Hong Kong leader John Lee shrugs off concerns over slump in property stocks, says security clauses in land sales documents not an issue
- Chief Executive John Lee says government has been selling land as usual since the clauses were put in place in November
- He says representatives of the property sector have indicated they support the legal provisions
Hong Kong’s leader has shrugged off concerns over a slump in property stocks on Monday, dismissing assertions the introduction of national security clauses in land sale agreements had sparked the fall.
The legal provisions warn potential buyers they may be disqualified if they engage in activities that endanger national safety or affect public order.
“This factor is a natural factor which I think has no relevance at all to any decision or by any businesses who are interested in bidding on land,” Lee said at his weekly press briefing, adding they “will basically consider it from their business angle”.
Stressing it was “an obvious thing” that the government should safeguard national security, he added: “I note that the representatives of the property sectors have indicated that they are in support of discharging that responsibility.”
The stock prices of all big property groups in the city, including CK Asset, New World Development, Sun Hung Kai Properties, and Henderson Land, fell on Monday when the new clauses were widely reported in the media.
On Tuesday, Lee said that market sentiment, international development, the world economy and the economic situation in Hong Kong would be taken into consideration by investors and people interested in bidding on land.
The bulk of the Hong Kong administration’s revenue comes from auctioning land to the highest bidders. Land premium and stamp duties account for a third of the exchequer’s total income.
Hong Kong developers dismiss fears over national security clauses in land documents
The new clauses, according to the Lands Department, allows the government to disqualify a bidder if it, its parent firm or the company it acts as an agent for “has engaged, is engaging, or is reasonably believed to have engaged or be engaging in any acts or activities that are likely to cause or constitute the occurrence of offences endangering national security.”
The Development Bureau had said safeguarding national security is “the shared responsibility of the entire Hong Kong society”, adding that the new terms should not deter law-abiding organisations from making bids for land.
Stewart Leung Chi-kin, chairman of the executive committee of the Real Estate Developers Association, told the Post he had heard no objections from members, despite there being no consultation on the change.
John Lee insists Hong Kong will pass Article 23 security law this year or next
Asked whether he had met Gregory May, the US consul general in the city, since the rule was lifted last November, Lee said he would stick with the Vienna Convention, an international treaty that governed diplomatic exchanges.
“We, of course, will be in support of many activities particularly people-to-people, business promotion, enhancing mutual understanding and anything that will bring exchange of people’s culture and other communications together,” he said, without revealing any interactions with May.
The slogan refers to the financial hub’s campaign to woo overseas audiences following three years of strict Covid-19 restrictions and concerns over the imposition of the national security law in 2020.
Lee described his visit to the Middle East as a “friendly trip” to promote Hong Kong, during which he managed to strike close work agreements with both countries in a range of areas, from finance and traffic to energy and construction.
He also touted the importance of promoting the city to its mainland China neighbours and said he met Guangzhou mayor Guo Yonghang on Monday to deepen ties. The chief executive said he also planned to visit Macau and other cities in Guangdong province.
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Asked when the city would remove its mask mandate – among the few remaining Covid-19 curbs and seen by the tourism sector as the last hurdle that could put off tourists from visiting – Lee said he would seek the advice of “relevant people”.
