Hong Kong needs to reinvent itself to retain competitive edge: Mark Mobius

By Sangmi Cha

Mark Mobius said Hong Kong needs to take better advantage of its strengths to retain its competitive edge, becoming the latest influential figure to weigh in on the city’s future.
 

“If you don’t move with the times, you risk getting left behind,” the co-founder of Mobius Capital Partners LLP wrote in a blog post, titled Hong Kong: Far from Over. “In dropping its colonial baggage, Hong Kong must reinvent itself and make better use of the strengths it has cultivated over the years.”

The 87-year-old money manager said he was surprised by the level of pessimism surrounding Hong Kong during a recent visit to the city, adding that it was clear from his trip that “the fundamental spirit” of Hong Kong’s business environment is still “very much alive.”

Comparing the city to an undervalued stock, Mobius said from an investment perspective it’s “never a good idea to write off the potential of any city or country” and no market is ever “really out of the game.”

He pointed to the growing rivalry between the US and China over tech and AI as an area that Hong Kong could leverage.

“The jury is still out on whether China can surpass the US in the ongoing tech race,” said Mobius. “In the meantime, I believe Hong Kong would stand to benefit significantly by embracing technology and AI to align with China’s ambitious plans and to solidify its role as China’s bridge to the world.”

Hong Kong is seeking to revive its battered image after a national security crackdown and years of isolation during the pandemic drew international criticism. Leader John Lee has focused on luring conferences and other global events to draw visitors, while Finance Secretary Paul Chan has been trying to sell the city’s appeal overseas — most recently with a trip to the US.

The government on Wednesday released a promotional video featuring two-time NBA All-Star Stephon Marbury, who was granted admission via the city’s talent program last year and said Hong Kong would be his “third home” after Beijing.  

Economist Stephen Roach, during a visit to Hong Kong this week, doubled down on his view that the city’s outlook is being fatally undermined by its waning autonomy and China’s slowdown. 

While Chinese and Hong Kong officials say the city faces a bright future, there is sense from Beijing that the finance hub needs to rethink its approach. Xia Baolong, the director of the Hong Kong and Macau Affairs Office, said in April the city needed to solve its problems using “new thinking, new methods and new routes,” according to the South China Morning Post.