In the Media

Over the past five years, the Greater Bay Area has demonstrated remarkable economic resilience, achieving steady growth despite the setback from pandemic and global uncertainties. The region's GDP has consistently expanded to over 13.5 trillion RMB, cementing its status among the top 10 economies worldwide. This GDP value places the Greater Bay Area on par with market hubs such as Canada and South Korea. Prof. Heiwai Tang, Associate Dean of HKU Business School and Director of Asia Global Institute, shared about the Greater Bay Area's development potential in an interview with Phoenix TV. While GDP has risen, collaboration among cities has not been as close as expected earlier due to the pandemic, slowing integration progress. However, Prof. Tang expressed confidence that by strengthening cross-border partnerships, leveraging cities’ unique capabilities, and creating synergies, the region can tap vast economies of scale and unlock ample opportunities. In terms of talent visa, Professor Tang emphasizes the importance of seamless connectivity between Hong Kong and the Greater Bay Area. He believes a cooperative environment that welcomes global talent will continuously invigorate the region with fresh perspectives and ideas, propelling the region’s development forward in a sustainable manner.

在亞洲，上海和新加坡的總部經濟發展尤為出色。上海利用其在製造業、科技和物流方面的優勢，吸引如美國特斯拉（Tesla）、德國博世（Bosch）、日本三井住友銀行（Sumitomo Mitsui Banking Corporation）、英國阿斯利康（AstraZeneca）等國際業界龍頭在當地建立總部。新加坡則積極實行人才新政和創新，以驅動發展。

To lessen market volatility, Chinese regulators began implementing measures that affected quantitative trading strategies. These included rejecting requests to short sell, conducting on-site reviews of trading operations, and temporarily halting transaction capabilities for some firms. The restrictions had a negative impact on funds that relied on algorithmic models as they prevented executions, recalled loaned shares, and introduced unpredictability that computer systems had not anticipated. As a result, these funds experienced performance disparities when compared to wider benchmarks. Prof. Zhiwu Chen, Chair Professor of Finance at HKU Business School, shared his views on A-share market regulation in an interview with Bloomberg.

After 3 years of the pandemic, Hong Kong's economy is still struggling to recover, despite supportive government measures. Professor Heiwai Tang, Associate Dean of HKU Business School and Director of Asia Global Institute, gave an interview to HKET iMoney and mentioned that over the past three years, Hong Kong has been lagging behind in terms of competitiveness and the quality of service industry. On the contrary, mainland China and neighbouring countries invested and improved on infrastructure quality and digital economy development. Furthermore, there is a decline in the quality of service in the retail and restaurant sectors, resulting in public dissatisfaction. Combined with cautious consumer spending due to the economic downturn, Hong Kong residents are more inclined to spend their money in neighbouring regions to seek better services and experiences. This preference for spending elsewhere further hampers the recovery process. Other interviewees believe, as the economy gradually recovers after the pandemic, businesses should consider adapting to market demands by adjusting their production and operational models, or even transforming their business strategies. Such proactive, solutions-oriented mindset will undoubtedly help mitigate risks and increase profitability. Additionally, the government should expedite the approval process for funding initiatives for SME, thus accelerating the process of productivity enhancement and the market explorations beyond Hong Kong.

Due to the aforementioned socioeconomic issues faced by the city, among other reasons, hundreds of thousands of Hong Kong’s working-age population and their families have emigrated abroad. Simultaneously, hundreds of thousands of people, some attracted by the Hong Kong government’s ambitious talent programs, have arrived in Hong Kong in the past year. What are the implications of these population flows on the city’s labor force and talent pool? Dr. Alan Kwan, Prof. Heiwai Tang, and Dr. Michael B. Wong have analyzed LinkedIn profile data and government statistics to evaluate Hong Kong’s labor market and economic prospects.

2024 marks the fifth anniversary of the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area. However, given the weak consumption, the trend of "Going North", the sluggish performance of the stock and real estate markets and the geopolitical elements, Hong Kong's economy has been struggling. What could be the possible solutions?

可持續投資方興未艾，2023年資產總值已增至3萬億美元；可持續基金的表現勝過2022年，惟在不同資產類別卻表現不一。據美國金融服務公司晨星（Morningstar）去年12月發表的報告，若與傳統基金相比，可持續基金略見遜色。

Feb 18 marks the 5th anniversary of China's ambitious plan to transform the Greater Bay Area into a leading tech hub by 2035. Yet, has the region made progress as intended? Is Hong Kong fulfilling its role in attracting foreign investors? Prof. Heiwai Tang, Associate Dean of HKU Business School and Director of Asia Global Institute, shared his insights with South China Morning Post SCMP and mentioned that global geopolitical tensions, especially during the US election years and Beijing's ambitious policies to restructure certain industries in recent years have created uncertainty for Hong Kong and China's economic growth. Though significant progress has been made in collaboration within the bay area, especially in green technology, finance, and overall innovation as emphasised by Financial Secretary Mr. Paul Chan Mo-po, other interviewees indicated that it takes time for Hong Kong to fully promote the favourable benefits of investing here, i.e. investors can enjoy the economic advantages of the bay area as a whole.

Chen Zhiwu, chair professor of finance at the University of Hong Kong, compared China’s new housing strategy to the way Beijing uses its so-called “national team” of state funds to buy equities to try to prop up the depressed stock market. Such efforts have often failed to sustainably bolster the market. Using government money to buy up distressed real estate would be no different, he said, given the country’s demographic challenges and supply glut. Government interventions could also raise uncomfortable questions about social fairness, he said. Buying properties from existing homeowners or developers when the market is weak would amount to using national resources to subsidize owners who have the flexibility to sell, when others don’t, he said. “It turns into an issue of wealth distribution,” he said. “Not everyone in China owns multiple apartments, nor are they ready to sell.”