Bay area cities should play to their strengths for the best results
Five years ago, Beijing’s plan to create a global economic powerhouse in the nation’s southern region was just a blueprint on the drawing board. Today, from cross-border banking and investment to work, travel and entertainment, the Greater Bay Area is everyday life’s reality. While there are promising signs of development, the prolonged period of Covid disruptions and political crisis also leave a lot of catching up to do. The 11 cities grouped under this strategic development drive must play to their strengths more vigorously for better results.
The benefits and the challenges ahead have been put into perspective in a series of Post’s reports marking the fifth anniversary of the state initiative. Having got off to a slow start because of the 2019 social unrest and the pandemic, Hong Kong has rightly accelerated the pace following the reopening of the mainland border. Nowadays, going north for shopping and dining has become a popular weekend activity for many locals. Meanwhile, more than 371,000 Hongkongers were practically living on the mainland, accounting for about 5 per cent of the city’s population, according to China’s 2021 census. The travel convenience within the GBA region has also facilitated more southbound day trippers.
The changing lifestyles and travel patterns has inevitably created new economic challenges for local businesses. But there have also been positive gains. For instance, the money flow from the region has boosted the city’s wealth management assets from HK$23.96 trillion in 2018 to HK$30.5 trillion at the end of 2022 – almost a 30 per cent rise. From February 26, property buyers from Hong Kong and Macau who purchase real estate in the bay area can transfer the entire amount through their banks to settle the deal, bypassing the daily remittance cap of 80,000 yuan per day. The combined gross domestic product of the 11 cities was nearly US$2 trillion in 2022, 21 per cent higher than the US$1.65 trillion in 2019.
It was not like Hong Kong was completely cut off from the region before 2019. While there were different development drives in the past, they lacked momentum and the results were fragmented. Under the GBA blueprint, many more institutional arrangements have been in place to further enhance integration and convenience. And the benefits go beyond economic gains for individual sectors. The steady achievement underlines the importance of more high-level planning and coordination to further drive development.
Hong Kong is blessed with a wealth of advantages and is expected to play a bigger role in finance, aviation, shipping as well as cultural exchange and global connection. Likewise, other cities should play to their strengths accordingly as designated under the strategy and complement one another for greater synergy.