Technical factors, like the unwinding of the ‘Asia ex-China’ trade, seem to be driving Hong Kong’s stock rally, as opposed to underlying fundamentals. In the longer run, the narrative around China’s economy and markets has to brighten considerably if Hong Kong stocks are to continue their recovery.
The deadly blaze at New Lucky House that killed five people and injured 43 shows that fire safety laws will not save residents unless they are enforced. While amending the Fire Safety (Buildings) Ordinance is a good start, Hong Kong must also address residents’ economic woes and tensions among stakeholders.
Hong Kong’s economic rebound depends, in the short term at least, on encouraging more mainland visitors, and getting them to spend more. n the longer term, to remedy the city’s housing and labour shortages, the government should develop a strategy to make use of the mainland’s resources and talent.