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Self-Inflicted Policy Errors Put Hong Kong’s Economy at Risk By Kevin Tsui (February 06, 2020)

February 6, 2020

Should IBM and other international cloud computing enterprises move their Asian businesses away from Hong Kong?

The prolonged US-China trade dispute, coupled with anti-government protests, could trigger an exodus of capital and talent from Hong Kong. Last October, Goldman Sachs estimated that Hong Kong may have lost US$4 billion of capital to Singapore. More recently, the Bank of England claimed that the unrest in Hong Kong has led to as much as US$5 billion of capital outflow from investment funds since April 2019. Given the challenges these outflows create, it is stunning that Hong Kong is actually adding to capital flight with a bizarre policy to undercut one of its real market strengths.

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