China Calls On Hong Kong Tycoons To Help Kickstart National Economy

By Ng Chi Ping

The ruling Chinese Communist Party has called on Hong Kong's leader to mobilize the city's wealthiest families into kick-starting economic growth, although signs that any are answering the call have been thin on the ground.

Xia Baolong, who heads the ruling party'sHong Kong and Macao Work Office, "expressed the hope that all sectors of Hong Kong society, especially the business community and entrepreneurs, will unite as one and seize the opportunity to strive for economic development," the city's Chief Executive John Lee told reporters following a Sept. 20 meeting with Xia, as he attended aninvestment cooperation conferencein Beijing.

Hong Kong's business community should "transform their love for their country and for Hong Kong into concrete and practical action, and work together to promote Hong Kong's ... prosperity," Xia told Lee during the meeting.

Xia's call to action echoes recent policy moves from Beijing to find a role for the private sector in boostingflagging economic growth, under Chinese President Xi Jinping's concept of "public-private partnerships," which analysts have warned could be a disguised asset grab by the government.

It also comes after Xi wrote to the descendants of the “Ningbo Gang” – wealthy Hong Kong families with roots in the eastern port city of Ningbo – in July, calling on them to "contribute to the dream of the rejuvenation of the Chinese nation," state media reported.

They included Anna Pao, eldest daughter of the late shipping magnate Sir Pao Yue-kong, and Ronald Chao, eldest son of the late industrialist Chao Kuang-piu, families whose business operations formed the backbone of much of Hong Kong’s growth under British colonial rule.

Lee said the private sector in Hong Kong "are not bystanders, but participants, contributors and beneficiaries" of the city's economic rewards.

'Serve the country'

But commentators said there hasn't exactly been a big rush to respond to Beijing's call for investments on the part of Hong Kong's entrepreneurs.

The city's richest man, Li Ka-shing, has instead been stepping up his investments in the United Kingdom, with his CK Infrastructure Holdings acquiring a wind farm portfolio in from Aviva Investors for £350 million (US$450 million) in August, renewable power generator UU Solar for £90.8 million (US$122 million) in May, and natural gas distributor Phoenix Energy in April.

Exiled Hong Kong businessman Elmer Yuen, whose family hails from Ningbo, said Beijing has repeatedly called on Hong Kong's tycoons to "serve the country."

But he said there is unlikely to be much response, given that few business families from Ningbo and Shanghai trust the Chinese Communist Party.

"You can lump all of us together, us Shanghainese, most of whom are from Ningbo, and say that we have absolutely zero trust in the Chinese Communist Party," Yuen said.

"Maybe a small number of people will invest, but the rest already know who they're dealing with."

According to Xia Ming, professor of political science at the City University of New York, Lee is being tasked by Beijing to step up integration with neighboring Guangdong province and Macau, and provide a much-needed shot in the arm for the sluggish Chinese economy.

"Policy in today's Hong Kong is clearly about how to perfectly integrate Hong Kong into what Xi Jinping calls the China rejuvenation strategy, which is basically about controlling the economy," Xia told RFA Cantonese in a recent interview. "[Lee's aim] is to more perfectly integrate Hong Kong into China's accelerated regression."

Xia said the overall aim is to integrate Hong Kong into the mainland Chinese economy and "ultimately sell Hong Kong off to Beijing and to Xi Jinping."

"The goal of Xi Jinping's reforms is not that mainland China will become more like Hong Kong, but that Hong Kong will become more like Yan'an," he said in a reference to the revolutionary wartime base of Mao Zedong's communists.

Stimulus measures

The call for investments came as Chinese leaders announced a slew of stimulus measures to boost demand for real estate, including lower mortgage rates, fewer restrictions on buyers and tax cuts as part of "a new model" for real estate development.

On Tuesday, China's central bank, top securities regulator and financial regulator announced a raft of monetary stimulus, property market support and capital market strengthening measures to boost "high-quality economic development," state news agency Xinhua reported.

The top economic meeting, attended by Xi, also called on officials to "foster a favorable environment for the development of the non-public sector," with efforts made to boost consumption among low- and middle-income groups.

China has also extended a helping hand to Hong Kong in the form of pandas, with a ceremony at the Hong Kong International Airport on Thursday to welcome An An and Ke Ke, described by Lee as "just entering adulthood and full of energy” and likely to be a successful draw for tourists.

The giant pandas will live in a newly refurbished suite at the Ocean Park theme park complete with climbing frames and more plants.

"Citizens will join in welcoming the two giant pandas to Hong Kong, and the whole city is looking forward to it," Lee told reporters on Tuesday, adding that images of the pandas will be added to the Oct. 1 National Day drone and light show over Victoria Harbour.

Hong Kong is expecting an influx of up to 1.2 million mainland Chinese tourists to mark the 75th anniversary of the founding of the People's Republic of China, Lee said.

"We hope that everyone can celebrate the 75th anniversary of National Day together, and also bring in many business activities to increase business and tourism revenues," he said.