"New situations have arisen in the practice of the 'One Country, Two Systems' principle in Hong Kong in recent years," Xi said during his meeting with the Hong Kong Special Administrative Region (HKSAR) Chief Executive Leung Chun-ying in Beijing.
Xi stressed the central government's adherence to the principle will not change, and efforts must be made that it is followed correctly and comprehensively in Hong Kong without any distortion.
He also praised Leung, who is currently in Beijing to report his work in the past year to the central government and Hong Kong government in general in their efforts on advancing the region's development of its political system, economy, and the livelihood of its people and for maintaining Hong Kong's overall stability.
The central government "fully endorses the work of Leung and the SAR government," Xi said.
The president also expressed his hope that the HKSAR government could unite all circles in Hong Kong to ensure social and political stability in the region.
Xi also urged Hong Kong officials to take advantage of mainland China's newly created 13th Five-Year Plan to boost its economy and improve people's livelihoods.
He also extended his New Year's greetings to all Hong Kong citizens.
In a separate meeting with Leung on Wednesday, Premier Li Keqiang pledged continued support to Hong Kong's government, according to a report by China Daily.
Efforts should be made to maintain the stability of Hong Kong's economic and financial systems and guard against systematic risks so as to preserve and enhance the SAR's status as an important international financial hub, trade and navigation center, Li said.
The premier also requested Hong Kong officials to incorporate the region's development with the national development strategy.
The central government will take full consideration of Hong Kong's role and need when it is setting down related strategies and plans, and support the region to play its unique role in the country's economic development and opening up, said Li.
In response, Leung said the SAR will enhance its financial and technological cooperation with the mainland in the following year and seek new momentum for Hong Kong's future development.