Can Hong Kong stay relevant as mainland China rises?
Shanghai’s economic rise might leave corporate powers wondering why they need Hong Kong as a gateway to China, says BusinessWeek.
Shanghai’s economy is now larger than Hong Kong’s, for the first time in three decades. While Hong Kong’s per capita GDP is still nearly three times that of Shanghai, if mainland China continues to follow its current trajectory, Shanghai’s population of 19 million will match it in the long term. Even Shenzhen, near the border, is attracting investment that once would have gone instantly to Hong Kong. Can Hong Kong maintain its relevance as a stepping stone when money can go instantly to the source?
There are caveats of course, and still many reasons to prefer Hong Kong. But the writer wonders whether Hong Kong’s economic and relative political freedoms might eventually make it a better haven for entrepreneurs, letting other cities handle big business.
article & source: BusinessWeek
- Indonesia to give tax holidays to major foreign investors
- Japanese M&A activity and FDI grows in Malaysia
- Indonesia strong enough to cope with ‘hot money’, but still wary
- Google keen on Indonesian market, less keen on local regulation
- More longer-term investment flows into Indonesia
- BAE Systems looking for Malaysian aerospace partnerships
- New deals for Malaysia from BIO International convention
- Philippines credit rating now one notch under investment-grade
- Nomura optimistic on Indonesia’s progress
- Abu Dhabi makes big investment in Malaysian aluminum