Hong Kong must maintain its niche markets in trade and finance so that the positive impact generated by these two sectors can feed back to the city’s property, retail, and tourism segments, prominent business leaders said at the business forum hosted by the Hong Kong Development Forum.

Ronnie Chan Chi-chung, convenor of the Hong Kong Development Forum, said the city’s competitiveness has been hampered by high property prices.

“If the special administrative region government can control land supply in a controlled manner, local home prices will be adjusted downward, and this will bring great changes to Hong Kong’s economy,” Chan said.

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Chan, who is also the honorary chairman of Hong Kong-listed developer Hang Lung Properties, added that the country’s reform and opening-up policy in the past four decades have brought immense economic benefits to Hong Kong so that “the city can still leverage on the country’s open-door policy to find new economic development paths”.

“Amid the challenges ahead, Hong Kong must revive the spirit of entrepreneurship,” Chan added.

The SAR should try to boost population growth for transforming Hong Kong to become a mega-metropolis with over 10 million people. This will make the city’s population younger and provide sufficient talent and manpower to support the economy.

Frankie Lam Fan-keung, Founder, HKGolden50 

George Leung Siu-kay, a senior adviser at Hong Kong-listed Hang Seng Bank’s Chief Executive Office, said that Hong Kong’s stock market plunge in the past three years had reduced the stock market valuations and gradually curtailed the fundraising capability of the Hong Kong stock market.

But he expressed confidence that Hong Kong is still the only financial center in the country that can conduct US dollar financing for trade financing and direct investment.

“It is important for attracting multinational companies to stay in Hong Kong for business operations because promoting trade and financial services can exert a greater multiplier effect on the local economy when the positive impact can feed back to the city’s real estate, retail, and tourism sectors,” Leung said.

Leung, a former CEO of the Hong Kong General Chamber of Commerce — the city’s oldest business organization representing multinational conglomerates, said Hong Kong needs to reinvigorate the equity market for creating a deep and liquid capital market that is essential for promoting the asset management business. He agreed that Hong Kong needs to stay ahead in fintech applications and environmental, social and governance (ESG) investments for attracting fresh capital for the asset management industry.

HKGolden50 founder Frankie Lam Fan-keung cautioned that Hong Kong’s aging population will have a huge effect on the city’s future economic development.

“The SAR should try to boost population growth for transforming Hong Kong to become a mega-metropolis with over 10 million people. This will make the city’s population younger and provide sufficient talent and manpower to support the economy,” he said.

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Cheung Chi-kong, executive director of the One Country Two Systems Research Institute, said the real danger to Hong Kong’s economy is the hollowing-out of the city’s equity and property market, as well as the tourism sector.

“Hong Kong’s economy should provide adequate jobs for Chinese mainland and overseas graduate students who choose to stay in the city after graduation, and this will provide talent for the city, Cheung said, adding that the promotion of mega events can also help to tell the Hong Kong story.