Opinion | A head-on blow to remind HK residents to develop economy with new mindsets

By Terry Yip Man Pan

2024 is a significant year marking the 10th anniversary of a holistic approach to national security, together with the enactment of Safeguarding National Security Ordinance, well-known as Article 23. In the remarkable year, Xia Baolong, the Director of the Hong Kong and Macao Work Office of the Communist Party of China Central Committee, gave a video address on National Security Education Day, emphasizing the importance of sharpening the city's competitive edges amid the changing landscape.

As Xia Baolong said, Hong Kong has completed Article 23 legislation, a milestone in the implementation of One Country, Two Systems. Security loopholes are plunged, given the comprehensive enhancement of relevant legal systems and enforcement mechanisms. Remember that security is the prerequisite of socio-economic development. Our latest legislation offers an important foundation for subsequent development growth. It is the time to develop the economy and improve people's livelihood.

However, competitions become fierce across the globe, partially due to the increasing complexity of geopolitics. In light of this, Xia listed out seven "signboards in gold" to reassure our confidence. The territory, for instance, is still one of the international centers in finance, trade and shipping. He outlined the five needs for the city's advance from stability to prosperity, including the need to safeguard our security red line, to implement One Country, Two Systems guiding principles, to make good use of advantages, to integrate into the national development and to adapt to new challenges proactively. Hong Kong is still a place to start businesses, make money and realize dreams.

Signboards in gold are not immune to changes. Hong Kong should never use the old mindsets to solve new problems. Xia's keynote speech reminds me of several challenges the city faces.

Let us say, in IPO activities, the funds raised from initial public offerings hit a 20-year low. Lawmakers had complained of the cherry-picking mentality of HKEX in favor of choosing companies with high capitalization. On one hand, HKEX employees can fulfill their business targets easily by listing a few firms. The increase in minimum market capitalization and aggregate profit threshold, on the other hand, has brought unwanted difficulties for small and medium enterprises (SMEs) in recent years. Many SMEs prefer listing in cities like New York and Singapore, owing to unnecessary delays and stringent requirements in Hong Kong.

Besides the worsening IPO situation, the territory also faces the changing consumption habits of mainland visitors. Thanks to the Individual Visit Scheme, the immense waves of tourists facilitate economic recovery after 2003. Yet, similar to IPO, the business environment encounters tremendous changes. Many visitors prefer stunning cultural experiences rather than opportunities to buy luxury products. The days of making quick money are gone.

Xia's video address is a head-on blow to those who are hypnotized by historic times. Maybe HKEX has to relax some of the regulations in balancing the needs of listing and protecting public interests. Perhaps the government needs to elevate the tourism experience to a new level with more cultural activities. In Xia's words, we must dare to do things that have not been done by our predecessors, we have to tackle unanswered questions with new mindsets and innovative solutions. Only by doing so can the city embrace a brighter future with the solid backing of its motherland.

The author is a co-founder of HK Coalition, Deputy Secretary-general of DAB, and Member of the Tuen Mun District Council.

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