Several heavyweights sprang to the defence of Hong Kong's role as an international financial hub, with the "father of emerging markets" Mark Mobius declaring the city is "far from over."
Mobius, founder of the Mobius Capital Partners, wrote in an article that he was slightly shocked by the "amount of pessimism" around the SAR as he was asked more than once if he shared the same sentiment with Stephen Roach, the ex-chair of Morgan Stanley Asia, that "Hong Kong is over."
Mobius wrote that for a fund manager like him who constantly looks for undervalued stocks to invest in, "it's never a good idea to write off the potential of any city or country."
He said that after 1997, Hong Kong has to move on and "reinvent itself and make better use of the strengths it has cultivated over the years."
Mobius said he found Hong Kong "largely unchanged" during his visit last week where he saw "the same hustle, the same ambition, and the same determination to succeed" that impressed him back in the 1960s.
He believes there are opportunities for the city despite challenges including a shift in the city's talent pool - the exodus of Hongkongers and arrival of mainlanders - in addition to Sino-US tensions.
Hong Kong would "stand to benefit significantly" by embracing technologies and artificial intelligence in line with Beijing's ambitious plans while playing as the country's connection with the global market, he said.
Bernard Charnwut Chan, a former Executive Council member, expressed a similar view at a forum yesterday, saying Hong Kong needs to "pivot" itself and eye how to create value for mainland China which, he believes, will be the direction for the SAR under the "One Country, Two Systems."
Ronnie Chan Chi-chung, the honorary chair of Hang Lung Group (0010) and Hang Lung Properties (0101), said it is good for Hong Kong that land premiums and retail shop rentals have fallen, though these usually are considered a sign of economic downturns.
In Chan's opinion, cheaper prices means land supply is adequate.
He said the high land price strategy adopted before the handover was unsustainable and a significant correction in rentals would help local businesses serve tourists better.
Sebastian Paredes, head of North Asia, DBS and chairman, DBS China, agreed that Hong Kong remains a leading international finance centre.
Nonetheless, Roach, who was at the centre of the debate, reiterated that Hong Kong cannot be left unaffected by China's weak economy and rising US-China tensions when he attended a luncheon in the city yesterday.
