Thursday, May 14, 2020

"China Unveils Financial Support to Tie Hong Kong, Macau Closer"

This seems like a pretty big deal, is it good for Hong Kong?*
Also, anyone want to buy some property on Hainan island?**
From Bloomberg:
China’s financial regulators unveiled a sweeping plan to facilitate cross-border transactions and investments between Hong Kong, Macau and cities in southern China as part of the government’s ambition to transform the coastal region into a high-tech megalopolis to rival California’s Silicon Valley.

The People’s Bank of China, together with the nation’s banking, securities and foreign exchange regulators, on Thursday announced a slew of potential measures to support the so-called Greater Bay Area, including allowing Hong Kong and Macau citizens to buy wealth management products issued by mainland lenders in the region and vice versa.

China’s policy makers are seeking to turn the area into a global innovation hub, boost infrastructure connectivity between cities and strengthen Hong Kong’s role as an international center of finance, shipping and trade as well as the center for the offshore yuan business.
The move comes amid increasing political tension in Hong Kong, with Beijing exerting greater influence over the city after almost a year of pro-democracy protests and as China has largely contained its outbreak of the coronavirus.

Hong Kong, Macau, Shenzhen and Guangzhou are the four key Bay Area cities, driving the region’s economic development, according to the blueprint announced earlier last year. HSBC Holdings Plc has estimated the region -- with more than 67 million residents -- would encompass a trillion-dollar economy and eclipse Japan as the world’s fourth-largest exporter.
Other key points in the financial plan include:....
*November 27, 2019
Hong Kong’s Demise
It appears that one of Beijing's options is to let Hong Kong die on the vine and wither away as a business center, with Shenzhen, Shanghai and even Hainan island assuming some of the various roles that Hong Kong has played over the years.
And if HK is no longer an entrepôt and the gateway to China it faces the possibility of becoming a colonial backwater but one that is so overbuilt it ends up as an urban hellscape....
September 6, 2019
China Experiments with a New Kind of Megalopolis
Speaking of surveillance cities (Shenzhen ranks #2 in the world for CCTV cameras per capita, Guangzhou is #8)
From Der Spiegel, September 6: 
Beijing is building a megacity in the Pearl River Delta that it hopes will one day rival New York and Tokyo. This colossal urbanization project is a bold attempt at metropolitan integration -- and perhaps also a plan by the Chinese leadership to keep Hong Kong under its thumb.....
**"China’s most popular app is a propaganda tool teaching Xi Jinping Thought"
...And not being a cruel sort I didn't mention my hope that Hainan Air would start a direct flight from San Jose to Haikou International on Hainan so folks wouldn't have to change planes in Beijing when traveling Silicon Valley to Sino-Silicon Valley.
See China Speakers Bureau, Jan. 14 "Can Hainan become China’s Silicon Valley? – Jim Rogers".