Stephen Roach, former chairman of Morgan Stanley in Asia, claims Hong Kong is over, citing domestic politics, China’s problems, and U.S.-China tensions. The city’s decline poses economic and political risks.
Former Morgan Stanley Chairman Stephen Roach Says Hong Kong Is Over
Stephen Roach, former chairman of Morgan Stanley in Asia, has declared that Hong Kong is over, pointing to the city’s demise due to its domestic politics, China’s structural issues, and global developments, including worsening U.S.-China tensions. According to Roach, Hong Kong’s decline began when Chief Executive Carrie Lam introduced the extradition bill in 2019, triggering large-scale protests, and was further exacerbated by Beijing’s imposition of the national security law in 2020.
Reasons Behind Hong Kong’s Decline
Roach attributed Hong Kong’s decline to a confluence of factors, including local politics, China’s economic structural problems, and global developments. The city’s economic downturn has been driven by waning confidence in the business and investment environment, as well as the legal framework, leading to foreigners, firms, and locals leaving the city.
Impacts on Hong Kong’s Business Environment
Financial commentator Ngan Po Kong described Roach’s commentary as a “shock bomb” that could prompt others to re-evaluate the political risks of doing business in Hong Kong. The American law firm Latham & Watkins LLP is also reportedly cutting off access to its international database for its Hong Kong lawyers, highlighting the growing difficulties for multinational companies operating in the city. Additionally, Hong Kong Chief Executive John Lee has vowed to complete legislation of Article 23 of the Basic Law, with laws to prohibit acts of treason, secession, sedition, and subversion against Beijing.
Source : Hong Kong is now over, says China’s former good friend – Thailand China Business News