Hong Kong's Reunification with China: Reflecting on 15 Years of Governance and Public Engagement
Release Date: 2012-07-12
As Hong Kong commemorates the 15th anniversary of its return to China, my feelings are a blend of optimism and disappointment.
The economic progress of Hong Kong stands out, particularly in contrast to the economic challenges faced by Europe and the United States. The city’s low unemployment rate is indeed a fortunate circumstance. Yet, significant issues such as wealth inequality, the dominance of the real estate sector, and housing difficulties have been inadequately addressed by the Special Administrative Region (SAR) government. This has led some to reminisce about the colonial era, a sentiment I personally do not share. These challenges are not unique to Hong Kong; they manifest globally, differing only in severity. For me, colonial Hong Kong represents the degradation of a corrupt Qing dynasty, and I take pride in the autonomy that Hongkongers now enjoy. Since the handover, it has become increasingly apparent that external forces have sought to manipulate Hong Kong to influence China's political landscape. United under the "Lion Rock," we should strive for solidarity, rather than division, as some continue to oppose the government on fundamental issues.
Looking back over the past 15 years, the real estate sector has greatly profited from high land price policies. Developers have enjoyed substantial profits, while property investors have benefitted from climbing asset values and rents, rendering them the least regretful demographic. The retail sector has experienced robust growth, fueled by China's expansion of individual travel and challenges regarding domestic product quality inspections, which presents an optimistic outlook. Conversely, the export sector, once pivotal to Hong Kong's economy, is undergoing significant transitions due to dwindling external demand and the pressures of a strengthening yuan, as it prepares for its next growth phase amidst the global economic downturn.
Financial Policy: A Challenge to Local Brokers
The securities sector has faced both natural and man-made challenges over these 15 years. The stock market has seen cycles of boom and bust, with recent trading volumes frequently dropping below HKD 40 billion, fostering mixed emotions among stakeholders. Despite the SAR government’s repeated assertions of finance as a key industry, the aggressive push for internationalization and policies favoring foreign capital have left local investors feeling marginalized and local brokerage firms struggling for survival. With over 100,000 jobs at risk and countless livelihoods impacted, the financial industry reflects the widening wealth gap, fueling discontent among professionals.
Recent financial crises have left investors and industry professionals feeling anxious and fatigued. It is incumbent upon industry professionals to navigate challenges and mitigate risks for investors; however, misreading market trends can lead to self-blame for insufficient skills. Unfortunately, existing financial policies have not supported local brokers and have instead exacerbated their challenges.
Problems such as dual regulation, incidents involving penny stocks, the elimination of minimum commissions, and stricter securities regulations have considerably diminished the competitiveness of local brokers. Policies increasingly favoring larger investors have intensified. Recent changes—such as shortened lunch breaks and the introduction of night futures trading—have been implemented without regard for industry insights or public sentiment, resulting in considerable dissatisfaction within the sector.
In just the past six months, there have been over three protests within the industry, and our association's president has even undertaken a historic hunger strike in protest against the policies of the Hong Kong Stock Exchange. As I write this, I am hopeful that Leung Chun-ying’s administration has assumed governance. My initial impressions of the new government are encouraging; it appears approachable, open to dialogue, willing to confront challenges, eager to assume responsibility, and committed to finding viable solutions.
Going forward, our association, in collaboration with other industry groups, will continue to express our views and propose constructive recommendations. We hope the government will make positive adjustments to securities development policies with patience and understanding.
If the government can genuinely listen to public sentiment and align itself with the populace's needs, we can aspire to achieve unity, industry prosperity, and societal harmony.
Mr. SUNG Wing Yiu Raymond, Honable Advisor to the Hong Kong Securities and Futures Professionals Association
About the Author:
Mr. SUNG Wing Yiu Raymond serves as an advisor to the Hong Kong Securities and Futures Professionals Association, bringing considerable experience from the securities and futures sector. He has held prominent roles in various financial institutions in Hong Kong and is currently a director at Karl-Thomson Securities Company Limited, overseeing the management and development of the group's internet trading services, securities, futures, and related businesses. Mr. SUNG holds a Bachelor of Social Science in Public and Administrative Studies from the Chinese University of Hong Kong and a Master of Business Administration from the University of Hong Kong.
The economic progress of Hong Kong stands out, particularly in contrast to the economic challenges faced by Europe and the United States. The city’s low unemployment rate is indeed a fortunate circumstance. Yet, significant issues such as wealth inequality, the dominance of the real estate sector, and housing difficulties have been inadequately addressed by the Special Administrative Region (SAR) government. This has led some to reminisce about the colonial era, a sentiment I personally do not share. These challenges are not unique to Hong Kong; they manifest globally, differing only in severity. For me, colonial Hong Kong represents the degradation of a corrupt Qing dynasty, and I take pride in the autonomy that Hongkongers now enjoy. Since the handover, it has become increasingly apparent that external forces have sought to manipulate Hong Kong to influence China's political landscape. United under the "Lion Rock," we should strive for solidarity, rather than division, as some continue to oppose the government on fundamental issues.
Looking back over the past 15 years, the real estate sector has greatly profited from high land price policies. Developers have enjoyed substantial profits, while property investors have benefitted from climbing asset values and rents, rendering them the least regretful demographic. The retail sector has experienced robust growth, fueled by China's expansion of individual travel and challenges regarding domestic product quality inspections, which presents an optimistic outlook. Conversely, the export sector, once pivotal to Hong Kong's economy, is undergoing significant transitions due to dwindling external demand and the pressures of a strengthening yuan, as it prepares for its next growth phase amidst the global economic downturn.
Financial Policy: A Challenge to Local Brokers
The securities sector has faced both natural and man-made challenges over these 15 years. The stock market has seen cycles of boom and bust, with recent trading volumes frequently dropping below HKD 40 billion, fostering mixed emotions among stakeholders. Despite the SAR government’s repeated assertions of finance as a key industry, the aggressive push for internationalization and policies favoring foreign capital have left local investors feeling marginalized and local brokerage firms struggling for survival. With over 100,000 jobs at risk and countless livelihoods impacted, the financial industry reflects the widening wealth gap, fueling discontent among professionals.
Recent financial crises have left investors and industry professionals feeling anxious and fatigued. It is incumbent upon industry professionals to navigate challenges and mitigate risks for investors; however, misreading market trends can lead to self-blame for insufficient skills. Unfortunately, existing financial policies have not supported local brokers and have instead exacerbated their challenges.
Problems such as dual regulation, incidents involving penny stocks, the elimination of minimum commissions, and stricter securities regulations have considerably diminished the competitiveness of local brokers. Policies increasingly favoring larger investors have intensified. Recent changes—such as shortened lunch breaks and the introduction of night futures trading—have been implemented without regard for industry insights or public sentiment, resulting in considerable dissatisfaction within the sector.
In just the past six months, there have been over three protests within the industry, and our association's president has even undertaken a historic hunger strike in protest against the policies of the Hong Kong Stock Exchange. As I write this, I am hopeful that Leung Chun-ying’s administration has assumed governance. My initial impressions of the new government are encouraging; it appears approachable, open to dialogue, willing to confront challenges, eager to assume responsibility, and committed to finding viable solutions.
Going forward, our association, in collaboration with other industry groups, will continue to express our views and propose constructive recommendations. We hope the government will make positive adjustments to securities development policies with patience and understanding.
If the government can genuinely listen to public sentiment and align itself with the populace's needs, we can aspire to achieve unity, industry prosperity, and societal harmony.
Mr. SUNG Wing Yiu Raymond, Honable Advisor to the Hong Kong Securities and Futures Professionals Association
About the Author:
Mr. SUNG Wing Yiu Raymond serves as an advisor to the Hong Kong Securities and Futures Professionals Association, bringing considerable experience from the securities and futures sector. He has held prominent roles in various financial institutions in Hong Kong and is currently a director at Karl-Thomson Securities Company Limited, overseeing the management and development of the group's internet trading services, securities, futures, and related businesses. Mr. SUNG holds a Bachelor of Social Science in Public and Administrative Studies from the Chinese University of Hong Kong and a Master of Business Administration from the University of Hong Kong.