China Briefing | Carrie Lam can defuse the Hong Kong protests by taking on the property tycoons

Political reform is slow, but there’s a swift solution to the economic inequality that has helped foment discontent

The Chief Executive can break the stranglehold of property moguls by increasing land supply and providing more affordable housing

Reading Time:4 minutes

The protests may have been triggered by politics but economic woes such as unaffordable housing helped foment the discontent. Photo: Bloomberg

Published: 9:45am, 17 Aug 2019Updated: 5:24pm, 17 Aug 2019

There is no question that Hong Kong has messed up big time. But a cloud of questions hangs over how to defuse the city’s biggest political crisis in decades.

On Thursday, the Hong Kong government announced a basket of extra budget measures valued at HK$19.1 billion, spanning everything from relief for small businesses to more generous student subsidies and goodies for low-income households.

Although Financial Secretary Paul Chan Mo-po cited the gloomy economic outlook and downplayed the political crisis, he seems to have resorted to the tried-and-tested trick of “handing out candies” to assuage public discontent at a time of upheaval.

More may be on the way as Chief Executive Carrie Lam Cheng Yuet-ngor is expected to unveil her policy address in October, which is most likely to include more generous handouts.

Hong Kong’s Financial Secretary Paul Chan Mo-po and Chief Executive Carrie Lam Cheng Yuet-ngor appear to be in the mood for “handing out candies”. Photo: Felix Wong

What remains unclear, however, is whether the embattled Chief Executive will unveil a bold vision to tackle the “grey rhino” risks long associated with Hong Kong – sky-high property prices, worsening inequality, lack of social mobility for youth, and woefully underfunded social security – which have underpinned waves of anti-government demonstrations over the past two decades.

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China Briefing | Carrie Lam can defuse the Hong Kong protests by taking on the property tycoons

Political reform is slow, but there’s a swift solution to the economic inequality that has helped foment discontent The Chief Executive can break the stranglehold of property moguls by increasing land supply and providing more affordable housing

Political reform is slow, but there’s a swift solution to the economic inequality that has helped foment discontent

The Chief Executive can break the stranglehold of property moguls by increasing land supply and providing more affordable housing