It pains me to say Hong Kong is over

Posted by Ed 4 mths ago
Stephen Roach is a faculty member at Yale, formerly chair of Morgan Stanley Asia, and is the author of “Accidental Conflict: America, China, and the Clash of False Narratives”  
There is more to economic vitality than the stock market. But for Hong Kong, the market has always been emblematic of success. Imagine, a small city state with what had long been the world’s fourth largest exchange (it is now fifth, according to Bloomberg data), a global leader of new stock offerings as recently as 2019.
It pains me to admit it, but Hong Kong is now over. A city I once called home and have cherished as a bastion of dynamism has had the world’s worst-performing major stock market over the past quarter of a century. Since the handover to China in 1997, the Hang Seng index has been basically flat, up only about 5 per cent. Over that same period, the S&P 500 has surged more than fourfold; even mainland China’s underperforming Shanghai Composite has far outdistanced the Hong Kong bourse.
Hong Kong’s demise reflects the confluence of three factors:

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Ed 4 mths ago
‘Unfair’: property tycoon hits out at ‘Hong Kong is over’ criticism, says every market has its cycles
  • Far East Consortium chairman David Chiu says stock market’s performance can’t be judged on recent lows
  • Chiu calls on the government to devise strategies to lure overseas talent to maintain Hong Kong’s international character 

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Ed 4 mths ago

Hong Kong will not be “finished” if the city can maintain its seven unique features, such as the stable financial status, the common law system, and an internet that allows free flow of information, according to former commerce minister Frederick Ma Si-hang.

The other four features include maintaining a clean and highly efficient government, the free flow of capital and free movement of people, the continuous development of quality higher education, and constructing a diverse professional talent bank.,-says-ex-commerce-chief

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Ed 13 days ago

HONG KONG: Hong Kong's May retail sales fell 11.5 per cent from a year earlier, government data showed on Tuesday (Jul 2), reflecting a surge in outbound trips, strength in local currency and a high base of comparison for visitor spending last year.

Hong Kong's sales decreased to HK$30.5 billion (US$3.90 billion) in the third consecutive monthly decline, following a 14.7 per cent drop in April and a 7 per cent fall in March.

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Ed 7 days ago
A Wave of Shuttered Shops and Restaurants 
Months of poor business forced Hongkonger Emma and her husband Wai to close one of their Japanese omakase restaurants in February, despite its prime location in Causeway Bay.
With their lease not yet expired, the pair swiftly transitioned to fast-food-style chicken chops costing less than HK$100 per meal. The up-market omakase – typically priced around HK$1,000 per person – just could no longer generate enough income, they told HKFP.
The bold move may have saved them from joining a wave of shops and restaurants which have closed down in recent months. Shutters and rental posters have become highly visible in the city’s streets.

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