In recent months, the focus of Hong Kong's economy has revolved around its fiscal deficit and the search for future growth. While the global economy has gradually recovered since the outbreak of the pandemic in 2019, Hong Kong's performance has been less than satisfactory. Domestic consumption and private investment remain weak, and the fiscal deficit is a persistent alarm bell. However, the SAR government's response seems inadequate. So-called revitalization policies are mostly focused on sectors like tourism, retail, and consumption. These industries are inherently constrained by competition from the mainland, and their contribution to overall GDP is limited. Emerging strategies such as the "low-altitude economy" and the "gold trading center" have yet to prove their effectiveness. While these initiatives may help stimulate the economy in the short term, they are unlikely to reverse the overall situation. What is the way forward for Hong Kong's economy? This question remains unclear.
An official parachuted into the liaison office in the Hong Kong Special Administrative Region criticized the fragile foundation and issued a "reform list" for internationalization, catching local officials "off guard."
Qi Bin, the first former senior mainland finance official to be appointed to the Liaison Office in the Hong Kong Special Administrative Region (S.A.R.), Deputy Director of the Liaison Office in the Hong Kong Special Administrative Region (S.A.R.), and only a few months into his position, proposed a series of specific proposals at the Hong Kong Capital Market Forum. These included publishing a "Hong Kong Capital Market White Paper," hosting a "Hong Kong Global Industry Cooperation Summit," promoting high-tech industries such as artificial intelligence and new energy, and attracting international companies to locate factories in the northern metropolitan area. This direct involvement of the Liaison Office in Hong Kong's financial and economic affairs is quite unconventional, even arguably a "visible hand" directing Hong Kong's finance officials. However, were these proposals thoroughly discussed or planned by the SAR government? Reports indicate that the Financial Secretary's Office did not respond to inquiries, suggesting the government was unprepared.
