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While Hong Kong was comparatively less stable in the latter half of 2019, its political outlook is now experiencing more stability when comparing the situation to a few months ago. The local environment has calmed substantially since the government backed down from its controversial extradition bill and pro-democrat parties have claimed a crushing victory in the recent district council elections. At any case, regardless of the situation in the streets, from an economic point of view, Hong Kong remains one of or maybe the best platform for investment in Asia and certainly the most sensible one if the end goal of the investment is mainland China.
Investors should not overlook the fact that Hong Kong still retains its renowned status as an international financial centre, thanks to its strict adherence to the rule of law, independent judiciary system, and simple taxation benefits, which are unshaken by the recent turmoil. Moreover, Hong Kong’s cultural similarity to the western world and respect for pluralistic cultures remains a key attraction for foreign expatriates, who continue to seek Hong Kong as an attractive destination for investment and professional growth.
Still in this regard, its important to raise awareness to the fact that getting a job in Hong Kong remains relatively simple for both locals and foreigners alike, with the current unemployment rate being 3,20%. The average rate since 1981 is 3,30%, according to the official statistics.
In fact, Hong Kong’s corporate law also builds on the foundation for the practice of a free market and competitive economy. With the enforcement of corporate law, the court system ensures the implementation of contracts, as well as effective and swift resolution of disputes. In addition to this there are minimal legal procedures to register a company or to set up a business; Factors which contribute to the fact of Hong Kong remaining one of the top destinations in the world for foreign investment.
As the government tries to clamp down on the protests, it is still hard to fully predict what will happen within the near future. However, the history of Hong Kong has always shown that despite historical and political tensions, prosperity and reason always prevail.
The things that have made Hong Kong rich and ahead of its time, will continue to exist, as it is within every stakeholder´s interest to avoid further conflict and ensure that Hong Kong continues to be the gateway of foreign investment to China and Southeast Asia that it has always been and surely will always be.
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