My Take | Those who want Hong Kong to fail will end up disappointed
- The city has its share of problems just like everywhere else, but as it slowly returns to normal people will learn never to bet against it
I am a terrible stock punter. I have a habit of keeping bad stocks and selling good ones. But that’s not all. I follow stocks I sold long afterwards in the hope that I made the right call. More often than not, they start moving up, or even launching a full-on bull run.
I imagine that’s what many locals and expats who have left Hong Kong want to see – the city going down the drain. It’s the same psychology, overdosed with anti-China sentiments. Warren Buffett likes to say never bet against America, you can say the same about Hong Kong.
Yes, the city has been down recently, but it’s not out. It has its share of serious problems. Who doesn’t? But to think it will ever stop being one of the most important cities in Asia, if not the world, is unduly pessimistic.
The city is reopening gradually. But given the harsh Covid-19 policy on the mainland, it’s still trying to adjust and adapt. Restrictions on inbound tour groups including their visits to theme parks and museums are being relaxed.
An international tech fest and a global bankers’ summit drawing many of Wall Street’s biggest names went smoothly, despite troublemaking by some American lawmakers and self-exiled activists.
The city’s key role for Chinese companies to raise capital will become even more important in coming years as US regulators increasingly cut off access.
The latest economic data may look grim; the economy in the third quarter contracted about 4.5 per cent year over year. But let’s remember the old investment advice: past performance is not indicative of future results.