In an interview with the South China Morning Post, the Shui On Group chairman pointed to the disappointing performance of the government, but would not comment on the political developments of the past week and the expected resignation of the chief executive.

Mr Lo, who is well-known for his Xintandi entertainment and shopping complex in Shanghai, has focused his business on the mainland in recent years. He said he might move the company's headquarters across the border if the city failed to evolve as the gateway between the mainland and the rest of the world.

He complained that the rise in Hong Kong's property prices had raised the cost of doing business.

'I am quite worried about the situation. The property market has jumped a lot in the past year. Some luxury apartments are even more expensive than in 1997. Can ordinary people afford it? I have a lot of doubts,' he said.

'There is a feel-good factor among the public. To be honest, it will not last long.'

Mr Lo said Hong Kong's economic restructuring was not complete and he was not confident that unemployment would fall much as there was a serious mismatch between job vacancies and available skills.

He was disappointed that Hong Kong's latest economic rebound was again based on housing price increases.

'If we remain at a standstill, relying on [property] speculation, with the community continuing to engage in arguments and social conflicts, businesses will go elsewhere,' he said.

'Hong Kong has gone backwards, with people not focusing on creating wealth but on how to share it. The welfare mentality is very strong in the city. The gap between rich and poor has widened because of the bad economy in the past few years. But we cannot solve our problems with this approach.

'We just talk, but we don't do anything. We have to ask ourselves, in two to three years do we still need to be in Hong Kong? Business in Hong Kong is shrinking.

'It is kind of sentimental rather than rational to stay here. I know I shouldn't be like this as a businessman, but we are all human.'

Mr Lo said he still planned to list his group's property flagship, Shui On Land, in Hong Kong next year. He said the city still enjoyed some advantages over cities on the mainland, including good infrastructure, a sound legal system and a vibrant financial market.

'But the gap is narrowing every day. Hong Kong should position itself to face the world and the entire mainland, not just be the leader in the Pearl River Delta,' he said.

'I don't want to criticise the government, but it has disappointed many people in the past few years. The central government has been very supportive of Hong Kong. But we can't sit and wait for Beijing's privileges.'

Mr Lo said Hong Kong needed to develop a clear target and vision for the future.

'But now our vision is somehow blurred,' he said.