A radical property tycoon has suggested building an international charter city as a new base for Hong Kongers amid unprecedented political uncertainty in China's semi-autonomous city.
Ivan Ko, chairman of property developer RECAS, is currently seeking a new base for Hong Kongers in the form of an international charter city – a metropolitan area with its own socioeconomic and political system that is integrated within the legal system of a host country.
«We want to provide an option for Hong Kong people to leave Hong Kong, but to carry on with their lifestyles and continue to develop their careers and build their families in countries that are democratic and free,» Ko said in a «Telegraph» report earlier this week.
Victoria Harbour Group, founded by Ko, is already scouting globally for land in developed countries operating under common law. The company intends to source a location this year and begin planning and building infrastructure for the project in 2021.
Target Countries
According to Ko, the company is in discussions with four governments in the west with Ireland at the top of the list. A meeting was scheduled in February with the Irish government but was postponed due to coronavirus-related travel restrictions.
The U.K. is also «reasonably realistic», added Mark Lutter of Charter Cities Institute, a non-profit that advises on building charter cities and has been working with Victoria Harbour Group.
Victoria Harbour Group is currently raising funds from investors in both Hong Kong and Silicon Valley with more fundraising rounds to come after planning is underway.
Mass Migration
The aim is for half of the city to be populated by Hong Kong emigrants with the other half from locals in the host country, Lutter said. Ko estimates that this figure to be as high as 2 million.
«We want to provide an option for Hong Kong people to leave Hong Kong, but to carry on with their lifestyles and continue to develop their careers and build their families in countries that are democratic and free,» Ko said.
Self-Rule
Dependent on the conditions agreed with the host country, Ko’s plan is to first have a city manager appointed by the company who would then be accountable to a council of local residents.
«We want to provide an option for Hong Kong people to leave Hong Kong, but to carry on with their lifestyles and continue to develop their careers and build their families in countries that are democratic and free,» Ko said.
Even more radically, Ko plans to float Victoria Harbor Group in 10 to 12 years – effectively an initial public offering for a city. Ko hopes that he can enter a public-private joint venture with the government for the project to ensure support while using Victoria Harbour Group’s dividends to fund public spending, job training, education and migration sponsorships.
Hong Kong Power
Ko envisions the international charter city to be more than just a location for higher income Hong Kongers, who he believes could afford to emigrate elsewhere anyways.
«If countries desire to generate economic activity, having a bunch of very smart people who can bring investment and jobs will generate a better future not just for them but for the host country,» Lutter added.
«I believe the value of people comes in their network. If we’re able to partially transplant that network, then a lot of people’s relationships can be preserved.»
«Off Beijing’s Back»
Both Ko and Lutter dismissed any concerns that such a project would antagonize or negatively impact the China's overall development.
«[The city is] for the people who don’t want to live in Hong Kong, maybe people who have been protesting,» says Lutter explained. «If they leave, it might be off Beijing’s back.»
«In terms of the brain drain or outflow of capital, China has 1.4 billion people who can move to Hong Kong with their capital and their companies,» Ko explained. «No matter how many people leave Hong Kong, those vacancies will be filled up in no time.»
