HK proves doomsayers wrong, says Chan

The doomsayers of Hong Kong have been proven wrong again and again in the past decades and the city will strengthen amid challenges, said the Financial Secretary Paul Chan Mo-po.

It comes days after US economist Stephen Roach revised his "Hong Kong is over" conclusion, the most well-known doomsaying last year, and admitted that the city's financial market has been reinvigorated and will benefit from the Sino-US tensions.

Speaking at an event today, Chan said Hong Kong has experienced repeated doubts and dire predictions over the years, including the "Death in Hong Kong" headline published by Fortune Magazine in 1995.

But the city has "proven the pessimists wrong and emerged stronger," said the financial chief.

While not underestimating the headwinds, Hong Kong will not just "weather the storm" but will "prevail" with the support of mainland China and its commitments to openness, credibility and global connectivity as well as a people of agility and resilience, Chan noted.

The strong rebound of Hong Kong's stock market this year supports Chan's manifestation. 

The benchmark Hang Seng Index marched nearly 22 percent this year as of June 5, far outshining the 1.5 percent rise in the US's S&P 500, the 3.7 percent gain of mainland China's Composite Index and the 4.5 percent fall of Japan's Nikkei 225.

The city also tops among global initial public offering markets with a cumulative fundraising amount of HK$77 billion year-to-date, Chan said. The Hong Kong Exchanges and Clearing disclosed that there are about 150 companies in the pipeline.

Chan also mentioned that he has ordered the Securities and Futures Commission and the HKEX to facilitate the potential return of Chinese Concept Stocks currently listed abroad, as the US-listed mainland companies face delisting risks again.

The Hong Kong government maintained the forecast for full-year gross domestic product growth between 2 and 3 percent, though external challenges such as the Sino-US trade tensions remain.

As Roach, the former Morgan Stanley Asia chair, said in his latest story, Hong Kong is now being boosted by its closer ties with mainland China.

Chan noted in today's event that the tariff war and the drastic, flip-flopping policies of US President Donald Trump's administration have contributed to great uncertainty and heightened market volatility, which pushes global investors to diversify capital allocations and seek out markets that are growing, resilient, and stable in the long term.

Besides enhancing the traditional competitiveness in capital markets, Chan mentioned that Hong Kong is striving for financial innovation, including cryptocurrency, stablecoin and other virtual assets.

STAFF REPORTER