Brian Y. S. Wong

Opinion | How Hong Kong can boost the return of international investor confidence in China

Seen as a bellwether of Beijing’s policy direction, Hong Kong’s authorities must present the right optics, meaning no decisions that hurt international confidence

The city must also engage with multinational firms, tackle their worries and serve as the front line for China watchers keen to access a fairer, more balanced and complete picture

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Brian Y. S. Wong

Published: 3:30am, 4 Jul 2023

At a recent meeting with Microsoft co-founder Bill Gates, Chinese President Xi Jinping told his “old friend” his hopes lie with “the American people” as the stabilising force in the volatile Sino-American relationship.

Gates’ trip was among several high-profile visits to China in recent months by business leaders, including the CEOs of Tesla, JP Morgan and Starbucks.

As the Chinese economy struggles to recover from the pandemic, Beijing has indicated a clear desire for foreign direct investment and capital, not just from emerging markets in the Middle East and Southeast Asia, but also from long-standing trade and financial partners whose relations with China have frayed, namely the United States and European Union.

Reviving foreign investor confidence, as Premier Li Qiang’s trip to Europe aimed to do, is of paramount importance as China seeks to reboot its private sector, reduce youth unemployment and maintain a delicate balance between avoiding asset reinflation and meeting its modest 5 per cent economic growth target.

As the most globally connected of China’s two officially capitalist cities, Hong Kong has a key role to play. Many in the city have spent the past few years bickering over how it could be better assimilated into the mainland or fulfil its national security requirements.

In theory, Hong Kong remains well placed as a hub of information and knowledge exchange on China. Its common law jurisdiction and deep pool of professional, legal and financial talent make it vital for foreign firms seeking to re-enter China or anchor in the Greater Bay Area.