Things will work out fine for Hong Kong, retiring Legco chief Jasper Tsang says

Legislative president also believes his successor will be able to take advantage of his experience and do a better job

TONY.CHEUNG@SCMP.COM

UPDATED : Tuesday, 05 July, 2016, 7:52pm

Legco president Jasper Tsang says just being in the job for eight years is an achievement in itself. Photo: Sam Tsang

Legislative Council president Jasper Tsang Yok-sing predicts that “things will work out fine” for Hong Kong and the legislature after his retirement and that his successor “will do a better job”.

The Beijing-loyalist was speaking two months before the Legco polls, which mark a major shift for both the pan-democratic and pro-establishment camps, with Tsang and at least eight other veteran lawmakers voluntarily making way for younger politicians. It is also the last showdown between the blocs before the poll for chief executive in March.

Earlier this year, Feng Wei, deputy director of Beijing’s Hong Kong and Macau Affairs Office, said he was prepared for several young radicals winning Legco seats in September.

Legco’s House Committee chairman, Andrew Leung Kwan-yuen, has been tipped to succeed Tsang in October, leading commentators to question if the industrial representative is capable of taking the helm.

Without naming Leung, Tsang said: “The next president would always do a better job than I because he or she has my experience ... It would be very unwise of me to say that Legco will be worse without me. No, I think things will work out fine for Legco and for Hong Kong as well.”

Tsang started his Legco career when he was elected by a 400-strong committee to the provisional legislature that operated for a year after the 1997 handover. Since 1998 he has been a directly elected lawmaker and he became Legco president in 2008.

Over the last four years Tsang was involved in several controversial decisions as he handled radical lawmakers’ filibustering attempts to derail government bills or proposals deemed unpopular.

Asked to comment on how Legco had changed since 2008, Tsang said being able to preside over Legco for eight years was in itself an achievement.

“Many people seem to think that Legco has sort of degraded in the last eight years into a farcical organisation,” Tsang said. “[But] many colleagues in Legco understand that the president ... does not dictate how the whole council behaves.”

The election of Wong Yuk-man led to a new culture in Legco, according to Jasper Tsang. Photo: Sam TsangHe noted that the start of his tenure as president came a month after the radical Wong Yuk-man was elected lawmaker, and “a new kind of culture developed” in Legco.

“He is very clever [and came up with] lots of ingenious ways to challenge the rules ... and many people believed that I simply did not have the ability to deal with this kind of situation. Now, eight years have passed, I am still here, I think that is some achievement.”

http://m.scmp.com/news/hong-kong/politics/article/1985665/things-will-work-out-fine-hong-kong-retiring-legco-chief

Break vicious circle of assertiveness from Beijing and backlash from Hongkongers, Legco president urges

Jasper Tsang says biggest regret in eight-year tenure is failure to bring pan-democrats and central government together

GARY.CHEUNG@SCMP.COM

UPDATED : Tuesday, 05 July, 2016, 5:25pm

Interview with Legco president Jasper Tsang Yok-sing in Tamar. 04JUL16 SCMP/ Sam Tsang

Outgoing Legislative Council president Jasper Tsang Yok-sing has urged the central government and political forces in Hong Kong to break the vicious circle of Beijing’s growing assertiveness towards the city’s affairs and the resultant backlash from Hongkongers.

Tsang, who is well versed in late Communist Party leader Mao Zedong’s thoughts, said conflicts within Hong Kong society as well as those between Hongkongers and Beijing were attributable to internal factors.

“Putting the blame on external factors doesn’t help,” he said in an exclusive interview with the South China Morning Post on Monday.

The veteran Beijing loyalist said that during the first few years of the handover, state leaders repeatedly expressed confidence in Hongkongers being capable of running the city effectively.

“But they gradually realised things did not turn out as they previously wished. They may have underestimated the difficulties, perhaps being too simple and sometimes naive,” Tsang said, noting that as the Hong Kong government was unable to govern effectively, Beijing officials had been commenting on the city’s internal affairs more frequently.

“It has unavoidably sparked a backlash among some people in Hong Kong,” he said.

Tsang, who will retire after the Legco term ends in September, called on Beijing and political forces in the city to break the vicious circle.

He said building mutual trust between the central government and the pan-democrats was vital for breaking the deadlock.

“It will be the most important task of the next chief executive, who will lead Hong Kong into a very critical stage in the development of ‘one country, two systems’,” Tsang said.

He said next year would witness the 20th anniversary of the handover, which meant 40 per cent of the 50-year lifespan of “one country, two systems” would have elapsed.

“I may say it is make or break,” he said. “If we fail to convince the central government and most Hong Kong people that ‘one country, two systems’ can really work, then I don’t know what’s going to happen.

“If the central government sees Hong Kong to be more of a burden or liability than an asset to the country, then I don’t see any reason why the central government would still want to keep ‘two systems’ at all.”

Tsang said the biggest regret in his eight-year tenure as Legco president was his failure to bring together the pan-democrats, who enjoy the support of more than half the voters in Hong Kong, and the central government.

“For ‘one country, two systems’ to work, we need dialogue between pan-democrats and the central [government] in order to build up mutual trust,” he said.

“I thought I could do it. After two terms, I must say very little progress towards that direction [has been made], and that’s something I find rather regrettable,” he said.

But Tsang said it was a good sign that Hong Kong and Macau Affairs Office director Wang Guangya called pan-democratic lawmakers “part of the establishment from the Basic Law perspective” in a recent interview with pro-Beijing magazine Bauhinia.

Citing Mao’s famous essay On Contradiction, Tsang said: “External causes are the condition of change, and internal causes are the basis of change. In a suitable temperature an egg changes into a chicken, but no temperature can change a stone into a chicken.”

“Looking at problems we face in Hong Kong now and conflicts between Hong Kong people, we should first try to find out the internal factors giving rise to these conflicts,” Tsang said.

“Putting the blame on external factors doesn’t help. External forces always exist and want to influence Hong Kong’s development. But if you put your own house in order, external forces can’t really upset you,” he said.

“People calling for separatism and Hong Kong independence won’t be convinced if you say they are instigated by external forces.”

http://m.scmp.com/news/hong-kong/politics/article/1985699/break-vicious-circle-assertiveness-beijing-and-backlash

Is Ricky Wong a secret supporter of Carrie Lam for CE? -SC Yeung

Ricky Wong's website says it all. The HKTV founder and chairman is going after Leung Chun-ying in his bid for a Hong Kong Island seat. Photo: https://www.rickyelection.hk

Ricky Wong is not holding back. He wants to let it be known that he is running for the Legislative Council with a single-minded purpose — topple CY Leung.

Wong launched his election campaign on Monday with an “Oust CY” theme, quickly contrasting himself with Leung Chun-ying’s allies.

But it appears the founder and chairman of Hong Kong Television Network (HKTV) is not interested in unifying anti-establishment forces, raising concern among pan-democrats and young voters about his commitment to democratic reform.

Wong published a 100-page election platformon his website on Monday, formally launching his bid for a seat in Hong Kong Island.

As many as 10 candidates are expected to contest six seats in September in the second biggest geographical constituency.

Wong has an axe to grind against Leung, whom he blames for HKTV’s failure to win a free-to-air license in 2012.

He is aiming for no less than his ouster if enough anti-CY candidates win to force a no-confidence motion.

Wong puts the magic number at 35.

That’s the closest he has come to answering critics who question his anti-establishment credentials, albeit indirectly.

Wong is trying to present himself as a fresh wind in traditional Legco politics, not merely a businessman with vested interests.   

On the other hand, Leung is staking his political career on the election results, with a potential second five-year term on the line.

The lines are clearly drawn. Wong should appeal to independent voters or those that have no firm political stance.  

But it’s worth noting that he comes from a business background.

His early views on everything from the cross-border high-speed rail, the airport runway and the copyright amendment bill to internet censorship and country park development reflect that mindset.

These also make him no different fromtraditional pro-Beijing loyalists.

Wong backs the high-speed rail and a third airport runway, saying these will benefit the Hong Kong economy.

These views put him at odds with many Hong Kong people who see these projects as white elephants.

The most controversial in Wong’s election platform is his support for a “take it first” approach to universal suffrage.

Clearly, Wong is pushing a moderate agenda, hoping to win votes from the so-called “silent majority”.

If it looks like a leaf out of the playbook of Chief Secretary Carrie Lam, it might well be.

On Saturday, Lam told a forum that the next government should restart political reform toward true democracy after last year’s embarassing defeat of the Beijing-backed election bill.

Lam famously headed the “pocket it first” campaign to get Hongkongers behind the proposal.

There is no sign Lam is making these political statements with the 2017 chief executive election in mind but no one is ruling out a contest with her boss. 

On that note, Wong may be more help to her than to himself.

– Contact us at english@hkej.com

SC/AC/RA

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The question for remaining EU members: to stay or not to stay -Joseph Lian Yizheng

Britain still has a lot of bargaining power in the post-Brexit negotiations with the EU. Photo: Bloomberg

Global markets have largely absorbed the Brexit shocks over the past week, led by the London benchmark FTSE 100, which bounced 10 percent to a fresh year-to-date high last Friday. Eurex Exchange’s EURO STOXX 50 has also recovered half of its lost ground after bearing the brunt of the vote result.

But the sterling’s exchange rate is nowhere near an inflection point, especially against the greenback. Still, this can spur Britain’s exports and domestic consumption, buffering the impact in the post-Brexit era.

All these are the typical, spontaneous self-adjustments of a free economy, which, when the shock waves strike, can be hit head-on initially yet it can heal itself quicker than you think.

Those who are still bearish about the British economy may have unconsciously succumbed to the mob mentality.

UK has real bargaining power in post-Brexit talks

Many say Britain may no longer be great again and the sun is setting for “the empire on which the sun never sets”. I can only say these views are of the predisposed type.

One fact to note is that Brexiters are not necessarily against globalization; those proud Brits wanted to leave the European Union because the latter is becoming a “superstate” that is undermining their own nation’s independence.

The EU’s social and financial policy integration has gained pace following the global financial tsunami in 2008, putting not a few Brits on tenterhooks.

Even David Cameron reached consensuses with EU leaders that “the UK, in the light of the specific situation, is not committed to further political integration into the EU” and “the references to ever closer union do not apply to the UK”, as specified in the conclusions of the European Council meeting on UK and EU relations this February.

But that failed to soothe leavers’ nerves since these consensuses, as seen in many EU documents like that about debt-to-GDP ratio, may not be worth the paper they are printed on.

And believe it or not, London may soon ink a free trade pact with Washington as the outgoing administration of US President Barack Obama is anxious to push its tardy Transatlantic Trade and Investment Partnership initiative, which has been hitting roadblocks on continental Europe.

Surely the UK and the US have similar economic philosophies.

London will also have to negotiate with the EU once it loses access to the single market, and to fend off additional barriers on trade, especially the retaliatory ones, it has some useful bargain chips.

One of those is the UK’s steadily rising trade deficit with the EU, which hit 24 billion pounds (US$31.8 billion) in the first quarter and is tipped to reach 100 billion pounds for the full year.

The remaining 27 EU members hence have a lot of incentives to maintain strong trade ties with the UK.

The EU is also receiving annually some 13 billion pounds in net subsidy from the UK, enough to fund Her Majesty’s Government’s Home Office for an entire year, and, if the money is diverted into the nation’s hospitals and clinics, then the total annual expenditure for medical and public healthcare sectors can increase by 10 percent.

The UK is also home to 6.6 million foreign workers, 16.7 percent of the nation’s entire labor force, thanks to its migrant workers policy, the most liberal in the EU.

The most likely outcome of the negotiations can be that London is allowed room for maneuver in exchange for its border and immigration controls, the crux of the Brexit vote, but both sides are likely to maintain the status quo in trade as no one wants any paradigm shift.

‘Ever closer union’ or a parting of ways

The domino effect of Brexit may rattle the “ever closer union” as a Pew Research Centersurvey this spring found that among the 10 largest EU member nations, resentment against the EU’s overreach, or “Euroskepticism”, is also on the rise in the Netherlands, Germany, Spain, France and Greece.

A median of just 51 percent across 10 major EU countries surveyed have a favorable view of the union. A median of 42 percent want more power returned to their national capitals.

The likelihood cannot be ruled out that these nations will follow Britain’s path to a parting of ways with the Brussels-based institution.

The single-currency and single-market economy has been thriving, and yet the EU represents a fundamentally flawed path to globalization, when a single currency has disabled member nations to adopt pertinent monetary policies to tackle their own, respective problems.

When Iceland, not an EU member, resolutely depreciated its króna by 35 percent against the euro from January to September 2008, amid a financial crisis triggered by the default of its three major private lenders, the Spanish government found it could do little when a similar crash hit the nation in the same year, since its monetary policy is determined by the European Central Bank in Frankfurt.

Subsequent inflows of foreign capital, and the success of the International Monetary Fund’s Stand-By Arrangement in Iceland, helped the nation weather the storm, but Spain, the worst hit in the European sovereign debt crisis, relied on the 100 billion euro (US$111.3 billion) bailout package of the European Stability Mechanism from other EU members and the turmoil didn’t end until last year.

The EU may collapse should there be one more crisis of the same magnitude as the Spanish one, particularly after Brexit, when no member country is prepared to foot the bill again for other’s woes.

In economics, the two pillars of an optimum currency area are the free movement of workers and the central bank’s role as the lender of last resort.

And the prerequisite for both is the integration of sovereignty, which is, nonetheless, almost like a mission impossible to EU members.

This article appeared in the Hong Kong Economic Journal on July 4.

Translation by Frank Chen

[Chinese version 中文版]

– Contact us at english@hkej.com

CG

British Prime Minister David Cameron speaks to journalists as he arrives for a meeting with EU leaders in Brussels on June 28. Photo: Bloomberg

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Missing movie

Posted on July 5, 2016 by biglychee

Just when you thought the Hong Kong government couldn’t get any more dismal, it issues a press release saying Rah! Rah! Go Hong Kong Movies at Obscure Cinema Event in the US! It lists (or attempts to bask in the reflected glory of) local productions that will be featured at the New York Asian Film Festival – but one is missing. The festival’sschedule includes the omission: 10 Years.

Rather than ignore the low-budget dystopian anthology, Chinese official propaganda organs had a foot-stomping, mouth-frothing hissy fit about the portrayal of Hong Kong being crushed by Mainland/Communist despotism. Pro-Beijing shoe-shiners in Hong Kong’s entertainment industry followed suit when the movie won the Hong Kong Film Awards, whining bitterly that the top prize should go only to big-budget productions with special effects, gorgeous pouting starlets and no message.

The public and media (let alone taxpayers) can only conclude that Hong Kong government press releases cannot be treated as accurate and authoritative. So when an official notice reports that the water quality at Turtle Cove Beach is ‘fair’ today, we must assume that the bay may in fact be strewn with piles of E.coli, dead rats and used syringes. When it says the Museum of Coastal Defence Fun Day will include a‘Fun and Joy Balloon Twisting activity’, parents must consider the very real possibility that the civil servants have knowingly organized an event that will be miserable and abounding in choking hazards. When the bureaucrats advise that the stool of a kid at a Shatin kindergartentested positive for Coxsackievirus A6, we owe it to ourselves to wonder whether – or why – they are not telling us about 50 others fading fast as a result of bubonic plague, zika virus and necrotizing fasciitis.

The air-brushing of a movie title out of existence undermines whatever remains of the government’s credibility three-fold. First, of course, it is pathetic, ridiculous and laughably infantile. Second, it draws yet more attention to the offending work (no-one would have noticed if they had just listed it). But third – it makes it seem as if the film is coming true.

And what do the other 10 percent sell?

http://biglychee.com/?p=16208

Mao Zedong legacy: No rhyme, no reason -Ding Wang

A woman admires a photo of Mao Zedong. Mao once boasted that Qinshihuang, who burried 460 intellectuals alive, was nothing compared to him. Photo: Reuters

This year marks not only the 50th anniversary of the Cultural Revolution but also the 35th anniversary of a Communist Party resolution which settles several historical issues.

Widely regarded as the party’s ultimate verdict on the 10-year Cultural Revolution and its key players, the resolution was passed unanimously on June 27, 1981 by the sixth plenary session of the 11th Central Committee of the Chinese Communist Party  

The document denounces the Cultural Revolution as “a political disaster of biblical proportions that threw the country into disarray and destroyed the lives of tens of millions of people”.

It also concludes that such a disaster could have been avoided if not for a series of fatal mistakes by the party leadership.

However, it avoids mentioning the role of Mao Zedong and blames the disaster on the Gang of Four.

The backers of the resolution feared that holding Mao accountable could undermine the party’s credibility and weaken its legitimacy.

The resolution flies in the face of several recently declassified party documents and newly published memoirs.

They reveal for the first time that between October and November 1980, seven months before the sixth plenary session, the central committee had called a secret meeting to decide the wording of the final draft of the document.

Most off the 5,000 party delegates from across the country who attended the meeting denounced Mao in no uncertain terms.

This suggests that although Deng Xiaoping had pulled his punches on Mao in the 1981 party resolution out of political concerns, most senior Communist Party members had reached consensus behind closed doors that Mao was to blame for the Cultural Revolution and that the Gang of Four were merely his proxies.

Records of that meeting were kept secret until recently when some details emerged.

These records show that Mao was criticized by party delegates for “extreme leftist hysteria” and for his obsession with class struggle and personality cult.

He was denounced for his reckless Great Leap Forward economic policy that led to famine across the country.

Li Wei-han, a party elder who were among those who attended the meeting, described Mao as a “rural redneck” who didn’t know a thing about scientific socialism, industry and economics.

Rather than spending time learning the essential theories of Karl Marx and Friedrich Engels, Mao spent his life studying how ancient Chinese rulers consolidated absolute power and manipulated their generals and ministers, Li said.

Former defense chief Zhang Aiping said Mao saw himself as a modern-day Qinshihuang, the emperor who unified China in 220 B.C.

Another delegate, Fang Yi, a seasoned party stalwart and former personal secretary of the late premier Zhou Enlai, referred to Mao as the “biggest tyrant in the history of China”.

And Deng Xiaoping once described the Cultural Revolution and the Great Leap Forward as a “dark age” for China.

These criticisms are largely well founded and accurate.

Mao was indeed a hybrid of Stalin and Qinshihuang, the personification of tyranny and terror.

In fact, Mao publicly compared himself to Qinshihuang and often bragged about having outdone him in killing people.

For example, at a central committee meeting in May 1958, Mao boasted that “Qinshihuang is nothing compared to me. He only buried 460 intellectuals alive. I buried 46,000 of them. I outdid him 100 times.”

Has China learned from the mistakes of Mao or Qinshihuang, or is there a resurgence of extreme leftist elements and personality cult that is pushing the country further and further away from reason and rationality?

This article appeared in the Hong Kong Economic Journal on June 30

Translation by Alan Lee

[Chinese version 中文版]

– Contact us at english@hkej.com

RA

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After Brexit, Beijing mouthpieces are at it again on Li Ka-shing -Joseph Lian Yizheng

Li Ka-shing has prepared huge buffer for Brexit and the immediate losses are just trivial. He has put most of his investment in UK's transport and public utilities sectors, which are relatively more immune to upheavals. Photos: Reuters, CNS

Brexit has battered stock markets as well as the pound exchange rates, lending Communist Party mouthpieces fresh ammunition to renew their sneer campaign against Hong Kong billionaire Li Ka-shing, who earlier irked some people in Beijing with his move to marshal capital to Europe, particularly Britain.

Mainland newspapers say Li has paid HK$12-30 billion this time for his “silly, unpatriotic decision” to pull money out of China to fund his investment spree in the United Kingdom, as calculated by the stock market shocks following the Britain’s decision to leave the European Union. 

But I did a little back-of-the-envelope calculation myself.

Counting the losses

The Financial Times reported in early 2015 that Li had splurged 50 billion pounds, mainly through Hutchison Whampoa, for UK assets since 1995 until the European Commission’s recent snub of his 10.25 billion pound takeover of O2, Britain’s second-largest telecom carrier.

Before the 2015 overhaul and re-domiciliation of his business empire, Li owned 21 percent of Hutchison Whampoa shares through another flagship of his, Cheung Kong Holdings.

Thus, Li himself has splashed out roughly 8 billion pounds on Europe over the years.

As of the end of June, FTSE 100 has slid around 4 percent from its year-to-date high on April 20, and factoring in the pound’s 12 percent plunge following Brexit, some US$550 million have evaporated as Li’s personal loss so far.

But don’t forget that Li has prepared a huge buffer for Brexit and the substantial increment in market capitalization of his two new flagships, CK Hutchison and Cheung Kong Properties, after the restructuring.

The losses incurred are paltry, as far as Li is concerned.

Then how big is the impact of Brexit on China?

The size of Chinese capital in Britain may be smaller than Li’s exposure, yet while Li snapped up assets in telecom, railway, water supplies, electricity, gas, ports and other sectors that are relatively more immune to upheavals, Chinese investors bet on realty, energy and financial sectors that are far more susceptible to the current headwinds.

Onshore and offshore renminbi booked 0.5 to 1.5 percent dips in the forex market, after People’s Bank of China’s continued effort to sell its reserves to shore up its currency, and this time Beijing may have used between US$10-20 billion of its ammunition of foreign currency reserve assets.

Another emerging hit can be the waning demand for Chinese exports.

Europe is the western end of the Silk Road Economic Belt and Beijing sees Britain as its bridgehead to further its economic clout on the continent, as evident in Xi Jinping’s (習近平) visit to the country last year.

Now that Britain and the European Union have come to a parting of the ways, Beijing’s grand strategy may fall through.

To Beijing, it appears the implications of Brexit will trickle in over some time and may be graver than thought, but Li has emerged largely unscathed.

As they say, people who live in glass houses shouldn’t throw stones.

A union of predicaments

The EU, with its 28 member states, is just like a unique Rubik’s Cube – a sum of all the kinks among nations, big and small, over political influence, voting rights and even financial aid to debt-laden members like Greece, Spain and Italy, which like to threaten to leave the union as a tried-and-tested bargaining chip to make others foot the bill.

It’s a perfect example of moral hazard in which one person takes more risks while someone else bears the cost of those risks.

Problems have being stacking up for decades yet how come the EU still managed to develop and expand?

The answer may be Europe’s common fear of losing peace as historically two world wars all first erupted on this continent.

The EU has seven governing bodies and one proof of the complexity is that it runs one of the world’s largest teams of language professionals – almost 5,600 full-time and part-time translators and interpreters with annual expenses of 500-600 million euros (US$557-668 million) – who deal with up to 24 official languages.

But the biggest predicament of such a super-state apparatus may not be red tape but overregulation.

When multinationals benefit greatly from a single market and integrated regulation, small businesses focusing primarily on their home country or seeking expansion outside the EU may face more hurdles.

Open Europe, a British think tank that was neutral about Brexit, said the 100 most burdensome EU-derived regulations to the UK economy stands at 33.3 billion pounds a year in 2014 prices.

Pulling down market and trade barriers for economic integration should be realized by the market itself, not a superstate that lay down the rules from the top.

This article appeared in the Hong Kong Economic Journal on June 30.

Translation by Frank Chen

[Chinese version 中文版]

– Contact us at english@hkej.com

CG

Li Ka-shing is received by Queen Elizabeth II. The UK remains a favorite investment choice for the Hong Kong tycoon. Photo: AFP/VCG

Li unequivocally said he hoped Britain would not leave the European Union during an interview prior to the vote. Photo: Bloomberg

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Women leaders: The turning tide -Ben Kwok

Carrie Lam (R) has been giving mixed signals regarding a potential run for the top job in Hong Kong while her boss and incumbent leader, CY Leung (L), is keeping his cards close to his chest. Photos: HKEJ

Let’s accept this fact: the world will be ruled by women.

In the next 12 months, the United States and the United Kingdom are both likely to end up with women leaders, who will make a difference in the world order.

Home Secretary Theresa May has emerged as the hot favorite to take over the reins of Britain by October following David Cameron’s decision to step down in the wake of the Brexit vote.

Outlining the need for “strong, proven leadership to steer us through this period of economic and political uncertainty”, May hopes to capitalize on Britons’ desire for a Margaret Thatcher-like Iron lady at the top.

A strong-willed person is necessary as the post-Brexit era is likely to see some intense negotiations with the European Union.

Meanwhile, across the pond, Hillary Clinton is closing in to take over from her former boss Barack Obama after the November election.

Putting the email-gate controversy behind her, Clinton appears determined to become the first female president in the US.

If there is a common point between Clinton and May, both ladies have waited patiently for the best opportunity to rise to the occasion after earning their political spurs over the years.

We can only imagine what will happen when the tough ladies come head-to-head with German Chancellor Angela Merkel, who was named Time’s Person of Year in 2015 for her grip over Europe.

So, what explains the rise of women power and the public’s choice of leaders now?

Well, no one would deny their exceptional emotional quotient and determination for success. They are also a no-brainer given rivals such as former London mayor Boris Johnson or realty tycoon and reality show host Donald Trump.

Looking at the world stage, one must however point out the fact that not all female leaders have been successful.

Dilma Rousseff, first woman president of Brazil, which is preparing to host the Summer Olympics, is currently under impeachment for manipulating government accounts.

The rise of women power has also spread to the East.

After the iconic Aung San Suu Kyi gained control of Myanmar government, we have seen Tsai Ing-wen become the first female president in Taiwan.

However, looking at China, there is only one female — Vice Premier Liu Yandong — inside the powerful Politburo.

As for Hong Kong, we have seen a surge of “soft power”, ranging from Chief Secretary Carrie Lam, the always-ambitious legislator and Exco member Regina Ip and rising political star Starry Lee, chairwoman of the Democratic Alliance for the Betterment and Progress of Hong Kong.

Young women are increasingly opting for political careers, a fact that will be borne out by the candidates in the Legco election in September.

Of the city’s current 70 legislators, only 11 are female. The youngest is Starry Lee, who is aged 42, while the oldest is Chan Yuen-han, who will turn 70 in November.

In future, we can expect the ratio to improve. 

Now, with regard to the prospect of Hong Kong getting a female chief executive next year, Carrie Lam, who had been seen as a potential contender, appears to be keen to turn back the speculation.

At a forum over the weekend, Lam refused to declare if she is interested in running for the top job.

Only time will tell whether Lam will join the CE race or stay away.

But don’t count her out yet amid the global tide of rising woman power.

– Contact us at english@hkej.com

BK/AC/RC

Theresa May has emerged as a favorite to take over the reins of Britain after David Cameron steps down following the Brexit vote. Photo: Reuters

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Booksellers’ case is China’s Watergate -Frank Ching

China has been badly burned by the case of bookseller Lam Wing-kee and his four associates. Photo: Reuters

Disclosures by released bookseller Lam Wing-kee of his treatment in mainland China and the resultant outcry have spurred Chief Executive Leung Chun-ying to ask for a review of the notification mechanism between police forces of Hong Kong and the mainland.

But the most serious allegation of Chinese misconduct isn’t even on the agenda: The illegal abduction of Hong Kong residents by mainland agents, both in Hong Kong and in Thailand.

In large part because of Lam’s revelations, Leung wrote to inform the central government of deep-seated concerns in Hong Kong over the case of the five booksellers – Lam and four associates – and to ask for a review.

Currently, the agreement covers only Guangdong province, adjoining Hong Kong, and Leung is asking for it to include all Chinese provinces.

He wants Hong Kong to be informed if any of its residents are arrested, just as in the case of foreign governments.

While this is certainly a step in the right direction, it steers clear of the sensitive issue of extralegal activities by the mainland.

Leung was appointed by Beijing so it isn’t surprising that he treads gingerly in sensitive areas.

But he is doing Beijing no favors by not openly addressing the issue of its interference in Hong Kong’s internal affairs.

China has already been badly burned by the booksellers’ saga. It has been excoriated by governments around the world.

If Beijing wants to salvage a tiny bit of international credibility, it needs to make it crystal clear that it respects the law – Hong Kong’s Basic Law, enacted by China’s National People’s Congress, and international law – and explain how its agents went so far as to exercise law enforcement functions in Hong Kong and foreign countries.

The disappearance of bookseller Lee Bo from Hong Kong in December was almost certainly the result of abduction by mainland agents.

“Mr. Lee was involuntarily removed to the mainland without any due process,” the British Government concluded in February in a report on Hong Kong.

Another bookseller, Gui Minhai, a Swedish national, disappeared last October while in Thailand and showed up in China without having gone through Thai immigration formalities. He is still incarcerated on the mainland.

Even if these actions were not planned at the highest levels in China but was the work of rogue officials, by this time, the central government is certainly well aware of it.

Interval investigations must have been carried out and whoever was responsible must have been identified.

Initially, there were people who thought these illegal actions were the work of local officials in Guangdong.

But the mere fact that Lam was taken by train to Ningbo, in Zhejiang province, and held there makes it clear that it was not the work of officials in one province and that whoever planned it was at a senior level.

Friends of the Communist Party have soothingly said that this was but an isolated incident and that it did not bespeak a change in policy.

However, this so-called “incident” is reminiscent of the Watergate scandal of 1972, in which burglars broke into the office of the Democratic National Committee in Washington, D.C.

While then President Richard Nixon may not have authorized the operation or even known about it in advance, he took part in the subsequent cover-up.

For this, he was faced with impeachment and became the first president in American history to resign.

Similarly, the top Chinese leadership may not have planned or authorized the Lee Bo or Gui Minhai kidnappings, but certainly by now the entire Politburo should have been briefed and know the details inside out.

By not taking action, they are in effect taking part in a cover-up, which means that the Chinese government at the highest levels condones such illegal activities.

The only way to salvage China’s reputation, albeit belatedly, is to show that it does not condone such activities.

Those responsible must be exposed, arrested, charged and tried in open court, in the presence of the Hong Kong and foreign press.

Unless guilty heads roll, China will become a laughing stock as it is seen as a country that violates international law, that kidnaps people in other jurisdictions and that operates according to the law of the jungle, despite all its propaganda about upholding the rule of law.

Where Hong Kong is concerned, confidence in “one country, two systems” will continue to plummet and those able to do so will emigrate, leaving the territory to bleed slowly to death.

“One country, two systems” will be seen as nothing but a cruel joke.

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Why Hong Kong housing prices are holding firm -Ko Tin-yau

If the housing market follows an L-shaped trajectory in the short and medium term, it would benefit all stakeholders. Such a trend would avoid the negative wealth effect of plunging home prices. Photo: HKEJ

Financial markets have been battered by Brexit but Hong Kong’s housing market appears fairly resilient.

The Centa-City Leading Index (CCL) has been rising in the past five weeks and is only 12 percent off last year’s peak.

We saw some big transactions last week.

Homebuyers are disappointed while property owners are scratching their heads trying to get a clear picture of the housing market.

Hong Kong’s housing market is in the middle of an L-shaped consolidation which benefits all.

It’s a surprising development given that developers, investors and analysts were all bearish on the housing market at the start of the year.

They forecast a drop of up to 30 percent in home prices for the year — or at least a 10 percent fall.

CCL, a weekly index based on current contract prices in Centaline Property Agency Ltd., has fallen just 3.7 percent this year.

Private home prices edged up in April and May, about 1.25 percent lower than at the start of the year, Rating and Valuation Department data shows.

The private rent index, a leading indicator, also shot up in May, leaving it just 2.8 percent off the pace this year.

Undoubtedly, housing prices in Hong Kong are exorbitantly high.

The median price of a flat is HK$5.56 million (US$716,661), equivalent to 19 times the average annual household income of HK$293,000.

But market fundamentals support these hefty prices.

The ratio of idle housing has been falling for five straight years to a 25-year low of 3.7 percent in the first quarter.

That shows the housing market continues to benefit from years of land supply shortage.

The government has been tightening its safeguards against property speculation since 2010.

The Hong Kong Monetary Authority has had seven rounds of mortgage tightening.

As a result, the housing market has seen an increase in end-users and long-term investors and there is yet no sign of a bubble.

Hong Kong’s 1.88 million private homeowners are in no hurry to sell. Most of them had bought their flat before the market took off.

Those who bought recently have passed a stringent stress test which means they don’t have any problem paying mortgage.

Mortgage rates have been unchanged in recent years and are widely expected to hold steady in the next two to three years.

Up to 60 percent of 1.23 million end-users have already paid off their mortgage and are in no hurry to sell.

Property investors might have few choices where to park their money amid market volatility.

That said, housing prices are unlikely to crash unless there is substantial new supply or a significant rate hike in the US or the economy deteriorates considerably.

A large number of new home supply is expected to come on stream in 2017 and 2018.

Meanwhile, there is limited scope for an aggressive US rate hike the Brexit vote. That leaves a worsening economy as the biggest risk.

If the housing market follows an L-shaped trajectory in the short and medium term, it would benefit all stakeholders.

Such a trend would avoid the negative wealth effect of plunging home prices, which would in turn drag economic growth.

That gives the government enough time to steadily increase supply.

This article appeared in the Hong Kong Economic Journal on July 4.

Translation by Julie Zhu

[Chinese version 中文版]

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As disunity besets democrats, pro-establishment camp regroups -Aih Ching-tin

Lawmaker Leung Ka-lau (right) joins the July 1 demonstration to voice out the medical sector’s concerns over the Medical Registration (Amendment) Bill. Photo: HKEJ

The main theme of this year’s July 1 demonstration was “squaring off against 689” (a disdainful moniker given to Chief Executive Leung Chun-ying), with the aim of preventing him from seeking re-election.

Although the Civil Human Rights Front, the event’s organizer, said 110,000 people had taken part in the demonstration, figures provided by the police and several independent academics suggested that the turnout was far lower than that.

In fact, I am not surprised by the continued decline in the number of people participating in the July 1 march. 

In the wake of the Occupy Movement, the appeal of the old-school pan-democrats to the public, particularly among young people, has been quickly eroded.

Their power to mobilize the public just keeps deteriorating, hence the continued decline in the number of people joining the June 4 candlelit vigil and the July 1 demonstration.

However, even though the turnout for the July 1 event was below satisfactory, many fledgling political organizations spearheaded by the so-called “paratroopers”, or young social activists arising from the Occupy Movement, did make their debut and raise funds during the event.

Among them were Demosistō, formerly known as Scholarism, Hong Kong National Party, Hong Kong Indigenous and Youngspiration.

As I have mentioned previously, the entire pro-democracy camp has undergone fragmentation from within after the Occupy Movement, and the differences between the traditional pan-democrats and newly arising young activists over ideologies and “approaches to revolution” have continued to deepen over the past two years, resulting in a period of chaos, disunity and lack of leadership among them.

The futile attempt by People Power, the Social Democrats and Demosistō to storm the Government House after the demonstration last Friday night in the face of police reinforcement and heated arguments in front of media between the Social Democrats and members of the student union of the Chinese University over what to do next spoke volumes about how disunited and disoriented the pro-democracy camp has become.

On the other hand, the pro-establishment camp seems to be much more organized and united compared with their pan-democratic opponents who are split seriously over basically everything.

After having suffered from a series of scandals, members of the pro-establishment camp have been keeping a relatively low profile recently.

It appears to me that they might be regrouping and recharging their batteries in preparation for the upcoming election campaign for the Legislative Council, where the real battle begins.

In the meantime, another battle is in full swing at Legco. On Wednesday last week, a Legco meeting was adjourned for lack of quorum, and as a result, the resumption of the debate on the controversial Medical Registration (Amendment) Bill 2016 had to be postponed until this Wednesday.

The administration was caught completely off guard by the dogged perseverance of lawmaker Leung Ka-lau, who represents the medical sector, in trying to stall this bill, which he did brilliantly entirely on his own.

The bill is generating such a controversy because the government, through this proposed amendment, is seeking to appoint more lay members to the Medical Council.

It has argued that the involvement of more lay people is essential to the integrity of any process of ethical review in medicine, and can enhance the representativeness of the Medical Council.

However, many doctors and members of the public suspect that it could just be another attempt by CY Leung to extend his political influence into another professional body, just like what he did to the Hong Kong University Council.

Besides, there is growing concern among the public that the bill could be part of the chief executive’s plot to allow unqualified mainland doctors to practice in Hong Kong.

Many believe that once the bill is passed, it is almost a foregone conclusion that Leung will appoint his proxies to the Medical Council, thereby giving him enough influence to lower the threshold for allowing overseas-trained doctors to practice in our city, including those trained in the mainland, eventually taking its toll on the quality of our public health service.

Given that Leung has been so eagerly giving priority to “One Country” over “Two Systems” to please Beijing, such fear is not totally unfounded.

Unless the government can convince the public that there is no secret agenda behind this bill, chances are this bill might not be able to pass Legco before the current term of our legislature ends on July 15.

This article appeared in the Hong Kong Economic Journal on Jul 4

Translation by Alan Lee

[Chinese version 中文版]

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Singapore leads Hong Kong in race to be Asia’s fintech hub

State funding and light-touch regulation have helped Singapore become Asia's fintech hotspot. Photo: Bloomberg

Today, 09:13

Singapore has pushed ahead of regional rival Hong Kong in the race to emerge as Asia’s financial technology (fintech) hotspot.

State funding, light-touch regulation and a recent move to allow start-ups to test financial products in a controlled environment have helped Singapore take a lead, Reuters reported.

Singapore’s fintech drive comes as its role as an offshore private banking center is under threat from a money laundering scandal in neighboring Malaysia, and as Indonesia chases undeclared money parked in the low-tax city state, the report noted.

Also, Singapore’s traditional shipping and manufacturing growth drivers are faltering amid a global economic slowdown, prompting the city-state to reinvent itself as Asia’s fintech hub.

The efforts are likely to gather pace as some fintech firms in London may seek alternative locations after Britain’s decision to leave the European Union.

“We already have registered interest from UK-based companies to move to Asia as it’s getting very crowded there,” Reuters quoted Markus Gnirck, partner and co-founder of fintech consultancy tryb, as saying.

“Brexit will probably accelerate a few of these conversations.”

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After Brexit, British scramble for foreign passports -Mark O'Neill

An estimated six million residents of the UK have an Irish grandfather or grandmother, which entitles them to apply for an Irish passport. Photo: The Standard

It is a story Hong Kong people know only too well — in the face of political and social danger, they move to acquire foreign passports to protect them in case everything goes under.

For the first time in history, many British are doing the same thing in the aftermath of the Brexit vote on June 23.

It is something that has never happened in one of the world’s most stable countries which has not suffered a foreign invasion since 1066.

Rare among European nations, it was not invaded in the two world wars, nor during the many wars with France in preceding centuries.

The global power and influence of the British state meant that its passport was one of the best to hold, bringing visa-free access to dozens of desired countries.

But not since June 23, when a majority of citizens voted to leave the European Union after 42 years.

This means that British people will no longer be able to live, work, settle and enjoy welfare benefits automatically in the 27 member countries of the union.

Those applying for a new passport are not the Brexit voters, who are very happy where they are.

They are from the Remain camp and they want for themselves and their children the choices they had before the vote.

According to the United Nations, 1.2 million Britons live in EU countries, of whom 400,000 are retirees and 800,000 are workers and their dependants.

The top three are Spain, 309,000; Ireland, 255,000; and France, 185,000.

For them, the easiest option is to apply for a passport of the country where they reside — provided they meet the legal requirements.

The number one choice is Ireland — an estimated six million residents of the UK have an Irish grandfather or grandmother, which entitles them to apply for an Irish passport.

In addition, anyone born on the island of Ireland, or whose parents were, is automatically an Irish citizen who qualifies for a passport.

On Monday, Ireland Foreign Minister Charlie Flanagan appealed to British people to stop rushing for passports because the rush of applications since Friday had stretched consular resources to the limit.

How Brexit has turned history on its head.

The population of Ireland peaked at eight million in 1840. Then the Great Famine — which many Irish historians consider a genocide by Britain — cut the figure through death and emigration to four million by 1871.

Now it stands at 6.4 million, of whom 4.6 live in the Irish Republic and 1.8 in Northern Ireland.

Ever since the famine, Britain has been among the first choices for the migrants. They faced discrimination, ridicule and laughter in their new country; many learned a British accent to hide their origins, some even changed their names.

The number of jokes against the Irish is without number. For example: what is the difference between a smart Irish man and a unicorn? “None, because they are both fictional.” Why did God invent whiskey? “So the Irish would never rule the world.”

Even Irish gunmen were mocked during the Troubles in Northern Ireland. A driver is forced to carry a masked gunman in his car. As he comes to a ramp in the road, he looks nervously at the bag the gunman is carrying and asks: is it safe? “No worries, I have another one in the boot.”

During football games between the two major Glasgow teams, one mainly supported by Protestants and the other by Catholics of Irish descent, the former sing, even to this day: “The Famine is over, it is time to go home.”

British civil servants trying to resolve the complexities of the conflict in Northern Ireland would say: “When we have solved the question, the Irish have changed the question.”

Now, for the first time in history, the boot is on the other foot.

Many British people who had no interest in Ireland and may not ever have been there will now queue quietly in front of its embassy and consulates, clutching their documents and hoping they are all in order.

Have they done their homework in case of questions from the consulate officer? Do they know the name of the Irish president and how he/she came to the office?

The answer is Michael D. Higgins who was elected by popular vote in November 2011; he is a poet, sociologist and author.

From which document do these words come?

“The Irish Republic is entitled to, and hereby claims, the allegiance of every Irishman and Irishwoman. The Republic guarantees religious and civil liberty, equal rights and equal opportunities to all its citizens, and declares its resolve to pursue the happiness and prosperity of the whole nation and of all its parts, cherishing all of the children of the nation equally, and oblivious of the differences carefully fostered by an alien Government, which have divided a minority from the majority in the past.”

This is the Proclamation of the Republic, posted on the day of the General Post Office in Dublin on Easter Monday 1916. Six years later, it became the first country in the British empire to win its independence.

Now the son, mocked and rebellious, has become the rich uncle!

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Free pre-school education to please parents only in short run

The already unacceptably high student-teacher ratio in kindergartens could get worse under the free pre-school education policy. Photo: Internet

by Ip Kin-yuen / Today, 10:35

The government will launch free pre-school education very soon, but many kindergartens are still at a loss about some of the fundamental details of the program.

I find several major drawbacks in the policy initiative itself which could have profound and negative implications for kindergarten operators, teachers and even the entire pre-school education sector.

First, the administration has vowed to spend HK$6.7 billion a year to fully implement free kindergarten education in the city.

This might sound a lot, but the amount is really far from enough to cover the extra costs in the long run.

As the government has yet to promise it would commit more money to the program, chances are most kindergartens will be left to their own devices to raise funds in the days ahead.

Under the government proposal, the maximum amount of subsidy for each student enrolled in half-day kindergartens is HK$32,900 per year, and HK$42,770 for those enrolled in whole-day kindergartens.

Given the current 4 percent inflation rate, it is estimated that the subsidies won’t be able to cover the basic operating costs of most kindergartens come 2017/18 school year at the earliest.

By that time kindergarten operators might need to cut costs to make ends meet, and that would take its toll on the quality of education they provide.

Second, the free pre-school education program hasn’t addressed the issue of unequal pay for kindergarten teachers.

For years there have been calls for establishing a master pay scale for kindergarten teachers so that they can get paid according to their qualifications and experience like their counterparts in primary and secondary schools.

However, these calls have continued to fall on deaf ears.

In face of insufficient funding, skyrocketing rent and soaring operating costs, kindergarten teachers are likely to be worse off under the new free pre-school education program.

Third, for years the kindergarten sector has been plagued by a serious shortage of support staff, mainly due to unattractive pay scales and unpromising career prospects.

As a result, kindergarten teachers often have to take care of the administrative work on top of their already crammed class schedules.

The new policy hasn’t addressed this issue at all, and it is likely that the already unacceptably high student-teacher ratio in kindergartens will only get worse.

Simply put, the free pre-school education policy is nothing more than a perfunctory measure to please parents in the short run.

It is a half-hearted policy initiative that fails to address many of the fundamental and pressing issues facing our kindergartens.

This article appeared in the Hong Kong Economic Journal on June 30.

Translation by Alan Lee

[Chinese version 中文版]

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Mainland China ideological crackdown hits Hong Kong, says Journalists Association

Union decries trend of local media outlets being “occupied” by people close to Beijing

KC.NG@SCMP.COM

UPDATED : Sunday, 03 July, 2016, 9:45pm

Journalists Association chairwoman Sham Yee-lan expresses concern over press freedom. Photo: Dickson Lee

Beijing’s tightening of ideological control has spilled across the border and threatens Hong Kong’s press freedom, according to an annual report citing the bookseller controversy as the “most blatant example” of this.

The Hong Kong Journalists Association (HKJA) also decried the trend of local media outlets being “occupied” by people close to Beijing.

The 32-page report, titled One Country, Two Nightmares, covered major incidents in local media over the past year, including the closure of Asia Television and the University of Hong Kong seeking an injunction to bar journalists from revealing details of its governing council meetings.

HKJA chairwoman Sham Yee-lan said her group saw the Causeway Bay Books case as the most blatant attack on speech and press freedoms in the city.

“The press will be frightened off from writing or publishing stuff that may be deemed as being unacceptable to China,” Sham said.

Five Hong Kong-based booksellers dealing in publications banned from the mainland went missing one after another from last October. They later re-appeared across the border, where they were detained and made televised confessions, while claiming to be co-operating with a mainland security investigation.

Four have since returned to Hong Kong. One of them, Lam Wing-kee, went public last month to decry threats to the “one country, two systems” principle.

“This has had an undoubted adverse impact on freedom of expression and press freedom in Hong Kong,” the report said.

The report also touched on the acquisition of local media outlets by mainland businesses, citing the purchase of the South China Morning Post by mainland internet conglomerate Alibaba Group as an example.

In a letter to readers last December, Alibaba Group executive vice-chairman Joseph Tsai rejected such criticism, saying it “reflects a bias of its own, as if to say newspaper owners must espouse certain views, while those that hold opposing views are unfit”.

http://m.scmp.com/news/hong-kong/education-community/article/1984879/mainland-china-ideological-crackdown-hits-hong

Civic Party plans to field at least 10 candidates in Hong Kong Legislative Council elections in September

A decision has yet to be made on whether Ken Tsang should be put forward in the social welfare functional constituency race

KC.NG@SCMP.COM

UPDATED : Sunday, 03 July, 2016, 11:00pm

Audrey Eu unveils the Civic Party’s initial election line-up. Photo: Dickson Lee

The Civic Party plans to field at least 10 candidates in the five geographical constituencies and the legal functional constituency in the coming Legislative Council elections, according to party chairwoman Audrey Eu Yuet-mee.

But it has held back on whether to support member Ken Tsang Kin-chiu, who wants to contest the social welfare functional constituency seat, pending more “assessment of the ever-changing situation”. It has also not yet made up its mind on whether to send a candidate to run for one of five “super seats”, which are returned by voters on a territory-wide basis.

The party passed the recommended lists at an extraordinary general meeting on Sunday.

Five of the six incumbent party legislators will run. Claudia Mo Man-ching and Joshua Li Chun-hei will run in Kowloon West constituency; Dr Kwok Ka-ki will lead Henry Sin Ho-fai in New Territories West, while Alvin Yeung Ngok-kiu will run in New Territories East.

Party leader Alan Leong Kah-kit will run in Kowloon East, with Jeremy Tam Man-ho leading the list.

Party vice-chairwoman Tanya Chan, who was a legislator between 2008 and 2012, will seek a return to Hong Kong Island with Cheng Tat-hung. incumbent Kenneth Chan Ka-lok will not seek another term.

Dennis Kwok Wing-hang will seek another term in the legal functional constituency.

No decision has been made on whether to back Ken Tsang’s bid to win a social welfare seat. Photo: Sam Tsang

Ken Tsang said on Sunday that he was still aiming to run in the social welfare functional constituency and believed he stood a good chance of winning.

“My understanding is that a decision could not be made at the extraordinary general meeting because a plan to coordinate with fellow non-pro-establishment hopefuls intending to run in the functional constituency has fallen flat,” said Tsang.

Reclaiming Social Work Movement’s Shiu Ka-chun and the Hong Kong Social Workers General Union’s Yip Kin-chung have both expressed an interest in the race.

Some pan-democrats wanted to hold a primary election to determine which candidate would run, but a deal could not be struck.

Eu said the party’s executive committee was expected to make a final decision later whether to send a candidate to run in the functional constituency. “The situation is ever changing. We shall assess the latest situation and make a decision as necessary,” she said.

The party is expected to announce its final candidate lists on July 17.

Meanwhile, media tycoon Ricky Wong Wai-kay, who has been considering running in the Hong Kong Island constituency in the September elections, is expected to announce his decision on Monday.

http://m.scmp.com/news/hong-kong/politics/article/1984910/civic-party-plans-field-least-10-candidates-hong-kong

Almost three quarters of Hong Kong’s young people dream of starting a business, but say the obstacles are too great

Funding, competition and rents are holding them back, survey by Youth and Professional Network finds

SHIRLEY.ZHAO@SCMP.COM

UPDATED : Sunday, 03 July, 2016, 11:00pm

Almost three quarters of the city’s young people have dreamed of starting their own business. Photo: SCMP Pictures

Almost three quarters of the city’s young people have dreamed of starting their own business, but a lack of funding, fierce competition and sky-high rents are deterrents, a survey has found.

Researchers at non-governmental group Youth and Professional Network said many creative young people dared not pursue their real dreams because of the difficulties they foresaw.

They said the city’s narrow economic base meant many youngsters worked not to satisfy their interests but for survival, so they tended to feel like they were underachieving.

“Encouraging and assisting young start-ups is the unavoidable responsibility of the government,” the researchers said. “It may even be the key to helping the government gain more trust.”

The survey, conducted between June 10 and July 2 on about 1,000 people aged between 18 and 40 through online questionnaires and street interviews, found that although 71.7 per cent of the respondents had considered starting businesses, 62.9 per cent felt they lacked the funding, 43.4 per cent feared acute competition and 38.2 per cent worried about high rents.

Big companies get a taste of what it's like to run a start-up

When questioned about starting a business on the mainland, 63.2 per cent were concerned about funding, 41.7 per cent worried they did not understand mainland laws, and 38.1 per cent felt they did not have sufficient mainland connections.

The study found 72.2 per cent hoped to obtain financial support if they decided to set up a business, 58.3 per cent said they would need rent remission, while 43.2 per cent hoped to receive advice on starting an enterprise.

Network chairwoman Eunice Yung Hoi-yan said the government needed to work with the private sector to provide more resources for start-ups, but also that there was no lack of support programmes around as long as young people dared to take the first step. She said crowd-funding was also a good avenue for start-ups.

Hong Kong demand for co-sharing office space rises in line with growth of start-ups

Yung called on youngsters not to worry too much about funding and competition.

“We really hope that young people don’t resist new ideas,” Yung said. “They must step up and tell people about their new ideas.”

The survey found 62 per cent of the respondents felt they endured long working hours, 55.3 per cent considered their salaries too low and 52.7 per cent said they felt they were underachieving in their jobs.

http://m.scmp.com/news/hong-kong/economy/article/1984911/almost-three-quarters-hong-kongs-young-people-dream-starting