As the new President of HKUST, taking office on 1 July 2001, I am honored to present this Annual Report. During the year 2000/01, HKUST, under the leadership of founding President Prof Chia-Wei WOO, successfully carried out its mission and continued to excel in academic work, research, and teaching, thereby contributing to the well being of Hong Kong and the nation, as well as establishing international leadership in a number of areas. On behalf of the HKUST community, I would like to extend my gratitude to Prof Woo for his hard work throughout the years.

This year celebrates the 10th anniversary of the University. I participated in the Launching Ceremony of HKUST's 10th anniversary celebrations on 23 April 2001, and was very glad to be able to celebrate the University's birth and growth with the University community and friends. Thanks to the concerted efforts of all the founding members and those who have since joined, HKUST achieved international distinction within the short span of a decade. From the solid foundation laid for the University, we can take any kind of challenge in our stride and help HKUST build a more brilliant future.

Meeting New Challenges, Scaling New Heights
Hong Kong weathered several crises over the past few years, including the Asian financial crisis and the collapse of the dotcom bubble worldwide. Facing these challenges, the HKSAR Government has proposed plans to re-engineer and develop Hong Kong's education system, with the aim to enhance Hong Kong's competitiveness, sustain its prosperity, and further improve the living standards of the Hong Kong people. These plans are comprehensive in scope, covering areas that range from primary to tertiary education, from associate degree to PhD studies, from quality to quantity. However, due to financial constraints, the University Grants Committee substantially reduced budget allocation to tertiary institutions for the 1998/2001 triennium. Funding for the 2001/04 triennium will again be reduced. Consequently, HKUST is experiencing great financial stringency and our capacity for further development is being put to the test.

In devising strategies to respond to these budget cuts, HKUST never compromises academic excellence. Our mission is to promote academic research, develop science and technology, nurture talented minds, and assist economic and social development. To fulfill these goals, we must not slacken our efforts. At the same time, we must strengthen our communication with the Government so that limited resources may be better deployed and used more effectively.

Despite the unfavorable economic environment, our colleagues have continued to uphold the University's tradition of breaking new ground and pursuing excellence, achieving brilliant feats in a number of areas.

In 2000, researchers of the Department of Physics successfully synthesized the world's smallest single-walled carbon nanotubes with a diameter of 0.4 nm. This discovery was voted one of the 10 most important international scientific and technological advances by close to 500 Mainland academicians. Our researchers also discovered that the carbon nanotubes displayed superconductivity below -258. This is the first time scientists discovered superconductivity in a one-dimensional system, opening up a new vista of research and applications. These breakthroughs were widely reported by both the local and international media.

The School of Business and Management also boasted several remarkable achievements during the year. It was the only business school in Asia to be listed in the world top-50 league in the Financial Times 2001 MBA rankings. The School was ranked No. 1 in terms of international experience, reflecting its success in promoting international exchange programs and overseas research. In terms of research, the School came 33rd in the world, which shows that HKUST's dual emphasis on teaching and research has borne fruit.

The above are only two of the many prominent examples of the University's achievements during the year under review, more of which are detailed in this Report. HKUST's outstanding work is a clear illustration that Hong Kong's academic and research capabilities have reached international standards, and that Hong Kong is capable of developing a knowledge economy.