Hong Kong billionaire and property tycoon Ronnie Chan called out locally directed «unwise policies» as the cause of ongoing unrest, adding a stark note that Beijing could take a more hardline stance which he predicts could result in an economic boost.
«In the past month and a half, the city has erupted into a tumultuous place. It was the result of unwise policies made locally and not initiated by Beijing, which has since basically kept quiet,» said Hang Lung Properties chairman Ronnie Chan Chi-chung in a recent interim report. «But the trouble on the streets today are not just directed at the local government but also at the central government in Beijing.»
Chan added that such an environment is certain to negatively affect business and confidence from the international community, highlighting a pessimistic outlook for residential real estate. «Whether or not there will be any long-term effect will depend on how the situation resolves itself,» he said. «But for now, no one can predict how this will pan out. The local residential market will no doubt slow down. We will see if prices will fall alongside with volume. More likely than not, they will.»
Harder Stance by Beijing Good for Economy?
According to Chan, Beijing has thus far been «too lax about enforcing the Basic Law in the past 22 years», a matter of much controversy amongst Hong Kong’s general public due concerns about the legal regime's potential encroachment of the «One country, two systems» basis which governs the special administrative region.
Chan said that the protests could force Beijing to «change its tack» to an even harder stance and, interestingly, notes that it may actually be beneficial to Hong Kong.
Bad Outcome
«If the present turmoil forces all parties to embrace the Basic Law, this may not be a bad outcome,» he explained. «In this eventuality, Hong Kong’s residential market and indeed the entire economy may well gain a second wind. But for now, turbulence will be with us.»
Chan joins an ever-growing list of pro-government billionaires that are increasingly vocal about calling for an end to protests. The city’s richest, Li Ka-shing, was the latest to voice his views, taking a uniquely new stance by pleading for mutual understanding and mercy for Hong Kong’s youth, which he called the city's «future owners».
