Emerging markets investor Mark Mobius spoke optimistically about Hong Kong’s future but urged it to «reinvent itself» and adapt to new conditions.
Hong Kong has seen its fair share of negative headlines in recent years with numerous financial institutions cutting back on resources in the city amid political uncertainty and China’s economic slowdown. Nonetheless, Mark Mobius, billionaire investor and founder of emerging markets asset manager Mobius Capital Partners, said the city is «far from over».
«I was in Hong Kong last week and I was asked more than once if I share the same sentiment with some critics that the city as an international financial hub is ‘over’,» he wrote in an article. «To be honest, I was slightly taken aback by the amount of pessimism currently surrounding Hong Kong.»
«Move with the Times»
According to Mobius, he is optimistic about the future of Hong Kong but he also notes that the city needs to adapt to a new norm.
«[A]s with anything in life, if you don’t move with the times, you risk getting left behind. In dropping its colonial baggage, Hong Kong must reinvent itself and make better use of the strengths it has cultivated over the years,» he described.
Talent Shift
One area of change is in Hong Kong’s talent pool and the recent emigration trend driven by the 2019 social unrest and strict Covid restrictions.
«At the same time, there’s been more mainland Chinese people moving into Hong Kong. As the integration between China and Hong Kong progresses, it’s clear that Hong Kong is experiencing a shift in its talent pool,» Mobius explained. «However, does this necessarily spell the demise of Hong Kong? Who is to say this isn't an opportunity for Hong Kong to evolve and thrive in new ways?»
Tech and AI
Another area is the rise of US-China tensions, specifically with regards to a chips race between the world’s two largest economies. Mobius highlighted that US restrictions on AI development and China’s response to accelerate its own industry are leading to potential opportunities.
«The jury is still out on whether China can surpass the US in the ongoing tech race,» he said. «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.»
Views on Hong Kong «Unchanged»
Mobius recalls his early days setting up a consulting firm in Hong Kong during the 1960s, noting «the entrepreneurial spirit, the resilience, and the relentless drive to succeed were the hallmarks of the business environment there».
«Even today, my views on Hong Kong remain largely unchanged,» he underlined. «Last week, I had the opportunity to meet with several individuals from the business circle, and it was clear to me that the fundamental spirit of Hong Kong's business environment is still very much alive. On the ground, I see the same hustle, the same ambition, and the same determination to succeed.»
