Letters | A government-owned bank can help Hong Kong weather tariff storm

Readers discuss support for businesses in a trade war, cutbacks to US Department of Education, and the timing for a sales tax

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People stand in front of an electronic sign board in Hong Kong showing the Heng Seng Index on April 7. Asian equities collapsed on a black Monday on April 7 for markets after China hammered the United States with its own hefty tariffs, ramping up a trade war many fear could spark a recession. Photo: AFP

Published: 2:30pm, 8 Apr 2025

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The Trump administration has started a global tariff war with the rest of the world. Every industry will suffer – including banks, which will probably have a lot of loans to write down. They have their protocols, so let us not fool ourselves that they will be able to help their clients much in a crisis.

In mainland China, there are “policy banks” – state-owned financial institutions tasked with carrying out government directives – that help businesses. The Export-Import Bank of China, the Agricultural Development Bank of China and the China Development Bank have helped many mainland businesses flourish offshore and onshore.

Hong Kong has no such bank. Isn’t it time to establish one or two to provide help in rainy days such as these? After all, the government established the Hong Kong Investment Corporation Limited in 2022 to enhance the long-term competitiveness and economic vitality of Hong Kong. Surely we need a policy bank to enable Hong Kong businesses to weather the storm caused by the tariff war.

Joseph Chan, founding partner and principal director, Oriental Patron Financial Group

US students will bear brunt of Education Department cuts

While US President Donald Trump’s executive order to dismantle the federal Department of Education won’t succeed in shutting it down completely without congressional approval, the administration’s efforts to shrink the department are proceeding apace. As a teacher, I am concerned about the detrimental impact on US students.