Hong Kong: Risks and Challenges

My recent research paper which concludes my Hong Kong adventures can be downloaded from FRXmarket: http://www.frxmarket.com/p/hong_kong_risks_and_challenges/243

In this paper the other side of the Hong Kong’s success as one of the leading global financial centers is being discussed: Hong Kong’s weaknesses, risks and challenges. One should read it for counterbalancing the impressions that one gains from government websites and promotional materials.

The main discussion topics are:     
* Hong Kong’s big and growing economic & financial dependence from Mainland China
* Big, foreign-controlled and structurally imbalanced financial sector
* Unequal, divided and polarized society
* One of the hottest property markets in the world: now softening or about to collapse?
* Shadow banking, “underground finance” and money laundering

The text includes references for further reading as well as a brief summary of the situation in Mainland China. If data are provided without dates and/or terms like “currently” are being used, the data is given as available in March 2014.

One of the key conclusions is that Hong Kong is increasingly becoming a Chinese city and a part of China rather than being a global financial center and a gateway between the Mainland and the rest of the world – even if Hong Kong’s marketing message is different.

Last but not least, suggestions are given for Hong Kong to retain its current position in global finance; these are not necessarily in agreement with the current policy agenda.

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