In the Media

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.