Hong Kong Not Over, says CY Leung

Are HK's days over? Leung says it has "irons in the fire"

Former chief executive Leung Chun-ying wants to have a chat with former Morgan Stanley Asia Head Stephen Roach to tell him Hong Kong's still got its mojo.

Last week Roach wrote in the Financial Times that China must fix its economy and allow Hong Kong to run itself if it wants the financial hub to have a better future.

"The most important thing Beijing can do is, number one, fix its own system," said Roach, a senior lecturer at Yale University.

Roach says Beijing needs to leave HK alone

"Beijing also needs to be more aggressive and transparent underscoring its commitment to the 'one country, two systems' model."

In his column he said Hong Kong's embattled stock market was a sign of the end of the city's economic success over the past 20 years, and Beijing's grip on the former British colony and China-US tensions made the case that it is fast declining.

"It pains me to admit it, but Hong Kong is now over," he wrote. "A city I once called home and have cherished as a bastion of dynamism has had the world's worst-performing major stock market over the past quarter of a century."

Leung has the opposite view.

"I think it's out of date and also out of touch. I'd very much like to sit down with him and have a conversation with him as to the new irons in the fire that Hong Kong has," Leung told RTHK.

Leung says HK can build marine insurance sector

"There are so many new economic sectors and sub-sectors that I personally have identified running around in the mainland of China in the past six years," he said. "What about maritime insurance? China is a major shipbuilding and maritime nation in the world nowadays. And Hong Kong is the most competitive international financial centre of China."

Is this one of the "hot irons" Leung is referring to?

He said the English language, fully convertible Hong Kong dollar, the legal profession and independent judicial system can help build a robust maritime insurance sector.

And? What of the other irons?

He also pointed to the audit business.

"In the high quality development of the country, many manufacturers and exporters need third party, independent, standard, and testing and certification services. And Hong Kong is very good at this. Hong Kong has the goodwill, has the credibility, and that's the reason why we have such a thriving audit business," he said.

Right...