New Hong Kong report useful but investors will do their own research, experts say The Hong Kong government’s first business report in four years can offer investors some reference but may not be enough to sway those holding preconceived views about the city due to geopolitical tensions, commerce chamber chiefs and economists have said. Industry leaders and experts offered their views hours after Financial Secretary Paul Chan MO-po unveiled the 102-page report, titled “Unique Strengths under ‘One Country, Two Systems’”, on Wednesday. The document aims to show the world that Hong Kong has been picking up in recent years with the restoration of social stability. Chan said that the report was significant in that it would help dispel misconceptions in the West about Hong Kong’s situation. Gan Khai Choon, chairman mentor of the Malaysian Chamber of Commerce in Hong Kong and Macau, said that investment from the country and other Asean jurisdictions would continue to flow into the city regardless of the report’s release. Basil Hwang, vice-chairman of the Singapore Chamber of Commerce in Hong Kong, said the report was “one tool among many” that the city could deploy to engage international businesses and that it was helpful in summarising Hong Kong’s advantages. Hong Kong “needed no introduction” to global businesses and financial institutions, he noted, yet the city’s image had “taken a beating” in recent years from factors outside its control. “Hong Kong’s stock market uptick this year reflects an increased interest by global players in the city, and by proxy, in China,” Hwang said. “What global investors and businesses need is assurance that Hong Kong is operating as usual, and I think this is what the report seeks to do.” Terence Chong Tai-leung, an associate professor of economics at the Chinese University of Hong Kong, said the report served as a good reference for investors. “This report is a positive force to let the public understand the true situation in Hong Kong,” he said. “There’s no need to assume investors have misconceptions as they will look at the facts and data and will calculate. They don’t rely on the report.” Billy Mak Sui-choi, an associate professor at Baptist University’s department of accountancy, economics and finance, said the report was better than nothing as it would counter negative Western narratives about Hong Kong and help dispel unfounded allegations. But he said that investors usually had their own views and would consider other reports or consultants’ analyses when making business decisions. The report highlighted the one country, two systems governing principle as a cornerstone of the city’s long-term prosperity and stability, as well as a pillar supporting further development. In the post-Covid labour pool, the government has received about 500,000 applications under its various talent admission schemes, with around 220,000 people arriving in the city. Figures from the report show the daily turnover on the stock market in the first half of the year was up by 120 per cent to about HK$240 billion (US$30.6 billion). The amount raised by the city’s 52 initial public offerings in the first seven months was also up sixfold year on year to more than HK$130 billion. Vera Yuen Wing-han, a University of Hong Kong economics lecturer, said the report might not serve any function for investors, who tended to prefer politically neutral regions with lower risks and higher certainty at a time of geopolitical tensions. “The report doesn’t serve as a good reference for investors as it only blows the trumpet on the good things but downplays the negative things about the city,” she said. “Investors would rather look at independent global reports as they are more comprehensive, providing different comparisons between different countries.” Lo Kam-wing, president of the Chinese Manufacturers’ Association of Hong Kong, said the report sent a positive signal about the city’s development prospects and unlimited potential, fully demonstrating its unique position - backed by the motherland and connected to the world. The report highlighted Hong Kong as a safe, orderly and predictable business environment, providing a stable platform for businesses to develop despite international uncertainty, Lo added. https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3320188/new-hong-kong-report-useful-investors-will-do-their-own-research-experts-say (ICE HONG KONG)

Fonte notizia: South China Morning Post