Missing links
Hong Kong has seen a groundswell of civic activism in recent years. Absent from this broad collection of interest groups, however, are consumers and small investors - which is curious, given this city's obsession with making money, and spending it. And it is not as if the issues are not there: recent headlines have been dominated by supermarket chains allegedly taking customers for a ride, whether certain types of complex financial products should have been sold to the public, and whether a telephone operator's privatisation would be a raw deal for minority shareholders.
Instead, it has been left largely to the quasi-government Consumer Council to take up the mantle for consumers and investors. The mainly government-funded watchdog was set up in 1974 , when there was high inflation and rampant profiteering. The council, which is covered by its own ordinance, has had a reasonable record in many areas, but remains hard pressed to keep an eye on so many products, services and practices.
In the case of the infamous minibonds sold by the now defunct investment bank Lehman Brothers, it was the Consumer Council which handled many early complaints from distraught investors, and which later helped arrange legal action on their behalf, despite it not being a financial watchdog. Nonetheless, questions were raised as to whether our financial regulators were asleep at the wheel and whether such a high-risk product should have been sold to relatively less-sophisticated retail investors. At the least, bank sales staff should have explained the risks very clearly to buyers, which does not appear to have happened.
Other than the Consumer Council, there are no privately funded civic organisations in Hong Kong to protect consumer rights. In the case of minority shareholders' protection, the cause celebre is the independent, non-government Securities and Futures Commission's case against PCCW's privatisation scheme. The background to this case is interesting because the activities in dispute were first identified by David Webb, who has fought a long, lonely battle over the years on behalf of Hong Kong's minority shareholders. Given that one in five Hongkongers owns shares, according to the Monetary Authority, it is simply astonishing that there are no civic groups dedicated to protecting the interests of Hong Kong's legions of small investors.
Consumer and investor issues should be hot topics, as they are elsewhere. The lack of public interest is in stark contrast to the level of activism in other areas. For example, Hong Kong boasts more than a dozen non-governmental organisations dedicated to environmental issues. Some are large, internationally known organisations with local offices, but many are home-grown community organisations. There are special green groups dedicated to clean air, nature conservation, birds, dolphins, climate change - the list goes on.
Community activism has risen dramatically in newer causes such as the environment, heritage and urban planning because there are blatant deficiencies in the way these areas have been managed and regulated. The prime target for civil society is the government. The community is ready to be involved and the private sector is funding groups to stand up and be counted. The targets include large businesses, such as major polluters, who must now engage with civic groups on these matters.