Jake's View | HKMC not playing on a level field
By engaging in the mortgage insurance business, the corporation is crushing out some nascent start-ups in the private sector

"We are not going to compete with the private sector. When there is a need from the society that the private sector is yet to fulfil, we will be there to help close the gap. The new name will reflect the business more appropriately."
The new name will be created by adding the words "Credit and Guarantee" between the words "Mortgage" and "Corporation". My congratulations to you on your insight if this reflects anything of significance to you.
Let's clear up several immediate misperceptions. Li will make a distinct break with the past if he guides this interventionist government agency away from competing with the private sector. Almost the first thing it did on its inception was jump into a private-sector business, mortgage insurance.
Nothing wrong with that, you will say. If the HKMC can offer financial services more efficiently than a private-sector entity can do, so then let it compete by all means.
What need that is not a straight handout will the HKMC ever sniff out before others do so?
I agree if it does so on a level playing field, but this one is not. A crucial determinant of competitive success in financial services is cost of funds. If you are truly good at what you do and have the trust of the public, then you can obtain funds at a lower interest cost than most others can do.