I believe it's a combination of many trends coming accidentally together. The result is a surging feel-good factor.

First, there's the waning of Sars. It was undoubtedly a genuine medical crisis but it seemed to me then, and still does now, that the panic was a self-fulfilling prophecy. The hysteria fed on itself. Every time someone staggered out of a supermarket laden with sacks of rice and bales of toilet paper, it sent others into a panic-buying frenzy.

The public memory has faded.

The huge 500,000 protest march of July 1 was, bizarrely, a major confidence boost. It sent a shuddering message of dissatisfaction to the government. At the same time, it signalled to the people of Hong Kong: hey, you've got clout!

The bumbling response of an administration clearly in disarray, resulting in the belated withdrawal of the proposed National Security Bill, brought a lot of pleasure to many people. It demonstrated that if the community is overwhelmingly united, its voice will be heard.

The march was a proud day for all Hongkongers.

The departure from power of two widely disliked senior appointees added to public glee.

For all her considerable intellectual stature, former secretary of security Regina Ip Lau Suk-yee was almost universally detested because of her arrogance and disdain for the common man. Her replacement by veteran civil servant Ambrose Lee Siu-kwong, a man whose calm reasonableness is a byword, was welcome.

And the public rejoiced to wave farewell to financial secretary Antony Leung Kam-chung. He committed political suicide by buying a new luxury car just before he boosted taxes. His replacement, Henry Tang Ying-yen, is a man of unquestioned probity. He has the common sense and common decency to make himself transparently answerable.

The share market resurgence has calmed fears of many whose life's savings are invested locally. It has partially helped those who saw their major asset, the perceived cash value of their homes, go down the sink.

The general boost to the economy and widespread belief that things are on the mend has had a huge effect on public mood.

These are just some of the many trends helping to create and sustain the present up-beat outlook.

Under a brilliant moon, hundreds of thousands of people last Thursday night celebrated the Mid-Autumn Festival. On weekends, country parks and beaches are packed with people in a relaxed, festive mood.

Many are looking forward to the three-week Harbour Fest. Let's hope organisers make arrangements with the Jockey Club to broadcast the concerts live at Happy Valley racecourse so as many people as possible can enjoy the shows.

During the frightening depths of the Sars scare, I wandered around Hong Kong to try and gauge the severity of the disastrous economic impact.

One day in the middle of May, I was the only customer in the glittering marbled splendour of the InterContinental Hotel lobby. Last week, I retraced my steps. On Thursday evening, I had to wait for a seat in the lobby lounge.

It was the same in other districts. I went to Tsim Sha Tsui East, Mongkok, Causeway Bay, North Point and Sha Tin. In all places, shops and restaurants were busy, filled with Hongkongers and tourists. And they were spending.

Hotels, which directly reflect the health of the tourist industry, are filling up.

The depressing room rates which plunged hotel operators and investors into gloom in the spring are rising again.

Yes, we face problems. Unemployment in our adapting economy is a constant gnawing cancer. Loony government plans like a super-prison on what should be a resort island proceed with no heed being taken of protests. Want another massive march, Mr Tung?

But all told, things in Hong Kong are pretty good. Tote up what's bad and good about our community: the result is strongly on the positive side.

And it's going to get better.

'Hong Kong has bounced back from the Sars gloom, the political impasse over Article 23, the stock market depression and the doubts over our economy'