Sir Malcolm Rifkind endorses new report at packed launched event
On 26 February 2020, Hong Kong Watch launched a new report which details why reports of Hong Kong’s decline as an essential financial centre for both China and the rest of the world are greatly exaggerated, and that the Chinese government cannot afford to allow the city's rule of law and fundamental freedoms without incurring significant cost for themselves.
Sir Malcolm Rifkind. Photo: Perseus
The report was launched at a packed event in the House of Lords, and hosted by Baroness Falkner. Keynote speakers included Sir Malcolm Rifkind, the former UK Foreign Secretary and a patron of Hong Kong Watch, and Gideon Rachman, the Chief Foreign Columnist of the Financial Times.
Sir Malcolm and Gideon both endorsed the report. Sir Malcolm drew on the second chapter of the report to focus his remarks on why the rule of law sets Hong Kong apart, and is essential for it to continue to be China’s financial window to the world. Gideon unpacked some of the insights in the third chapter on whether or not Hong Kong is replaceable, focusing in on the impact of the US-China trade war. Baroness Falkner shared remarks on the value of Hong Kong, and the significance of Hong Kong in the China-Taiwan relationship.
The panel. Photo: Perseus
Report findings
The report finds that, as China's only rule of law city, Hong Kong remains irreplaceable:
The city is home to the largest number of initial public offerings by Chinese mainland firms by a considerable margin
The Hong Kong-Shanghai Stock Connect scheme is increasingly the preferred means by which Western investors access the mainland stock market
The city mediates nearly two-thirds of direct investment into and out of China.
Hong Kong not only matters to China, it plays a key role for Western investors. 1530 multinationals have their regional headquarters in Hong Kong, which is an increase of two-thirds since 1997.
Gideon Rachman, Baroness Falkner and Benedict Rogers. Photo: Perseus
Johnny Patterson, Director of Hong Kong Watch said: "Hong Kong’s value cannot be understated nor can the cost the Chinese Government would incur in replacing it. Assessing Shanghai and Singapore and comparing them as alternative financial centres, we found that both would fall short as adequate replacements to Hong Kong in the immediate future.
Through interviews with leading business leaders about what they find valuable in Hong Kong, we concluded that the continued economic success of Hong Kong is built upon its uniqueness. It is the only city in China with freedom of capital, freedom of information, fundamental freedoms, rule of law and autonomy.
Any attempt to dismantle or undermine the rule of law and fundamental freedoms Hong Kong enjoys poses a huge economic risk for China and the rest of the world."