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I wrote about the looming exodus from Hong Kong under the UK’s visa scheme and what that means for the city’s future as a financial center 1/
https://www.bloomberg.com/opinion/articles/2021-01-30/u-k-passports-for-hong-kong-bankers-will-disrupt-property-markets?sref=jR90f8Ni via @bopinion
https://www.bloomberg.com/opinion/articles/2021-01-30/u-k-passports-for-hong-kong-bankers-will-disrupt-property-markets?sref=jR90f8Ni via @bopinion
How big a concern should capital flight be? My answer is: not much. As long as Hong Kong has a role to play as a capital bridge between China and the world, money will flow in and out and people will arrive to fill it 2/
The property market is another matter, perhaps. If the numbers leaving are anything like the UK’s central estimate, let alone towards the high end, then that will mean a lot of potential selling pressure 3/
But the real damage of the Hong Kong departures is reputational and political. The sputtering rage of the Chinese response and the petulant decision to withdraw recognition of BN(O) passports as a valid travel document tells the story 4/
Why not just let people leave? This would appear to meet China’s objective of removing those who do not love and welcome the Communist Party’s rule, leaving in place a more united and harmonious city 5/
My guess is embarrassment. The sight of hundreds of thousands deserting their home city for good rather than accept the party’s destruction of One Country, Two Systems is a huge blow to China’s prestige on the world stage 6/
Once again, people given a choice are seen to be voting with their feet rather than live under a Communist regime. And once again, a Communist regime is resorting to threats and coercion to try to keep them within its borders /ends
“Ms. Yeung said a key reason for shipping her family to England was when patriotic materials started being added to her children’s textbooks... “I have totally lost my confidence and hope in Hong Kong’s education,” Ms. Yeung said.” https://www.wsj.com/articles/china-targets-u-k-s-hong-kong-passports-over-citizenship-plan-11611917418
More news on the Hong Kong exodus: https://www.bloomberg.com/news/articles/2021-01-26/china-arrivals-to-offset-any-exodus-to-u-k-hong-kong-aide-says
"The geopolitical implications could also be significant, as it represents the most tangible protest yet against Chinese President Xi Jinping’s campaign to curb dissent in the restive Asian financial center" https://www.bloomberg.com/news/articles/2021-01-29/why-enough-hong-kongers-to-fill-belfast-may-flee-to-the-u-k?sref=jR90f8Ni
“To uproot ourselves like this is definitely not easy. But things got uglier last year, the government was really driving us away... “Everything we value - freedom of speech, fair elections, liberties - has been eroded" https://www.washingtonpost.com/world/europe/thousands-flee-hong-kong-for-uk-fearing-china-crackdown/2021/01/30/f898e5ba-635f-11eb-a177-7765f29a9524_story.html
“I thought it was better to leave before it was too late.” https://www.theguardian.com/world/2021/jan/31/leave-hong-kong-before-its-too-late-say-those-who-now-call-britain-home
