How Hong Kong is fighting to redefine its future with an institutional moat, wealth surge



For decades, warnings of Hong Kongโ€™s terminal decline have arrived in periodic waves.

When Stephen Roach, the former chairman of Morgan Stanley Asia, ignited a firestorm with his February 2024 assertion that โ€œHong Kong is overโ€, he pointed to a toxic cocktail of domestic and external pressures.
Roach, who doubled down on his โ€œwake-up callโ€ a year ago, argued that the cityโ€™s economic glory was being extinguished by a loss of political autonomy following 2020โ€™s national security law, the spillover from mainland Chinaโ€™s protracted malaise, and the cityโ€™s precarious position in the crossfire of Sino-US tensions.

Despite the prominent American economistโ€™s perceived gloom, the โ€œHong Kong is backโ€ camp โ€“ led by a defiant local government โ€“ is wielding evidence to the contrary. The city claimed the IPO fundraising crown last year and ranked behind only New York and London in the latest Z/Yen Global Financial Centres Index.

Behind the heated debate lies a fundamental question: in an era defined by shifting capital flows, geopolitical fragmentation and evolving regulatory frameworks, how can Hong Kong keep shining as a globally leading financial centre?

โ€œHong Kong must adapt to a changing world order,โ€ said Anthony Cheung, chair professor in public administration at the Education University of Hong Kong. As the cityโ€™s traditional intermediary role between China and global markets erodes, he argued, it must rely more explicitly on its institutional strengths to recalibrate its competitive position.

A shrinking moat in the wake of Chinaโ€™s rise

Leave a Reply

Your email address will not be published. Required fields are marked *