No One Makes Money by Betting Against Hong Kong

For the seven million people of Hong Kong, living next to a rising China, this year marks three important anniversaries.  Most commentary focused on the Handover 20 years ago when Hong Kong went from British to Chinese sovereignty.  The other events, the 50th anniversary of pro-communist riots and the 20th anniversary of the Asian financial crisis, provide a deeper picture of Hong Kong’s future challenges and strengths.

Much attention concerned the anniversary of the Handover (or “Return” as the mainlanders call it) marked with the pomp of a royal visit by Chinese President Xi Jinping. President Xi came to celebrate one country-two systems, the formula under which a Chinese Hong Kong governs itself.  With his imperial overtones and military review, Xi hit hard on the one-country side but he said enough about two-systems and the importance of Hong Kong’s “unique strengths” to balance the scales for most.  During my recent visit at the time of the anniversary, many noted his hard line but wrote it off as what was expected.