Hong Kong Chief Executive Carrie Lam vowed to continue strengthening ties with China, using an annual policy address to defend Beijing¡¯s tightening grip over the financial hub and announce new steps to boost economic links with the mainland.

In a speech on Wednesday that was delayed in order for her to consult Communist Party leaders in Beijing, Lam said her administration¡¯s aim was to restore confidence following another tumultuous year. She spoke against the backdrop of a new wave of virus infections, an economy in deep contraction, worsening wealth inequality and political turmoil.

¡°The primary objective of this policy address is to look at ways to get Hong Kong out of the impasse and to restore people¡¯s confidence as soon as possible,¡± she said in the speech, which cited President Xi Jinping¡¯s vision for Hong Kong at the outset.

Lam said Hong Kong¡¯s economy can benefit ¡°from its proximity to the mainland and the central government¡¯s long-standing support under the ¡®one country, two systems¡¯ principle.¡± The city¡¯s ¡°economic development will be given new impetus¡± by relations with China, she said.

A resurgence in virus cases prompted new restrictions Tuesday, with the government shutting down bars and nightclubs and limiting the number of people at banquets. The outbreak has already delayed a Hong Kong-Singapore travel bubble in a blow to the economy and efforts to reopen the city.

The government has already allocated more than 310 billion Hong Kong dollars ($40 billion) in virus stimulus this year and its tight fiscal situation means there¡¯s limited room for more spending, Lam has said.

The economy is set to contract 6.1% this year, with mixed signs recently of a recovery. Exports resumed their decline in October after a strong gain in the previous month. Bloomberg Economics¡¯ high frequency dashboard shows subdued activity before the latest social distancing measures were imposed.