Reuters: The CCP Colonization of Hong Kong’s Economy

• published: 03 Jan 2015
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Follow us on TWITTER: http://twitter.com/cnforbiddennews Like us on FACEBOOK: http://www.facebook.com/chinaforbiddennews British Reuters published a Special Report on Dec. 31, 2014 which says although the Chinese Communist Party (CCP) can’t politically tame Hong Kong, it is tightening control over Hong Kong’s business circle and colonizing the economy. Chinese enterprises are increasing in numbers in many key industries in Hong Kong. The report says one of the most telling signs of change is how much space mainland Chinese companies lease. These companies account for over 50% of new leases signed for offices, which is much higher than the 20% in 2012. Mainland occupancy of 25 key prime office spaces, in the districts of Central, Admiralty, Sheung Wan and Wan Chai increased from 13 percent in 2008 to 21 percent in 2014. Hong Kong’s 88-floor International Finance Centre has a growing number of mainland companies on the list; These include China Development Bank International Holdings Ltd, opened in 2011. It’s an offshore investment firm of China Development Bank. Mainland companies also occupy significant amounts of Hong Kong’s land. The Reuters report says three of the six available plots sold in Kai Tak district went to Chinese firms. Two went to China Overseas Land & Investment, and one went to Poly Property Group. Mainland firms keep on being listed on the Hong Kong stock market. They now account for 54 percent of the companies traded on the Hang Seng Index. Wu Fan, political commentator, “It (CCP) sets the global RMB exchange center in Hong Kong. The CCP recently opened the Shanghai-Hong Kong Stock Connect, connecting Hong Kong’s stock market and mainland Chinese A-shares. What’s its purpose? It’s to control Hong Kong. Hong Kong has been a free market for over 100 years. It has its brand. It’s the biggest stock market in the Far East. [The CCP] wants to take full advantage of it. Lots of foreign investment comes to Hong Kong, and the CCP wants to occupy this platform.” Professor Xie Tian at Business School of University of South Carolina indicated that the CCP tries to control Hong Kong politically through controlling its economy. Professor Xie Tian said, “We have seen that the Chinese companies have had effects on this student movement in Hong Kong. They have supported the anti-umbrella movement people. Chinese holding companies directly threatened students and citizens participating in the umbrella movement. The most direct consequence of Chinese companies in Hong Kong is strangling freedom of Hong Kong people.” The Reuters report says many Hong Kong industries have been dominated by business tycoons for decades, such as Asia's richest man Li Ka-shing, casino tycoon Lui Che Woo, and palm oil tycoon Robert Kuok. But now, these people are witnessing mainland Chinese enterprises invading Hong Kong. Wu Fan, “Why did Li Ka-shing sell his properties in mainland China and his enterprises and properties in Hong Kong? [It’s because] he’s leaving Hong Kong. It means Hong Kong people ruling Hong Kong is just an empty shell. Mainland China has seen over a million immigrants to Hong Kong in the past 17 years, and they are all rich. They slowly take the place of Hong Kong’s original capitalists, and then rule Hong Kong. This is how the CCP controlled Hong Kong in the past for over a decade.” The report also says Beijing has clearly indicated that the key of economic integration is to enhance sovereignty over Hong Kong. Beijing’s goal is to include Hong Kong in the Pearl River Delta Economic Zone. Chinese banks opened nearly 500 branches in Hong Kong, accounting for 40% of all branch banks in Hong Kong. Wu Fan indicated that the purpose of the CCP controlling Hong Kong in all aspects is to prevent Hong Kong from becoming an anti-CCP base. Wu Fan, “In the past 10 years, to control Hong Kong people, mainland China supplies water, electricity, food including fish, meat, eggs, and almost everything for Hong Kong. It has occupied Hong Kong’s retail market, controlling the society. After [the CCP] controlled Hong Kong, it established a Hong Kong, Macau, and Shenzhen economic zone. Hong Kong has lost its features. Freedom and democracy in Hong Kong is gradually fading.” The report says economic integration doesn’t always promote understanding, but sometimes triggers tensions.