HKSAR is back and stronger than ever before
‘Hong Kong always bounces back, better than ever”, declared Hong Kong’s chief executive, John Lee Ka-chiu, during his opening speech at the 2022 Global Financial Leaders’ Investment Summit. This is evidenced by recent events, such as the successful implementation of the financial summit, organized by the Hong Kong Monetary Authority, and the resumption of the Hong Kong Sevens, the city’s annual flagship international sporting event, which was last held in 2019.
The financial summit seems to have achieved one of its primary objectives — underline Hong Kong’s status as an international financial center. Attendees included over 200 leaders from global financial institutions, with over 40 of these institutions represented by their chairman or CEO. This gives a very strong signal of the international financial community’s confidence in Hong Kong’s future as a vibrant international financial center, and its position as a unique and irreplaceable intermediary between the Chinese mainland and the rest of the world.
The summit gave attendees the opportunity to witness Hong Kong’s resilience and re-establishment of stability following the 2019 social unrest and COVID-19 pandemic, and to realize that the city is not always portrayed fairly by Western media. The summit is promising in helping to attract investment into the city. It was held alongside Citibank’s opening its first global wealth management center in Hong Kong, and Julius Baer CEO’s reaffirmation of its expansion plans in the city.
In the spirit of Hong Kong bouncing back from challenges and being stronger than ever, the summit exceeded many people’s expectations and managed to overcome numerous challenges. For example, it went ahead despite a severe tropical cyclone and two US lawmakers warning banking executives against participating, accusing them of “complicity in China’s repression”. This shows that the US lawmakers’ attempts to hinder Hong Kong’s development and to use Hong Kong as a chip to hurt China will be fruitless. US politicians and the Western media’s portrayal of Hong Kong as “a place robbed of liberties” and “devoid of justice” will be increasingly exposed as misleading and ill-intentioned as the number of international visitors to Hong Kong rises.
Similarly, the Hong Kong Sevens also ran smoothly. Although overseas visitors were visibly fewer than before, many locals turned up in support of the competition, with it attracting a total audience of around 65,000. An audience member, Michelle, an Indian-born Hong Kong resident, described herself as being “very excited to be back” at the Sevens. She called the Sevens the “best of Hong Kong”, bringing together people of different nationalities.
Hong Kong Rugby Union CEO Robbie McRobbie believes the city’s sport industry has “got its mojo back” following the Sevens, and anticipates a “bigger and better” Sevens in March and April as COVID-19 restrictions ease. Hong Kong’s position as the best city in Asia to hold international sporting events will likely be cemented in the near future.
However, Hong Kong continues to face challenges in its opening-up and demonstrating “business as usual”. The current “0+3” requirement necessitates that visitors be under three days of medical surveillance, which means they cannot enter premises that require a vaccination pass, such as restaurants. David Shick, head of Private Banking Greater China at Julius Baer, described the requirement as “one level short for business travelers internationally and also for tourists”.
Additionally, there are reports of a “brain drain” in Hong Kong, with Mr Lee announcing that around 140,000 people had left Hong Kong’s labor force over the past two years, and the majority are highly skilled. Hong Kong has also encountered difficulties in attracting foreign talent, and its continued COVID-19 restrictions are widely viewed as hampering its competitiveness compared with Singapore, which has opened up more.
Yet there is no doubt that Hong Kong is moving in the right direction, and there is much room for optimism that the city has a bright future and is a place with boundless opportunities and growth. Over 90 percent of Hong Kong’s population has received their second vaccination dose, which enables further opening-up. The number of people who have crossed into Hong Kong’s borders almost doubled in October compared with September this year, signaling Hong Kong’s increasing connectivity with the rest of the world. Mr Lee’s administration should be credited for having recognized the need to attract foreign talent and enterprises and taking strong action. In October, Mr Lee laid out various initiatives to increase Hong Kong’s competitiveness, such as by providing special employment visas, tax incentives, and establishing investment funds to help enterprises settle in Hong Kong.
The successful implementation of the financial summit and the Hong Kong Sevens, the easing of COVID-19 restrictions, and the enactment of initiatives aimed at boosting Hong Kong’s competitiveness as a key financial hub suggests Hong Kong is back, stronger than ever. It gives credence to Mr Lee’s statement that the “worst is behind us” and “a new chapter” awaits Hong Kong.