Hong Kong’s challenges and ambitions positioning itself in times of uncertainty

The Belt and Road Initiative is meant to deliver positive effects stemming from its principles of shared productive GDP growth across all participating countries and brings new business to Chinas capacities to build infrastructure. But operating experience must be largely sourced in. Hong Kong engages for example in an MRT-Academy, Port Management, efficient Airport operations (being one of the cost efficient destinations in Asia), but above and beyond all in Fundraising. The change from Brown to Green economy will require China U$ 1.5trl investment within the current 5 year plan representing U$ 260bln per year. About 60% thereof will have to be raised from the private and about 25% from the institutional sector to compliment AIIB’s and other regional development banks’ capacities. Institutional not yet being common in such fields will require the development of adequate “Green Finance” products and emphasis on FinTech developments suiting projects in China. So Hong Kong aspires to make best use of its privilege to serve Chinas 13th 5-year plan‘s Investment priorities. Fin Tech is considered to be here to stay, as banks are publicly no more trusted by the broad public all over the world.

Asian banks though did outperform the other Territories particularly by less nonperforming loans. But the entering of Giants of the Media Sector as new competitors, puts urgency on common standards although they don’t participate yet in the central standard setting processes resulting in lacking decision making bodies empowered to deliver necessary decisions. This opens a wide level plain field for Hong Kong to provide its legal, commercial and financial expertise in mediating such standards going forward. Since Western Asset Managers have been being circumventing broadly Chinese titles in their portfolios, China is in great favor to delegate Asset Management of future foreign investment funds for China preferably to Hong Kong. Since faithful reliance requires being on equal footing, China doesn’t push itself forward. So Hong Kong recently closed on connecting the Hong Kong with Shenzhen Stock Exchange.

However, Hong Kong lacks sufficient High Value Adding Industry. Unfortunately the political imbroglios in its Environment Bureau sacrificed the Carbotopia™ opportunity to other conflicting interests in favor of uncovered cost overrun socializing non-circular waste remediation economy to the expense of population, although Carbotopia’s financially self-sustainable alternative had been significantly supported by Hong Kong Science Park’s incubator program. Developing the Role Model for a later roll-out over all Belt and Road countries would have a potential of a plant and equipment industry of the size of half a million employees in today’s civil airplane productions’ global scope and a potential for the creation of waste plant operating jobs giving residents across the roll-out territory opportunities towards equality in an order of one million new employments. Since one kilogram Carbon Recycled by Carbtopia™ can substitute two liters of crude oil in refining new Hydrocarbons its operations break even at arms’ length priced petrochemicals’ output products starting from U$ 30 per barrel upwards.

Nevertheless since 2015 Hong Kong policy agenda holds Innovation and Technology out to become its future growth drivers. For that Hong Kong also entered a strategic partnership with the Massachusetts Institute of Technology. And in that spirit the Hong Kong-Shenzhen Innovation Park at the border to Shenzhen was initiated. Even an Infrastructure Development Facilitation Authority was installed recently, hopefully giving Carbotopia™ a second chance of entry? Alternatively we would have to try our luck in China directly although Hong Kong might demonstrate its facilitator role particularly well for the case of Carbotopia™. Following the motto of PWC, knowledge provider and sponsor to this year’s 10th AFF enticing for “Growth through disruption” – why not also in Waste Management?

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