As Hong Kong hosts finance, sports and arts events, some say the city is getting its groove back
Some observers, however, have struck a cautious tone on Hong Kong’s present and future, especially with the looming impact of tariff threats and trade wars coming from US President Donald Trump's administration.
A panel being held at the Milken Institute Global Investors' Symposium on Mar 24, 2025. (Photo: CNA/Craig Dale)
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HONG KONG: A confluence of splashy events in Hong Kong this month, from the Hong Kong Sevens rugby tournament to the Art Basel international art fair, has set the city abuzz.
Finance-centred events have also put a spotlight on the Chinese special administrative region, including the second Milken Institute Global Investors’ Symposium that was held on Monday (Mar 24).
The second HSBC Global Investment Summit will also run from Tuesday to Thursday, while the World Economic Forum will host its first financial services event in Hong Kong on Wednesday.
“Hong Kong remains one of the world's most open, dynamic and globally connected financial centres,” said the city’s finance chief Paul Chan, who gave opening remarks at think tank Milken Institute’s event after returning from a visit to Beijing.
"Our strong fundamentals, resilient economy, unique role as a gateway to Chinese mainland and Asia, as well as our quick stride to develop financial services and the tech sector continue to provide unparalleled opportunities for global investors,” he told a crowd of senior executives and leaders from finance, business, technology, healthcare, government, and philanthropy.
ECONOMIC CONCERNS LINGER
However, the picture for Hong Kong has not been so rosy in recent years.
Concerns about the economy have lingered since the COVID-19 downturn, with tourism among other sectors still in recovery mode.
Nervousness has also emerged about consumption, as more Hong Kong residents choose to spend their money in neighbouring Shenzhen in mainland China.
On top of that, some in the business world remain wary of the increased control Beijing authorities wield over the city.
They do not believe the autonomy once granted by the decades-old “one country, two systems” style of governance still exists, especially since a national security law came into force in Hong Kong a year ago.
Also known as Article 23, the controversial legislation targets crimes including treason, theft of state secrets, espionage, sabotage, sedition and "external interference".
Still, there is optimism.
While Hong Kong's once red-hot property market remains trapped in a prolonged decline, its Hang Seng benchmark has seen a double-digit surge since United States President Donald Trump took office on Jan 20, making it the world's top performer.
“Hong Kong is a global broker. It's a place to come do business efficiently,” said Oliver Weisberg, CEO of Blue Pool Capital - a multi-strategy investment firm based in Hong Kong,
He was speaking on Monday at a panel called Is Hong Kong Back?, which focused on the city's education sector, healthcare, job market, and access to the Greater Bay Area.
Despite new looming US tariffs implicating China’s Special Administrative Region of Hong Kong, many still see investment hope in the city. At the Milken Institute Global Investors’ Symposium in Hong Kong on Mar 24, participants from various sectors like finance and fintech are looking for bright spots to tap on in the city. CNA's May Wong with this report.
His co-panelist Goodwin Gaw said Hong Kong suffers from a false perception in Western media.
“We always joke - if we have to hold an investor conference, Hong Kong is a tough place because you cannot get people to stay focused with you,” said the chairman, managing principal and co-founder of Gaw Capital Partners – one of Asia’s largest real estate private equity firms.
Gaw lauded Hong Kong's access to nature as much as he talked up its tax-haven status and strong connections with mainland China.
In an interview with CNA, he said: "Hong Kong is the easiest window to invest, for the world to invest into China. And for Chinese companies to access global capital, it's also through Hong Kong.
“Maybe Hong Kong has just never left but (it just needs) a little bit of shining up, polishing.”
SOME STRIKE MORE CAUTIOUS TONE
Nevertheless, other observers struck a more cautious tone on Hong Kong’s present and future, especially with the looming impact of tariff threats and trade wars coming from the Trump administration.
Steven Okun, CEO of APAC Advisors, noted that new American tariffs imposed “explicitly applied to both China and Hong Kong”, with goods from both regions now subject to the same customs scrutiny and trade restrictions.
“Washington’s line between the two continues to blur. A recent example: Hong Kong-based CK Hutchison sold control of two Panama Canal ports to a US-led group, and President Trump celebrated it as a win over China,” Okun added.
“Businesses and investors should take this as a signal of a tougher stance to limit Chinese influence and power. If this trajectory continues, Hong Kong’s geopolitical vulnerability deepens.”
Vaidhyanadhan Iyer, a senior partner at Indian corporate law firm AZB & Partners, is among those who are wary.
“The tariff war continues to be a significant risk for us. We are seeing the way the US has been imposing tariffs on their biggest trading partners, and we are expecting some uncertainty around it, even for exports from India,” he said.
“At this stage, I think it's more of a wait-and-watch game.”
During Monday’s panel, however, Gaw said investors should look at tariffs as a “solvable issue”.
“Obviously, we have to be cautious, because it does affect sentiment, fund flows, where the capital, where it's coming from or where it's going. But ultimately, it's a negotiation … so you just have to factor that into how you allocate your capital,” he noted.
“I think Hong Kong has shown as a culture to be resilient, and so I think that's something that is really what's incredible about living here … Hong Kong is a window for China to do business with the world, for the world to do business with China.”
