Lai See | InvestHK goes with the flow instead of chest-thumping
In previous years this has been an exercise for immense chest-thumping on the part of InvestHK, as if it was responsible in some way for the billions of dollars that flowed through the city. Although Hong Kong attracted some US$75 billion in FDI last year, InvestHK's presentation appears to have been more muted this year.
InvestHK yesterday unveiled figures for Hong Kong's foreign direct investment flows as compiled by the UN Conference on Trade and Development.
In previous years this has been an exercise for immense chest-thumping on the part of InvestHK, as if it was responsible in some way for the billions of dollars that flowed through the city. Although Hong Kong attracted some US$75 billion in FDI last year, InvestHK's presentation appears to have been more muted this year.
We well remember Wong Tak-jun, dean of the faculty of business administration at Chinese University who is always wheeled out for these events, sagely telling the assembled two years ago that: "The way we calculate these funds is that they really have to be invested here." Right, all US$68.9 billion of it - the amount two years ago. The equivalent, say, of building 26 combined IFC and Two IFC complexes. However, InvestHK's attitude to these funds appears to have changed this year. No longer is there an attempt to maintain the pretence that these funds remain in Hong Kong.
Indeed Invest HK's director-general Simon Galpin said in a press statement that Hong Kong remained a "significant conduit" for both inbound and outbound investment. Perhaps the penny has at last dropped that most of these funds involve round tripping in and out of the mainland, in addition to sizeable money-laundering proceeds. All of which we're told contribute to Hong Kong's business-friendly environment.
We see that investment bank Jefferies Hong Kong recently received a big poke in the eye courtesy of High Court deputy judge Conrad Seagroatt, who found that the firm had wrongfully dismissed its former Asia head of equity trading, Grant Williams. Williams edited a daily newsletter called " Things that make you go, Hmm ...", aimed at "pushing the boundaries of edginess", and amusing the bank's clients. Jefferies had set up an elaborate structure for it to be vetted in London and New York. Interestingly, one edit involved changing a reference to the North Korean leader from "North Korean Dictator" to "North Korean Head of State".