Economist walks back on 'HK is over' remark amid US-China tensions

Stephen Roach is revising his “Hong Kong is over” remark, saying the city could now benefit from escalating US-China tensions, Bloomberg reported on Monday.

The former Morgan Stanley Asia chairman earlier penned an article titled “It pains me to say Hong Kong is over” in the Financial Times in February last year, citing poor market performance and challenges stemming from local, mainland economic, and US-China factors.

Roach now says the current situation is something he did not anticipate at the time of writing, according to Bloomberg.

“What’s changed is, shockingly, the US-China conflict has gotten worse,” Roach told Bloomberg. “And Hong Kong — rather than getting hammered in the cross fire as I expected and wrote — may be benefiting from that, because of its unique position as China’s most important window to international finance.”

The city of 7.5 million — with its distinct legal system and currency — is to be a bigger player in the struggle between Beijing and Washington for dominance, the report said.

STAFF REPORTER