A report on Hong Kong by the Centre for Strategic and International Studies does not appreciate fundamental pillars set out in the Basic Law. The city is still governed by Hongkongers, maintains judicial independence and has an international identity under the umbrella of China.
Hong Kong’s economic malaise is structural. China will remain a powerful economy and global player,but this does not ensure the city’s relevance unless it shapes up.
Amid a series of setbacks, Hong Kong remains stuck the past when it comes to cultivating foreign talent and capital from emerging markets. By establishing itself as a hub that celebrates innovation and multiculturalism, the city can attract top-tier professionals from around the globe.
Many Hongkongers who are eligible to live elsewhere have not moved, a testament to their confidence in the city. And a disappointing stock market performance is no indicator of poor economic prospects – Hong Kong has gone through some low points, but bounced back each time.
Cathay’s mass lay-offs led to a staff shortage when it needed qualified personnel the most, and service suffered. The Cathay brand will regain its global network with commitments to enhancing service quality and rebuilding its sentimental connection to Hong Kong.
Protecting the city’s distinct advantages calls for leaders to promote the importance of the common law system, and impress on Beijing the urgent need for Chinese officials, here and on the mainland, to study it.
Hong Kong’s growing disparity with Shanghai, Shenzhen and Singapore is cause for concern. The city must adapt and learn to take risks again to maximise its ‘two systems’ advantages.
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.
