150 powerful Hong Kong businessmen and politicians had joined his campaign's presidium and advisory teams.

These heavyweight consultants include the city's biggest property tycoons such as CK Asset's Mr Li Ka-shing and Henderson Land Development's Mr Lee Shau Kee, as well as casino magnate Lui Che-woo. Mr Zeman is among them too.

Mr Lee is slated to unveil his election manifesto on Friday morning, outlining his overall policy direction for Hong Kong if elected.