In the Media

With Trump’s recent victory in the U.S. presidential election, the new administration is set to appoint a fresh slate of department heads. However, the position of Federal Reserve Chair Jerome Powell will remain unchanged. Despite being Trump’s nominee, Powell has often found himself at odds with the President, particularly over interest rate hikes, which Trump has publicly criticized.

Digital platforms help lesser-known cultural workers find their audience by reducing consumers' search costs, allowing products that struggle in traditional markets to enter at lower costs, thereby fostering a more diverse marketplace. However, as traffic becomes increasingly important, operations of digital platforms are becoming more biased. In China's digital arts and entertainment market, the platform's promotion and manipulation can dictate a creative work's success and may even hinder innovation.

Chen Zhiwu, chair professor of finance at the University of Hong Kong, said the Hong Kong economy would inevitably be hurt as the US was likely to raise tariffs on Chinese goods and toughen policies on technology transfers and tech investments in China. But he said he also expected the new tariffs to be capped at 60 per cent. The former Yale University professor pointed to one of Trump’s biggest supporters, tech billionaire Elon Musk, as a possible taming force in policymaking related to China during Trump’s second term. He also anticipated more aggressive stimulus efforts from Beijing to counter the greater geopolitical uncertainty. “Thus, on balance, this US election outcome may actually be good for Hong Kong, at least to the extent that it makes the leadership in Beijing reprioritise economic development over politics,” Chen said.

In a recent interview with Radio Television Hong Kong (RTHK), Prof. Heiwai Tang, Associate Dean of HKU Business School and Director of Asia Global Institute, provided an in-depth analysis of the implications of Donald Trump winning the US presidential election. He mentioned that Trump advocates for an "America First" policy, and the implementation of high tariffs and trade wars could disrupt global supply chains. However, this might benefit financial markets, as Trump is likely to use monetary policy, particularly interest rate cuts, to stimulate economic growth. Prof. Tang emphasised that while tariffs will undoubtedly impact Chinese exports, the effects may not be as severe as anticipated. He highlighted the conflict Trump faces between inflationary pressures and the desire to lower interest rates. He believes that while Trump will certainly impose tariffs on China, they are unlikely to reach the 60% level he suggests. Furthermore, he indicated that Trump may hesitate to implement a 10% tariff on allies in the short term. Regarding US-China relations, Professor Tang predicts that complete decoupling is unlikely because the US will continue to purchase non-sensitive items from China. He also suggested that Trump's policies could have a mildly positive effect on the global economy and could potentially aid Hong Kong in reclaiming its status as a financial hub.

Environmental, Social, and Governance (ESG) investing is rapidly gaining traction in global financial markets, aiming to integrate environmental protection and social responsibility into investment decisions to promote sustainable development. Despite its wide support, ESG investing faces criticism, particularly in the United States, where some state governments and the energy sector express concerns about its potential negative impact on the economy and business competitiveness.

In recent years, Hong Kong's economy has entered a period of uncertainty, with increasing reports of layoffs and business closures. However, while the public's perception of the job market is less than positive, the unemployment rate is kept at a low level. What is happening? The unemployment rate refers to the ratio of the number of unemployed individuals to the total labour force. Prof. Heiwai Tang, Associate Dean of HKU Business School and Director of the Asia Global Institute, explained that the low unemployment rate is largely due to recent emigration, which has decreased both the labour force and the number of unemployed individuals. He highlighted that ongoing business closures are likely to exert upward pressure on the unemployment rate. Many emigrants are skilled professionals, while new arrivals often prioritise settling their families, leading to job mismatches.

Hong Kong’s economy grapples with several long-standing structural challenges, such as monopolies by large corporations and an over-reliance on the financial sector, which presents a pressing need for economic diversification. Prof. Heiwai Tang, Associate Dean of HKU Business School and Director of the Asia Global Institute, notes that despite the Central Government’s push for multi-industry development, including high-tech advancements and enhancing collaboration with the Greater Bay Area, talent loss due to emigration and a conservative civil service culture are hindering significant breakthroughs. While the government has launched various talent attraction policies, such as the “Top Talent Pass Scheme”, Prof. Tang highlights the need for Hong Kong to attract leading enterprises to the city, which will naturally draw in the skilled professionals required for sustainable growth. As Hong Kong adapts to geopolitical shifts, a two-legged approach is recommended to strengthen its ties beyond the West, extending connections to ASEAN and the Middle East. This involves improving academic research and education related to Islamic culture and finance.

“Third-quarter numbers will likely disappoint more and underperform the second quarter’s 4.7 per cent year on year growth, piling on Beijing’s woes,” said Chen Zhiwu, chair professor of finance at the University of Hong Kong. “This is why Beijing has been proactively introducing stimulus at the end of the third quarter.

Does a "free lunch" really exist? Some online shopping platforms let consumers disclose if they received products for free or at a discount when writing reviews. Although these reviews for free products are not the majority, they can energize online communities where reviews are limited. The lack of objectivity in free product reviews can trigger self-regulation within online communities, prompting more users to provide fair feedback. Voluntary disclosure policies can effectively boost the number of reviews at a lower cost than hiring experts to write positive reviews.