Social unrest won’t stop Hong Kong playing a key role in China’s belt and road strategy, say business leaders

The social unrest plaguing Hong Kong will not prevent the city from playing a significant role in China’s development and its plan to grow global trade links, said business leaders at the Belt and Road Summit.

“Hong Kong remains and will continue to play a very unique role in China’s continued development, and also more importantly, in the Belt and Road Initiative [in terms of] our professional services, legal system but also our financial centre,” said Victor Chu, chairman and chief executive of Hong Kong-based private equity and venture capital firm First Eastern Investment Group. He was speaking on a panel at the conference on Wednesday afternoon.

The two-day summit, held against a backdrop of increasingly violent anti-government protests, attracted 5,000 businessmen and professionals from 60 countries across Europe, Asia and Africa. It was jointly organised by the Hong Kong government and the Trade Development Council.

“Although today Hong Kong’s GDP in relation to China’s GDP is minute, we must remember that over the past 40 years, Hong Kong has accounted for more than 40 per cent of the total foreign direct investment coming through or from the city into China,” said Chu.

The unprecedented mass rallies – sparked by a now-abandoned extradition bill – have rocked Hong Kong since early June. Although Chief Executive Carrie Lam announced the formal withdrawal of the bill last Wednesday, the move has led to more scepticism than hope for an end to nearly three months of turmoil.

While some expressed concerns about the impact of the social unrest on the international financial centre, Hong Kong and the “one country, two systems” policy under which it is governed could grow more powerful as a result, said Cheah Cheng Hye, co-chairman of Hong Kong-listed fund management company Value Partners Group, speaking at the same panel session.