Businesses split on white paper

A much-needed note of political certainty or a worrying sign that the city's high degree of autonomy is at an end? Business leaders and analysts are split on the likely effect of Beijing's white paper on Hong Kong on the city's economic outlook.

The white paper, published on Tuesday, saw the central government assert its ultimate authority on Hong Kong affairs and provoked protests from democracy activists and dissent from the Bar Association. In political circles, it has been seen as Beijing putting its foot down over political development as the Occupy Central movement prepares a public vote on models for a democratic election for chief executive in 2017.

For Danny Lau Tat-pong, honorary president of the Small and Medium Enterprises Association, the paper signals an end to the city's high degree of autonomy 17 years after the handover, despite the fact the "one country, two systems" principle is enshrined in the Basic Law.

Lau did not dispute the paper's assertion that Beijing helped pull Hong Kong out of the economic doldrums, but said the city should look for alternatives and not rely only on the mainland economy for growth.

"Observe in coming months the deal flows of major investors in Hong Kong, which will tell you how they react to the white paper's message," Lau said.

In recent months, analysts have pointed to a string of asset sales in Hong Kong and investments overseas by Asia's richest man, Li Ka-shing, as a sign the tycoon is losing confidence in the city's economy. Li has consistently denied he is pulling out.